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.

   ══════════════════════════════════════════════════════════════════════════

   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

   ══════════════════════════════════════════════════════════════════════════

   27-Apr-2023 CET/CEST News transmitted by EQS Group AG. www.eqs.com

   ══════════════════════════════════════════════════════════════════════════

   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

References

   Visible links
   1. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=9e4a63f2ed00731dda8451efc13f8781&application_id=1619799&site_id=apa_ots_austria&application_name=news

OTS-ORIGINALTEXT PRESSEAUSSENDUNG UNTER AUSSCHLIESSLICHER INHALTLICHER VERANTWORTUNG DES AUSSENDERS - WWW.OTS.AT |

print