OREANDA-NEWS. Integra Group (LSE: INTE), one of the leading independent providers of diversified oilfield services, released today its Auditied Consolidated Financial Statements , prepared in accordance with IFRS, for the year ended December 31, 2012.

The Company ended 2012 in line with the expectations set out in the middle of the year. Starting from the third quarter the business returned to its run-rate profitability and 2H2012 margins were up strongly. Despite significant cost savings, overall 2012 profitability was affected by pricing trends that were not sufficient to fully offset the operating cost inflation. In addition, 2012 earnings were disrupted by a total of USD 22.0 million of additional one-time expenses and lost margins related to incidents on complex long-term drilling and workover projects recognized in 1H2012.

In 2012 Integra Group achieved a three-fold improvement in cash flow from operations, generated positive free cash flow and significantly reduced overhead across all business units.

2012 Financial Highlights(1)

Sales increased by 1.2% to USD 623.0 million (vs. USD 615.8 million in 2011)

Adjusted EBITDA(2) from continuing operations decreased by 51.8% to USD 37.7 million (vs. USD 78.2 million in 2011)

Adjusted EBITDA margin decreased to 6.1% (vs. 12.7% in 2011)

Loss for the period from continuing operations amounted to USD 84.6million (vs. profit of USD 7.9 million in 2011)

Net cash generated from operating activities increased by 209.3% to USD 76.4 million

(vs. USD 24.7 million in 2011)

Net debt as of December 31, 2012 was USD 164.8million (vs. USD 181.6 million as of December 31, 2011)

2012 Operating Highlights

276 thousandmeters drilled (vs. 266 thousandmeters during 2011)

27 active drilling rigs (2011: 26 active drilling rigs)

3,555 workover operations conducted (vs. 3,711 workover operations during 2011)

78 workover crews (2011: 77 workover crews)

617cementing operations conducted (vs. 1,144 cementing operations during 2011)

14 cementing fleets (2011: 13 cementing fleets)

328coiled tubing operations conducted (vs. 341 coiled tubing operations during 2011)

4 coiled tubing units (2011: 4 coiled tubing units)

394wells completed with directional drilling service (vs. 425 wells during 2011)

24 directional drilling crews (2011: 26 directional drilling crews)

525downhole motors and 48turbodrills produced (vs. 476 downhole motors and 66 turbodrills produced during 2011)

2013 Order book update

USD 539.4 million (RR 17.2 billion) in tenders won and executed contracts in 2013, calculated on April 16, 2013 at exchange rate of 31.8RR/USD ;

of which USD 465.2 million (RR 14.8 billion) is with respect to executed contracts for 2013;

2013 total order book (executed contracts and tenders won) is 15.2% lower in Ruble terms compared to 2012 order book calculated on April 16, 2012 primarily due to the recent divestment of nine drilling rigs;

Our 2013 order book is denominated in Russian rubles.

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

”We believe we have achieved a turnaround in our performance in 2H2012 through rigorous cost control and several important changes to our business processes. This is evidenced by a significant pickup in margins compared to 1H2012 and strong cash generation.

We have also taken a number of strategic steps aimed at crystallizing value for our shareholders. At the turn of 2012-2013, Integra completed the spin-off of its seismic business and distributed the proceeds to its shareholders in a form of a dividend in specie. We have also completed a transaction in early 2013 that optimized and improved our drilling rig fleet.

Our focus in 2013 remains on quality improvement, select capacity investment and further cost optimization.”