Interim Report Q1 – 2014

INTERIM REPORT Q1 – 2014

Key highlights
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.”

EBITDA-extended_web

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.

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.
For further information, please contact:

Jesper Helmuth Larsen, CFO
Cell: +45 2329 2600

Company Profile

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.

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.


Annual Report 2013

The Board of Directors of Welltec International ApS (“Welltec”) has today approved the Annual Report for 2013.

Key highlights
Welltec® continued on its path of profitable growth and operational cash flow generation in 2013 despite falling short of full year expectations, in a year dominated by corporate development and the necessity to change the organizational structure in order to have a wider impact and better deliver on its mission.

  • Revenues increased by 9% to USD 321 million and all regions contributed to the growth:
    • In Europe, Middle East, Africa and Russia CIS (EMEAR), revenues increased by 11% to USD 170 million
    • Revenues in the Americas rose by 5% to USD 112 million
    • Asia Pacific revenues increased by 10% to USD 40 million
  • Welltec® posted a 3% decrease in EBITDA to USD 135 million, equating to an EBITDA margin of 42% (47% in 2012)
  • Operating profit (EBIT) before special items reduced to USD 72 million (USD 85 million)
  • Net profit was USD 21 million (USD 24 million)
  • Management expects continued growth in revenue in 2014 and an improvement in EBITDA. Revenue is expected to be around USD 340 million (6% growth) with EBITDA of USD 140 million, equating to an EBITDA margin around 42%.

Jørgen Hallundbæk, CEO: “During the past year we took the logical step to change our organizational structure and implement a more decentralized set-up that balances global coordinated management with fast, local decision-making to provide flexibility and strengthen our regional capabilities. The transition has not been without challenges and a continued effort is needed in 2014. However, I remain confident that our efforts in 2014 will pave the way for continued growth. We have remained true to our vision of transforming the oil industry into one that is safer and more sustainable while achieving a higher recovery. The key is how successfully we can implement real shifts in behaviors both from an internal and an external perspective. I believe that a united, refocused organization with a stronger regional presence continued technological leadership and unparalleled service quality, will provide the foundation for further success in the years to come.”

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 50247624.

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:
Denmark: +45-3272-8018
United Kingdom: +44-8445-718-957
USA: +1-866-682-8490

For further information, please contact:
Jesper Helmuth Larsen, CFO, Cell: +45 2329 2600

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 Q3-2013

Key highlights
Over the last twelve months Welltec’s revenues have increased by 19% and its EBITDA by 7%. Growth in the third quarter was reduced although activity levels continued to grow strongly, with revenues impacted by changing sales mix both geographically and in service solution. EBITDA was impacted by the lower gross margin, but supported by continuing improvements in utilization. Accordingly, Welltec® adjusts its forecast for 2013.
For the last twelve months to September, revenues grew 19% and EBITDA increased by 7%, with the EBITDA margin at 43%.
In the third quarter, revenues increased by 2% year on year to USD 78 million with varied regional contributions:
In Europe, Middle East, Africa and Russia CIS (EMEAR) revenues increased by 11% to USD 39 million
Revenues in the Americas fell by 4% to USD 30 million
Asia Pacific revenues declined by 12% to USD 9 million
Welltec® posted an EBITDA of USD 33 million in the third quarter, equating to an EBITDA margin of 42%, as compared to USD 37 million (49%) in the third quarter of 2012.
Operating profit (EBIT) was USD 14 million, as compared to USD 22 million in the third quarter of 2012.
In view of the performance in the first nine months and the outlook in the remainder of the year, Welltec® adjusts its guidance. Following the change of functional and reporting currency, management expects revenue to be around USD 330 million (12% growth) with EBITDA of USD 140 million, equating to an EBITDA margin around 43%. Welltec® previously expected revenue to be DKK 1.9-2.1 billion and the EBITDA margin at or around recent historical levels.
Jørgen Hallundbæk, CEO: “For the past year we have been in the process of implementing a more decentralized organizational structure to strengthen our regional capabilities and more effectively capitalize on the opportunities we see with our increased client base. While this transformation seems logical with all the time zones and different countries we work in, it has not been without challenges. Regional differences, lack of sufficient critical mass to support the transition in some areas, as well as organizational alignment challenges, have all prolonged the adaptation process, and this has impeded performance in some areas and with it our guidance. Therefore a continued effort is needed with an even more differentiated approach to secure the transition. I remain confident that in the longer term a stronger regional presence and our superior technological offering will pave the way for our continued growth.”

