Foraco International announces 2007 second quarter results



    /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
    UNITED STATES/

    TORONTO and MARSEILLES, Aug. 14 /CNW/ - Foraco International SA
(TSX: FAR) (the "Company" or "Foraco") today announced its financial results
for the three and six-month periods ended June 30, 2007. All figures are
reported in Euros, unless otherwise indicated.
    Subsequent to the end of its fiscal 2007 second quarter, Foraco
successfully completed its Initial Public Offering ("IPO") of 14,040,870
common shares at a price of $2.40 per share for gross proceeds of $33,698,088.
In conjunction with the completion of the IPO, certain selling shareholders of
the Company sold, pursuant to a secondary offering, an aggregate of 520,000
common shares of the Company at a price of $2.40 per share. The Company's
common shares have commenced trading on the Toronto Stock Exchange under the
stock symbol "FAR". There are currently 14,560,870 publicly-traded Foraco
common shares issued and outstanding.

    
    Q2 2007 Highlights

    -   Revenue increased 113% to euro 20.3 million compared to
        euro 9.6 million in Q2 2006
    -   Gross profit increased 127% to euro 6.1 million compared to
        euro 2.7 million in Q2 2006
    -   Net earnings before share based compensation granted as part of the
        IPO increased 168% to euro 2.7 million, compared to euro 1.0 million
        in Q2 2006
    -   Net earnings increased 91% to euro 1.9 million, or euro 0.04 per
        share (basic and diluted) compared to euro 1.0 million or
        euro 0.02 per share (basic and diluted) in Q2 2006
    

    "We are pleased to report strong financial results for the second quarter
and first half of 2007. Our growth was driven by exceptional results from our
African, Asia Pacific and European operations, and our recent expansion in
North America," said Daniel Simoncini, Chairman and Chief Executive Officer of
Foraco. "Looking ahead, we remain committed to further strengthening our
relationships with existing customers and expanding our market presence
through both organic growth and acquisitions."
    "Our operations in the Mining & Energy business segment benefited from
robust market conditions that allowed us to take advantage of our strong
presence in historical markets in Africa, Europe and Asia, as well as our
recent expansion into North America. Growth of our operations in the Water,
Infrastructure & Environmental business segment was organic and includes a new
geotechnical project in New Caledonia," said Jean-Pierre Charmensat, Vice-CEO
and Chief Financial Officer. "With the recent completion of our IPO, we have
entered the second half of 2007 with a strong balance sheet and the financial
flexibility to pursue our growth opportunities."

    Financial Results

    Revenue for the three-month period ended June 30, 2007 increased 113% to
euro 20.3 million, compared to euro 9.6 million in the same period of 2006.
Increased revenue in the quarter was primarily attributable to the strong
performance of the Company's operations in Africa, Europe and Asia Pacific;
euro 3.3 million in net new revenue from the acquisition of Connors Drilling;
and euro 2.8 million from growth of Foraco in Canada and the U.S.

    
    -------------------------------------------------------------------------
    (In thousands Euros)             Three      Three       Six        Six
                                     months     months     months     months
                                     ended      ended      ended      ended
                                    June 30,   June 30,   June 30,   June 30,
                                     2007       2006       2007       2006
    -------------------------------------------------------------------------
    Revenue                          20,313      9,558     34,569     16,601
    -------------------------------------------------------------------------
    Gross Profit                      6,082      2,680      9,319      3,979
    -------------------------------------------------------------------------
    Net Earnings before share
     based compensation granted
     as part of the IPO               2,703      1,007      3,715      1,012
    -------------------------------------------------------------------------
    Net Earnings                      1,922      1,007      2,934      1,012
    -------------------------------------------------------------------------
    

