INTERIM REPORT Q1 – 2014
Welltec® delivered a first quarter result with revenue growth aligned to full year expectations, following an uplift in high-complexity work which counteracted the impact of adverse operating conditions in its largest market, Scandinavia. EBITDA was improved by the sales mix and improvements in utilization and operational efficiencies. Accordingly, Welltec® maintains its guidance for 2014.
- Revenues increased by 6% year on year to USD 80 million with varied regional contributions:
- In Europe, Middle East, Africa and Russia CIS (EMEAR), revenues increased by 9% to USD 42 million.
- Revenues in the Americas were flat at USD 27 million.
- Asia Pacific revenues grew 6% to USD 10 million.
- Welltec® posted a 31% increase in EBITDA to USD 35 million, representing an EBITDA margin of 44% (36% in Q1 2013).
- Operating profit (EBIT) increased to USD 17 million (USD 14 million in Q1 2013).
- Management maintains its expectations on full-year revenues of around USD 340 million (6% growth) with EBITDA of USD 140 million, representing an EBITDA margin of around 42%.
Jørgen Hallundbæk, CEO: “As expected, the first quarter results reflect early progress on some of our key initiatives for the year. Our focus remains to promote well optimization and production with our enabling technologies, allowing our clients to be the best at what they do. In particular, we’ve seen continued adoption of our Milling and Mechanical solutions around the globe in a host of challenging environments. These continue to push the boundaries on what can be done to quickly restore production 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 24351848.
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.
For further information, please contact:
Jesper Helmuth Larsen, CFO
Cell: +45 2329 2600
Welltec® is a leading provider of robotic intervention services and completion solutions to the oil and gas industry. Our pioneering technology enables operators to optimize the management and development of their assets throughout their life cycle. We address the factors that maximize value creation, continuously innovating to reduce well construction time, speed up access to the hydrocarbons and reduce the capital expenditure compared to more conventional methods. The effect is one of maximizing hydrocarbon production and increasing total recovery while minimizing operating downtime.
Our lightweight technology also reduces the risk to personnel and increases many safety aspects of the industry by enabling smaller work crews and minimizing heavy lifting. Furthermore, our technology allows operators to avoid the use of rigs, significantly reducing the industry’s carbon footprint. Our 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.
This is Welltec’s philosophy; to challenge existing conventions and think laterally in order to develop products and services which increase oil and gas recovery while improving the sustainable, economic, environmental and safety aspects of our industry. In practice we develop, test and manufacture state-of-the-art technology to enhance the production and recovery rates for our clients, thereby improving their profitability through a longer term revenue stream, while at the same time improving upon health, safety and environmental attributes.
Our game-changing solutions allow our customers, some of the world’s largest national and independent oil companies, to optimize production through ground-breaking flexible well completion solutions (WCS) and innovative well intervention services (WIS). Our disruptive innovation challenges the conventions, maximizing production, increasing oil recovery and improving well-integrity and safety, with faster and less intrusive solutions in environments that are becoming increasingly complex, remote and hostile.
In an industry characterized by maturing fields and increasing depletion, the premium attached to technology which aids in reversing these trends is continuing to gain momentum. Our value proposition is compelling; our technology enables clients to unlock more production from their assets and to address reservoir complexities and uncertainties with a greater number of options, which are cleaner, safer and more sustainable.
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.