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 5 pm CET start and informing the operator that you are dialing in for Welltec’s investor conference call, conference ID 93425248.

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

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.

Company Profile
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 their use of oil and gas resources throughout the life-cycle of their wells. 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 burden of more conventional methods. The effect is one of maximizing oil and gas production while minimizing operating down-time.

This is the essence of Welltec’s philosophy; to challenge existing practices and think laterally in order to develop products and services which increase oil and gas recovery while improving the economic, environmental and safety aspects of our industry. In practice we develop, test and manufacture state- of-the- art technology to enhance the recovery and production rates for our clients, thereby improving their profitability through a longer term revenue stream.

Our intervention solutions allow our customers, some of the world’s largest national and independent oil companies, to pursue fields that would not otherwise be economically viable. Our lightweight technology delivers more efficient, more effective, more productive and safer interventions in environments that are becoming increasingly complex, remote and hostile.

In an industry characterized by maturing fields and increasing depletion rates, 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.

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.

For further information, please contact:
Jesper Helmuth Larsen, Chief Financial Officer,
mobile: +45 23 29 26 00

Morten Græsbøll Ottesen, Investor Relations Director,
mobile: +45 22 33 73 08


Welltec® announces closing of DKK 257 million private placement with PFA

Welltec International ApS (Welltec®) has completed a private placement with PFA, Denmark’s largest pensions fund with more than DKK 350 billion under management and administering the pensions of 9,300 corporate and 500,000 individual customers.

Gross proceeds from the private placement amount to DKK 257 million, securing PFA a minor interest in Welltec®. As a result hereof, the shareholders of Welltec International ApS today resolved at an extraordinary general assembly, to increase the share capital of Welltec International ApS with DKK 150,000. The implied valuation of Welltec® cannot be derived from the published information including the number of newly issued shares as details concerning the company’s existing warrant program are not disclosed.

The proceeds strengthen Welltec’s capital structure and can be used for further development of the company’s business within robotic intervention services and completion solutions to the oil and gas industry.

“We are pleased to welcome PFA as an investor in Welltec®, and we look forward to continue our journey of growth with this high-caliber investor onboard. During the last five years, we have doubled our headcount and transformed Welltec® into a truly global company – and we continue our efforts to grow the business in a controlled and professional manner,” says Jørgen Hallundbæk, CEO of Welltec®.

Welltec® has recorded annual double-digit revenue growth for 3 consecutive years and maintained EBITDA margins of 47-53%. The company’s DKK 1.9-2.1 billion revenue guidance for 2013 represents an expected annual growth rate of 12-24%, and its EBITDA margin is expected to be at or around recent historical levels.

“Welltec® is a high-quality company and an exciting investment case with strong growth prospects within the company’s advanced robotic well intervention services and its promising well completions solutions. The company’s pioneering technology has revolutionized its industry, and Welltec® continues to outgrow competition. The recent induction into the Hall of Fame for Danish Exports is another testament to the quality of Welltec’s services and its ability to transform technological expertise into profitable business,” says Jesper Langmack, Managing Director at PFA Asset Management.

For further information:
Jørgen Hallundbæk, Chief Executive Officer, Welltec®
Søren Jørgensen, Chairman of the Board of Directors, Welltec®
Jesper Langmack, Managing Director, PFA Asset Management

Please contact:
Morten Græsbøll Ottesen, Investor Relations Director, Welltec®,
tel.: +45 22 33 73 08

Company Profile
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 their use of oil and gas resources throughout the life-cycle of their wells. 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 burden of more conventional methods. The effect is one of maximizing oil and gas production while minimizing operating down-time.

This is the essence of Welltec’s philosophy; to challenge existing practices and think laterally in order to develop products and services which increase oil and gas recovery while improving the economic, environmental and safety aspects of our industry. In practice we develop, test and manufacture state- of-the- art technology to enhance the recovery and production rates for our clients, thereby improving their profitability through a longer term revenue stream.

Our intervention solutions allow our customers, some of the world’s largest national and independent oil companies, to pursue fields that would not otherwise be economically viable. Our lightweight technology delivers more efficient, more effective, more productive and safer interventions in environments that are becoming increasingly complex, remote and hostile.

