Integra Group Announced H1 2013 Financial Results
OREANDA-NEWS. Integra Group (LSE: INTE), one of the leading independent providers of diversified oilfield services, released today its unaudited Interim CondensedConsolidated Financial Statements, prepared in accordance with IFRS, for the six months ended June 30, 2013.
1H 2013 Financial Highlights
• Sales decreased by 3.7% to USD 284.2 million (vs. USD 295.0 million in 1H 2012)
• Adjusted EBITDA(1) increased to USD 12.5 million (vs. USD 1.4 million in 1H 2012)
• Adjusted EBITDA margin increased to 4.4% (vs. 0.5% in 1H 2012)
• Selling, general and administrative expenses were reduced by 18.1% to USD 36.3 million (vs. USD 44.3 million in 1H2012)
• Net loss for the period decreased to USD 5.0 million (vs. loss of USD 40.8 million in 1H 2012)
• Operating cash flow before working capital changes increased to USD 12.0 million (vs. USD 0.8 million in 1H 2012)
• Capital expenditures were USD 33.7 million (vs. USD 21.1 million in 1H 2012)
• Net debt as of June 30, 2013 was USD 155.1 million (vs. USD 164.8 million as of December 31, 2012)
1H 2013 Operating Highlights
• 116 thousand meters drilled (vs. 149 thousand meters during 1H 2012)
• 28 active drilling rigs (1H 2012: 31 active drilling rigs)
• 1,639 workover operations conducted (vs. 1,651 workover operations during 1H 2012)
• 78 workover crews (1H 2012: 79 workover crews)
• 513 cementing operations conducted (vs. 232 cementing operations during 1H 2012)
• 23 cementing fleets (1H 2012: 14 cementing fleets)
• 221 coiled tubing operations conducted (vs. 104 coiled tubing operations during 1H 2012)
• 5 coiled tubing units (1H 2012: 4 coiled tubing units)
• 101 wells completed with directional drilling service (vs. 159 wells during 1H 2012)
• 20 directional drilling crews (1H 2012: 24 directional drilling crews)
• 342 downhole motors and 2 turbodrills produced (vs. 330 downhole motors and 30 turbodrills produced during 1H 2012)
2013 Order book update
• USD 580.1 million (RR 18.4 billion) in tenders won and executed contracts in 2013, calculated on August 27, 2013;
• of which USD 540.3 million (RR 17.2 billion) is with respect to executed contracts for 2013, and USD 284.2 is already recognised as 1H 2013 revenue;
• 2013 total order book (executed contracts and tenders won) is 9.0% lower in Ruble terms compared to 2012 order book calculated on August 27, 2012, primarily due to divestments of drilling rigs in 2013;
Felix Lubashevsky, Integra Group's President and Chief Executive Officer, commented:
”In the first six months of 2013, we have achieved a significant recovery in both absolute Adjusted EBITDA and margin compared to 1H 2012. The investment in additional capacity and better cross-selling in Technology Services are now paying off through higher volumes and revenues in several principal product lines. At the same time, the considerable reduction in corporate overheads and focus on quality and efficiency, resulting in lower unforeseen expenses related to geological complications, have provided a foundation for an ongoing improvement in profitability. We are pleased that the steps we took as part of our Corporate Strategy 2012-2015 have led to these initial achievements.
The major event in 1H2013 was the divestment of the most mature division of our drilling fleet located in the Irkutsk region. In the reporting period we have already received the majority of the transaction proceeds which have reduced our net debt and have provided us with options to further strengthen the overall financial position of the Company.”
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