    Gross profit for the three-month period ended June 30, 2007 increased
127% to euro 6.1 million or 29.3% of revenue, compared to gross profit of
euro 2.7 million or 28.0% of revenue for the same period in 2006. The increase
in gross profit for the quarter reflects higher revenues and improved
operational performance.
    Selling and marketing expenses, and general and administrative expenses
("operating expenses"), for the second quarter of 2007 totaled
euro 2.1 million or 10.1% of revenue, compared to operating expenses of
euro 1.2 million or 12.9% of revenue in the second quarter of 2006. Increased
operating expenses in the second quarter of 2007 reflect the Company's
expansion in North America including the acquisition of Connors Drilling,
increased business activity and corporate costs related to the Company's IPO.
    For the second quarter of 2007, net earnings before share based
compensation granted as part of the IPO increased 170% to euro 2.7 million,
compared to net earnings of euro 1.0 million in the second quarter of 2006.
These increases can be attributed to higher revenues and pricing, strong
operational performance and improved absorption of operational and general
expenses.
    For the second quarter of 2007, net earnings increased 91% to
euro 1.9 million, or euro 0.04 per share (basic and diluted), compared to net
earnings of euro 1.0 million or euro 0.02 per share (basic and diluted), in
the second quarter of 2006.
    For the six-month period ended June 30, 2007, revenue increased 108% to
euro 34.6 million compared to revenue of euro 16.6 million in the same period
a year ago. Gross profit increased 134% to euro 9.3 million or 27.0% of
revenue, compared to gross profit of euro 4.0 million or 24.0% of revenue, in
the first six months of 2006. Selling and marketing expenses, and general and
administrative expenses ("operating expenses"), for the first six months of
2007 totaled euro 3.7 million or 10.7% of revenue, compared to operating
expenses of euro 2.4 million or 14.6% of revenue in the first six months of
2006.
    Net earnings before share based compensation granted as part of the IPO
increased to euro 3.7 million in the first six months of 2007 compared to net
earnings of euro 1.0 million in the corresponding period of 2006. For the
first six months of 2007, net earnings (after deducting share-based
compensation granted as part of the IPO) increased to euro 2.9 million or
euro 0.07 per share (basic and diluted) compared to net earnings of
euro 1.0 million or euro 0.02 per share (basic and diluted) in the
corresponding period of 2006.
    Cash flow from operations for the six months ended June 30, 2007 was
euro 8.1 million before changes in working capital, compared to
euro 2.6 million for the same period in 2006.
    As at June 30, 2007 Foraco had cash and cash equivalents of
euro 5.0 million compared to euro 3.3 million as at December 31, 2006.

    
    Segment performance

    (In thousands Euros)             Three      Three       Six        Six
                                     months     months     months     months
                                     ended      ended      ended      ended
                                    June 30,   June 30,   June 30,   June 30,
                                     2007       2006       2007       2006

    Reporting segment
    -----------------
    Mining & energy ...............  14,012      3,764     22,584      5,446
    Water, environmental &
     infrastructure ...............   6,301      5,794     11,985     11,155
                                    --------   --------   --------   --------
    Total revenue .................  20,313      9,558     34,569     16,601
                                    --------   --------   --------   --------
                                    --------   --------   --------   --------
    Geographical region
    -------------------
    Africa ........................  10,925      7,449     18,820     12,801
    Europe ........................   1,381        519      2,371      1,182
    Asia Pacific ..................   1,939      1,590      3,432      2,618
    Americas ......................   6,068          -      9,946          -
                                    --------   --------   --------   --------
    Total revenue .................  20,313      9,558     34,569     16,601
                                    --------   --------   --------   --------
                                    --------   --------   --------   --------
    

    Mining & Energy
    The Mining & Energy segment benefited from strong market conditions in
the second quarter of 2007, as revenue increased to euro 14.0 million from
euro 3.8 million in the second quarter of 2006. Operating profit before share
based compensation granted as part of the IPO for the segment increased to
euro 2.8 million from euro 0.7 million for the three-month period ended
June 30, 2006. The company was able to take advantage of the favourable market
conditions due to its strong presence in traditional markets, its strategy of
acquisition and organic growth in the U.S. and Canada, and a significant
capital expenditure program for new production equipment.

    Water, Environment & Infrastructure
    Foraco's Water, Environmental & Infrastructure segment also achieved
strong results in the second quarter of 2007, as revenue increased 8.8% to
euro 6.3 million compared to euro 5.8 million in the second quarter of 2006.
Operating profit before share based compensation granted as part of the IPO
for the segment increased 70.9% to euro 1.2 million from euro 0.7 million in
the second quarter of 2006.

