Business
Foraco International Reports Q1 2010; Marked by Acquisitions
Foraco International Reports Q1 2010; Marked by Acquisitions
About this update from Foraco International Sa
[{"type":"text","content":"\n\n\n\n May 11, 2010 (Canada NewsWire Group) -- /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES NOR FOR DISSEMINATION IN THE UNITED STATES/\n\n Foraco International SA (the "Company" or "Foraco"), a leading global provider of diversified drilling services, today reported unaudited financial results for its first quarter of 2010. All figures are reported in Euros ((pnds stlg)), unless otherwise indicated.\n\nQ1 2010 Highlights:\n\n\n >\n\n\n"The very end of 2009 and the beginning of the first quarter of 2010 were affected by a combination of adverse factors including the scheduled termination of certain significant contracts, the delays in the commencement of new projects, and the mobilization of equipment for new contracts. Since mid-February, the level of activity has returned, back in line with our expectations," said Daniel Simoncini Chairman and Chief Executive Officer of Foraco. "During the quarter we also negotiated the acquisition of LLC Eastern Drilling Company in Russia and Adviser Drilling SA in Chile, which represents a strategic milestone in the Company's transformation towards becoming a major global provider of drilling services."\n"We would like to emphasize that despite the adverse effect of this temporary slowdown, we managed to generate a net profit and a positive cash flow from operations during the quarter. The individual projects we performed during this period continued to deliver a strong level of gross margin, which partially offset the under-absorption of our fixed costs resulting from the slow start during the quarter," said Jean-Pierre Charmensat, Vice-CEO and Chief Financial Officer of Foraco. "We are also confident that the integration of Adviser Drilling SA will be financially accretive, and will generate significant synergies on both short and long term."\n\nFinancial Results\n\nForaco's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS"), rather than Canadian Generally Accepted Accounting Principles ("Canadian GAAP"), and as such may not be directly comparable to the financial statements of other Canadian issuers.\n\n\n >\n\n\nFor the three-month period ended March 31, 2010, revenue totaled (pnds stlg)17.8 million compared to (pnds stlg)22.4 million for the three-...