REG - IG Seismic Services - 1H 2015 Financial Press Release <Origin Href="QuoteRef">IGSSq.L</Origin>

IG Seismic ServicesAnnouncement

30/09/2015 16:01

RNS Number : 8014A
IG Seismic Services PLC
30 September 2015
IG Seismic Services PLC
IG SEISMIC SERVICES ANNOUNCES UNADITED IFRS RESULTS
FOR THE SIX MONTHS OF 2015
Moscow, September 30, 2015
IGSeismic 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 unaudited consolidated financial results for the six months ended June 30, 2015. 
Key Financial Results for the First Six Months of 2015

1H 2015
1H 2014
Change
in million RUR, unless otherwise stated



Revenue
10,035
10,398
-3.5%
EBITDA
1,825
2,154
-15.3%
EBITDA margin
18.2%
20.7%
254 bp
Net loss from continuing operations
(556)
(335)
-
Operating Cash Flow
3,618
3,513
3.0%
Capital Expenditures
978
1,467
-33.3%
Net Debt
12,901
11,569
11.5%
 Revenue amounted to RUR 10,035 mln having decreased by 3.5% year-on-year; 
 EBITDA decreased by 15.3% year-on-year and amounted to RUR 1,825 mln; EBITDA margin decreased to 18.2% of sales compared to 20.7% of sales for the same period of 2014;
 Net loss from continuing operations amounted to RUR 556 mln; 
 Operating Cash Flow for the first six months of 2015 increased by 3.0% over the same period of 2014 to RUR 3,618 mln;
 Capital Expenditures for the first half of 2015 amounted to RUR 978 mln;
 As of 30 June 2015, net debt amounted to RUR 12,901 mln. 
Key Operating Results for the First Six Months of 2015
 IGSS seismic crews performed 945 thousand shot points, out of which 173 thousand related to 2D surveys, 543 thousand to 3D surveys and 229 thousand to HD (high density) surveys; of which 876 thousand shot points were performed in Russia, 20 thousand - in Kazakhstan and 48 thousand - in India. 
 Total of nearly 9 thousand linear kilometers related to 2D surveys, 7.5 thousand square kilometers related to 3D survey and 728 square kilometers related to HD were performed.
 As of 30 June 2015 the Company operated 55 field crews with 390,310 channels, 147 vibroseis sources, 157 pulse sources and 569 drilling units. 
Operating Results for the First Six Months of 2015
Kilometers
1H 2015
1H 2014
Change
2D (km)
8,992
9,509
-5%
3D (sq.km)
7,525
7,401
2%
HD (km)
-
621
-100%
HD (sq.km)
728
751
-3%
Shot Points performed by IGSS crews 



2D 
172,789
190,162
-9%
3D 
543,184
504,005
8%
HD
229,065
322,598
-29%
TOTAL performed by IGSS crews
945,038
1,016,765
-7%
including 



Russia
876,272
964,145
-9%
Kazakhstan
20,315
6,723
202%
Other (India)
48,451
45,897
6%
Order Book as of June 30, 2015 
 As of June 30, 2015, the Company's seismic services order book amounted to approximately RUR 26,137 mln (inclusive of VAT), of which approximately RUR 17,524 mln accounted for signed contracts and approximately RUR 8,613 mln represented tenders won. 
 The seismic services order book as of June 30, 2015 increased in RUR terms approximately by 6% compared to the order book as of June 30, 2014.
 As of June 30, 2015, the Company's Data Processing and Interpretation order book amounted to approximately RUR 268 mln (inclusive of VAT) of signed contracts. 
SEISMIC SERVICES 
Order Book as of 30 June 2015 (including VAT)

As of 30.06.2015
As of 30.06.2014
Change

RUR mln
RUR mln
RUR, %
Western Siberia
6,993
6,984
0%
Eastern Siberia
10,453
10,909
-4%
Timano-Pechora
1,602
5,654
-72%
South of Russia
4,131
176
2247%
Kazakhstan
114
-
100%
Other*
2,844
1,027
177%
TOTAL,including
26,137
24,750
6%
Contracts signed**
17,524
18,028
-3%
Tenders won, contracts to be signed
8,613
6,722
28%
Order Book as of 30 June 2015 Breakdown by Year (including VAT)

