Company announcement no. 12/2013
November 21 2013
Over the last twelve months Welltec’s revenues have increased by 19% and its EBITDA by 7%. Growth in the third quarter was reduced although activity levels continued to grow strongly, with revenues impacted by changing sales mix both geographically and in service solution. EBITDA was impacted by the lower gross margin, but supported by continuing improvements in utilization. Accordingly, Welltec® adjusts its forecast for 2013.
Jørgen Hallundbæk, CEO: “For the past year we have been in the process of implementing a more decentralized organizational structure to strengthen our regional capabilities and more effectively capitalize on the opportunities we see with our increased client base. While this transformation seems logical with all the time zones and different countries we work in, it has not been without challenges. Regional differences, lack of sufficient critical mass to support the transition in some areas, as well as organizational alignment challenges, have all prolonged the adaptation process, and this has impeded performance in some areas and with it our guidance. Therefore a continued effort is needed with an even more differentiated approach to secure the transition. I remain confident that in the longer term a stronger regional presence and our superior technological offering will pave the way for our continued growth.”
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 Welltec® 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 Welltec’s control, and which could cause Welltec’s actual results to be materially different from these forward-looking statements. While Welltec® 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 Welltec’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. Welltec® 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.
For further information, please contact:
Jesper Helmuth Larsen, Chief Financial Officer,
mobile: +45 23 29 26 00
Morten Græsbøll Ottesen, Investor Relations Director,
mobile: +45 22 33 73 08