Integra net debt rises 8.7% as sales slip 3.8% in Q1
MOSCOW. June 6 (Interfax) - Oilfield services group Integra saw its net debt expand from $164.8 million to $179.2 million over the first quarter, as sales revenues contracted 3.8% to $135.5 million, the company's interim management statement and unedited financial highlights for the quarter says.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were up 29.4% at $2.2 million.
Capital expenditures almost doubled to $16.8 million in Q1.
"Net cash from operating activities was negative $33.8 million (vs. negative $11.1 million in 3M 2012)," the company said.
Integra attributes the drop in sales revenues to less-than-favorable market conditions.
"In the first quarter, the profitability of the majority of Integra's services continued to be under pressure from the challenging operating environment where growth in costs outpaces pricing increase. In this difficult environment we have achieved a marginal increase in both absolute adjusted EBITDA and respective profitability which was made possible entirely through rigorous control of our corporate overheads. The investment in additional capacity made in 2012 is also paying off through higher volumes of cementing and coiltubing services. Additional unforeseen expenses of approximately $5.0 million related to a geological incident in the first quarter have partially offset the growth in our margins," the statement quotes company President Felix Lubashevsky as saying.