Welltec announces payment of interest

31 July 2016
Company announcement no. 7/2016

Welltec announces payment of interest

CONTACT

Michael Krabbe, CFO
+(45)-3034-3000

Pursuant to the Rules and Regulations of the Luxembourg Stock Exchange (edition 2012/07), section 903 and section 904(vi) it is noted that Welltec A/S has paid interest on the bonds per 31 July 2016.

For further information, please contact:
Michael Krabbe, CFO

About Welltec®
Welltec® is a leading provider of well intervention services to the oil and gas industry using robotic technology. We are also expanding into well completion products and solutions. Our services and solutions enhance well production performance and increase the amount of recoverable oil and gas reserves in reservoirs. We provide our services and solutions for onshore and offshore oil and gas wells and operate in deepwater, subsea, Arctic, high-yield, heavy oil, geothermal and unconventional environments as well as conventional environments. We operate in all hydrocarbon producing areas and had in 2015 and average of 894 dedicated employees across 29 countries. For the twelve months ended December 31, 2015, we had revenues and EBITDA of approximately USD 246 million and USD 96 million, respectively.


Withdrawal of Securities from the Luxembourg Stock Exchange, Euro MTF market

19 July 2016
Company announcement no. 6/2016

Withdrawal of Securities from the Luxembourg Stock Exchange, Euro MTF market

CONTACT

Martin Skovbjerg, CLO
+ (45)- 2633-5357

Michael Krabbe, CFO
+(45)-3034-3000

The Board of Directors of Welltec® has decided to commence on the withdrawal of the securities ISIN US950399AA37 & USK9897UAA62 (the “Securities”) from listing at the Luxembourg Stock Exchange, Euro MTF market, given the Securities predominantly are traded over the counter “OTC” via international banks, where liquidity and pricing quotes are available.

The withdrawal will become effective on October 20th 2016, three months following the date of this company announcement, after which the Securities will no longer be eligible for trading on the Euro MTF market. Furthermore, upon the withdrawal becoming effective Welltec® will no longer publish company announcements via the Luxembourg Stock Exchange nor adhere to the reporting requirements governing listed securities.

Finally, Welltec® has consulted Citibank in their capacity as Trustee in order to ensure the request for withdrawal remains in full compliance with prevailing loan documentation, and governing market standards.

For further information, please contact:
Martin Skovbjerg, CLO
Michael Krabbe, CFO

About Welltec®
Welltec® is a leading provider of well intervention services to the oil and gas industry using robotic technology. We are also expanding into well completion products and solutions. Our services and solutions enhance well production performance and increase the amount of recoverable oil and gas reserves in reservoirs. We provide our services and solutions for onshore and offshore oil and gas wells and operate in deepwater, subsea, Arctic, high-yield, heavy oil, geothermal and unconventional environments as well as conventional environments. We operate in all hydrocarbon producing areas and had in 2015 and average of 894 dedicated employees across 29 countries. For the twelve months ended December 31, 2015, we had revenues and EBITDA of approximately USD 246 million and USD 96 million, respectively.


Q1-2016 Interim Report and Investor Conference Call Announcement

19 May 2016
Company announcement no. 5/2016

Q1-2016 Interim Report and Investor Conference Call Announcement

CONTACT

Michael Krabbe, CFO,
Cell: +45 30 34 30 00 or
Simon Stadil, Director, Treasury & Investor Relations,
Cell: +45 52 13 89 44

Welltec® will disclose its interim report for Q1-2016 on Thursday, May 26th, 2016 and will discuss the results during an investor conference call at 5 pm CET.

The conference call will be available for bond holders, prospective investors, broker dealers and securities analysts and can be accessed by dialing in a few minutes before the start and informing the operator that you would like to participate in Welltec’s investor conference call.

Relevant dial-in details and conference ID can be obtained by contacting bkjelmann@welltec.com and registering for the call.

Finally, the Interim report will be made available on the “Investor” section of Welltec’s website at http://www.welltec.com/investors/download-center/

.