In an industry characterized by maturing fields and increasing depletion rates, 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.

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.


Interim Report Q2-2013

Key highlights
Welltec’s revenue growth increased in the second quarter of 2013 and its EBITDA margin returned to expected levels, as the business began to leverage on the significant investments made earlier in the year. Based on the pace of progress and the outlook for the remainder of the year, however, Welltec® adjusts its revenue forecast for 2013.
Revenue increased by 20% year on year to DKK 481 million with all regions continuing to contribute:
In Europe, Middle East, Africa and Russia CIS (EMEAR), revenues increased by 23% to DKK 256 million
Revenues in the Americas rose by 12% to DKK 161 million
Asia Pacific recorded a revenue increase of 35% to DKK 63 million
Welltec® posted a 21% increase in EBITDA to DKK 224 million, equating to an EBITDA margin of 47% (47% in 2012)
Operating profit (EBIT) increased to DKK 140 million (DKK 117 million)
Welltec® adjusts its full-year revenue forecast to a range of DKK 1.9-2.1 billion (12%-24% growth), against earlier expectations of DKK 2.1-2.3 billion, and maintains expectations of an EBITDA margin at or around recent historical levels.
Jørgen Hallundbæk, CEO: “We were pleased to see a return to familiar levels of profitability in the second quarter, although we are yet to see the expected acceleration in growth. The development underlines the importance of continuously improving the ability to realize our plans. While we deliver excellent service quality and uncompromised safety, it is also vital that we continue to execute on a strong opportunity pipeline. This will ensure that we fully utilize our expanded capacity, accelerate growth and capture the considerable potential we see in our markets and with our clients.”

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 5 pm CET start and informing the operator that you are dialing in for Welltec’s investor conference call, conference ID 88510694.

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

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.

Company Profile
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 their use of oil and gas resources throughout the life-cycle of their wells. 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 burden of more conventional methods. The effect is one of maximizing oil and gas production while minimizing operating down-time.

This is the essence of Welltec’s philosophy; to challenge existing practices and think laterally in order to develop products and services which increase oil and gas recovery while improving the economic, environmental and safety aspects of our industry. In practice we develop, test and manufacture state- of-the- art technology to enhance the recovery and production rates for our clients, thereby improving their profitability through a longer term revenue stream.

Our intervention solutions allow our customers, some of the world’s largest national and independent oil companies, to pursue fields that would not otherwise be economically viable. Our lightweight technology delivers more efficient, more effective, more productive and safer interventions in environments that are becoming increasingly complex, remote and hostile.

In an industry characterized by maturing fields and increasing depletion rates, 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.

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.

For further information, please contact:
Jesper Helmuth Larsen, Chief Financial Officer,
mobile: +45 23 29 26 00

Morten Græsbøll Ottesen, Investor Relations Director,
mobile: +45 22 33 73 08


Q2-2013 Report and Investor Conference Call announcement

Welltec® will disclose its interim quarterly financial report for Q2-2013 on Thursday 22 August 2013 and will discuss the results during an investor conference call.

The investor conference call will take place on Thursday 22 August 2013 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 telling the operator that you would like to participate in Welltec’s investor conference call, conference ID 88510694.

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:
Denmark: +45-3272-8018
United Kingdom: +44-8445-718-957
USA: +1-866-682-8490

For further information, please contact:
Jesper Helmuth Larsen, CFO, Cell: +45 2329 2600

Company Profile
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 their use of oil and gas resources throughout the life-cycle of their wells. 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 burden of more conventional methods. The effect is one of maximizing oil and gas production while minimizing operating down-time.

This is the essence of Welltec’s philosophy; to challenge existing practices and think laterally in order to develop products and services which increase oil and gas recovery while improving the economic, environmental and safety aspects of our industry. In practice we develop, test and manufacture state- of-the-art technology to enhance the recovery and production rates for our clients, thereby improving their profitability through a longer term revenue stream.

Our intervention solutions allow our customers, some of the world’s largest national and independent oil companies, to pursue fields that would not otherwise be economically viable.

Our lightweight technology delivers more efficient, more effective, more productive and safer interventions in environments that are becoming increasingly complex, remote and hostile.

