REG - IG Seismic Services - FY2014 Financial Results Press Release <Origin Href="QuoteRef">IGSSq.L</Origin>

IG Seismic ServicesAnnouncement

15/07/2015 15:13

RNS Number : 6531L
IG Seismic Services PLC
29 April 2015
IG Seismic Services PLC
IG SEISMIC SERVICES ANNOUNCES 
AUDITED FINANCIAL AND OPERATIONAL RESULTS 
FOR THE TWELVE MONTHS OF 2014
Moscow, 29 April 2015
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 audited financial and operational results for the twelve months ended 31 December 2014. 
During 2014, the Company changed the currency in which it presents its consolidated financial statements from US dollars to Russian Roubles to better reflect underlying performance. The Company's revenues, profits and cash flows are primarily generated in Russian Roubles, and are expected to remain principally denominated in Russian Roubles in the future. 
Key Financial Results for the 12 Months of 2014 

12m 2014
12m 2013
Change, %
in million RUR, unless otherwise stated



Revenue
19,589
19,340
1.3%
Operating Profit
1,065
1,684
-36.7%
EBITDA
4,449
4,229
5.2%
EBITDA margin
22.7%
21.9%
80bp
Normalized Net Profit *
205
358
-42.8%
Net (Loss) / Profit
(2,410)
(401)
--
Operating Cash Flow
3,425
4,168
-17.8%
Capital Expenditures
3,289
3,209
2.5%
Net Debt
15,185
12,761
19.0%
___________________________________________________________________________________
*In addition to the financial metrics and segment information disclosed in the Audited Consolidated Financial Statements, the Group presents normalization of the financial results for the year ended 31 December 2014 and 2013 for the effect of one-off and non-recurring items in addition to those affecting adjusted EBITDA and adjusted EBIT. For details please see the Management Report on 2014 Results.
 Revenue amounted to RUR 19,589 mln, an increase of 1.3% year-on-year;
 Operating Profit decreased by 36.7% year-on-year and amounted to RUR 1,065 mln;
 EBITDA increased by 5.2% to RUR 4,449 mln. EBITDA margin increased by 80 bp year-on-year to 22.7% of sales compared to 21.9% of sales for the same period of 2013;
 Normalized Net Profit decreased by 42.8% and amounted to RUR 205 mln;
 Net loss amounted to RUR 2,410 mln;
 Operating Cash Flow decreased year-on-year by 17.8% to RUR 3,425 mln;
 Capital Expenditures for the twelve months of 2014 amounted to RUR 3,289 mln;
 As of 31 December 2014, net debt amounted to RUR 15,185 mln; gross debt amounted to RUR 16,392 mln; cash and cash equivalents amounted to RUR 1,207 mln;
Key Operating Results for the 12 Months of 2014
 IGSS seismic crews performed 1,363 thousand shot points, out of which 273 thousand related to 2D surveys, 667 thousand to 3D surveys and 423 thousand to HD (high density) surveys; of which 1,180 thousand shot points were performed in Russia, 98 thousand - in Kazakhstan, and 85 thousand - in India and Uzbekistan. 
 Total of 12 thousand linear kilometers related to 2D surveys, 9 thousand square kilometers related to 3D survey, 622 linear kilometers related to HD and 1,187 square kilometers related to HD were performed.
 As of 31 December 2014, the Company operated 58 field crews in Russia, Kazakhstan and certain other countries with 404,282 channels, 130 vibroseis sources, 169 pulse sources and 578 drilling units. The slight year-on-year decrease in the number of crews is due to the fact that several crews were consolidated for larger projects.
 As of 31 December 2014 the Company employed 12,845 employees. 
Kilometers
12m 2014
12m 2013
Change, %
2D (km)
12,199
8,433
45%
3D (sq.km)
9,280
14,004
-34%
HD (km)
622
1,001
-38%
HD (sq.km)
1,187
1,140
4%
Shot Points performed by IGSS crews 



2D 
273,395
215,548
27%
3D 
666,780
952,314
-30%
HD
423,456
442,597
-4%
TOTAL performed by IGSS crews
1,363,631
1,610,459
-15%
including 



Russia
1,179,924
1,458,999
-19%
Kazakhstan
98,418
113,300
 -13%
Other
85,289
38,160
124%




TOTAL subcontracted

20,351
-100%
Order Book as of 31 December 2014
 As of 31 December 2014, the Company's seismic services order book amounted to RUR 30,322 million (inclusive of VAT), of which RUR 25,946 million (inclusive of VAT) accounted for signed contracts and RUR 4,376million (inclusive of VAT) represented tenders won. 
 The seismic services order book as of 31 December 2014 decreased by10% compared to the order book as of 31 December 2013.
 As of 31 December 2014, the Company's DPI order book amounted to RUR 278 mln (inclusive of VAT) of signed contracts. 
 The Group is still in the process of contracting for the 2015-2016 season. The current order book does not yet provide an accurate indication of 2015-2016 seismic revenues and trends could change.
SEISMIC SERVICES 
Order Book as of 31 December 2014 (including VAT)

As of 31.12.2014
As of 31.12.2013
Ch. 

