Integra Group Interim Management Statement and Financial Highlights for the 9 months of 2011
Integra Group, one of the leading independent providers of diversified oilfield services, released today its Interim Management Statement and unaudited financial highlights for the nine month period ended September 30, 2011. The financial data are based on management assessment only and have not been reviewed by external auditors.
Growth in upstream industry investment led to higher demand for well construction services during the first nine months of 2011. Increased energy, fuel and unified social tax costs, together with only limited price increases over the period, led to flat Adjusted EBITDA compared to 9M 2010. Quarterly Adjusted EBITDA and margins were up strongly compared to the second quarter. Integra Group realized a positive net profit from continuing operations for the second quarter running.
Following the announcement on November 9, 2011 of a combination of the seismic businesses of Integra and Geotech, and subsequent approval by Integra Group shareholders on December 5, 2011, financial results of Integra’s Formation Evaluation segment are classified as results from discontinued operations and excluded from 9M 2011 financial highlights, segment reporting and order book status.
A corresponding restatement of historical results is made for comparison purposes.
9M 2011 Financial Highlights
– Sales increased by 11.4% to US$ 472.1 million (vs. US$ 423.6 million in 9M 2010)
– Adjusted EBITDA1 increased by 1.2% to US$ 67.4 million (vs. US$ 66.6 million in 9M 2010)
– Adjusted EBITDA margin was 14.3% (vs. 15.7% in 9M 2010)
– Net cash flow provided by operating activities was US$ 7.6 million (vs. US$ 37.1 million in 9M 2010)
– Capital expenditures were US$ 61.0 million (vs. US$ 37.5 million in 9M 2010)
– Net Debt as of December 1, 2011 amounted to US$ 205.3 million (vs. US$ 111.7 million as of December 31, 2010)
9M 2011 Operating Highlights
– 195,938 meters drilled (vs. 261,661 meters during 9M 2010)
– 2,783 workover operations conducted (vs. 2,502 workover operations during 9M 2010)
– 240 coiled tubing operations (vs. 171 operations during 9M 2010)
– 333 wells drilled with application of directional drilling services (vs. 189 wells during 9M 2010)
– 889 cementing operations (vs. 796 operations during 9M 2010)
– 349 downhole motors and 55 turbodrills produced (vs. 246 downhole motors and 60 turbo drills produced in 9M 2010)
Antonio Campo, Chief Executive Officer of Integra Group, commented:
“Integra’s third quarter results reflect sustained and encouraging growth in oilfield services activity. Despite rising labour and energy costs at industry level, coupled with service and product pricing that remains modest, we demonstrated strong quarterly growth in margins and EBITDA. And we delivered positive net income from continuing operations for the second quarter running. We expect cost and pricing factors seen in 9M 2011 to continue to influence fourth quarter results.
Looking ahead, intensive contracting activity already suggests an increase in asset utilization for 2012, particularly in drilling. Integration of SIAM within our Technology Services segment is underway and presenting new opportunities across the Company. In recent months we have launched or completed deals that will reshape the future of Integra as a
streamlined, focused and increasingly integrated oilfield services provider, well positioned for a tangibly strengthening market.”
