Welltec Reaches 10 Years of Safe Operations in Alaska, May 2014

Welltec Alaska has achieved an industry record performance that we are extremely proud of: 10 consecutive years with no environmental incidents or personal accidents while working on the North Slope. This milestone has been reached thanks to our competent and dedicated employees who have followed Welltec’s corporate vision and mission for HSE excellence.

CONTACT

VP Marketing
Brian Sidle
bsidle@welltec.com

Through the years Welltec Alaska has continued to set ambitious goals and objectives, improving environmental performance through efficient Waste Management, Maintenance Management and recycling programs. With this commitment, Welltec Alaska has been able to actively reduce pollution from our activities.

Welltec’s successful HSE culture includes providing work free from harm and giving the safety of people and the protection of the environment the highest priority. The Alaska team has demonstrated a commitment to provide a safe and healthy workplace for all our employees and for those we work with. They have encouraged those around them to stop unsafe acts and activities ensuring no incidents or accidents, leading by example and strengthening our HSE organization locally as well as globally.

What characterizes the HSE process at Welltec is the desire to share knowledge across teams, projects and borders and to measure and analyze trends and root causes. This dedicated procedure ensures optimal working conditions and commitment to our safety mantra.

What characterizes the HSE process at Welltec is the desire to share knowledge across teams, projects and borders and to measure and analyze trends and root causes. This dedicated procedure ensures optimal working conditions and commitment to our safety mantra.

While working with operators such as BP, ConocoPhillips, ENI, and Pioneer, this outstanding industry record demonstrates our vision of working safe and focusing on innovations to secure a safer tomorrow.

Numerous field engineers and personnel have been involved in setting this record and we are proud of and thankful to each and every one of them. They have all been dedicated to the strong HSE culture that has been firmly established and followed. It will drive Welltec Alaska to continue their track record of excellent service and HSE performance.

Congratulations!


Interim Report Q1 – 2014

INTERIM REPORT Q1 – 2014

Key highlights
Welltec® delivered a first quarter result with revenue growth aligned to full year expectations, following an uplift in high-complexity work which counteracted the impact of adverse operating conditions in its largest market, Scandinavia. EBITDA was improved by the sales mix and improvements in utilization and operational efficiencies. Accordingly, Welltec® maintains its guidance for 2014.

  • Revenues increased by 6% year on year to USD 80 million with varied regional contributions:
    • In Europe, Middle East, Africa and Russia CIS (EMEAR), revenues increased by 9% to USD 42 million.
    • Revenues in the Americas were flat at USD 27 million.
    • Asia Pacific revenues grew 6% to USD 10 million.
  • Welltec® posted a 31% increase in EBITDA to USD 35 million, representing an EBITDA margin of 44% (36% in Q1 2013).
  • Operating profit (EBIT) increased to USD 17 million (USD 14 million in Q1 2013).
  • Management maintains its expectations on full-year revenues of around USD 340 million (6% growth) with EBITDA of USD 140 million, representing an EBITDA margin of around 42%.

Jørgen Hallundbæk, CEO: “As expected, the first quarter results reflect early progress on some of our key initiatives for the year. Our focus remains to promote well optimization and production with our enabling technologies, allowing our clients to be the best at what they do. In particular, we’ve seen continued adoption of our Milling and Mechanical solutions around the globe in a host of challenging environments. These continue to push the boundaries on what can be done to quickly restore production in a safer, more sustainable way.”

EBITDA-extended_web

Investor conference call

Welltec® will discuss its results during an investor conference call today at 5 pm CET. An accompanying slide presentation is available on the “Investors” section of www.welltec.com under the subheading “Download Center”. The conference call can be accessed by dialing in a few minutes before the start and informing the operator that you are dialing in for Welltec’s investor conference call, conference ID 24351848.

Conference access numbers

Denmark: +45 32 72 80 18
UK: +44 8445 718 957
US: +1 866 682 8490

The call will be webcast simultaneously and available online following today’s live transmission.
For further information, please contact:

Jesper Helmuth Larsen, CFO
Cell: +45 2329 2600

Company Profile

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 the management and development of their assets throughout their life cycle. 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 compared to more conventional methods. The effect is one of maximizing hydrocarbon production and increasing total recovery while minimizing operating downtime.

Our lightweight technology also reduces the risk to personnel and increases many safety aspects of the industry by enabling smaller work crews and minimizing heavy lifting. Furthermore, our technology allows operators to avoid the use of rigs, significantly reducing the industry’s carbon footprint. Our ability to operate in extended reach and horizontal wells allows operators to drill multiple wells from the same topside location, thereby further reducing the environmental footprint.

