Company announcement no. 5/2013
May 16 2013
Welltec’s revenue growth eased in the first quarter following the exceptional performance in the third and fourth quarters of 2012. EBITDA was reduced due to a combination of lower quarterly revenues and the significant investments in operational capacity in order to deliver the continued growth. As seen in previous quarters, this front-loading of additional costs has a short-term impact on margins and is a consequence of the continued growth cycle. Accordingly, Welltec® upholds its revenue and earnings forecast for the full-year.
Jørgen Hallundbæk, CEO: “During the first quarter we have continued to see many positive developments around the world. In India, our e-line technologies are increasing production without the need for a rig or coiled tubing unit, proving our value proposition in the early stages of our partnerships there. Also in the Middle East, with another successful deployment of our award winning Well CutterTM tool. With the investments made in recent quarters, Welltec® is well positioned to deliver the growth planned for 2013 and beyond.”
Investor conference call
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Welltec®is a leading provider of robotic intervention services and completion solutions to the oil and gas industry. Our pioneering technology enables operators to optimize their use of oil and gas resources throughout the life-cycle of their wells. We address the factors that maximize value creation, continuously innovating to reduce well construction time, speed up access to the hydrocarbons and reduce the capital expenditure burden of more conventional methods. The effect is one of maximizing oil and gas production while minimizing operating down-time.
This is the essence of Welltec’s philosophy; to challenge existing practices and think laterally in order to develop products and services which increase oil and gas recovery while improving the economic, environmental and safety aspects of our industry. In practice we develop, test and manufacture state-of-the art technology to enhance the recovery and production rates for our clients, thereby improving their profitability through a longer term revenue stream.
Our intervention solutions allow our customers, some of the world’s largest national and independent oil companies, to pursue fields that would not otherwise be economically viable. Our lightweight technology delivers more efficient, more effective, more productive and safer interventions in environments that are becoming increasingly complex, remote and hostile.
In an industry characterized by maturing fields and increasing depletion rates, the premium attached to technology which aids in reversing these trends is continuing to gain momentum. Our value proposition is compelling; our technology enables clients to unlock more production from their assets and to address reservoir complexities and uncertainties with a greater number of options.
Any statement in this announcement that is not a historical fact is a “forward-looking statement”. Such statements may include opinions and expectations regarding the Company and its future business, management’s confidence and strategies as well as details of management’s expectations of new and existing programs, technology and market conditions. These forward-looking statements rely on assumptions concerning future events that are subject to a number of risks and uncertainties, many of which are outside the Company’s control, and which could cause the Company’s actual results to be materially different from these forward-looking statements. While the Company believes that its assumptions concerning future events are reasonable, there are inherent difficulties in predicting certain important factors that could impact the future performance or results of the Company’s business. Accordingly, such statements should not be regarded as representations as to whether such anticipated events will occur nor that expected objectives will be achieved. The Company expressly disclaims any intention or obligation to revise or update any forward-looking statements, whether as a result of new information, future events, or otherwise..