OOO Burovoya Kompaniya Eurasia (BKE) is the largest onshore drilling contractor in Russia
, October 27, 2015
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION
27 OCTOBER 2015
EURASIA DRILLING COMPANY LIMITED
As a result of requests from investors and shareholders, Eurasia Drilling Company Limited (the "Company") announces the Company's view on the group's outlook for 2016. The Company expects 2016 revenue to be approximately $1.7-1.8 billion (assuming 64 Rubles to the US$), EBITDA to be approximately $390-420 million, and Capex to be approximately $250 million. The Company does not expect to pay any dividends for the year ended 31 December 2015.
This outlook is based on our expected customer mix and their level of activity, which continues to be significantly lower than the peak metres drilled in 2013. Consistent with our expectations, we are assuming effectively flat pricing but high inflation for our Ruble based land activity, impairments in our Iraq business, and a substantial reduction in our marine business in the Caspian Sea. We have assumed a continuing prolonged period of low oil price, and the extension of existing US and EU financial and energy sector sanctions through 2016. We also expect that the Company performance will be negatively affected by the impact of the proposed oil tax regime changes as the energy sector remains a high profile core industry.
Eurasia Drilling Company Limited
Hudson Sander (media enquiries for the Company)
This announcement contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Company. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use future dates or words such as "anticipate", "target", "expect", "estimate", "intend", "plan", "goal", "believe", "hope", "aim", "continue", "will", "may", "would", "could" or "should" or other words of similar meaning or the negative thereof. There are several factors which could cause actual plans and results to differ materially from those expressed or implied in forward-looking statements. These forward-looking statements are based on numerous assumptions and assessments made by the Company in light of its experience and perception of historical trends, current conditions, business strategies, operating environment, future developments and other factors it believes appropriate. By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. The factors described in the context of such forward-looking statements in this announcement could cause the Company's plans, actual results, performance or achievements, industry results and developments to differ materially from those expressed in or implied by such forward-looking statements. Although it is believed that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct and persons reading this announcement are therefore cautioned not to place undue reliance on these forward-looking statements which speak only as at the date of this announcement. The Company assumes no obligation to update or revise the information contained in this announcement (whether as a result of new information, future events or otherwise), except as required by applicable law.
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