EQS-Adhoc: Petro Welt Technologies AG: Group results 2022: Divestment of Russian operating companies, focus on business in Kazakhstan
EQS-Ad-hoc: Petro Welt Technologies AG / Key word(s): Annual Results
Petro Welt Technologies AG: Group results 2022: Divestment of Russian
operating companies, focus on business in Kazakhstan
27-Apr-2023 / 22:35 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the
Regulation (EU) No 596/2014, transmitted by EQS News – a service of EQS
Group AG.
The issuer is solely responsible for the content of this announcement.
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AD-HOC ANNOUNCEMENT
Petro Welt Technologies AG – Group results 2022: Divestment of Russian
operating companies, focus on business in Kazakhstan
• Sale of the Russian business units as of August 28, 2022 and
liquidation of the joint Venture in Oman.
• The company’s main market is now Kazakhstan.
• Sales decrease in EUR by 0.8%, in RUB by 11.8%.
• Result clearly negative due to losses from the sale of subsidiaries.
• Equity ratio declines to 15.5%.
• The main operating revenue and earnings driver is the Well Services
segment, followed by Drilling, Sidetracking and Integrated Project
Management (IPM).
Vienna, April 27, 2023
During 2022, the global economy came under unprecedented pressure. In
addition to the corona pandemic and the war in Ukraine, high inflation in
particular posed a major challenge. Geopolitical conflicts exacerbated the
energy crisis and drove inflation expectations even higher.
At the Extraordinary General Meeting on August 16, 2022, the shareholders
of Petro Welt Technologies AG approved the sale of the Russian-based
business units represented by the subsidiaries OOO KATKoneft, OOO
KATOBNEFT, OOO KAToil-Drilling, OOO Wellprop, OOO KAT.oil Leasing, OOO
Petro Welt Technologies and OOO Trading House KAToil. The Group completed
the transaction at the end of August 2022. The profits and losses
generated by these subsidiaries are reported as discontinued operations.
PeWeTe also decided to terminate the operations of the company under the
current joint venture in Oman. As a result, the subsidiary PEWETE EVO
SERVICES LLC, which had been held by the Group and provided its services
under the joint venture in Oman, is currently in the process of
liquidation. Therefore, PEWETE EVO SERVICES LLC is also reported as
discontinued operation. The majority of the assets in Oman were
transferred to PeWeTe’s subsidiary in Kazakhstan. This is therefore the
only remaining operating business unit of the PeWeTe Group and is
presented under continuing operations.
Development at a glance
Against the backdrop of an increase in oil production and the increase in
quotas under the OPEC+ agreement, the PeWeTe Group recorded a thoroughly
solid operating performance in 2022. Notwithstanding the sale of the
Russian business units at the end of August 2022, PeWeTe Group’s revenue
for the full year shows almost stable thanks to this positive operating
performance. The Well Services and Well Stimulation segments, consolidated
only for the period January to August 2022, achieved a slight increase in
revenue in this period alone compared to the full year 2021. Revenue
achieved in the first eight months of 2022 amounted to EUR 115,4 million
(+16.4% compared to the full year 2021).
In total, revenue of the PeWeTe Group measured in RUB decreased by 11.8%
in 2022 and thus declined noticeably compared to the level in 2021. In
EUR, however, revenue decreased by only 0.8% to EUR 235.1 million. Cost of
sales decreased by 12.2% in RUB and by 1.2% in EUR to EUR 199.4 million in
2021 (2021: EUR 201.9 million). On balance, gross profit was also slightly
higher than in the previous year at EUR 35.7 million (2021: EUR 35.0
million), and the gross profit margin increased accordingly to 15.2%
(2021: 14.8%).
EBIT, on the other hand, was massively impacted by the loss from the sale
of the business units in Russia – which amounted to EUR 399.4 million –
and came to EUR -388.8 million. The EBIT margin was correspondingly
negative at -165.4%. In view of this development, EBITDA also fell
significantly to EUR -361.5 million (2021: EUR 33.5 million), while the
EBITDA margin dropped to -153.8% (2021: 14.1%).
Adjusted EBIT, excluding the result of the Russian subsidiaries sold at
the end of August 2022, amounted to EUR 10.6 million with a margin of
4.5%. Adjusted EBITDA amounted to EUR 37.9 million with a margin 16.1%.
The financial result also turned negative at EUR -15.8 million, mainly due
to substantial foreign currency losses. On the basis of all these
developments, the result before income tax amounted to EUR -404.6 million,
and the consolidated net result to EUR -411.8 million.
As a consequence of the sale of the Russian business units and the
resulting loss, the equity ratio decreased to 15.5% (2021: 51.0%).
However, PeWeTe still has a comfortable liquidity position of EUR 58.6
million, measured against the significantly reduced business volume.
Outlook for 2023
Against the background of lower global growth rates, Kazakhstan’s economy
is characterized by relatively high stability, albeit with high inflation.
High commodity prices are also having a positive impact. According to
OPEC, global oil demand is expected to increase slightly to 101.8 mb/d in
2023.
Management expects revenue of around KZT 8.8 billion to KZT 9.8 billion in
2023. Converted into the reporting currency of the euro, revenue could be
in a range of EUR 17.6 million to EUR 20.6 million at an exchange rate of
KZT 475 to KZT 500 per euro. EBITDA is currently forecast to be up to KZT
3.7 billion, which corresponds to an amount of EUR 6.6 million to EUR 7.7
million at an exchange rate per euro in the aforementioned range. This
expectation is based on the situation at the time of publication of this
report and does not include serious negative effects, in particular a
further escalation of the tense geopolitical and economic situation.
The 2022 Annual Report of Petro Welt Technologies AG is available for
download on the corporate website [1] www.pewete.com.
Key Positions 2022 2021 +/– %
Revenue EUR million 235.1 237.0 (0.8)
EBITDA EUR million (361.5) 33.5 >(100)
EBIT EUR million (388.8) 7.3 >(100)
EBITDA margin % (153.8)% 14.1 –
EBIT margin % (165.4)% 3.1 –
Group result EUR million (411.8) 2.9 >(100)
Earnings per share EUR (8.43) 0.06 >(100)
Equity EUR million 25.3 206.0 >(100)
Cash flows from operating EUR million 5.6 34.5 >(100)
activities
Employees Full-time equivalents 114 3,319 >(100)
About Petro Welt Technologies AG
Petro Welt Technologies AG, domiciled in Vienna, is one of the leading and
first established oilfield services companies in the CIS and is
specialized in services which increase the productivity of new as well as
existing oil and gas formations. Following the sale of the operating
subsidiaries in Russia and the withdrawal from the Omani market, the
company is currently focusing on Kazakhstan.
Contact
Konstantin Huber (Male Huber Friends)
Investor Relations
T: +43 1 503 2 503-29
huber@mhfriends.at
End of Inside Information
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27-Apr-2023 CET/CEST News transmitted by EQS Group AG. www.eqs.com
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Language: English
Company: Petro Welt Technologies AG
Kärntner Ring 11-13
1010 Vienna
Austria
Phone: +43 1 535 23 20-0
Fax: +43 1 535 23 20-20
E-mail: ir@pewete.com
Internet: www.pewete.com
ISIN: AT0000A00Y78
WKN: A0JKWU
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart, Tradegate Exchange
EQS News ID: 1619799
End of Announcement EQS News Service
1619799 27-Apr-2023 CET/CEST
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