Precision Drilling Trust Fourth-Quarter Profit Rises

Canadian oil and natural gas driller Precision Drilling Trust (PDS Quote) on Monday said its fourth-quarter profit rose 3%, due mainly to lifted customer demand at the start of the quarter, when commodity prices were high, but warned of a weak 2009 and suspended its cash distributions indefinitely.

Quarterly earnings increased to $92.4 million Canadian dollars ($75.8 million), or 71 cents per share (58 cents per share), from CA$89.3 million, or 71 cents per share during the prior-year period.

Net earnings were reduced by income tax expense of CA$10 million ($8.2 million) in the fourth quarter of 2008 as opposed to an income tax benefit of CA$13 million in the last quarter of 2007.

Analysts predicted a profit of US 63 cents per share, on average. Analysts typically exclude one-time items. ...