OREANDA-NEWS. April 14, 2010. Eurasia Drilling Company held a conference call regarding the release of its FY09 IFRS financials. While the company’s 2009 revenue fell 34% YoY to USD 1.7bn and net income dropped 25% to USD 165m, management soothed investors by disclosing upbeat guidance for 2010. The following are the key takeaways from the conference call, reported the press-centre of OTKRITIE FC:

In 2010, the company anticipates revenue of at least USD 1.7bn (+23% YoY); with EBITDA margin rising to 23.5%, and total capex of USD 144m (+16% YoY).

EDC is examining the purchase of smaller drilling companies.

In 1Q10, EDC showed robust drilling volumes and a strongly diversified order book. Disclosure of a full set of operating results is slated for release in mid-May.

View: We believe that the company could post strong operating 2010 results since oil production is recovering, and thus investments in the upstream sector are rebounding. We expect the total market for oilfield services (OFS) to rise by 2-5% YoY in 2010, while Eurasia Drilling is likely to ramp up its drilling volumes by at least 4% YoY to 3.9m meters, surpassing pre-crisis drilling volumes by 2.6%.