This is Welltec’s philosophy; to challenge existing conventions and think laterally in order to develop products and services which increase oil and gas recovery while improving the sustainable, economic, environmental and safety aspects of our industry. In practice we develop, test and manufacture state-of-the-art technology to enhance the production and recovery rates for our clients, thereby improving their profitability through a longer term revenue stream, while at the same time improving upon health, safety and environmental attributes.

Our game-changing solutions allow our customers, some of the world’s largest national and independent oil companies, to optimize production through ground-breaking flexible well completion solutions (WCS) and innovative well intervention services (WIS). Our disruptive innovation challenges the conventions, maximizing production, increasing oil recovery and improving well-integrity and safety, with faster and less intrusive solutions in environments that are becoming increasingly complex, remote and hostile.

In an industry characterized by maturing fields and increasing depletion, 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, which are cleaner, safer and more sustainable.

Important Notices

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.


Welltec Wins the ICoTA Intervention Technology Award

For the second, consecutive year Welltec was recognized as the winner of the Intervention and Coiled Tubing Association (ICoTA) Intervention Technology Award. This prestigious award is given to companies that have developed new, innovative technology which provides value to the industry.

The Welltec Lateral Intervention Tool (WLIT), developed in partnership with Saudi Aramco, was the winner this year based on its merits; a new product which aids in reducing risk, helping to increase production, improves safety and minimizes environmental impact.

The WLIT is designed to overcome one of the severe limitations facing the industry today which is the ability to re-enter sidetracks consistently and effectively. What is unique about the WLIT is that it facilitates access to lateral sections by electronically detecting the casing window, determining its orientation, shifting a steerable joint and thereby directing the toolstring or coiled tubing into the lateral.

This controlled access subsequently enables operators to gain information about the reservoir where it was previously not possible. And the toolstring can convey not only itself into the lateral but also 3rd party, mono conductor e-line tools. This opens up the possibility of PLT’s, cement bonds, well integrity, even some open hole logging tools to gain the required information.

In turn, this can lead to increased production by managing the individual laterals, increasing overall reservoir knowledge and gaining the confidence to drill more wells or laterals for improved reservoir and field management.

The WLIT is designed to illuminate the reservoir by increasing access and subsequently knowledge so that the operator can optimize production over the life of the field.


Welltec Receives Best Stand Award at the APPEA

A stand-out stand design and team effort were the winning elements at the Australian Petroleum Production & Exploration Association (APPEA) conference and exhibition where Welltec won “Best Custom Build of the APPEA 2014 Exhibition” award.

The award ceremony took place on April 9th where Welltec’s Team Exhibition Leader, Susan Keegan Elleskov received the award during the closing ceremony attended by the CEO of APPEA and Australasia oil & gas executives.

Welltec’s stand took home the award due to a list of criteria including design and functionality, the level of innovation of the solutions displayed as well as the interaction with visitors.

“We enjoyed a fantastic show thanks in no small part to a great stand design that made it easy to demonstrate and discuss our capabilities. And we experienced an extraordinary attendance and interest in our technologies and service offerings, especially our new Well Cutter” voices Ronan Le Gloahec, Senior Vice President.

APPEA was recently held 7-9 April in Perth. It is the largest annual upstream oil and gas event in the southern hemisphere attracting about 3,500 delegates from more than 30 countries this year.


Raising the Roof! – Welltec expands in Esbjerg

Under a clear, blue sky in Denmark’s energy capital, Esbjerg, Jonny Søtrup, Mayor, officially welcomed Welltec to the city as the roof was raised on our new manufacturing facility.
In addition to the Major, the event was attended by other dignitaries, clients, guests and Welltec employees. In his speech the Major, who also attended the opening of the US Headquarters in Katy, Texas last year, joked that Welltec should make it an annual tradition to open a new facility each year.

Although we are constantly growing and would like to achieve that challenge, Jørgen Hallundbæk, CEO, made no promises in that regard. He did say that “It is a great joy to attend this successful topping-off ceremony today with so many people who are central for our new factory as well as our new product line, which we will be producing here. Just like these new facilities will create a good and secure framework for our technologies, our Welltec Annular Barriers will create greater reliability and safety in the industry.”

“These facilities will increase our manufacturing capacity significantly and ensure we are able to deliver high quality products to the rapidly growing market demand for our completions solutions. The location in Esbjerg allows us to further develop our relations to clients and partners in the North Sea,” Jørgen Hallundbæk concluded.

The 65,000 sq ft manufacturing area will be the home of our Completions Solution offering, which currently includes the Welltec® Annular Barrier (WAB®) for cement assurance and zonal isolation. The facility will also be used as an offshore supply base and a hub for Welltec’s operations in the Danish, German and Dutch parts of the North Sea as well as land-based operations in Central Europe.

