Interim Report Q3 – 2014

Company announcement no. 10/2014: Welltec® maintained its growth rate in the third quarter of 2014 with the continued uptake of its advanced intervention solutions by major operators around the world. The EBITDA margin remained high and improved on last year, albeit slightly lower following the record second quarter. In absolute terms EBITDA grew 26%. Accordingly, Welltec® adjusts upward its guidance on earnings 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 89 million with varied regional contributions:
    • In Europe, Middle East, Africa and Russia CIS (EMEAR), revenues increased by 29% to USD 50 million
    • Revenues in the Americas grew 8% to USD 32 million
    • Asia Pacific revenues decreased 24% to USD 7 million
  • Welltec® posted a 26% increase in EBITDA to USD 41 million, representing an EBITDA margin of 46% (42% in Q3 2013)
  • Operating profit (EBIT) increased to USD 24 million (USD 14 million in Q3 2013)
  • Management maintains its expectations on full-year revenues to be around USD 350 million (9% growth), but adjusts upward its guidance on EBITDA to USD 155 million, representing an EBITDA margin of around 44%. This compares to earlier expectations on EBITDA of USD 150 million

 

Jørgen Hallundbæk, CEO: “It is pleasing to see a continuation of the growth trend as we continue to evolve as an organization and deliver on our plans and our guidance for the year. This quarter we launched our new transformation center in Esbjerg, home to our revolutionary Flex-Well® completion concept. In what is our 20th year, this marks the start of another paradigm shift for both Welltec® and the industry. Our simple yet game-changing approach to completions provides a step change in recovery, safety and sustainability. Our supply chain is in place and we are developing a pipeline of operational activity for a host of key clients. It will take time, however, as was the case for adoption of our pioneering robotic well intervention services, but the potential benefits are vast.”

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 20547361.
Conference access numbers

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