OREANDA-NEWS. May 5, 2010. Integra Group (LSE: INTE), a leading oilfield services provider and manufacturer of oilfield services equipment, released its audited Consolidated Financial Statements, prepared in accordance with IFRS, for the year ended December 31, 2009.

Reported results demonstrate a significant reduction in revenues driven by the contraction of demand for oilfield services and a recovery of Adjusted EBITDA margins triggered by major cost optimization measures conducted during the year. Free cash flow generation was strong which allowed for a significant de-leveraging of the company.

2009 Financial Highlights

•    Sales decreased by 42.2% to USD 836.2 million (vs. USD 1,445.9 million in 2008)

•    Adjusted EBITDA1 declined by 32.6% to USD 109.2 million (vs. USD 161.9 million in 2008) •    Adjusted EBITDA margin increased to 13.1% (vs. 11.2% in 2008)

•    Net loss for the period (before minority interest) amounted to USD 118.9 million (vs. net loss of USD 271.9 million in 2008)

•    Net cash generated from operating activities decreased by 12.9% to USD 117.5 million (vs. USD 134.9 million in 2008)

•    Capital expenditures were USD 43.5 million (vs. USD 157.8 million in 2008)

•    Free cash flow was USD 74.0 million (vs. negative USD 22.9 million in 2008)

•    Net debt as of December 31, 2009 was USD 175.4 million (vs. USD 335.2 million as of December 31, 2008)

2009 Operating Highlights

•    176,500 meters drilled (vs. 354,100 meters during 2008)

•    3,763 workover operations conducted (vs. 3,549 workover operations during 2008)

•    694,487 seismic shot points made (vs. 782,350 seismic shot points during 2008)

•    412 downhole motors and 47 turbines produced (vs. 904 downhole motors and 64 turbines produced in 2008)

•    5 heavy drilling rigs and 8 heavy drilling rig assembly units in production at the end of 2009 (vs. 9 heavy drilling rigs and 14 heavy drilling rig assembly units in production at the end of 2008)

•    8 new heavy drilling rigs and 6 heavy drilling rig assembly units commissioned (vs. 14 and 6 in 2008)

•    6 cementing units produced ( vs. 19 cementing units in 2009)

2010 Order book update

•    USD 764.7 million ( RR 23,704 million) in tenders won and contracts signed for execution in 2010

•    of which USD 662.6 million ( RR 20,539 million) is in signed contracts for 2010

•    2010 total order book (contracts signed and tenders won) is 9.4% lower in Ruble terms compared to 2009 orderbook calculated on April 21, 2009 and adjusted for cancelled contracts. The decline is largely due to lower volume of orders in Equipment Manufacturing.

•    95% of 2010 order book is denominated in Rubles

Antonio Campo, Integra Group’s Chief Executive Officer, commented,

“For Integra 2009 was a year of transformation. We have made major changes to our cost structure, our product portfolio, our customer mix and our management structure.

Although in absolute terms our business is now smaller in size, we believe we have successfully aligned our capacity with the current market demand which allowed us to improve our EBITDA margins and increase our free cash flow.

Last year we overhauled our balance sheet and today we have a healthy financial standing without liquidity pressure. We have emerged from this challenging year healthier and stronger than before with a robust platform to capture opportunities as they emerge in these recovering markets.”