H1 2021 results of Petro Welt Technologies AG: Turnover and EBITDA down due to lower demand for fracturing, slight recovery in Q2

PRESS RELEASE

H1 2021 results of Petro Welt Technologies AG: Turnover and EBITDA down due to lower demand for fracturing, slight recovery in Q2.

  • Turnover fell by 31.2% in EUR (19.4% in RUB) and EBITDA by 52.9% due to the severe crisis in the fracking market, with a sharp drop in the number of operations and strong pressure on prices.
  • The Drilling, Sidetracking and IPM segment becomes the main contributor to the Group’s profit.
  • radical in progress the cost reduction measures allow an administrative cost reduction of 16.1% in EUR and 1.9% in RUB.
  • Positive EBIT trend in Q2 2021 thanks to the continued operational improvement of conventional drilling and a gradual resumption of the fracturing activity.
  • Increased financial discipline and effective communication with customers and operating companies allow an increase in the liquidity position of 8.7% for
    125.7 million euros as of June 30, 2021.

Vienna, August 23, 2021

Mainly due to lower demand for stimulus operations, due to limited oil production under the OPEC + deal, the Russian fracking market fell 28.0% in the first half of 2021 through compared to the same period in 2020. As a result, Group sales amounted to 105.9 million euros in the first half of 2021, a decrease of 31.2% compared to

154.0 million euros over the same period of the previous year. Expressed in RUB, the Group’s turnover decreased by 19.4%.

In the second quarter, however, the decrease in revenue was only 12.3% year on year in EUR and 1.6% in RUB, demonstrating a gradual improvement in the overall business performance of PeWeTe.

At minus 25.4%, cost of sales fell at a slightly slower pace than sales, reducing the Group’s gross margin from 59.0% to 10.9 million euros. As a result, the gross profit margin increased from 17.3% in the first half of 2020 to 10.3% during the period considered. At the same time, thanks to radical cost reduction efforts, administrative expenses in EUR decreased by 16.1% (or 1.9% in RUB) to 9.9 million euros in the first half of 2021.

Overall, EBIT for the first six months of 2021 amounted to € 0.1 million, compared to € 13.0 million in the same period 2020. Due to the gradual rebound of fracturing activity and continued operational improvements in conventional drilling during the second quarter (when EBIT was clearly positive at 3.7 million euros), the EBIT margin for the first half of 2021 was 0 , 1% (H1 2020: 8.4%). In the second quarter, the EBIT margin was 6.1% (Q2 2020: 7.2%).

The Group’s EBITDA fell 52.9% to € 13.7 million over one year. At 12.9%, the EBITDA margin for the period considered is still positive, but down significantly compared to its level of 18.9% for the same period of the previous year.

At 13.2 million euros, cash flow from operating activities during the period under review was down 41.1% year-on-year. Despite a difficult environment, the Group was nevertheless able to generate solid operating cash flow.

The managerial liquidity position containing bank deposits, cash and cash equivalents amounted to € 125.7 million at June 30, 2021, up 8.7% compared to the position at December 31, 2020 thanks to enhanced financial discipline and effective communication with clients and contractors.

Key figures

HY1

HY1

Switch

2021

2020

in %

Returned

EUR

105.9

154.0

(31.2)

million

EBITDA

EUR

13.7

29.1

(52.9)

million

BAII

EUR

0.1

13.0

(99.2)

million

EBITDA margin

%

12.9

18.9

EBIT margin

%

0.1

8.4

Group result

EUR

(1.3)

8.3

(115.7)

million

Equity1

EUR

195.1

183.0

6.6

million

Operating cash flow

EUR

13.2

22.4

(41.1)

Activities

million

1 As of June 30, 2021 and December 31, 2020 respectively

About Petro Welt Technologies AG

Petro Welt Technologies AG, headquartered in Vienna, is one of the first oil service companies established in Russia and the CIS and specializes in services that increase the productivity of new and existing oil and gas formations.

Contact

Konstantin Huber (be.public)

Investor Relations

  1. +43 1 503 2 503-29 [email protected]

Disclaimer

Petro Welt Technologies AG published this content on 23 Aug 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on 23 Aug 2021 07:13:04 PM UTC.


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