Integra Group Reports 1H 2007 Financial Results
OREANDA-NEWS. Integra Group (LSE:INTE), a leading Russian oilfield service provider, has today released its unaudited Consolidated Financial Statements, prepared in accordance with IFRS, for the six month period ended 30 June 2007.
1H 2007 Financial Highlights
• Sales increased 176.6% to USD 487.9 million (vs. USD 176.4 million in 1H 2006)
• Adjusted EBITDA(1) rose by 204.9% to USD 75.3 million (vs. USD 24.7 million in 1H 2006)
• Adjusted EBITDA margin was 15.4 % (vs. 14.0 % in 1H 2006)
Adjusted EBITDA margin by division was:
• Drilling, workover and IPM division: 15.8 % in 1H 2007 (vs. 14.0 % in 1H 2006)
• Formation evaluation division: 20.6 % in 1H 2007 (vs. 15.1 % in 1H 2006)
• Equipment manufacturing division: 10.5 % in 1H 2007 (vs. 36.5% in 1H 2006 )
• Net loss attributable to the shareholders for the period amounted to USD 50.3 million (vs. net loss
of USD 5.6 million in 1H 2006)
• Net cash flow provided by operating activities was USD 70.7 million (vs. cash flow used in
operating activities of USD 13.5 million in 1H 2006).
• Cash used for capital expenditures during 1H 2007 amounted to USD 70.4 million (vs. US 67.2
million in 1H 2006)
• Gearing(2) was 21.8% at the end of 1H 2007 (vs. 67.9% at the end of 2006)
1H 2007 Operating Highlights
• 216,300 meters drilled (vs. 206,700 meters in 1H 2006)
• 101 wells were completed (vs. 80 wells in 1H 2006)
• 477 workover operations conducted (vs. 474 workover operations in 1H 2006)
• 13,299 km of two-dimensional (2D) seismic surveys carried out (vs. 13,662 km of 2D seismic
surveys in 1H 2006)
• 5,404 sq. km of three-dimensional (3D) seismic surveys carried out (vs. 4,898 sq. km of 3D
seismic surveys in 1H 2006)
• Over 8.8 thousand logging operations conducted (flat compared to 1H 2006)
• Significant increase in the number of heavy drilling rigs in production to 22 rigs (vs. 11 in
production at the end of 2006 and 5 in production at the end of 1H 2006
Felix Lubashevsky, Integra’s Chief Executive Officer, commented,
“Integra demonstrated a solid performance during the first six months of 2007, giving us greater
confidence and visibility of our future growth prospects. We have almost tripled our revenue and EBITDA compared to the first six months of 2006. Approximately two thirds of our incremental EBITDA was due to the acquisitions which we made in 2006. However, we continue to grow our business organically, benefiting from both favorable market conditions and increasing utilisation of our assets. We estimate third of our EBITDA growth to be organic, representing 62% growth in EBITDA year-on-year. Favorable industry trends supported our strategy in terms of continuing our intensive capital expenditure program.
“Having successfully built the critical mass of our business in 2006 via substantial investments in order to exponentially grow our business, our current focus is on the integration of our assets to achieve superior efficiency and enhance our platform for organic growth. We initiated an extensive restructuring process across all our divisions, and are already witnessing the initial results of this work. Naturally, complex restructuring is not a one-day process, and we believe that the financial impact of our restructuring efforts will begin to be visible in our financial results during the second half of 2007 and in 2008.
“We continue to realise our strategy based on a strong combination of organic and non-organic growth, and continue to monitor acquisition opportunities which may be complimentary to our current asset portfolio and would serve to maximize value for our shareholders.”
Alex Polevoy, Integra’s Chief Financial Officer, commented:
“Despite the fact that the first half of 2007 was the first period when the company operated as a unified entity, in addition to the seasonal challenges of our business during the first half of the year, Integra demonstrated strong financial performance at the revenue, EBITDA and operating cash-flow levels.
H1 2007 was a landmark six months with respect to financing. During this period, we completed an IPO on the London Stock Exchange, allowing us to significantly de-leverage the company, thus optimizing our capital structure. Our IPO also allowed us to obtain substantial incremental financial resources to continue to finance our extensive capital expenditures program.
“During 1H 2007, we also continued to be significantly affected by our historical acquisition strategy, and our pre IPO financing, in particular in the areas of interest expense and amortization of intangibles. These factors have been the primary contributors to the company realizing a net loss for 1H 2007.
“We believe that the strong backlog of orders, favorable pricing trends and the seasonality of our business provides a clear path to improve profitability for all of our business lines. We are confident that Integra is well positioned to deliver much stronger semi-annual results during 2H 2007.”
Комментарии