Please click here for more information about our completions solutions.


Esso Angola Awards Welltec a Direct Contract for Services in West Africa

Welltec is pleased to announce the award of a three year, direct contract from Esso Exploration Angola (Block 15) Limited (Esso Angola), Operator of Angola Block 15, for the provision of conveyance and well intervention services including clean-out and mechanical manipulation.

Welltec technologies and services increase flexibility and reduce the mobilization time for key intervention operations compared to conventional intervention methods utilizing coiled tubing or jointed pipe. Other benefits include a reduction in the number of lifting operations, personnel and footprint, all contributing to improved risk management; particularly in environmentally sensitive environments.

‘Gbenga Onadeko, Welltec Senior Vice President, Africa explains that “Welltec, a pioneer and market leader of robotic conveyance and intervention technologies, is extremely pleased by this award from Esso Angola. We have provided services to Esso Angola since 2005.”

Welltec is the largest provider of tractor technology for conveyance solutions as well as the foremost provider of milling, clean-out and mechanical solutions globally. These technologies have been successfully developed and applied by Welltec for nearly two decades.


Annual Report 2013

The Board of Directors of Welltec International ApS (“Welltec”) has today approved the Annual Report for 2013.

Key highlights
Welltec® continued on its path of profitable growth and operational cash flow generation in 2013 despite falling short of full year expectations, in a year dominated by corporate development and the necessity to change the organizational structure in order to have a wider impact and better deliver on its mission.

  • Revenues increased by 9% to USD 321 million and all regions contributed to the growth:
    • In Europe, Middle East, Africa and Russia CIS (EMEAR), revenues increased by 11% to USD 170 million
    • Revenues in the Americas rose by 5% to USD 112 million
    • Asia Pacific revenues increased by 10% to USD 40 million
  • Welltec® posted a 3% decrease in EBITDA to USD 135 million, equating to an EBITDA margin of 42% (47% in 2012)
  • Operating profit (EBIT) before special items reduced to USD 72 million (USD 85 million)
  • Net profit was USD 21 million (USD 24 million)
  • Management expects continued growth in revenue in 2014 and an improvement in EBITDA. Revenue is expected to be around USD 340 million (6% growth) with EBITDA of USD 140 million, equating to an EBITDA margin around 42%.

Jørgen Hallundbæk, CEO: “During the past year we took the logical step to change our organizational structure and implement a more decentralized set-up that balances global coordinated management with fast, local decision-making to provide flexibility and strengthen our regional capabilities. The transition has not been without challenges and a continued effort is needed in 2014. However, I remain confident that our efforts in 2014 will pave the way for continued growth. We have remained true to our vision of transforming the oil industry into one that is safer and more sustainable while achieving a higher recovery. The key is how successfully we can implement real shifts in behaviors both from an internal and an external perspective. I believe that a united, refocused organization with a stronger regional presence continued technological leadership and unparalleled service quality, will provide the foundation for further success in the years to come.”

Investor conference call
Welltec® will discuss its results during an investor conference call today at 5 pm CET. An accompanying slide presentation will be available on the “Investor” section of Welltec’s website at www.welltec.com under the subheading “Download Center”.

The teleconference can be accessed by dialing in a few minutes before start and informing the operator that you would like to participate in Welltec’s investor conference call, conference ID 50247624.

The call will also be webcast simultaneously on a listen-only basis. Please log in via the “Investor” section of the website in due time to test your browser. A replay of the webcast will then be available following the transmission.

Conference Call Access Numbers:
Denmark: +45-3272-8018
United Kingdom: +44-8445-718-957
USA: +1-866-682-8490

For further information, please contact:
Jesper Helmuth Larsen, CFO, Cell: +45 2329 2600

Company Profile
Welltec® develops and delivers technology and solutions intended to transform the oil and gas industry. Our game-changing solutions are dedicated to optimizing the management and development of clients’ assets, both in the form of well completion technology and intervention services required to ensure performance and integrity. We operate in all types of onshore and offshore well environments, including the most extreme and hostile, such as deepwater, subsea, extended reach, heavy oil and unconventional gas and oil wells. Our lightweight solutions are based on a vision to improve safety while reducing environmental risks, fuel consumption and carbon footprints.


Welltec Secures Direct Award from Ecopetrol Colombia

Welltec is pleased to announce the award of a direct, four year contract from Ecopetrol Colombia for the supply of Well Tractor conveyance and Well Cutter services. The initial contract value is in excess of five million USD with options to increase as required.

