Interim Report Q2 – 2014

Company announcement no. 8/2014: Welltec® achieved record levels of revenue and EBITDA in the second quarter of 2014 as it continued to gain traction with its high-value intervention services and deliver on its key initiatives for the year. EBITDA continued to improve through the development in the sales mix, higher levels of utilization and operational efficiencies. Accordingly, Welltec® adjusts upward its guidance for 2014.

CONTACT

Jesper Helmuth Larsen, CFO,
Cell: +45 23 29 26 00
Morten Græsbøll Ottesen, Investor Relations Director
Cell: +45 22 33 73 08

  • Revenues increased by 15% year on year to USD 97 million with varied regional contributions:
    • In Europe, Middle East, Africa and Russia CIS (EMEAR), revenues increased by 23% to USD 55 million.
    • Revenues in the Americas grew 18% to USD 33 million.
    • Asia Pacific revenues decreased 24% to USD 8 million.
  • Welltec® posted a 21% increase in EBITDA to USD 47 million, representing an EBITDA margin of 49% (47% in Q2 2013).
  • Operating profit (EBIT) increased to USD 28 million (USD 25 million in Q2 2013).
  • Management adjusts its full-year revenue forecast to be around USD 350 million (9% growth), with EBITDA of USD 150 million, representing an EBITDA margin of around 44%. This compares to earlier expectations of full-year revenue of around USD 340 million and EBITDA of USD 140 million, with an EBITDA margin of around 42%.

Jørgen Hallundbæk, CEO: “Our results this quarter illustrate how our game-changing solutions continue to help our clients meet their objectives on well optimization and recovery. It also reflects continued progress on the strategic initiatives geared towards enabling the organization to have a wider impact and realize more of the total addressable market. It is satisfying to see double-digit growth again and the transformation work will continue in our quest to help the industry supply the world’s energy in a safer, more sustainable way.”

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 68010099.
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.

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.

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.