OREANDA-NEWS. June 15, 2010. Integra Group (LSE: INTE), a leading FSU-based oilfield services provider and manufacturer of oilfield services equipment, released its Interim Management Statement and unaudited financial highlights for the three months period ended 31 March 2010. The financial data is based on management assessment only and has not been reviewed by external auditors.

Results for the first three months of 2010 demonstrate a moderate pickup in revenues driven primarily by foreign exchange factors and stabilization of demand for oilfield services. Adjusted EBITDA margin slightly improved due to cost optimization, better product mix and was expectedly affected by seasonality.

3M 2010 Financial Highlights

• Sales increased by 9.7% to USD 209.5 million (vs. USD 191.0 million in 3M 2009)

• Adjusted EBITDA  increased by 18.8% to USD 23.4 million (vs. USD 19.7 million in 3M 2009)

Adjusted EBITDA margin was 11.2% (vs. 10.3% in 3M 2009)

• Net cash flow provided by operating activities was negative USD 15.7 million

 (vs. USD 10.1 million in 3M 2009)

• Capital expenditures were USD 13.5 million (vs. USD 6.9 million in 3M 2009) 

• Free cash flow  was negative USD 29.2 million (vs. USD 3.2 million in 3M 2009)

• Net Debt as of June 1, 2010 amounted to USD 177.5 million

(vs. USD 175.4 million as of December 31, 2009)

3M 2010 Operating Highlights

• 33,300 meters drilled (vs. 35,600 meters during 3M 2009)

• 632 workover operations conducted (vs. 775 workover operations during 3M 2009)

• 368,334 seismic shot points made (vs. 291,343 seismic shot points during 3M 2009)

• 116 downhole motors and no turbines produced (vs. 98 downhole motors and 8 turbines produced in 3M 2009)

• 34 coil tubing operations (vs. 74 operations during 3M 2009)

• 161 cementing operations (vs. 125 operations during 3M 2009)

• 41 wells completed with directional drilling service (vs. 13 wells  during 3M 2009)

• 1 heavy drilling rig and 12 heavy drilling rig assembly units in production at the end of 3M 2010 (vs. 11 heavy drilling rigs and 14 heavy drilling rig assembly units in production at the end of 3M 2009)

• 5 new heavy drilling rigs commissioned (vs. 2 heavy drilling rigs in 3M 2009)

• 4 new cementing complexes produces (no complexes produced in 3M 2009)

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

“In the first quarter, we saw decent year-on-year increases both in revenue and Group’s margin. This is a reflection of better product mix, a stronger Ruble and continued strict cost control. We are particularly pleased by the growth in our Technology Services and Formation Evaluation segments which underlines our strategic focus on the development of the Group’s businesses with higher marginality.

We see continued stabilization in the oilfield services industry, however, some uncertainties, particularly unclear greenfield taxation outlook, cause an overall delay in a full-scale market recovery.”