The Board of Directors of Welltec International ApS (“Welltec®”) has today approved the Annual Report for 2014.
Welltec® achieved continued revenue growth and improved earnings in 2014 through the execution of key strategic initiatives planned for the year. Revenues and earnings were in line with full year expectations. Strong activity growth and improvements in the sales mix reflected an increased focus on promoting the strength of our value proposition, although the US dollar appreciation provided a stern headwind. Continued operational success increased activity with our largest clients and underpinned the further expansion of our global footprint.
Michael Krabbe, Acting CFO
Cell: +45 30 34 30 00
Simon Stadil, Director, Treasury and Investor Relations
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- Revenues increased by 7% year on year to USD 345 million with varied regional contributions:
- In Europe, Middle East, Africa and Russia CIS (EMEAR), revenues increased by 13% to USD 191 million
- Revenues in the Americas grew 9% to USD 122 million
- Asia Pacific revenues decreased 19% to USD 32 million
- Welltec® posted a 15% increase in EBITDA to USD 155 million, representing an EBITDA margin of 45% (42% in 2013)
- Operating profit (EBIT) increased by 12% to USD 76 million
- Net profit increased by 3% at USD 21 million
- Due to the current environment and significant market uncertainty looking into the year ahead, Welltec® is not able to offer a qualified guidance for the full year 2015.
Jørgen Hallundbæk, CEO: “2014 marked Welltec’s 20th anniversary and two decades of disruptive innovation that has challenged industry practice and provides the answer to many of the questions it is faced with today. Lower lifting costs, higher recovery and improved safety are not a contradiction but a reality with our technology. We are tried, tested and trusted to increase production from existing wells at a substantially lower cost than conventional methods. Our intervention solutions simply allow our clients to do much more with far less. It was also the year where we really announced our arrival in the completions arena with the launch of our transformation center in Esbjerg and a remarkable industry breakthrough in the first deployment of our WAB® as a cementless primary well barrier. Our completion solution’s capabilities have been accelerating and now allow operators to tap into the full value of their wells through a truly adaptable completion that brings fields online faster, for longer and from fewer topside locations. The prevailing market may or may not act as a catalyst but with the production supply from the majority of wells in continual decline; our Flex-Well® approach is the long term solution.”
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, ID 81527107.
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:
United Kingdom: +44-8445-718-957
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.