In an industry characterized by maturing fields and increasing depletion rates, 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.


Interim Report Q1 – 2013

INTERIM REPORT Q1 – 2013

Welltec’s revenue growth eased in the first quarter following the exceptional performance in the third and fourth quarters of 2012. EBITDA was reduced due to a combination of lower quarterly revenues and the significant investments in operational capacity in order to deliver the continued growth. As seen in previous quarters, this front-loading of additional costs has a short-term impact on margins and is a consequence of the continued growth cycle. Accordingly, Welltec® upholds its revenue and earnings forecast for the full-year.
Revenue increased by 18% year on year to DKK 428 million with all regions again contributing:
In Europe, Middle East, Africa and Russia CIS (EMEAR), revenues increased by 12% to DKK 220 million
Revenues in the Americas rose by 18% to DKK 152 million
Asia Pacific recorded a revenue increase of 46% to DKK 56 million
Welltec® posted an 11% decrease in EBITDA to DKK 154 million, equating to an EBITDA margin of 36% (48% in 2012)
Operating profit (EBIT) decreased to DKK 79 million (DKK 108 million)
Welltec® maintains its full-year revenue forecast in the range of DKK 2.1-2.3 billion (24%-35% growth) and holds expectations of an EBITDA margin at or around recent historic levels.
Jørgen Hallundbæk, CEO: “During the first quarter we have continued to see many positive developments around the world. In India, our e-line technologies are increasing production without the need for a rig or coiled tubing unit, proving our value proposition in the early stages of our partnerships there. Also in the Middle East, with another successful deployment of our award winning Well CutterTM tool. With the investments made in recent quarters, Welltec® is well positioned to deliver the growth planned for 2013 and beyond.”

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”. A Danish version of these key highlights can also be downloaded. The conference call can be accessed by dialling in a few minutes before the 5 pm CET start and informing the operator that you are dialling in for Welltec’s investor conference call, conference ID 53914435.

Conference access numbers
Denmark: +45 32 72 80 18
UK: +44 8445 718 957
US: +1 866 682 8490
The presentation and a web-cast recording of the investor conference call will be available online following today’s live transmission.

For further information, please contact:
Jesper Helmuth Larsen, Chief Financial Officer, mobile: +45 23 29 26 00
Morten Græsbøll Ottesen, Investor Relations Director, mobile: +45 22 33 73 08

Company Profile
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 their use of oil and gas resources throughout the life-cycle of their wells. 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 burden of more conventional methods. The effect is one of maximizing oil and gas production while minimizing operating down-time.

This is the essence of Welltec’s philosophy; to challenge existing practices and think laterally in order to develop products and services which increase oil and gas recovery while improving the economic, environmental and safety aspects of our industry. In practice we develop, test and manufacture state-of-the art technology to enhance the recovery and production rates for our clients, thereby improving their profitability through a longer term revenue stream.

Our intervention solutions allow our customers, some of the world’s largest national and independent oil companies, to pursue fields that would not otherwise be economically viable. Our lightweight technology delivers more efficient, more effective, more productive and safer interventions in environments that are becoming increasingly complex, remote and hostile.

In an industry characterized by maturing fields and increasing depletion rates, 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.

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 the Company 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 the Company’s control, and which could cause the Company’s actual results to be materially different from these forward-looking statements. While the Company 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 the Company’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. The Company 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..


Q1-2013 Report and Investor Conference Call announcement.

Welltec will disclose its interim quarterly financial report for Q1-2013 on Thursday 16 May 2013 and will discuss the results during an investor conference call.

The investor conference call will take place on Thursday 16 May 2013 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 Centre” before the teleconference.

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, conference ID 53914435.

Conference Call Access Numbers:
Denmark: +45-32728018
United Kingdom: +44-8445-718-957
USA: +1-866-682-8490

For further information, please contact:
Jesper Helmuth Larsen, CFO, Cell: +45 2329 2600

Company Profile
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 their use of oil and gas resources throughout the life-cycle of their wells. 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 burden of more conventional methods. The effect is one of maximizing oil and gas production while minimizing operating down-time.

This is the essence of Welltec’s philosophy; to challenge existing practices and think laterally in order to develop products and services which increase oil and gas recovery while improving the economic, environmental and safety aspects of our industry. In practice we develop, test and manufacture state- of-the-art technology to enhance the recovery and production rates for our clients, thereby improving their profitability through a longer term revenue stream.