For further information, please contact:
Michael Krabbe, CFO or
Simon Stadil, Director, Treasury & Investor Relations

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.


Withdrawal of Moody’s credit ratings

26 April 2016
Company announcement no. 4/2016

Withdrawal of Moody’s services related to Welltec A/S and the 2019 Senior Secured Notes

CONTACT

Michael Krabbe, CFO
+(45)-3034-3000

Welltec A/S (Welltec®) has with immediate effect decided to withdraw and cancel the services from Moody’s Investors Service (Moody’s) in relation to the Welltec B1/Negative corporate family rating and the B1/Negative Senior Secured credit rating related to the 2019 Senior Secured Notes issued by Welltec® in February 2012.

Following the cancellation, Welltec® continues to be rated by Standard & Poor’s Ratings Services.

For further information, please contact:
Michael Krabbe, CFO

About Welltec®
Welltec® is a leading provider of well intervention services to the oil and gas industry using robotic technology. We are also expanding into well completion products and solutions. Our services and solutions enhance well production performance and increase the amount of recoverable oil and gas reserves in reservoirs. We provide our services and solutions for onshore and offshore oil and gas wells and operate in deepwater, subsea, Arctic, high-yield, heavy oil, geothermal and unconventional environments as well as conventional environments. For the twelve months ended December 31, 2015, Welltec reported revenues of USD 246 million.


Annual Report 2015

The Board of Directors of Welltec International ApS (Welltec®) has today approved the Annual Report for 2015.

Key highlights
2015 was a challenging year for Welltec® as the industry downturn affected both activity and revenues amid falling oil prices and deteriorating sector fundamentals.

As a result of the challenging market conditions and continued curency headwinds arising from the USD appreciation, revenues and the EBITDA-margin were reduced to USD 246 million and 39% compared to USD 345 million and 45% in 2014.

The full year result was in line with the full year guidance as the proactive implementation of multiple cost reduction initiatives and the decision to align capacity with demand paved the way for a resilient margin performance throug out the year.

Despite the overall reduction in activity, select regions did experience stable, and in some cases, increased activity underlining the inherent strength of our value proposition and continued focus on meeting client objectives.

CONTACT

Michael Krabbe, Chief Financial Officer,
mobile: +45 30 34 30 00
Simon Stadil, Director, Treasury and Investor Relations,
mobile: +45 52 13 89 44

Outlook
As a result of the volatile market back drop and the challenging industry environment, Welltec® is not able to offer qualified guidance for the full year 2016.

However, Welltec® will continue to evaluate forward looking reference points and commence on outlook guidance once visibility has improved.

Jørgen Hallundbæk, CEO: “2015 proved to be a challenging year for both Welltec® and the broader industry. Like the rest of the industry, Welltec® had to adapt by adjusting our global organization and delivery infrastructure in order to protect our margins and cash flow.

However, 2015 was also a year where our value proposition and industry leading offering proved its relevance as operators had to rethink their operational mindset in order to build sustainable businesses even at the low oil prices recorded.

Intervening for barrels and “doing more with less” by embracing new technology were the overriding themes, and that’s where Welltec® has a role to play as we continue to pioneer new and disruptive technology that allows our clients to extract oil cheaper, faster and in a more sustainable way.”

Investor conference call

Welltec® 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, ID 4739700.

Conference Call Access Numbers:
Denmark: +45 32 71 16 58
UK: +44(0)20 3427 1904
US: +1212 444 0412
The call will be webcast simultaneously and available online following today’s live transmission.

Company Profile

Welltec® is a leading provider of intervention and completion solutions to the oil and gas industry. Our pioneering technology challenges conventions to increase recovery in a safer and more sustainable way, enabling operators to optimize the management and development of their assets throughout the life cycle.

We address the factors that maximize value creation, disruptively innovating to increase reservoir contact over an extended life cycle, in a fraction of the time, energy and logistical effort of the conventional alternatives. The effect is one of increased net present value through higher returns and reduced risks. Our Flex-Well® approach serves to maximize production and increase total recovery while lowering operational and total development costs. Our game-changing solutions extend the productive life of wells and enable clients to pursue fields that would not otherwise be economically viable.