    About Foraco

    Foraco is a worldwide drilling service provider headquartered in
Marseille, France. The Company provides a diverse range of drilling services
to the minerals, energy, water, environmental and infrastructure sectors. The
Company currently operates 100 drilling rigs, with a presence in 16 countries
across five continents. For more information about Foraco, visit
www.foraco.com.

    Caution concerning forward-looking statements

    This press release may contain "forward-looking statements" and
"forward-looking information" within the meaning of applicable securities
laws. These statements and information include estimates, forecasts,
information and statements as to management's expectations with respect to,
among other things the future financial or operating performance of the
Company and capital and operating expenditures. Often, but not always,
forward-looking statements and information can be identified by the use of
words such as "may", "will", "should", "plans", "expects", "intends",
"anticipates", "believes", "budget", and "scheduled" or the negative thereof
or variations thereon or similar terminology. Forward-looking statements and
information are necessarily based upon a number of estimates and assumptions
that, while considered reasonable by management, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. Readers are cautioned that any such forward-looking statements
and information are not guarantees and there can be no assurance that such
statements and information will prove to be accurate and actual results and
future events could differ materially from those anticipated in such
statements. Important factors that could cause actual results to differ
materially from the Company's expectations are disclosed under the heading
"Risk Factors" in the Company's final prospectus dated July 23, 2007, which is
filed with Canadian regulators on SEDAR (www.sedar.com). The Company expressly
disclaims any intention or obligation to update or revise any forward-looking
statements and information whether as a result of new information, future
events or otherwise. All written and oral forward-looking statements and
information attributable to us or persons acting on our behalf are expressly
qualified in their entirety by the foregoing cautionary statements.


    
       Unaudited condensed consolidated interim balance sheet - Assets


                                                       June 30,  December 31,
                                          Note          2007        2006
    -------------------------------------------------------------------------
    ASSETS

    Non-current assets
    Property, plant and equipment           (5)        13,711         11,411
    Goodwill                                (6)         4,279          1,914
    Other intangible asset                  (6)           385              -
    Investments in associates                             169             75
    Deferred income tax assets                            474            645
    Other non-current assets                              315            413

    -------------------------------------------------------------------------
                                                       19,333         14,458

    Current assets
    Inventories, net                        (7)        11,399         11,081
    Trade receivables, net                             17,859         13,024
    Other current assets                                4,715          4,376
    Cash and cash equivalents                           5,025          3,313

    -------------------------------------------------------------------------
                                                       38,998         31,794

    Assets classified as held for sale     (10)           746              -

    -------------------------------------------------------------------------
    Total assets                                       59,077         46,252




           Unaudited condensed consolidated interim balance sheet -
                             Equity & Liabilities


                                                       June 30,  December 31,
                                          Note          2007        2006
    -------------------------------------------------------------------------
    EQUITY

    Capital and reserves attributable
     to the Company's equity holders
    Share capital                          (15)           665            657
    Retained earnings                                  17,370         15,064
    Other reserves                                         53         (1,210)
    -------------------------------------------------------------------------
                                                       18,088         14,511

    Minority interest in equity                           138            112

    -------------------------------------------------------------------------
    Total equity                                       18,226         14,623

    LIABILITIES
    Non-current liabilities
    Borrowings                              (8)        10,443          3,868
    Deferred income tax liabilities                       664            893
    Provisions for other liabilities
     and charges                            (9)         2,602          2,632

    -------------------------------------------------------------------------

    Current liabilities
    Trade and other payables                           15,330         14,932
    Current income tax liabilities                      1,203            121
    Borrowings                              (8)        10,102          8,820
    Provisions for other liabilities
     and charges                            (9)           363            363

    -------------------------------------------------------------------------
    Total liabilities                                  40,707         31,629

    Liabilities directly associated
     with non-current assets classified
     as held for sale                      (10)           144              -

    -------------------------------------------------------------------------
    Total equity and liabilities                       59,077         46,252




          Unaudited condensed consolidated interim income statement


                                        Three      Six      Three      Six
                                        month     month     month     month
                                        period    period    period    period
                                        ended     ended     ended     ended
                                       ------------------ -------------------
                                 Note    June 30, 2007       June 30, 2006
    ---------------------------------- ------------------ -------------------

    Revenue                       (4)   20,313    34,569     9,558    16,601

    Cost of sales                (12)  (14,231)  (25,250)   (6,878)  (12,622)

