OREANDA-NEWS. March 05, 2010. Integra released FY09 operating results. The results of its three business units (drilling and workovers, formation evaluation and equipment manufacturing) were lackluster, while the technological service business unit was the company’s most successful segment, reported the press-centre of OTKRITIE FC.

The number of Integra’s coil tubing operations soared 140% YoY to 345, and the number of wells completed with the implementation of directional drilling technology surged 96% YoY to 167. The results in the drilling and workover segment were weak, with total drilling volumes dropping 50% YoY to 177,000 meters.

View: We believe that the upbeat results of Integra’s technological service business unit are a consequence of the growing demand of oil producing companies for new services, and the lackluster results in its other business units are a function of a decrease in capex of oil producers in drilling and equipment in 2009. We expect that Integra’s 2010 operating results could improve slightly in tandem with the revival of the oil industry as oil prices rise. However, we do not expect rapid growth in Integra’s drilling and workover segment due to stiff competition in this industry.

Valuation and Action: Integra’s stock trades on a 2010 P/E of 9.5x, which is a 10% discount to other domestic oilfield service companies. We view this news as neutral for the company