12 Apr 2010 19:20

Eurasia Drilling expects sales revenue to go up by 23% in 2010

MOSCOW. April 12 (Interfax) - Eurasia Drilling Company (EDC) expects that its sales revenue in 2010 to top $1.7 billion, the company's vice-president Kim Kruschwitz, said during a conference call.

The company's sales revenue for 2009 dropped by 34% to $1.382 billion. Therefore, according to Kruschwitz's information then, the company's profit will increased by 23% this year.

The company's EBITDA margin in 2010 is forecast at less than 23.5% (23.2% in 2009).

Capex for 2010 is planned at $144 million, including payments for net drilling equipment and possible acquisitions. In comparison with 2009, capex will go up by 37%.

According to EDC's CEO, Alexander Djaparidze, the company is considering three types of acquisitions: purchasing the servicing subsidiaries of major companies, mid-level independent drilling companies and other drilling assets in the CIS.

The company's CFO, Richard Anderson, also said that EDC has not ruled out placing its own treasury shares for raising liquidity. He said that the company could hold a placement this year but a final decision has not been made at present.

EDC reduced its US GAAP net profit by 25% to $165 million for 2009.

Total drilling shrank by 7% to 3.7 million meters.

EDC was formed one the base of Lukoil's oil production division. The controlling shareholder in EDC is its CEO and Chairman Djaparidze.