The Board of Directors of Welltec International ApS (Welltec®) has today approved the Annual Report for 2015.
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.
Michael Krabbe, Chief Financial Officer,
mobile: +45 30 34 30 00
Simon Stadil, Director, Treasury and Investor Relations,
mobile: +45 52 13 89 44
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.
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.
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.