OREANDA-NEWS. December 14, 2012. Integra Group (LSE: INTE) released today its Interim Management Statement and unaudited financial highlights for the nine months period ended September 30, 2012. The financial data are based on management assessment only and have not been reviewed by external auditors.

Operations of Integra Group’s Formation Evaluation segment were discontinued following a combination of the seismic businesses of Integra, Schlumberger and Geotech and were excluded from 9M 2011 financial results for comparison purposes.

9M 2012 Financial Highlights

· Sales decreased by 2.4% to USD 461.0 million (vs. USD 472.1 million in 9M 2011)

· Adjusted EBITDA [1]24.0 million (vs. USD 67.4 million in 9M 2011) decreased by 64.4% to USD

· Adjusted EBITDA margin decreased to 5.2% (vs. 14.3% in 9M 2011)

· Net cash from operating activities increased to USD 35.8 million (vs. USD 7.6 million in 9M 2011)

· Capital expenditures decreased to USD 40.8 million (vs. USD 61.0 million in 9M 2011)

· Net Debt as of December 10, 2012 amounted to USD 172.7 million (vs. USD 188.8 million as of June 30, 2012)

9M 2012 Operating Highlights

· 211 thousand meters drilled (9M 2011: 196 thousand meters)

· 29 active drilling rigs (9M 2011: 19 active drilling rigs)

· 2,613 workover operations conducted (9M 2011: 2,783 workover operations)

· 79 workover crews (9M 2011: 78 workover crews)

· 461 cementing operations (9M 2011: 889 cementing operations)

· 14 cementing fleets (9M 2011: 14 cementing fleets)

· 213 coiled tubing operations (9M 2011: 240 coiled tubing operations)

· 4 coiled tubing units (9M 2011: 4 coiled tubing units)

· 313 wells completed with directional drilling service (9M 2011: 333 wells)

· 26 directional drilling crews (9M 2011: 24 directional drilling crews)

· 444 downhole motors and 41 turbodrills produced (9M 2011: 349 downhole motors and 55 turbodrills produced)

Felix Lubashevsky, Integra Group’s President and Chief Executive Officer, commented:

“Integra’s third quarter results demonstrated a significant recovery in Adjusted EBITDA margin to 13.6% from just 0.5% in 1H 2012. This was achieved in the absence of material incident related expenses and amidst rigorous cost discipline returning the business to a normalized run-rate profitability. The run-rate profitability of the business continues to be affected by pricing trends which are not sufficient to offset the increase in operating costs resulting in year-on-year margin compression in several services. Operating cash flow improved materially as we continue to focus on cash conversions.

We are encouraged by the early results of our 2013 contracting campaign which reveals a positive outlook for 2013 primarily driven by higher volumes.”