OREANDA-NEWS. December 17, 2010. Integra Group (LSE: INTE), a leading FSU-based oilfield services provider, released today its Interim Management Statement and unaudited financial highlights for the nine month period ended September 30, 2010. The financial data is based on management assessment only and has not been reviewed by external auditors.

Results for the first nine months of 2010 demonstrate a year-on-year pickup in revenues driven primarily by higher volumes of offered 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.

Following the divestment of the heavy drilling rig manufacturing business in August 2010, the financial results of the divested business were classified as results from discontinued operations and are excluded from 9M 2010 financial highlights and segment reporting.

9M 2010 Financial Highlights

• Sales increased by 13.3% to USD  616.0 million (vs. USD  543.7 million in 9M 2009)

• Adjusted EBITDA  increased by 25.3% to USD  100.0 million (vs. USD  79.8 million in 9M 2009)

  Adjusted EBITDA margin was 16.2% (vs. 14.7% in 9M 2009)

• Net cash flow provided by operating activities was USD  37.1 million (vs. USD  77.0 million in 9M 2009)

• Capital expenditures were USD  36.3 million (vs. USD  30.2 million in 9M 2009) 

• Net Debt as of December 1, 2010 amounted to USD  116.2 million (vs. USD  175.4 million as of December 31, 2009)

9M 2010 Operating Highlights

• 261,661 meters drilled (vs. 141,000 meters during 9M 2009)

• 2,502 workover operations conducted (vs. 2,877 workover operations during 9M 2009)

• 171 coil tubing operations (vs. 271 operations during 9M 2009)

• 189 wells completed with directional drilling service (vs. 163 wells during 9M 2009)

• 796 cementing operations (vs. 616 operations during 9M 2009)

• 246 downhole motors and 60 turbines produced (vs. 260 downhole motors and 9 turbines produced in 9M 2009)

• 7 cementing units produced (5 cementing units produced in 9M 2009)

• 575,813 seismic shot points made (vs. 601,970 seismic shot points during 9M 2009)

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

“Our third quarter results demonstrate a continued recovery in the Russian OFS industry. We are particularly pleased that our focus on efficiency and business repositioning produced a gradual and sustainable improvement in the overall result. Higher volumes of our operations, improved efficiency and stronger ruble were the main factors contributing to better earnings in 9M 2010 despite the fact that price increases for our services were subdued. We are particularly pleased by the margin improvements in our Drilling, Workover and IPM division following a major overhaul of the management team and business processes there.

Several months ago we have finalized two strategic transactions: joining forces with Schlumberger in a seismic joint venture and divesting our heavy rig manufacturing business. Apart from reinforcing our service and technology portfolio, these transactions provided significant cash inflows, which we decided to return to shareholders in a form of a share buyback and to reduce our debt.

We are now entering into an active stage of contracting for the next year. Although the 2011 order book is far from being complete we see signs of steady growth in demand for our services across the board.”