    Gross profit                         6,082     9,319     2,680     3,979

    Selling and marketing
     expenses                    (12)     (678)   (1,151)     (320)     (680)
    General and administrative
     expenses                    (12)   (1,378)   (2,542)     (917)   (1,742)
    Other operating income/
     (expense), net              (12)        -         -       (16)      (16)
    Share of profit/(loss)
     from associates             (12)       44        94         -         -
    Share based compensation
     granted as part of the
     Initial Public Offering   (11)/(12)  (781)     (781)        -         -

    Operating profit                     3,289     4,939     1,427     1,541

    Finance costs                         (329)     (582)     (173)     (265)

    Profit before income tax             2,960     4,357     1,254     1,276

    Income tax expense                  (1,037)   (1,422)     (247)     (264)

    ---------------------------------- ------------------ -------------------
    Profit for the period                1,922     2,934     1,007     1,012

    Attributable to:
    Equity holders of the Company        1,908     2,908     1,007     1,012
    Minority interest                       14        26         -         -


    Earnings per share for
     profit attributable to
     the equity holders of the
     Company during the period
     (expressed in euro
     per share)
    -   basic                    (15)     0.04      0.07      0.02      0.02
    -   diluted                  (15)     0.04      0.07      0.02      0.02




    Unaudited condensed consolidated interim statement of changes in equity


                          Attributable to equity            Minority   Total
                          holders of the Company            Interest  equity

                         Share   Retained   Other    Total
                        Capital  Earnings  Reserves

    Balance at
     January 1, 2006        657   13,414     (749)  13,322      210   13,532

    Currency translation
     differences              -        -      (77)     (77)       -      (77)
    -------------------------------------------------------------------------
    Net income/(loss)
     recognized directly
     in equity              657   13,414     (826)  13,245      210   13,455

    Profit for the six
     month period             -    1,012        -    1,012        -    1,012
    -------------------------------------------------------------------------
    Total recognized income
     and expense for the
     six month period       657   14,426     (826)  14,257      210   14,467

    Dividend paid
     relating to 2005         -     (602)       -     (602)       -     (602)
    -------------------------------------------------------------------------
    Balance at June 30,
     2006                   657   13,824     (826)  13,655      210   13,865

    Balance at
     January 1, 2007        657   15,064   (1,210)  14,511      112   14,623

    Currency translation
     differences              -        -      404      404        -      404
    Change in fair value
     of financial assets
     available for sale,
     net of tax               -        -       86       86        -       86
    Employee share based
     compensation
     (see Note 11)            -        -      809      809        -      809
    Actuarial gains/
     (losses), net of
     tax (see Note 9)         -        -      (36)     (36)       -      (36)
    -------------------------------------------------------------------------
    Net income/(loss)
     recognized directly
     in equity              657   15,064       53   15,774      112   15,886

    Profit for the six
     month period             -    2,908        -    2,908       26    2,934
    -------------------------------------------------------------------------
    Total recognized
     income and expense
     for the six month
     period                 657   17,972       53   18,682      138   18,820

    Share capital
     increase                 8        -        -        8        -        8
    Dividend declared
     relating to 2006         -     (602)       -     (602)       -     (602)
    -------------------------------------------------------------------------
    Balance at
     June 30, 2007          665   17,370       53   18,088      138   18,226




         Unaudited condensed consolidated interim cash flow statement

                                                          Six months period
                                                            ended June 30,
                                                       ----------------------
                                          Note           2007           2006
    -------------------------------------------------------------------------

    Cash flows from operating activities
    Profit for the period                               2,934          1,012

    Adjustments for:
    - Depreciation, amortization and
       impairment (including euro 1,357
       and euro 524 for the three month
       period ended June 30, 2007 and
       2006, respectively)                  (5)         2,484          1,114
    - Changes in non-current portion of
       provisions and other liabilities     (9)          (153)          (104)
    - Income taxes expense                              1,422            264
    - (Gain)/loss on sale and
       disposal of assets                                   -              6
    - Share of (profit)/loss from associates              (94)             -
    - Changes in items recognized
       directly in equity with an impact
       on (i) the profit for the period
       or (ii) cash and cash equivalents:
        Financial assets available
         for sale, net of tax                              86              -
        Share based compensation expenses  (11)           809              -
    - Finance costs, net                                  582            265
    Cash generated from operations
     before changes in operating
     assets and liabilities                             8,070          2,557

