Welltec’s revenue growth increased in the second quarter of 2013 and its EBITDA margin returned to expected levels, as the business began to leverage on the significant investments made earlier in the year. Based on the pace of progress and the outlook for the remainder of the year, however, Welltec® adjusts its revenue forecast for 2013.
Revenue increased by 20% year on year to DKK 481 million with all regions continuing to contribute:
In Europe, Middle East, Africa and Russia CIS (EMEAR), revenues increased by 23% to DKK 256 million
Revenues in the Americas rose by 12% to DKK 161 million
Asia Pacific recorded a revenue increase of 35% to DKK 63 million
Welltec® posted a 21% increase in EBITDA to DKK 224 million, equating to an EBITDA margin of 47% (47% in 2012)
Operating profit (EBIT) increased to DKK 140 million (DKK 117 million)
Welltec® adjusts its full-year revenue forecast to a range of DKK 1.9-2.1 billion (12%-24% growth), against earlier expectations of DKK 2.1-2.3 billion, and maintains expectations of an EBITDA margin at or around recent historical levels.
Jørgen Hallundbæk, CEO: “We were pleased to see a return to familiar levels of profitability in the second quarter, although we are yet to see the expected acceleration in growth. The development underlines the importance of continuously improving the ability to realize our plans. While we deliver excellent service quality and uncompromised safety, it is also vital that we continue to execute on a strong opportunity pipeline. This will ensure that we fully utilize our expanded capacity, accelerate growth and capture the considerable potential we see in our markets and with our clients.”
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 5 pm CET start and informing the operator that you are dialing in for Welltec’s investor conference call, conference ID 88510694.
Conference access numbers
Denmark: +45 32 72 80 18
UK: +44 8445 718 957
US: +1 866 682 8490
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.
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