OREANDA-NEWS. September 6, 2010. Integra Group (LSE: INTE), a leading FSU-based onshore oilfield services provider, released today its unaudited Interim Consolidated Financial Statements, prepared in accordance with IFRS, for the six months ended June 30, 2010.

Results for six months of 2010 demonstrate a year-on-year pickup in revenues driven primarily by improving demand for select oilfield services and the strengthening of the ruble against the US dollar. Adjusted EBITDA margin improved due to materially better efficiency of the drilling and IPM services.

In August 2010 Integra Group completed the sale of its heavy drilling rig manufacturing business (ZAO URBO). The financial results, assets and liabilities of ZAO URBO are recognized as held-for-sale in the financial statement for 1H2010 and corresponding restatement of 1H2009 financial statements was made for comparison purposes.

1H 2010 Financial Highlights

• Sales increased by 16.1% to USD 421.3 million (vs. USD 363.0 million in 1H 2009)

• Adjusted EBITDA increased by 27.4% to USD 61.9 million (vs. USD 48.6 million in 1H 2009)

• Adjusted EBITDA margin increased to 14.7% (vs. 13.4% in 1H 2009)

• Operating profit for the period amounted to USD 4.4 (vs. operating loss of USD 8.7 in 1H 2009)

• Net loss for the period (before minority interest) amounted to USD 30.4 million (vs. net loss of USD 22.3 million in 1H 2009)

• Net cash generated from operating activities decreased by 29.9% to USD 34.9 million (vs. USD 49.8 million in 1H 2009)

• Capital expenditures were USD 25.7 million (vs. USD 19.6 million in 1H 2009)

• Net debt as of June 30, 2010 was USD 164.8 million (vs. USD 175.4 million as of December 31, 2009)

1H 2010 Operating Highlights

• 117,028 meters drilled (vs. 88,619 meters during 1H 2009)

• 1,585 workover operations conducted (vs. 1,776 workover operations during 1H 2009)

• 532,505 seismic shot points made (vs. 430,770 seismic shot points during 1H 2009)

• 495 cementing operations conducted (vs. 372 cementing operations during 1H 2009)

• 94 coil tubing operations conducted (vs. 170 coil tubing operations during 1H 2009)

• 120  wells completed with directional drilling service (vs. 71 wells during 1H 2009)

• 164 downhole motors and 28 turbines produced (vs. 217 downhole motors and 24 turbines produced during 1H 2009)

• 6 cementing units produced (vs. 1 cementing unit in 1H 2009)

2010 Order book update

• USD 758.5 million (RR 23,514 million) in tenders won and contracts signed for execution in 2010, excluding the order book of  ZAO URBO

• of which USD 725.5 million (RR 22,490 million) is in signed contracts for 2010

• 2010 total order book (contracts signed and tenders won) is 7% higher in Ruble terms compared to 2009 order book calculated on August 25, 2009 (adjusted for cancelled contracts in 2009, historic order book of ZAO URBO and order book of Integra Trade House which we plan to discontinue)

• 89% of 2010 order book is denominated in Rubles

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

“In 1H 2010 we benefited from a steady recovery in the oilfield services industry and repositioning of our business. Higher volumes of our operations, improved efficiency and stronger ruble were the main factors contributing to improved result year-on-year. Prices for our services are generally flat to slightly higher as areas of overcapacity still exist in some services. In this environment, efficiency is one of our top priorities and we are pleased that our cost control measures allow us to see a continued improvement in margins. We are particularly pleased by profitability trends in our Drilling, Workover and IPM division and the fact that we generated an operating profit for the first time in the past 21 months.

This year we took a number of strategic steps to boost our service and technology portfolio, expand the market presence of our core oilfield services, as well as improve our financial flexibility. These steps included joining forces with Schlumberger in the seismic joint venture, divesting our heavy rig manufacturing business, changing our organizational structure and management to improve efficiency and completing an overhaul of our debt portfolio.

Our outlook for the remainder of the year is moderately positive and we expect the second half of 2010 to be broadly in line with the first half.”