Shares of construction services provider, Layne Christensen Co. (Nasdaq: LAYN) were sharply higher in morning trading on Wednesday, after the company released first quarter results that shattered analysts’ expectations thanks in large part to an 85 percent increase in revenue from the company’s mineral exploration division.

Net income for the first quarter ended April 30 rose to $6.6 million, or 34 cents a share, from $1.0 million, or 5 cents a share, last year. Revenue for the quarter rose 13 percent to $230.7 million.

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Analysts on average expected the company to earn 22 cents, on revenue of $216.9 million, according to Thomson Reuters I/B/E/S.

Earnings before income taxes for Layne Christensen’s mineral exploration division increased 386.0 percent to $8,587,000 for the three months ended April 30, 2010, compared to $1,767,000 for the same period last year. Mineral exploration revenues increased a staggering 85.0 percent to $45,878,000 for the three months ended April 30, 2010, from $24,794,000 for the same period last year.

“The extremely sharp turnaround in our mineral exploration business in North America and Africa produced a strong quarter considering where we were a year ago,” said the company’s president and CEO, Andrew B. Schmitt. “Our water supply project in Afghanistan also was an important contributor to earnings and the rest of the water infrastructure side of our business improved as well. Going forward, the question will be whether a stronger mineral exploration market and, hopefully, some turnaround in the housing and municipal infrastructure markets, can compensate for the reduced earnings as a result of lower current natural gas prices and the New Orleans project that was completed during this quarter.”