MOSCOW, May 22, 2009 - Eurasia Drilling Company Limited (“EDC” or the “Company” - LSE: EDCL) today released First Quarter 2009 (Quarter ended March 31, 2009) Financial Highlights, Operational Highlights and Limited Guidance for 2009 as follows:
FIRST QUARTER 2009 FINANCIAL HIGHLIGHTS:
- Top line revenue was US$ 307 million for the three months ended March 31, 2009
- EBITDA margin was 18% for the period
- The average exchange rate experienced in the first quarter of 2009 was 33.9 Rubles per US Dollar
- We repurchased approximately 1.8 million shares of our outstanding common stock
FIRST QUARTER 2009 OPERATIONAL HIGHLIGHTS:
- Drilling output increased 1% year-on year, to 903,305 meters in Q1 2009 from 897,340 meters in Q1 2008 (output decreased 2% sequentially compared to Q4 2008)
- We increased our total number of drilling rigs to 207 from 202 at the beginning of 2009
- Market share (based on meters drilled) grew to 27.2% of the Russia market during the quarter versus 26.0% for 2008
- The ASTRA jack-up rig resumed operations in the Caspian Sea; the first of three wells scheduled for the summer season in the Kazakh & Russian sectors was spudded on March 25
- A second heavy drilling rig was mobilized to E. Siberia for Rosneft’s Vancor field (spudding Q2)
- Drilling services performed by EDC for non-LUKOIL customers rose to 35.2% (by meters drilled)
LIMITED GUIDANCE FOR 2009
- Assuming no acquisitions, our capital expenditures should not exceed US $ 80 million
- We expect to be free cash flow positive for 2009
Mr. W. Richard Anderson, EDC’s Chief Financial Officer, commented,
“In past years we have given detailed guidance when we felt we had a clear view of the Company’s performance for the year at issue. While we are cautiously optimistic about 2009, we are also aware that economic conditions remain unsettled in many sectors. As such we will follow the lead of most other oil field service companies and defer providing detailed guidance until we feel we can do so with a high degree of confidence.”
Mr. Alexander Djaparidze, EDC’s Chief Executive Officer, added,
“We are reasonably pleased with our results for the first quarter of 2009. Against the background of a worldwide credit crisis and plummeting oil prices we managed to maintain our drilling at a rate slightly greater than the record rate attained last year. Our EBITDA margin is down from that achieved during 2008, but our financial position remains robust. The near future is difficult to predict as our clients adjust their budgets to changes in the price of oil and gas they sell. However, we firmly believe the mid-term and long-term prospects are very good for EDC.”
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EDC is the largest provider of onshore drilling services in Russia, as measured by the number of meters drilled, providing onshore integrated well construction services and workover services. In addition, the Company provides offshore drilling services in the Caspian Sea. The Company offers its onshore integrated well construction services and workover services to local and international oil and gas companies primarily in Russia and its offshore drilling services to Russian and international oil and gas companies in the Russian, Kazakh and Turkmen sectors of the Caspian Sea. The Company is traded on the London Stock Exchange under the symbol “EDCL”.
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For further information, please contact:
Kim L. Kruschwitz, VP Investor Relations
+44 (0) 207 717 9707
investors.relations@eurasiadrilling.com
May 22, 2009
Some of the views expressed in this document may constitute “forward looking statements” that involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
