Petro Welt Technologies AG: Q1 2023 results for Petro Welt Technologies AG: Solid order and revenue development, slightly negative EBIT
Petro Welt Technologies AG / Key word(s): Quarterly / Interim Statement
Vienna, May 25, 2023
After the sale of the subsidiaries in Russia in August 2022 and the closure of operations in Oman, also completed in 2022, PeWeTe's subsidiary in Kazakhstan is the only remaining operating business unit of the PeWeTe Group. Its operations concentrate solely on the Kazakh market. Against the background of this significant reduction in the scope of business, the previous year's figures have been adjusted for comparative purposes.
According to the Word Bank, after GDP growth of 3.2% in 2022, the Kazakh economy is expected to see a moderate increase in its growth rate to 3.5% in 2023 and to 4% in 2024, led by the hydrocarbons sector as oil production is expected to rise thanks to several new projects. Inflation is expected to remain beyond the target range of 4–6% in 2023 due to elevated food prices and prices of imported intermediate goods.
Compared to the same period last year, the tenge has strengthened both on average over the reporting period and as of the reporting date. At 486.58 KZT/EUR as of March 31, 2023, the KZT/EUR exchange rate has – after a significant drop in February – almost returned to the price at the beginning of the year of 492.86 KZT/EUR. Compared to the exchange rate of 510.57 KZT/EUR as of March 31, 2022, this means an increase in value of 5%. The average exchange rate recorded an increase of the same magnitude in the first quarter compared to the same period last year (Q1 2023: 487.66 KZT/EUR; Q1 2022: 512.48 KZT/EUR).
Revenue of the PeWeTe Group increased by 58.2% to EUR 2.891 million in the reporting period from EUR 1.827 million in the first three months of 2022. This was made possible by a significant expansion of activities in the Kazakh market and the use of new fracturing equipment, which increased operational capacity by 30%.
On this basis, the number of jobs increased by 17 or 22% to 96 fracturing operations in the reporting period (2022: 79).
Gross profit, on the other hand, showed a decrease of 18.4%, caused by an increase in the cost of sales. The reduction in administrative costs, which was achieved at the same time, was not sufficient to achieve a positive operating result. At EUR –0.3 million, EBIT is nevertheless significantly better than last year's EUR –2.1 million. The EBIT margin amounted to –9.8%, compared to –114.9% for the same period last year.
EBITDA was also significantly lower – although clearly positive – at EUR 0.3 million (Q1 2022: EUR 7.9 million). The reason for this reduction is the deconsolidation of the Russian subsidiaries which were sold in 2022.
Taking into account available measures and the existing solid liquidity position of PeWeTe, the management considers that the Company has sufficient financial stability to continue its operational activity for at least the next twelve months from the reporting date, even if the economic environment were to deteriorate significantly. Accordingly, the management has concluded that there is no material uncertainty regarding the Group’s ability to continue as a going concern.
The Q1 2023 Report of Petro Welt Technologies AG is available for download on our website at www.pewete.com.
About Petro Welt Technologies AG
Petro Welt Technologies AG, a company domiciled in Vienna, Austria, had been one of the leading and oldest oilfield services (OFS) companies in Russia and the CIS specializing in services that increase the productivity of both new and existing oil & gas formations. Against the backdrop of the sanctions against Russia, the company has sold all its subsidiaries in this market and now operates exclusively in Kazakhstan.
Konstantin Huber (Male Huber Friends)
T: +43 1 503 2 503-29
 The previous year's figures were adjusted as a result of the classification of PEWETE EVO EUROPE S.R.L., PEWETE EVO SERVICES LLC, OOO KATKoneft, OOO KATOBNEFT, OOO Trading House KAToil, OOO KAToil Leasing, OOO KAT-oil Drilling, OOO Petro Welt Technologies and OOO Wellprop as discontinued operations or their sale or liquidation – see note 5 to the consolidated financial statements for fiscal 2022.
25-May-2023 CET/CEST News transmitted by EQS Group AG. www.eqs.com
Petro Welt Technologies AG
Kärntner Ring 11-13
+43 1 535 23 20-0
+43 1 535 23 20-20
Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
EQS News ID:
End of Announcement
EQS News Service