Integra Group Reports 3M 2012 Results
OREANDA-NEWS. June 15, 2012. Integra Group (LSE: INTE) released today its Interim Management Statement and unaudited financial highlights for the three months period ended March 31, 2012. The financial data are based on management assessment only and have not been reviewed by external auditors.
Operations of Integra Group’s Formation Evaluation segment were discontinued following a combination of the seismic businesses of Integra, Schlumberger and Geotech and were excluded from 3M 2011 financial results for comparison purposes.
3M 2012 Financial Highlights
• Sales increased by 7.2% to USD 140.8 million (vs. USD 131.4 million in 3M 2011)
• Adjusted EBITDA decreased by 84.7% to USD 1.7 million (vs. USD 11.1 million in 3M 2011)
Adjusted EBITDA margin was 1.2% (vs. 8.4% in 3M 2011)
• Net cash from operating activities was negative USD 11.1 million (vs. negative USD 28.1 million in 3M 2011)
• Capital expenditures were USD 8.5 million (vs. USD 19.7 million in 3M 2011)
• Net Debt as of June 4, 2012 amounted to USD 189.5 million (vs. USD 181.6 million as of December 31, 2011)
3M 2012 Operating Highlights
• 33 active drilling rigs (3M 2011: 19 active drilling rigs)
• 583 workover operations conducted (3M 2011: 669 workover operations)
• 78 workover crews (3M 2011: 73 workover crews)
• 78 cementing operations (3M 2011: 207 cementing operations)
• 12 cementing fleets (3M 2011: 12 cementing fleets)
• 46 coiled tubing operations (3M 2011: 65 coiled tubing operations)
• 4 coiled tubing units (3M 2011: 4 coiled tubing units)
• 70 wells completed with directional drilling service (3M 2011: 75 wells)
• 20 directional drilling crews (3M 2011: 15 directional drilling crews)
• 172 downhole motors and 14 turbodrills produced (3M 2011: 112 downhole motors and 23 turbodrills produced)
Felix Lubashevsky, Integra Group’s President and Chief Executive Officer, commented:
“In the first quarter, we saw a material decline in our quarterly earnings due to two major factors; firstly, continued pressure on industry margins from rising costs coupled with lack of meaningful pricing power and secondly, significant one-time additional expenses associated with still ongoing, complex long-term drilling projects launched in 2011. These additional expenses are estimated in the range of USD 23-25 million in 1H 2012, of which over USD 6 million was recognized in 1Q 2012. We have identified the nature of the incidents causing these additional expenses and are very focused on resolving the issue before the end of 2Q 2012.
We are encouraged by positive trends in our order book and our key objectives for 2012 are further cost optimization, quality improvement, cash conversions and select capacity investment to capture current market growth.”