OREANDA-NEWS. Integra Group (LSE: INTE) released today its Interim Management Statement and unaudited financial highlights for the three months period ended March 31, 2013. The financial data are based on management assessment only and have not been reviewed by external auditors.

3M 2013 Financial Highlights

· Sales decreased by 3.8% to USD 135.5million (vs. USD 140.8million in 3M 2012)

· Adjusted EBITDA increased by 29.4% to USD 2.2 million (vs. USD 1.7 million in 3M 2012)

Adjusted EBITDA margin was 1.7% (vs. 1.2% in 3M 2012)

· Net cash from operating activities was negative USD 33.8. million (vs. negative USD 11.1 million in 3M 2012)

· Capital expenditures were USD 16.8 million (vs. USD 8.5 million in 3M 2012)

· Net Debt as of June 3, 2013 amounted to USD 179.2 million (vs. USD 164.8million as of December 31, 2012)

3M 2013 Operating Highlights

· 46,000meters drilled (3M 2012: 74,700 meters)

· 26 active drilling rigs (3M 2012: 33 active drilling rigs)

· 765workover operations conducted (3M 2012: 583 workover operations)

· 76 workover crews (3M 2012: 78 workover crews)

· 192 cementing operations (3M 2012: 78 cementing operations)

· 19 cementing fleets (3M 2012: 12 cementing fleets)

· 100 coiled tubing operations (3M 2012: 46 coiled tubing operations)

· 6 coiled tubing units (3M 2012: 4 coiled tubing units)

· 33 wells completed with directional drilling service (3M 2012: 70 wells)

· 18 directional drilling crews (3M 2012: 20 directional drilling crews)

· 164 downhole motors and 0 turbodrills produced (3M 2012: 172 downhole motors and 14 turbodrills produced)

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

“In the first quarter, the profitability of the majority of Integra’s services continued to be under pressure from the challenging operating environment where growth in costs outpaces pricing increase. In this difficult environment we have achieved a marginal increase in both absolute Adjusted EBITDA and respective profitability which was made possible entirely through rigorous control of our corporate overheads. The investment in additional capacity made in 2012 is also paying off through higher volumes of cementing and coiltubing services. Additional unforeseen expenses of approximately USD 5.0 million related to a geological incident in the first quarter have partially offset the growth in our margins.

Our primary focus in the past twelve months has been on the quality and efficiency of our asset base. As part of this effort we have reached an agreement at the end of the first quarter to divest the most mature part of our drilling rig fleet. The proceeds from the transaction will strengthen the overall financial position of the Company. However, this transaction is resulting in a lower 2013 order book compared to 2012.”