Our intervention solutions allow our customers, some of the world’s largest national and independent oil companies, to pursue fields that would not otherwise be economically viable.
Our lightweight technology delivers more efficient, more effective, more productive and safer interventions in environments that are becoming increasingly complex, remote and hostile.

In an industry characterized by maturing fields and increasing depletion rates, 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.


Annual Report 2012

The Board of Directors of Welltec International ApS (“Welltec”) has today approved the annual report for 2012.

Key Highlights
Welltec® delivered a strong financial performance in 2012, combining accelerated growth with high profitability and solid cash generation. The results are higher than anticipated in the outlook provided in the Annual Report 2011 and in line with the guidance presented in Welltec’s interim report for the third quarter.

Revenues increased by 39% to DKK 1,701 million and all regions continued to contribute:
Revenue in Europe, Middle East, Africa and Russia/CIS (EMEAR) increased by 32% to DKK 875 million
In the Americas, revenues rose by 36% to DKK 618 million
Asia Pacific recorded a revenue increase of 97% to DKK 208 million
Welltec® posted a 35% increase in EBITDA to DKK 802 million equating to an EBITDA margin of 47% (49% in 2011)
Operating profit (EBIT) increased by 62% to DKK 492 million
Welltec® net profit increased by 44% to DKK 129 million
Management expects continued growth in revenue and EBITDA in 2013. Revenue is expected to be in the range of DKK 2.1 billion to 2.3 billion (24 – 35% growth) with an EBITDA margin expected to be at or around recent historic levels.
Jørgen Hallundbæk, CEO: “2012 was another great year of achievements at Welltec®. We continued our growth journey while managing to uphold strong levels of profitability and deliver superior services at the highest possible technological standard. Our success is testament to the fact that Welltec’s solutions consistently enable our customers to extract significant value beyond cost. And following our strong operational and financial performance, we will continue our work to take Welltec® to the next level in 2013.”

The annual report is available on the “Investors” section of Welltec’s website at www.welltec.com under the subheading “Download Center”.

Investor conference call
Welltec® will discuss its results during an investor conference call today at 5 pm CET. An accompanying slide presentation is also available on the “Investors” section of www.welltec.com under the subheading “Download Center”. The conference call can be accessed by dialling in a few minutes before the 5 pm CET start and informing the operator that you are dialling in for Welltec’s investor conference call, conference ID 86717268.

Conference Call Access Numbers:
Denmark: +45-32728018
United Kingdom: +44-8445-718-957
USA: toll free +1-866-682-8490

For further information, please contact:
Jesper Helmuth Larsen, Chief Financial Officer, mobile:+45 23 29 26 00
Morten Græsbøll Ottesen, Investor Relations Director, mobile: +45 22 33 73 08

Company Profile
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 their use of oil and gas resources throughout the life-cycle of their wells. 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 burden of more conventional methods. The effect is one of maximizing oil and gas production while minimizing operating time.

This is the essence of Welltec’s philosophy; to challenge existing practices and think laterally in order to develop products and services which increase oil and gas recovery while improving the economic, environmental and safety aspects of our industry. In practice we develop, test and manufacture state- of-the-art technology to enhance the recovery and production rates for our clients, thereby improving their profitability through a longer term revenue stream.

Our intervention solutions allow our customers, some of the world’s largest national and independent oil companies, to pursue fields that would not otherwise be economically viable.
Our lightweight technology delivers more efficient, more effective, more productive and safer interventions in environments that are becoming increasingly complex, remote and hostile.

In an industry characterized by maturing fields and increasing depletion rates, 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.

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 the Company 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 the Company’s control, and which could cause the Company’s actual results to be materially different from these forward-looking statements. While the Company 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 the Company’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. The Company 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.


Welltec announces payment of interest January 2013

Welltec announces payment of interest.
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 30 January 2013.

For further information, please contact:
Jesper Helmuth Larsen, CFO, Cell: +45 2329 2600

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, as of December 31, 2011, 793 dedicated employees in 24 countries. For the twelve months ended December 31, 2011, we had revenues and EBITDA of approximately DKK 1,220 million and DKK 593 million, respectively (or approximately US$ 212 million and US$ 103 million, respectively).