OREANDA-NEWS. May 06, 2010. Integra released FY09 financials. The company’s revenue plunged 42% YoY to USD836m (the consensus forecast was USD 866m). similar to 2008, Integra completed the year with a net loss of - USD 119m (the consensus forecast was - USD 36m only). According to the company’s guidance, in 2010 Integra’s EBITDA could boost YoY, but operating income could reach the same level as in 2007 only in 2012-2013, reported the press-centre of OTKRITIE FC.

View: We explain the company’s revenue drop primarily by weak results in the drilling segment (revenue in the segment plummeted 81% YoY to USD 340m). Nevertheless, the company’s guidance seems quite downbeat. In 2007, the most successful year for Integra, the operating profit amounted to USD 22.4m, and operating margin was only 2%, while Eurasia Drilling Company (Integra’s competitor in drilling segment) was enjoying a 17% operating margin. It could mean that Integra’s 2010-2011 operating profit is likely to be minimal.

Valuation and Action: Integra’s stock trades at a 34% discount to other domestic oilfield service companies on consensus 2010E P/E. We do not have a rating and price target for the stock.