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.


Interim Report Q1 – 2015 and Investor Conference Call

Company announcement no.4/2015: Welltec® will disclose its interim quarterly financial report for Q1-2015 on Thursday, May 21, 2015 and will discuss the results during an investor conference call at 5 pm CET.

CONTACT

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

The Interim Report and 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, ID 3263982.

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 1660
United Kingdom: +44 (0)20 3427 1903
USA: +1 646 254 3363

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 APAC celebrates 7 years with no accidents

The end of 2013 marks an impressive record for Welltec Asia Pacific: seven years with no incidents. This is testament to Welltec’s worldwide safety culture and QHSE focus – “Safety is where I am”.

The Welltec safety culture reaches far beyond the legal requirements. Our approach puts safety first and incorporates behavioural programs, thorough risk assessment and tolerates no compromises on safety aspects. The culture embraces this approach through managerial systems and the Incident Reporting System, as well as through soft values like being an attentive colleague and watching out for each other. Programs like the buddy system help ensure that new employees are never faced with situations alone, SCOP cards provide an opportunity to report safe and unsafe situations to improve safety aspects on all levels and HSE audits ensure compliance with company policies. In February 2013 Welltec Asia Pacific was appointed an HSE manager to support the existing HSE initiatives.

“Welltec Asia Pacific proudly set an industry record by way of this seven consecutive years accident free operations performance,” said Ronan Le Gloahec, Senior Vice President, APAC, and continues: “This outstanding record results for a very visible 24/7 commitment from all APAC team members to comply not only with our customers’ HSE standards and guidelines, but also to the Welltec Global HSE management system without any compromise.”

“I want to praise all in the team for their outstanding dedication and drive to safely deliver our ever growing portfolio of environment friendly, innovative, robotic solutions from the deep waters of India to the jungle of Papua New Guinea,” said Ronan.

Incidents are divided by severity: Medical treatment only (MTO), restricted work case (RWC), lost time incidents (LTI) and fatalities (FTL). All these statistics are analysed by our QHSE department to ensure implementation and improvement of best practices protecting the health and safety of individuals.


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Welltec Russia wins 2-year Well Tractor contract

Following a successful pilot project in February, Welltec Russia has successfully secured a 2-year tender award for a major Russian operator. Contract value is expected to exceed $2M USD.

The project scope includes 19 wells located across northern Russia land and involves arctic challenges for which Welltec’s solutions are exceptionally well suited and qualified for.

Lars Mangal, Welltec Chief Commercial Officer & Senior Vice President of UK, Russia/CIS and Continental Europe, explains “This is a key award giving Welltec the opportunity to further demonstrate our unique, inherently safer robotic electric line deployed well intervention technologies in the Russian market. Compared to traditional pipe based intervention methods, Welltec enables well intervention operations to be mobilized at short notice and with significantly reduced operational risk. Our Well Tractor conveyance systems enable production logging campaigns to be conducted with much improved data quality and greater flexibility for mobilizing in Arctic environments. This award also confirms the high degree of confidence operators in the Russian market have in our Welltec Russia team working in their field operations and the associated high levels of outstanding service delivery performance being realized as a result. ”

Contact: Rick Schafers, Welltec Area Vice President, Russia & CIS


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.


Welltec Wins the ICoTA Intervention Technology Award

For the second, consecutive year Welltec was recognized as the winner of the Intervention and Coiled Tubing Association (ICoTA) Intervention Technology Award. This prestigious award is given to companies that have developed new, innovative technology which provides value to the industry.

The Welltec Lateral Intervention Tool (WLIT), developed in partnership with Saudi Aramco, was the winner this year based on its merits; a new product which aids in reducing risk, helping to increase production, improves safety and minimizes environmental impact.

The WLIT is designed to overcome one of the severe limitations facing the industry today which is the ability to re-enter sidetracks consistently and effectively. What is unique about the WLIT is that it facilitates access to lateral sections by electronically detecting the casing window, determining its orientation, shifting a steerable joint and thereby directing the toolstring or coiled tubing into the lateral.

This controlled access subsequently enables operators to gain information about the reservoir where it was previously not possible. And the toolstring can convey not only itself into the lateral but also 3rd party, mono conductor e-line tools. This opens up the possibility of PLT’s, cement bonds, well integrity, even some open hole logging tools to gain the required information.

In turn, this can lead to increased production by managing the individual laterals, increasing overall reservoir knowledge and gaining the confidence to drill more wells or laterals for improved reservoir and field management.

The WLIT is designed to illuminate the reservoir by increasing access and subsequently knowledge so that the operator can optimize production over the life of the field.


Welltec Receives Best Stand Award at the APPEA

A stand-out stand design and team effort were the winning elements at the Australian Petroleum Production & Exploration Association (APPEA) conference and exhibition where Welltec won “Best Custom Build of the APPEA 2014 Exhibition” award.

The award ceremony took place on April 9th where Welltec’s Team Exhibition Leader, Susan Keegan Elleskov received the award during the closing ceremony attended by the CEO of APPEA and Australasia oil & gas executives.

Welltec’s stand took home the award due to a list of criteria including design and functionality, the level of innovation of the solutions displayed as well as the interaction with visitors.

“We enjoyed a fantastic show thanks in no small part to a great stand design that made it easy to demonstrate and discuss our capabilities. And we experienced an extraordinary attendance and interest in our technologies and service offerings, especially our new Well Cutter” voices Ronan Le Gloahec, Senior Vice President.

APPEA was recently held 7-9 April in Perth. It is the largest annual upstream oil and gas event in the southern hemisphere attracting about 3,500 delegates from more than 30 countries this year.