Integra Group (LSE: INTE), one of the leading independent providers of diversified oilfield services, released today its Audited Consolidated Financial Statements, prepared in accordance with IFRS, for the year ended December 31, 2011.
Growth in upstream industry investment led to higher demand for well construction services during 2011. Increased energy, fuel and unified social tax costs, together with only limited price increases over the period, led to a decrease in Adjusted EBITDA compared to 2010. Integra Group realized a positive net profit from continuing operations.
Following the approval by Integra Group shareholders on December 5, 2011 of a combination of the seismic businesses of Integra and Geotech, financial results of Integra’s Formation Evaluation segment are classified as results from discontinued operations and excluded from 2011 financial highlights, segment reporting and order book status. A corresponding restatement of historical results is made for comparison purposes.
2011 Financial Highlights
-Sales increased by 7.9% to US$ 615.8 million (vs. US$ 570.7 million in 2010)
-Adjusted EBITDA1 decreased by 15.6% to US$ 78.2 million (vs. US$ 92.6 million in 2010)
Adjusted EBITDA margin decreased to 12.7% (vs. 16.2% in 2010)
-Operating profit decreased by 42.8% to US$ 9.5 million (vs. US$ 16.6 million in 2010)
-Profit for the period from continuing operations increased to US$ 7.9 million (vs. loss of US$ 25.1 million in 2010)
-Net cash generated from operating activities decreased by 53.3% to US$ 24.7 million (vs. US$ 52.9 million in 2010)
-Capital expenditures were US$ 83.2 million (vs. US$ 52.6 million in 2010)
-Net debt as of December 31, 2011 was US$ 181.6 million (vs. US$ 111.7 million as of December 31, 2010)
2011 Operating Highlights
-266 thousand meters drilled (vs. 288 thousand meters during 2010)
-3,711 workover operations conducted (vs. 3,352 workover operations during 2010)
-1,144 cementing operations conducted (vs. 1,103 cementing operations during 2010)
-341 coiled tubing operations conducted (vs. 238 coiled tubing operations during 2010)
-425 wells completed with directional drilling service (vs. 256 wells during 2010)
-476 downhole motors and 66 turbodrills produced (vs. 366 downhole motors and 73 turbodrills produced during 2010)
2012 Order book update
-US$ 646.1 million (RR 20.2 billion) in tenders won and contracts signed for execution in 2012, excluding the order book of discontinued businesses, calculated on April 16, 2012
-of which US$ 476.0 million (RR 14.9 billion) is in signed contracts for 2012
-2012 total order book (contracts signed and tenders won) is 17.9% higher in Ruble terms compared to 2011 order book calculated on April 18, 2011 (adjusted for historic order book of discontinued businesses)
-Our 2012 order book is fully denominated in Rubles
Felix Lubashevsky, Integra Group’s President and Chief Executive Officer, commented:
“In 2011 Integra continued its top line growth triggered by higher volumes of oilfield services activity in our key markets. Rising labour and energy costs at industry level, which the Company was not able to fully pass to its customers through higher product and service pricing, were the primary factors affecting our margins and EBITDA. Despite these cost and pricing pressures Integra had good progress in reducing its overheads, interest cost and becoming profitable at the bottom line.
Strategically, in 2011 Integra completed a series of transactions aimed at streamlining and focusing of our asset portfolio. Our next strategic goals are transitioning towards organic expansion in the Russian market through customer focus, continued quality and process improvement, capacity expansion and upgrade.
In 2012, we see a pickup in demand for well construction services due to the combination of stable oil prices and recent upstream tax changes. We have made good progress with our order book for 2012, while favourable pricing trends should allow us to execute it efficiently.”
The Audited Consolidated Financial Statements, prepared in accordance with IFRS, for the year ended December 31, 2011 can be found under the following link:
For additional discussion and analysis of our financial results for the year ended December 31, 2011, please see our Management’s Discussion and Analysis of Financial Condition and Results of
Operations, which can be found under the following link:
For additional information please see our Corporate Governance Statement under the following link: