Last checked at 13 Dec 2013 07:24
IG Seismic Services PLC
IG SEISMIC SERVICES ANNOUNCES INTERIM
UNAUDITED FINANCIAL AND OPERATIONAL RESULTS
FOR THE NINE MONTHS OF 2013
Moscow, 13 December 2013
IG Seismic Services PLC ("IGSS" or the "Company", LSE: IGSS), the leading pure-play land and transition zone seismic company in Russia and the CIS and one of the largest land seismic companies globally, announces its interim unaudited financial and operational results for the nine months ended 30 September 2013.
Key Financial Results for the 9 Months of 2013
9m 2013 | 9m 2012 | Change | |
in million US$, unless otherwise stated | |||
Revenue | 440.4 | 464.9 | -5.3% |
EBITDA | 89.6 | 68.5 | 30.8% |
EBITDA margin | 20.3% | 14.7% | 560 bp |
Operating Cash Flow | 150.9 | 103.7 | 45.5% |
Capital Expenditures | 64.3 | 29.9 | 115.1% |
Net Debt | 331.1 | 329.3 | 0.5% |
Average exchange rate for the period (RUB/USD) | 31.6170 | 31.0984 | 1.7% |
Exchange rate at the end of the period (RUB/USD) | 32.3451 | 30.9169 | 4.6% |
· Revenue decreased by 5.3% year-on-year and amounted to USD 440.4 mln. The Company focuses on the premium segment of high density seismic which leads to a significant increase in absolute and relative marginal profitability with a slight decrease in revenue;
· EBITDA increased by 30.8% year-on-year and amounted to USD 89.6 mln. EBITDA margin increased by 560 bp year-on-year to 20.3% of sales compared to 14.7% of sales for the same period of 2012;
· Operating Cash Flow for the 9 months of 2013 increased by 45.5% over the same period of 2012 to USD 150.9 mln.;
· Capital Expenditures for the 9 months of 2013 amounted to USD 64.3 mln.;
· As of 30 September 2013, net debt amounted to USD 331.1 mln. Gross debt amounted to USD 351.3 mln, cash and cash equivalents amounted to USD 20.2 mln.;
Key Operating Results for the 9 Months of 2013
· IGSS seismic crews performed 1,408 thousand shot points, out of which 197 thousand related to 2D surveys, 830 thousand to 3D surveys, and 382 thousand to HD (high density) surveys; of which 1,293 thousand shot points were performed in Russia, 97 thousand - in Kazakhstan, and 18 thousand - in Azerbaijan and Uzbekistan.
· Total of 8 thousand linear kilometers related to 2D surveys, 13 thousand square kilometers related to 3D survey, 1 thousand linear kilometers related to HD and 947 square kilometers related to HD were performed.
· As of 30 September 2013 the Company operated 75 field crews in Russia, Kazakhstan and certain other countries with 308,990 channels, 143 vibroseis sources, 160 pulse sources and 582 drilling units.
· As of 30 September 2013 the Company employed 11,280 employees.
Kilometers | 9m 2013 | 9m 2012 | Change, % |
2D (km) | 7,866 | 9,926 | -19% |
3D (sq.km) | 12,508 | 18,290 | -32% |
HD (km) | 1,001 | -- | -- |
HD (sq.km) | 947 | -- | -- |
Shot Points performed by IGSS crews | |||
2D | 196,661 | 219,919 | -11% |
3D | 829,700 | 1,059,506 | -22% |
HD | 381,807 | -- | -- |
TOTAL performed by IGSS crews | 1,408,168 | 1,279,425 | 10% |
including | |||
Russia | 1,292,877 | 1,156,908 | 12% |
Kazakhstan | 97,528 | 112,626 | -13% |
Other | 17,763 | 9,891 | 80% |
TOTAL subcontracted | 20,351 | 88,576 | -77% |
Order Book as of 30 September 2013
· As of 30 September 2013, the Company's seismic services order book amounted to USD 782 million (inclusive of VAT), of which USD 580 million (inclusive of VAT) accounted for signed contracts and USD 202million (inclusive of VAT) represented tenders won.
· The seismic services order book as of 30 September 2013 increased in RUR terms by 37% compared to the order book as of 30 September 2012.
· The Company started releasing data processing & interpretation (DPI) order book from 2013. Accordingly, comparable DPI order book information for earlier periods is not available. As of 30 September 2013, the Company's DPI order book amounted to USD 10 million (inclusive of VAT) accounted for signed contracts.
· The Group is still in the process of contracting for 2013-2014 season which implies that current order book does not yet provide an accurate indication of revenues and current order book trends could change.
SEISMIC SERVICES
Order Book as of 30 September 2013 (including VAT)*
As of 30.09.2013 | As of 30.09.2012 | Ch. | |||
RUR mln | USD mln | RUR mln | USD mln | RUR, % | |
Western Siberia | 7,027 | 217 | 5,464 | 177 | 29% |
Eastern Siberia | 11,412 | 353 | 7,186 | 232 | 59% |
Timano-Pechora | 4,068 | 126 | 2,791 | 90 | 46% |
South of Russia | 874 | 27 | 3,050 | 99 | -71% |
Kazakhstan *** | 193 | 6 | -- | -- | -- |
Other (India, Azerbaijan, Uzbekistan) *** | 1,732 | 53 | -- | -- | -- |
TOTAL, including | 25,306 | 782 | 18,491 | 598 | 37% |
Contracts signed** | 18,767 | 580 | 14,142 | 457 | 33% |
Tenders won, contracts to be signed | 6,539 | 202 | 4,349 | 141 | 50% |
Order Book as of 30 September 2013 Breakdown by Year (including VAT)*
As of 30.09.2013 | ||
RUR mln | USD mln | |
2013 | 4,572 | 141 |
2014 | 13,243 | 409 |
2015 | 7,491 | 232 |
TOTAL | 25,306 | 782 |
SEISMIC DATA PROCESSING AND INTERPRETATION
Order Book as of 30 September 2013 (including VAT)*
RUR mln | USD mln | |
Contracts signed** | 320 | 10 |
Tenders won, contracts to be signed | -- | -- |
TOTAL | 320 | 10 |
______________________________________________________
*FX rate as of 30 September 2013 is 32.3451 RUR/USD and 30.9169 RUR/USD as of 30 September 2012.
**Signed contracts may be subject to renegotiation of volumes and/or other terms or even cancellation, and both signed contracts and tenders won may not proceed as originally planned at all.
*** Comparable order book data for Kazakhstan, International projects and DPI for 2012 is not available.
Order Book Update as of 1 December 2013
· As of 1 December 2013, the Company's seismic services order book amounted to USD 872 million (inclusive of VAT), of which USD 675 million (inclusive of VAT) accounted for signed contracts and USD 197 million (inclusive of VAT) represented tenders won.
· The seismic services order book as of 1 December 2013 increased in RUR terms by 14% compared to the order book as of 1 December 2012.
· As of 1 December 2013, the Company's DPI order book amounted to USD 13 million (inclusive of VAT), of which USD 10 million (inclusive of VAT) accounted for signed contracts and USD 3 million (inclusive of VAT) represented tenders won.
· The Group is still in the process of contracting for 2013-2014 season which implies that current order book does not yet provide an accurate indication of revenues and current order book trends could change.
SEISMIC SERVICES
Order Book as of 1 December 2013 (including VAT)*
As of 01.12.2013 | As of 01.12.2012 | Ch. | |||
RUR mln | USD mln | RUR mln | USD mln | RUR, % | |
Western Siberia | 9,257 | 279 | 7,057 | 229 | 31% |
Eastern Siberia | 12,123 | 365 | 10,072 | 327 | 20% |
Timano-Pechora | 5,454 | 164 | 5,473 | 178 | -0.3% |
South of Russia | 416 | 13 | 2,759 | 89 | -85% |
Kazakhstan *** | 145 | 4 | -- | -- | -- |
Other (India, Azerbaijan, Uzbekistan) *** | 1,559 | 47 | -- | -- | -- |
TOTAL, including | 28,954 | 872 | 25,361 | 823 | 14% |
Contracts signed** | 22,414 | 675 | 15,747 | 511 | 42% |
Tenders won, contracts to be signed | 6,540 | 197 | 9,614 | 312 | -32% |
Order Book as of 1 December 2013 Breakdown by Year (including VAT) *
As of 01.12.2013 | ||
RUR mln | USD mln | |
2013 | 3,544 | 107 |
2014 | 16,941 | 510 |
2015 | 8,469 | 255 |
TOTAL | 28,954 | 872 |
SEISMIC DATA PROCESSING AND INTERPRETATION
Order Book as of 1 December 2013 (including VAT)*
RUR mln | USD mln | |
Contracts signed** | 334 | 10 |
Tenders won, contracts to be signed | 102 | 3 |
TOTAL | 436 | 13 |
__________________________________________________________________________________
*FX rate as of 01 December 2013 is 33.1916 RUR/USD and 30.8110 RUR/USD as of 01 December 2012.
**Signed contracts may be subject to renegotiation of volumes and/or other terms or even cancellation, and both signed contracts and tenders won may not proceed as originally planned at all.
*** Comparable order book data for Kazakhstan, International projects and DPI for 2012 is not available.
Nikolay Levitskiy, IGSS Chief Executive Officer, commented:
"Currently, after completing the phase of intensive preparation works for the season 2013-2014, we have started field works. The season 2013-2014 promises to be very productive.
We also have started works under the two year contract in India. These works will be conducted year-round since they do not depend on seasonality factor.
We are satisfied with the first results of the project at the Vakunayskiy oil field where we used innovative UniQ technology of high density seismic data acquisition. We plan to further expand employment of this technology at the Russian seismic market. Schlumberger has renewed its effective agreement with IGSS for the exclusive right to use the UniQ technology within Russia and the CIS until 2019 year-end.
We are expecting that the Russian seismic market will grow at high rate, particularly the volume and complexity of its services specifically as Russia's oil companies use for complex oil fields more advanced technologies, such as high-density seismic services. We will continue to focus on the highly technological market segment.
Our orders book is steadily increasing - as of December 01, 2013, the IGSS seismic orders book has increased by 14% on the same period of the last year.
We adhere to conservative financial management policy, and working towards optimizing our debt load and increasing reliability of our securities.
Two of the most influential rating agencies in the world, Standard & Poor's (S&P) and Moody's, assigned credit ratings to IGSS (S&P 'B' Positive Outlook, and Moody's 'B2' Stable Outlook). GEOTECH Seismic Services, our largest geophysical company, placed its debut issue of 5-year bonds worth RUR 3 bln. The Central Bank of the Russian Federation included the bonds into the Lombard list."
Contacts
For further information please visit www.igseis.com or contact:
IGSS Investor Relations
Olga Popova
+ 7 495 580 7882 ext. 129
o.popova@igseis.com
IGSS Media Relations
Victoria Smirnova
+ 7 495 580 7882 ext. 396
v.smirnova@igseis.com
This document may contain "forward-looking statements" which include all statements other than statements of historical fact. Such forward-looking statements can often be identified by words such as "plans", "expects", "intends", "estimates", "will", "may", "continue", "should" and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the IG Seismic Services PLC's (the "Company") control that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These forward-looking statements speak only as at the date as of which they are made, and neither the Company, nor any of its respective agents, employees or advisors intends or has any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. The information and opinions contained in this document are provided as at the date of this document or as otherwise specified herein and are subject to change without notice.