    Changes in operating assets
     and liabilities:
    - Inventories                                       1,048           (943)
    - Trade accounts receivable and
       related current liabilities                     (3,182)          (625)
    - Trade accounts payable and
       related current assets                          (1,623)           347

    Cash generated from operations                      4,313          1,336
    - Interest paid                                      (518)          (225)
    - Income tax paid                                    (393)          (111)

    Net cash flow from operating activities             3,402          1,000

    Cash flows from investing activities
    Purchase of property, plant
     and equipment                        (5)/(*)      (2,319)        (1,803)
    Acquisition of the net assets of
     Connors Drilling Ltd                              (6,566)             -
    Deposit on escrow account relating
     to Connors' acquisition                             (735)             -
    Proceeds from sale of PPE                               -             66
    Changes in other current and
     non-current assets (excluding
     operating assets)                                    (42)            18

    Net cash used in investing activities              (9,662)        (1,719)

    Cash flows from financing activities
    Repayments of borrowings                             (956)          (930)
    Proceeds from issuance of borrowings,
     net of issuance cots                               8,731            446
    Net increase/(decrease) in bank
     overdrafts and short-term loans                      227           (119)
    Dividends paid to Company's shareholders                -              -
    Dividends paid to minority interests                  (15)             -

    Net cash used in financing activities               7,987           (603)

    Exchange differences on cash
     and cash equivalents                                 (15)             -

    Net increase/(decrease) in cash
     and cash equivalents                               1,712         (1,322)

    Cash and cash equivalents at
     beginning of the year                              3,313          3,382
    -------------------------------------------------------------------------
    Cash and cash equivalents at
     end of the year                                    5,025          2,060

    (*) Excluding acquisition financed
        through capital leases                              -              -




                  Selected notes to the unaudited condensed
                  consolidated interim financial statements


    1.    Basis of preparation

    These unaudited condensed interim financial statements have been prepared
    in accordance with IAS 34, Interim Financial Reporting. All material
    intercompany balances have been eliminated. Because all of the
    disclosures required by IFRS are not included, these interim statements
    should be read in conjunction with the audited financial statements in
    the Company's annual report for the year ended December 31, 2006. The
    statements of income for the periods presented are not necessarily
    indicative of results to be expected for any future period, nor for the
    entire year.

    Except otherwise stated, all amounts are presented in thousands of euros,
    which is the functional currency of the Group.

    2.    Accounting policies and new accounting pronouncements

    The accounting policies have been consistently applied with those of the
    annual financial statements for the year ended December 31, 2006, as
    described in the annual financial statements for the year ended
    December 31, 2006.

    Certain new standards and interpretations to existing standards have been
    published that are mandatory for the Company's accounting periods
    beginning after July 1, 2007 or later periods.

    New standard which the Company has not early adopted:

    -   IFRS 8, Operating segments (effective for annual periods beginning on
        or after January 1, 2009): IFRS 8 replaces IAS 14, Segment Reporting
        and requires an entity to report financial and descriptive
        information about its reportable segments. IFRS 8 differs in certain
        areas from IAS 14 such as the identification of operating segments
        based on internal reports that are regularly reviewed by the entity's
        management in order to allocate resources to the segment and assess
        its performance, the amount of each operating segment item reported
        to be the measure reported to the management for the purposes of
        allocating resources to the segment and assessing its performance and
        the reportable segment disclosures.

    New interpretations which are not applicable to the operations of the
    Company:

    -   IFRIC 11, Group and Treasury Share Transactions (effective for annual
        periods beginning on or after March 1, 2007)

    -   IFRIC 12, Service Concession Arrangements (effective for annual
        periods beginning on or after January 1, 2008)

    -   IFRIC 13 Customer Loyalty Programmes (effective for annual periods
        beginning on or after July 1, 2008)

    -   IFRIC 14 IAS 19 - The Limit on a Defined Benefit Asset, Minimum
        Funding Requirements and their Interaction (effective for annual
        periods beginning on or after January 1, 2008)