“Ecopetrol (NOC) Colombia is focused on exploration and development of assets in Colombia. Ecopetrol is developing a campaign of drilling horizontal wells in several of its main fields in which the use of tractor technology represented significant savings in rig time and minimized risk by avoiding pipe operations. With the new contract we expect to continue having the benefits of using tractors as well as to introduce the use of non-explosive cutters, particularly due to regulations in Colombia for explosives transportation.” stated Diana Patricia Chaparro Corredor, Leader of Reservoir Optimization Group.

Welltec has been providing Well Tractor conveyance services to Ecopetrol since January 2012, resulting in efficiency gains for Ecopetrol over other conveyance methods. Similar to the previous contract, this nationwide agreement provides conveyance solutions for open hole, cased hole, perforation and production logging services plus innovative, new technology additions such as the Well Cutter for performing mechanical cutting operations.
“This commitment by Ecopetrol in Colombia demonstrates that our disruptive technology is providing value in terms of optimized management of their assets with a minimized risk profile. It is significant that Ecopetrol allowed us to introduce further new technology into the contract in the form of the Well Cutter. This will allow Ecopetrol to realize the same benefits from this innovative tool that our clients are realizing in other parts of the world,” states Carl Strubberg, Welltec Senior Vice President, Americas.

Welltec has consistently performed to meet Ecopetrol’s requirements, reliably delivering high service quality throughout the previous contract. With this new contract, Welltec is committed to furthering value to Ecopetrol, the largest and leading oil company in Columbia.

“Latin America is one of Welltec’s fastest growing areas in the world and Colombia is one of our key markets within this region. This four year commitment from Ecopetrol is an important component of our future growth there,” further explains Carl Strubberg”

Welltec is the world’s leader in providing tractor technology for conveyance solutions as well as the foremost provider of milling, clean-out and mechanical solutions globally. These technologies have been successfully developed and applied by Welltec for nearly two decades, creating a market for workover services accomplished on electric line.


Welltec Employee Receives Medal for Bravery

The day after your wedding is typically not an ordinary day. Add in rescuing someone from a burning car and you definitely have an extraordinary day!

This was what happened to newlywed, Steven Rothenburger, Welltec’s SAGD Service Delivery Coordinator in Canada. Steven was driving when a lady turned onto the road and their vehicles collided head on.

“I could see fire coming out from under her hood before our cars had even stopped. I also saw that no one was getting out of the vehicle. As it turned out, her door had gotten a bit mangled and she couldn’t get it open,” relates Steven. “I managed to open it and saw that she was just sitting there, frozen. By this time the interior of the car was full of smoke and the fire was starting to spread to it. “

Steven quickly rescued the lady from the burning vehicle. Fortunately she hadn’t suffered any injuries apart from the shock. Only a few minutes after Steven and the woman had gotten to safety, the woman’s car had been reduced to nothing. The police and fire department arrived shortly thereafter and took over.

For his heroic actions Steven received ‘The Medal of Bravery’ at an award ceremony at the Fire Chief’s Recognition Luncheon in Calgary, Canada on January 22. At the luncheon, Fire Chief Bruce Burrell told the audience that because of the interventions of the award recipients, emergency crews were able to help the victims. In total, 28 people were honored for various incidents with six receiving ‘The Medal of Bravery.’

“It is an absolute honor to receive this medal, but I really think I just did what anyone else would have done,” said Steven modestly. In reality, because Steven acted quickly, decisively and selflessly he helped save another person’s life.

The woman from the wrecked car is doing fine today and her whole family is of course, extremely thankful for what Steven did. At Welltec we are also immensely proud of Steven’s actions.


World’s First RLWI Crown Plug Pulling with Well Stroker

Adding to the realm of e-line intervention accomplishments done as riserless, light well interventions (RLWI), Welltec has now accomplished the removal of a stuck crown plug with the Well Stroker. This capability provides a huge potential advantage for operators to benefit from RLWI operations versus conventional rigs.

This world’s first operation was performed in the Gulf of Mexico where the upper crown plug had gotten stuck in a subsea well. After two days of slickline jarring attempts the plug would not come free. The Well Stroker was then implemented due to its ability to apply a focused force of up to 60,000 lbs where needed downhole through the use of a bi-directional, hydraulic ram. Once the anchors of the tool had set in the pre-determined location, the Well Stroker applied the required upward force to pull the plug whereupon the entire assembly was effectively retrieved to surface.

This successful operation allowed the remaining well intervention to continue without further non-productive time (NPT). The alternative to the Well Stroker contingency would have been to bring in a workover rig with riser capability, which would have increased the operational costs significantly; however, using Welltec’s e-line solution facilitated the continuation of the RLWI operation with much lower daily costs.

The Well Stroker can be fitted with the Well Key for further mechanical services and combined with a number of other e-line intervention tools. Together they offer a perfect solution for contingency planning on RLWI operations.

You can read more about this operation here (opens as a PDF).