As of 30.06.2015

RUR mln
2015
8,401
2016
10,539
2017
4,751
2018
2,446
TOTAL
26,137
SEISMIC DATA PROCESSING AND INTERPRETATION 
Order Book as of 30 June 2015 (including VAT)

As of 30.06.2015
As of 30.06.2014
Change

RUR mln
RUR mln
RUR, %
Contracts signed**
268
324
-17%
Tenders won, contracts to be signed
-
131
-100%
TOTAL
268
455
-41%
* Includes India as of 30 June 2015 and 30 June 2014.
**Signed contracts may be subject to renegotiation of volumes and/or other terms or even cancellation, and bothsigned contracts and tenders won may not proceed as originally planned at all.
The Group is currently in the process of contracting for 2015-2016 and 2016-2017 seasons which implies that current order book does not provide an accurate indication of revenues in 2015 and current order book trends could change.
Order Book Update as of September 13, 2015
 As of September 13, 2015, the Company's seismic services order book amounted to approximately RUR 32,193 mln (inclusive of VAT), of which approximately RUR 22,025 mln accounted for signed contracts and approximately RUR 10,168 mln represented tenders won. 
 The seismic services order book as of September 13, 2015 increased in RUR terms approximately by 13% compared to the order book as of September 13, 2014.
 As of September 13, 2015, the Company's DPI order book amounted to approximately RUR 318 mln (inclusive of VAT) of which approximately RUR 231 mln accounted for signed contracts and approximately RUR 87 mln represented tenders won. 
SEISMIC SERVICES
Order Book as of 13 September 2015 (including VAT)

As of 13.09.2015
As of 13.09.2014
Change

RUR mln
RUR mln
RUR, %
Western Siberia
9,058
6,775
34%
Eastern Siberia
10,865
 12,043
-10%
Timano-Pechora
5,875
5,330
10%
South of Russia
3,577
3,512
2%
Kazakhstan
114
17
571%
Other*
2,704
911
197%
TOTAL,including
32,193
28,588
13%
Contracts signed**
22,025
25,277
-13%
Tenders won, contracts to be signed
10,168
3,311
207%
Order Book as of 13 September 2015 Breakdown by Year (including VAT)

As of 13.09.2015

RUR mln
2015
6,321
2016
13,976
2017
7,151
2018
4,745
TOTAL
32,193
SEISMIC DATA PROCESSING AND INTERPRETATION 
Order Book as of 13 September 2015 (including VAT)

As of 13.09.2015
As of 13.09.2014
Change

RUR mln
RUR mln
RUR, %
Contracts signed**
231
322
-28%
Tenders won, contracts to be signed
87
88
-1%
TOTAL
318
410
-22%
* Includes India as of 13 September 2015 and 13 September 2014.
**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.
The Group is currently in the process of contracting for 2015-2016 and 2016-2017 seasons which implies that current order book does not provide an accurate indication of revenues in 2015 and current order book trends could change.
Nikolay Levitskiy, IGSS Chief Executive Officer, commented:
The first half 2015 results were in line with our expectations: in a difficult economic situation in Russia, geopolitical tensions, lower oil prices, rising interest rates and the weakening of the ruble, we have managed to maintain market position in all geographic areas, which is consistent with our strong performance over time.
The revenue dynamics was affected by earlier than usual contracts signing by some of the customers and completion of part of the seismic works in the fourth quarter of 2014.
We aim to improve our results by continuing to work on reducing the effects of traditional seasonality on business that is increasing the amount of works conducted during warm months of the year in Russia, as well as conducting works in different climates abroad.
We continue to work on improving the efficiency of the Group by reducing overheads to fit current economic trends.
The company does not stop on the achieved results, and is constantly striving to develop and implement technologies that enable to adapt the seismic services to complexity of the surface conditions, explore deeper levels and more complex reservoirs. 
In 2015 as pioneers in the country we conducted experimental work with cableless telemetry system operating in real time, which will extend the range of potential seismic survey by environmentally sensitive areas, with a minimum negative impact on the environment - the project of "green seismic".
Contacts
For further information please visit www.igseis.com or contact:
IGSS Investor Relations
Alla Muzhzhevleva
+ 7 495580 7882
a.muzhzhevleva@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.

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