OREANDA-NEWS. December 14, 2009. Integra Group (LSE: INTE), a leading FSU-based oilfield service provider and manufacturer of oilfield services equipment, released today its Interim Management Statement and unaudited financial highlights for the nine months period ended 30 September 2009. The financial data is based on management assessment only and has not been reviewed by external auditors.

Although CIS oilfield services (“OFS”) demand stabilized in 9M 2009, in absolute terms it remains below the levels of 9M 2008. The lower volume of contracts signed at the end of 2008 and 1Q 2009 continues to define our operating conditions. Lower demand for exploration and development activities, which affected both the scale of our operations and our pricing, was a key factor affecting our revenues in 9M 2009. The cost-cutting measures which we undertook in 4Q 2008 and throughout this year allowed us to sustain our Adjusted EBITDA margins close to the levels of 9M 2008. 9M 2009 free cash flow generation remained positive which, combined with issue of new equity, allowed for a significant deleveraging of the Group.

9M 2009 Financial Highlights

•    Sales decreased by 46.9% to USD 620.0 million (vs. USD 1,167.0 million in 9M 2008)

•    Adjusted EBITDA1 declined by 53.6% to USD 89.5 million (vs. USD 192.9 million in 9M 2008). Adjusted EBITDA margin was 14.4% (vs. 16.5% in 9M 2008)

•    Net cash flow provided by operating activities was USD 77.0 million (vs. USD 82.2 million in 9M 2008)

•    Capital expenditures for the first nine months of 2009 were USD 28.9 million (vs. USD 126.3 million in 9M 2008)

•    Free cash flow2 was USD 48.1 million (vs. negative USD 44.1 million in 9M 2008)

•    Net proceeds from issue of 38 million GDR’s were USD 88.6 million, USD 66.5 million used to prepay the EBRD facility

•    Net Debt as of December 1, 2009 amounted to USD 206.0 million (vs. USD 335.2 million as of December 31, 2008)

9M 2009 Operating Highlights

•    141,000 meters drilled (vs. 301,000 meters during 9M 2008)

•    2,877 workover operations conducted (vs. 2,542 workover operations during 9M 2008)

•    601,970 seismic shot points made (vs. 704,183 seismic shot points during 9M 2008)

•    260 downhole motors and 9 turbines produced (vs. 716 downhole motors and 46 turbines produced in 9M 2008)

•    7 heavy drilling rigs and 10 heavy drilling rig assembly units in production at the end of 9M 2009 (vs. 20 heavy drilling rigs and 4 heavy drilling rig assembly units in production at the end of 9M 2008)

•    4 new heavy drilling rigs and 6 heavy drilling rig assembly units commissioned (vs. 4 and 14 in 9M 2008)

Antonio Campo, Integra Group’s Chief Executive Officer, commented,

“In the third quarter, we saw a slight pickup in absolute cash earnings and margins across nearly all of our segments. This was a result of positive seasonality, further market stabilization and our ongoing effort to align our capacity and cost base with the current business environment.

We had an exceptionally strong result in our Formation Evaluation segment as we launched our seismic projects for the large international consortia operating in Kazakhstan. Our land drilling margins also improved as we were able to reap the benefits of cost and capacity optimization implemented at the beginning of 2009.

Most of our businesses are in the active stage of contracting for the next year. Although our 2010 order book is far from being complete, we are cautiously optimistic about potential market upturn next year and already see certain areas of growth for a number of our services. Following a successful secondary public offering we believe Integra has the necessary financial flexibility to capture this growth.”

1 Adjusted EBITDA represents profit (loss) before interest income (expense), foreign exchange translation differences, income taxes, depreciation and amortization, goodwill impairment, share-based compensation, share of results in associates and minority interest.

2 Free Cash flow defined as net cash flow provided by operating activities less capital expenditures.