    New interpretation and standard which are applicable to the operations of
    the Company but which have no material effect on the condensed
    consolidated interim financial statements as of June 30, 2007:

    -   IFRS 7, Financial Instruments: Disclosures, and a complementary
        Amendment to IAS 1, Presentation of Financial Statements - Capital
        Disclosures (effective from January 1, 2007). This standard will be
        applied for disclosures provided in annual financial statements as of
        December 31, 2007

    -   IFRIC 10, Interim Financial Reporting and Impairment (effective for
        annual periods beginning on or after 1 November 2006): IFRIC 10
        addresses the recognition and reversal in subsequent annual period of
        impairment losses on goodwill and certain financial assets recognized
        the context of interim financial statement prepared under IAS 34,
        Interim Financial Reporting. The Group has not recognized any
        impairment loss as of June 30, 2007

    2.1.  Intangible assets

    Following the acquisition of the net assets of Connors Drilling Ltd, the
    Company recognized certain intangible assets as part of the purchase
    price allocation (see Note 6).

    (a) Trademarks

    Acquired trademarks are shown at acquisition cost. Trademarks have a
    finite useful life and are carried at cost less accumulated amortization.
    In the context of the acquisition of the Canadian operations of Connors
    Drilling Ltd, the right to use the trademark 'Connors' has been granted
    to the Company for a 20 month period. Amortization of the Connors
    trademark is calculated using the straight-line method over its estimated
    useful life (20 months). Trademarks are presented within "Other
    intangible assets".

    (b) Customer relationships

    Customer relationships correspond to order backlog and customer contracts
    recognized in the context of business combination at the date of
    acquisition. For each component of customer contractual relationships,
    (i) a signed drilling contract, (ii) an expected revenue and (iii) an
    expected margin are identified. Following the date of acquisition when
    the corresponding drilling contract starts, the customer contractual
    relationship identified at the date of acquisition and recognized as an
    intangible asset is credited to cost of sales so as to amortize the
    intangible asset based on the revenue earned. When applicable, an
    impairment test is performed if the drilling contract is no longer likely
    to occur, or if the expected profitability of a given future transaction
    is lower than anticipated. No impairment loss has been recognized to
    date. Customer relationships are presented within "Other intangible
    assets".

    2.3.  Share-based compensation

    During the period, the Company entered into certain share-based
    compensation plans (see Note 11 and 15). The fair value of the employee
    services received in exchange for the grant of the shares is recognised
    as an expense, with a corresponding adjustment to equity. The total
    amount to be expensed over the vesting period is determined by reference
    to the fair value of the equity instrument granted. The plans operated by
    the Company do not include any market vesting conditions. At each balance
    sheet date, the Company will revise its estimates of the number of shares
    that are expected to vest. The Company will recognise the impact of the
    revision of original estimates, if any, in the income statement.

    2.4.  Income tax

    The income tax expense is recognised based on management's best estimate
    of the average annual income tax rate expected for the full financial
    year on a tax jurisdiction by tax jurisdiction basis.

    2.5.  Seasonal fluctuations

    The Company experiences seasonality in the activity depending upon
    drilling conditions of each project and country where the Company
    operates, with peak activity in second quarter of the year. As a result
    of these seasonal fluctuations, the Company's cash flows from operations
    and revenue are not evenly distributed between quarters throughout the
    year.

    3.    Financial Risk management

    The Company is exposed to a variety of financial risks through its
    activity: currency risk, cash transfer restriction, interest
    rate/re-investment risk, financial counter-party risk and credit risk.

    Following the Group expansion in Canada, a portion of the cash flows is
    now denominated in Canadian dollars. Canadian operations are not exposed
    to currency fluctuations as all revenues and costs are generated in
    Canadian dollars.

    4.    Segment information

    The two segments "Mining & energy" and "Water, environmental &
    infrastructure" identified in the tables below correspond to the new
    business segments in which the Company reports its financial information.
    Management believes that this new identification of segments provides a
    better understanding of current performance and trends in the context of
    the expansion of Company's operations. Prior period segment information
    presented for comparative purposes has been restated to reflect this new
    identification of segments. Geographical segment information remains
    unchanged.

