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August 29, 2013

Integra Group Reports 1H 2013 Financial Results and Order Book Update

MOSCOW, August 29, 2013 – 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 US$ 284.2 million (vs. US$ 295.0 million in 1H 2012)
·         Adjusted EBITDA(1) increased to US$ 12.5 million (vs. US$ 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 US$36.3 million
 (vs. US$44.3 million in 1H2012)
·         Net loss for the period decreased to US$ 5.0 million (vs. loss of US$ 40.8 million in 1H 2012)
·         Operating cash flow before working capital changes increased to US$ 12.0 million
(vs. US$ 0.8 million in 1H 2012)
·         Capital expenditures were US$33.7  million (vs. US$ 21.1 million in 1H 2012)
·         Net debt as of June 30, 2013 was US$ 155.1 million (vs. US$ 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
·         US$ 580.1 million (RR 18.4 billion) in tenders won and executed contracts in 2013, calculated on August 27, 2013;
·         of which US$ 540.3 million (RR 17.2 billion) is with respect to executed contracts for 2013, and US$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.”
The unaudited Interim Condensed Consolidated Financial Statements, prepared in accordance with IFRS, for the six months ended June 30, 2013 can be found under the following link: 
For additional discussion and analysis of our financial results for the six months ended June 30, 2013, please see our Management's Discussion and Analysis of Financial Condition and Results of Operations, which can be found under the following link: 
Conference Call Dial-In Details
Thursday, August 29, 2013
17:00 Moscow / 14:00 London / 9:00 New York
Integra Group 1H 2013 Results
Conference ID:
UK international tel.:
+44 1452 555 566
USA international tel.:
+1 866 966 9439
There will also be a playback facility available until September 10, 2013. The details are:
UK international tel.:
+44 1452 550 000
USA free tel.:
+1 866 247 4222
Access code:
Integra Group
Andrey Machanskis
Head of Investor Relations
 Tel. +7 495 933 0621
(1) Adjusted EBITDA is calculated as profit (loss) from continuing operations before finance income (expense), exchange gains (losses), current and deferred income taxes, depreciation and amortization, impairment, write-off or disposal of property, plant and equipment or intangible assets, gains (losses) on acquisition and disposal of any interest in the Group’s subsidiaries or associates, impairment of goodwill, share of results in associates, share-based compensation and profit (loss) attributable to non-controlling interest.
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Integra Group. You can identify forward-looking statements by terms such as “expect,” “believe,” “anticipate,” “estimate,” “intend,” “will,” “could,” “may” or “might,” or the negative of such terms or other similar expressions. These statements are only predictions and actual events or results may differ materially. Integra Group does not intend to or undertake any obligation to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in Integra Group’s projections or forward-looking statements, including, among others, general economic and market conditions, Integra Group’s competitive environment, risks associated with operating in Russia, rapid technological and market change, and other factors specifically related to Integra Group and its operations.
This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of Integra Group, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of Integra Group.