Our unique approach provides for safer operations, removing considerable infrastructure costs and operational effort. Our lightweight technology lowers the complexity and hazard potential of operations, reducing the risk to personnel and allowing smaller work crews, fewer lifts and lighter loads. We reduce dependency on rigs, significantly reducing the industry’s energy consumption and carbon emissions. The ability to operate in extended reach and horizontal wells allows operators to drill multiple wells from the same topside location, thereby further reducing the environmental footprint.

Our technology created the market for robotic well intervention and continued market leadership is the result of constant innovation, rigorous IP protection and a commitment to completely addressing our clients’ challenges. Our completion concept represents the next paradigm shift for the industry, with a simple yet revolutionary approach that allows operators to tap into the full value of their reservoirs at a much lower level of invested capital and with an unprecedented degree of flexibility. The simple application of expandable metallic well annual barriers (WAB®) overcomes the traditional shortfalls of cementing to enable a lower completion as minimal or intricate as the reservoir characterization itself. Fields can be developed and maintained from fewer topside locations and brought on line faster, for longer.

In an industry characterized by maturing fields and increasing depletion, the premium attached to technology which aids in reversing these trends will continue to gain momentum. Our technology safeguards people and returns on investment, enabling clients to unlock more value from their assets and to address reservoir complexities and uncertainties with a greater number of options.

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.


2015 Annual Report and Investor Conference Call announcement

February 17, 2016
Company announcement no. 2/2016

Welltec® will disclose its annual report for 2015 on Thursday, February 25, 2016 and will discuss the results during an investor conference call at 5pm 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 conference call can be accessed by dialing in a few minutes before the start and informing the operator that you would like to participate in Welltec’s investor conference call, conference ID 4739700.

The conference 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 32 71 16 58
United Kingdom:  +44(0)20 3427 1904
USA:  +1212 444 0412

For further information, please contact:
Michael Krabbe
CFO
Cell:  +45 3034 3000

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.


Welltec Announces Payment of Interest

31 January 2016
Company announcement no. 1/2016

Pursuant to the Rules and Regulations of the Luxembourg Stock Exchange (edition 2012/07), section 903 and section 904(vi) it is noted that Welltec A/S has paid interest on the bonds per 31 January 2016.

CONTACT

Michael Krabbe, CFO
+(45)-3034-3000

About Welltec
Welltec is a leading provider of well intervention services to the oil and gas industry using robotic technology. We are also expanding into well completion products and solutions. Our services and solutions enhance well production performance and increase the amount of recoverable oil and gas reserves in reservoirs. We provide our services and solutions for onshore and offshore oil and gas wells and operate in deepwater, subsea, Arctic, high-yield, heavy oil, geothermal and unconventional environments as well as conventional environments. We operate in all hydrocarbon producing areas and had in 2014 and average of 1,013 dedicated employees across 29 countries. For the twelve months ended December 31, 2014, we had revenues and EBITDA of approximately USD 345 million and USD 155 million, respectively.


Interim Report Q3 – 2015

In the third quarter of 2015, Welltec® revenues declined to USD 57 million. The development reflects the prolonged industry downturn as operators continue to adjust their operations in response to the low oil price environment and continued global oversupply of oil, but also currency headwinds arising from the USD appreciation compared to the same period last year.

EBITDA reduced accordingly to USD 22 million with an EBITDAmargin of 39% underpinned by further cost reduction initiatives completed during the third quarter. Furthermore, increased focus on automation and in-sourcing within manufacturing and engineering continue to generate significant cost savings and improve the internal supply chain and global delivery infrastructure.

Net cash flow was lower than previous quarters due to lower operating cash flow and the semi-annual interest payment in July, partly offset by lower capex.

