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.