RUR mln
RUR mln
RUR, %
Western Siberia
9 908
11 635
-15%
Eastern Siberia
11 436
14 034
-19%
Timano-Pechora
4 934
5 836
-15%
South of Russia
3 424
520
558%
Kazakhstan
0
113
--
Other (India and Azerbaijan)
620
1 533
-60%
TOTAL,including
30 322
33 671
-10%
Contracts signed*
25 946
27 525
-6%
Tenders won, contracts to be signed
4 376
6 146
-29%
Order Book as of 31 December 2014 Breakdown by Year (including VAT)

As of 31.12.2014

RUR mln
2015
23 152
2016
7 170
TOTAL
30 322
SEISMIC DATA PROCESSING AND INTERPRETATION 
Order Book as of 31 December 2014 (including VAT)

As of 31.12.2014
As of 31.12.2013
Ch. 

RUR mln
RUR mln
RUR, %
Contracts signed*
278
306
-9%
Tenders won, contracts to be signed
0
78
--
TOTAL
278
384
-28%
___________________________________________________________________________________ *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.
Order Book Update as of 1 March 2015 
 As of 1 March 2015, the Company's seismic services order book amounted to RUR 26,795 mln (inclusive of VAT), of which RUR 23,051 mln accounted for signed contracts and RUR 3,744 mln represented tenders won. 
 The seismic services order book as of 1 March 2015 decreased in RUR terms by 13% compared to the order book as of 1 March 2014.
 As of 1March 2015, the Company's Data Processing and Interpretation (DPI) order book amounted to RUR 228 mln (inclusive of VAT) of signed contracts.
 The Group is still in the process of contracting for the 2015-2016 season. The current order book does not yet provide an accurate indication of 2015-2016 seismic revenues and trends could change.
SEISMIC SERVICES
Order Book as of 1 March 2015 (including VAT)*

As of 01.03.2015
As of 01.03.2014
Ch. 

RUR mln
RUR mln
RUR, %
Western Siberia
8 851
11 043
-20%
Eastern Siberia
9 882
12 602
-22%
Timano-Pechora
4 190
5 328
-21%
South of Russia
3 290
364
804%
Kazakhstan
0
107
--
Other (India and Azerbaijan)
582
1 399
-58%
TOTAL,including
26 795
30 843
-13%
Contracts signed*
23 051
18 888
22%
Tenders won, contracts to be signed
3 744
11 955
-69%
Order Book as of 1 March 2015 Breakdown by Year (including VAT)

As of 01.03.2015

RUR mln
2015
19 625
2016
7 170
TOTAL
26 795
SEISMIC DATA PROCESSING AND INTERPRETATION 
Order Book as of 1 March 2015 (including VAT)

As of 01.03.2015
As of 01.03.2014
Ch. 

RUR mln
RUR mln
RUR, %
Contracts signed*
228
379
-40%
Tenders won, contracts to be signed
0
120
--
TOTAL
228
499
-54%
___________________________________________________________________________________________ *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.
Nikolay Levitskiy, IGSS Chief Executive Officer, commented: 
"2014 was a challenging but highly rewarding year for our company. We have started a major restructuring aimed at improving the efficiency of the Group. As part of the organizational development Geotech Holding transferred control of the operating activities to the largest geophysical company Geotech Seismic Services, part of the holding company.
In 2014 the Russian economy was negatively impacted by a significant drop in crude oil prices and the devaluation of the Russian Rouble, as well as sanctions imposed on Russia by several countries. Also, in December 2014, domestic interest rates increased significantly after the Central Bank of Russia raised its key rate. The combination of the above affected the Group's performance and resulted in a loss for the year of RUR 2,410 mln. However, despite the difficult economic situation in Russia, geopolitical tensions, lower oil prices, rising interest rates and the weakening of the ruble, the company's revenue increased by 1.3% and amounted to RUR 19,589, and EBITDA increased by 5.2% to RUR 4,449 mln. We are taking all appropriate measures to support the sustainability of the Group's business in the current circumstances. 
We have successfully started the 2014-2015 season and promptly mobilized our seismic crews. In addition, as previously reported, the Company is actively working to reduce seasonal effects on the business by increasing the amount of work completed during the warmer months of the year.
Currently we are completing field works for the 2014-2015 season and contracting for future seasons. Our order book as of March 01, 2015 decreased by 13% year-on-year, which is explained by the completion of three year contracts signed in 2012. We plan to enter into new long-term contracts this year and we expect that by the end of 2015 our order book will increase."
Consolidated Financial Statements of IGSS and Management Report are available on the website at http://igseis.com/en/investor-relations/financial-and-operational-results. The Company's presentation is available at http://www.igseis.com/en/investor-relations/presentations.
Conference Call Dial-In Details 2014FY Results:
Date:Wednesday, April 29, 2015
Time: 12:00 Moscow / 10:00 London 
UK international dial-in number: +44 (0) 1452 555566
Conference ID:33820652
Participant FreeCall dial-in numbers
Participant LocalCall dial-in numbers
Finland 0800112363
France 0805632056 
Germany 08001014960
Russia 81080020972044
Sweden 0200890171
Switzerland 0800828006
United Kingdom 08006940257
United States 18669669439
Finland, Helsinki 0923195187 
France, Paris 0176742428 
Germany, Frankfurt 06922224918
Russia, Moscow 4996771036
Sweden, Stockholm 0850336434
Switzerland, Baden 0565800007
United Kingdom, London 08444933800
United States, New York 16315107498
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.

This information is provided by RNS
The company news service from the London Stock Exchange
  END
ACSKMGZDVLLGKZG