CONTACT

Michael Krabbe, Chief Financial Officer,
Cell: +45 3034 3000
Simon Stadil, Director, Treasury and Investor Relations
Cell: +45 5213 8944

Outlook

As industry fundamentals continued to deteriorate in the third quarter, Welltec® is revisiting the full year revenue guidance to USD 240-245 million and a full year EBITDA-margin around 39%.

Jørgen Hallundbæk, CEO: “The third quarter was yet another difficult quarter as the industry was impacted by volatile oil prices, low rig counts, reduced budget etc. Furthermore, it’s evident that operators are struggling to generate cash flow at current oil price levels due to historical capex commitments, changing activity levels and restrictive dividend policies.

Putting things in perspective, even if the underlying oil price fundamentals would improve near term, current expectations are not that of an immediate recovery. Thus consensus is clear; production optimization of existing assets is the cheapest and fastest way to improving cash flows and returns in a low oil price environment, and ultimately building sustainable businesses.

This is what Welltec is all about!”

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 “Investor” section of Welltec’s website at 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, ID 7081740.

Conference Call Access Numbers:
Denmark: +45 3271 1658
UK: +44 (0)20 3427 1918
US: +1 212 444 0481

The call will be webcast simultaneously and available online following today’s live transmission.

Company Profile

Welltec® is a leading provider of intervention and completion solutions to the oil and gas industry. Our pioneering technology challenges conventions to increase recovery in a safer and more sustainable way, enabling operators to optimize the management and development of their assets throughout the life cycle.

We address the factors that maximize value creation, disruptively innovating to increase reservoir contact over an extended life cycle, in a fraction of the time, energy and logistical effort of the conventional alternatives. The effect is one of increased net present value through higher returns and reduced risks. Our Flex-Well® approach serves to maximize production and increase total recovery while lowering operational and total development costs. Our game-changing solutions extend the productive life of wells and enable clients to pursue fields that would not otherwise be economically viable.

Our unique approach provides for safer operations, removing considerable infrastructure costs and operational effort. Our lightweight technology lowers the complexity and hazard potential of operations, reducing the risk to personnel and allowing smaller work crews, fewer lifts and lighter loads. We reduce dependency on rigs, significantly reducing the industry’s energy consumption and carbon emissions. The ability to operate in extended reach and horizontal wells allows operators to drill multiple wells from the same topside location, thereby further reducing the environmental footprint.

Our technology created the market for robotic well intervention and continued market leadership is the result of constant innovation, rigorous IP protection and a commitment to completely addressing our clients’ challenges. Our completion concept represents the next paradigm shift for the industry, with a simple yet revolutionary approach that allows operators to tap into the full value of their reservoirs at a much lower level of invested capital and with an unprecedented degree of flexibility. As an example, the simple application of expandable metallic well annual barriers (WAB®) overcomes the traditional shortfalls of cementing to enable a lower completion as minimal or intricate as the reservoir characterization itself. Fields can be developed and maintained from fewer topside locations and brought on line faster, for longer.

In an industry characterized by maturing fields and increasing depletion, the premium attached to technology which aids in reversing these trends will continue to gain momentum. Our technology safeguards people and returns on investment, enabling clients to unlock more value from their assets and to address reservoir complexities and uncertainties with a greater number of options.

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.


Q3-2015 Report and Investor Conference Call announcement

Company announcement no.9/2015: Welltec® will disclose its interim quarterly financial report for Q3-2015 on Thursday, November 19, 2015 and will discuss the results during an investor conference call at 5pm CET.

CONTACT

Michael Krabbe, Acting CFO,
Cell: +45 3034 3000
Simon Stadil, Director, Treasury and Investor Relations
Cell: +45 5213 8944

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 conference call can be accessed by dialing in a few minutes before the start and informing the operator that you would like to participate in Welltec’s investor conference call, conference ID 7081740.

The conference 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 3271 1658
United Kingdom: +44(0)20 3427 1918
USA: +1212 444 0481

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.


Interim Report Q2 – 2015

Company announcement no.8/2015:In the second quarter of 2015, Welltec’s revenues stabilized at the first quarter level as industry fundamentals continued to be challenging. The stabilization was driven by growth across select geomarkets coupled with penetration of new clients, partly offset by the negative impact from the continued industry downturn.

EBITDA increased sequentially as a result of proactive decisions to adjust the global organization to the prevailing demand levels. Welltec® continuously aligns its spend in order to ensure margins and cash flow resilience ensuring adequate financial flexibility through challenging times.

In the second quarter, the solid operating cash flow was driven by the sequential margin improvement combined with strict working capital management. Furthermore, balanced investment levels coupled with the disbursement of the EIB loan paved the way for a significant increase in cash and cash equivalents.

CONTACT

Michael Krabbe, Chief Financial Officer,
Cell: +45 3034 3000
Simon Stadil, Director, Treasury and Investor Relations
Cell: +45 5213 8944

Outlook

Despite the continued challenging market backdrop and limited visibility, Welltec® expects stabilization towards the latter part of the year with performance in H2 expected to be around the same level as H1 in terms of revenue and EBITDA margin.

Jørgen Hallundbæk, CEO: “As expected, our second quarter reflects the prevailing industry dynamics as operators continue to adjust their activities amid the industry downturn. The prolonged uncertainty coupled with weak supply and demand fundamentals underpins the importance of promoting production optimization in order to improve corporate cash flows and enhance return on investment. Moreover, the industry needs to adapt to the low oil price environment by rethinking their operational setup and implement new game changing technologies.

We continue to develop and deliver our industry leading technology to our clients, allowing them to reduce capex and cost, without jeopardizing safety. This was demonstrated in the second quarter as we saw clients adopting our complementary completion and intervention technology, benefiting from reduced lifting cost, ultimately improving financial performance in this low oil price environment.”

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 “Investor” section of Welltec’s website at 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, ID 4646971.

Conference Call Access Numbers:
Denmark: +45 3271 1659
United Kingdom: +44 (0)20 3427 1914
USA: +1 646 254 3362

The call will be webcast simultaneously and available online following today’s live transmission.

Company Profile

Welltec® is a leading provider of intervention and completion solutions to the oil and gas industry. Our pioneering technology challenges conventions to increase recovery in a safer and more sustainable way, enabling operators to optimize the management and development of their assets throughout the life cycle.

We address the factors that maximize value creation, disruptively innovating to increase reservoir contact over an extended life cycle, in a fraction of the time, energy and logistical effort of the conventional alternatives. The effect is one of increased net present value through higher returns and reduced risks. Our Flex-Well® approach serves to maximize production and increase total recovery while lowering operational and total development costs. Our game-changing solutions extend the productive life of wells and enable clients to pursue fields that would not otherwise be economically viable.

Our unique approach provides for safer operations, removing considerable infrastructure costs and operational effort. Our lightweight technology lowers the complexity and hazard potential of operations, reducing the risk to personnel and allowing smaller work crews, fewer lifts and lighter loads. We reduce dependency on rigs, significantly reducing the industry’s energy consumption and carbon emissions. The ability to operate in extended reach and horizontal wells allows operators to drill multiple wells from the same topside location, thereby further reducing the environmental footprint.

Our technology created the market for robotic well intervention and continued market leadership is the result of constant innovation, rigorous IP protection and a commitment to completely addressing our clients’ challenges. Our completion concept represents the next paradigm shift for the industry, with a simple yet revolutionary approach that allows operators to tap into the full value of their reservoirs at a much lower level of invested capital and with an unprecedented degree of flexibility. As an example, the simple application of expandable metallic well annual barriers (WAB®) overcomes the traditional shortfalls of cementing to enable a lower completion as minimal or intricate as the reservoir characterization itself. Fields can be developed and maintained from fewer topside locations and brought on line faster, for longer.

In an industry characterized by maturing fields and increasing depletion, the premium attached to technology which aids in reversing these trends will continue to gain momentum. Our technology safeguards people and returns on investment, enabling clients to unlock more value from their assets and to address reservoir complexities and uncertainties with a greater number of options.

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.