    The business segment information for the three month period ended
    June 30, 2007 and 2006 is as follows:

                              Water,
                          environmental &      Mining &
                          infrastructure        energy            Group
    -------------------------------------------------------------------------
    Three months             June 30,          June 30,          June 30,
     period ended         2007     2006     2007     2006     2007     2006
    -------------------------------------------------------------------------
    Net Sales             6,301    5,794   14,012    3,764   20,313    9,558
    Operating profit        980      715    2,309      712    3,289    1,427
    Finance costs           n/a      n/a      n/a      n/a     (329)    (173)

    -------------------------------------------------------------------------
    Profit before income
     tax                    n/a      n/a      n/a      n/a    2,960    1,254

    Income tax expense      n/a      n/a      n/a      n/a   (1,037)    (247)

    -------------------------------------------------------------------------
    Profit for the period   n/a      n/a      n/a      n/a    1,922    1,007


    The business segment information for the six month period ended
    June 30, 2007 and 2006 is as follows:

                              Water,
                          environmental &      Mining &
                          infrastructure        energy            Group
    -------------------------------------------------------------------------
    Six months               June 30,          June 30,          June 30,
     period ended         2007     2006     2007     2006     2007     2006
    -------------------------------------------------------------------------
    Net Sales            11,985   11,155   22,584    5,446   34,569   16,601
    Operating profit      2,013      770    2,926      771    4,939    1,541
    Finance costs           n/a      n/a      n/a      n/a     (582)    (265)

    -------------------------------------------------------------------------
    Profit before income
     tax                    n/a      n/a      n/a      n/a    4,357    1,276

    Income tax expense      n/a      n/a      n/a      n/a   (1,422)    (264)

    -------------------------------------------------------------------------
    Profit for the period   n/a      n/a      n/a      n/a    2,934    1,012


    Corporate costs and overheads are allocated to each business segment
    based on their revenue. This approach is considered by management to be a
    reasonable basis for determining the attributable costs of the respective
    segment.

    The following is a summary of sales to external customers by geographic
    area for the three month period ended June 30, 2007 and 2006:

    Three months period ended                    30 June 2007   30 June 2006
    -------------------------------------------------------------------------

    Africa                                             10,925          7,449
    Europe                                              1,381            519
    Asia, Pacific                                       1,939          1,590
    America                                             6,068              -

    -------------------------------------------------------------------------
    Net sales                                          20,313          9,558


    The following is a summary of sales to external customers by geographic
    area for the six month period ended June 30, 2007 and 2006:

    Six months period ended                      30 June 2007   30 June 2006
    -------------------------------------------------------------------------

    Africa                                             18,820         12,801
    Europe                                              2,371          1,182
    Asia, Pacific                                       3,432          2,618
    America                                             9,946              -

    -------------------------------------------------------------------------
    Net sales                                          34,569         16,601


    5.    Property, plant and equipment

    Property, plant and equipment (PPE) consists of the following:

                                                            Office
                                      Drilling    Auto-    furniture
                            Land &    equipment  motive     & other
                           Buildings   & tools  equipment  equipment   Total

    As of December 31, 2006
    Opening net book amount    1,179     5,547     1,055       142     7,923
    Additions                    273     4,718     1,167        68     6,226
    Disposals or retirements       -       (35)      (57)       (2)      (94)
    Depreciation charge          (79)   (1,771)     (731)      (64)   (2,644)

    -------------------------------------------------------------------------
    Closing net book value     1,373     8,459     1,434       144    11,411

    As of December 31, 2006
    Cost                       1,889    18,872     3,995       923    25,680
    Accumulated depreciation    (516)  (10,413)   (2,561)     (779)  (14,269)

    -------------------------------------------------------------------------
    Net book value             1,373     8,459     1,434       144    11,411

    Including:
    PPE under finance lease
     contracts, gross            893     3,657     1,133         -     5,683
    PPE under finance lease
     contracts, accumulated
     depreciation               (610)     (908)     (571)        -    (2,089)

    -------------------------------------------------------------------------
    Net book value of PPE under
     finance lease as of
     December 31, 2006           283     2,749       562         -     3,594

    As of June 30, 2007
    Opening net book amount    1,373     8,459     1,434       144    11,411
    Additions                      6     1,874       415        24     2,319
    Exchange differences          75       153         5         7       239
    Disposals or retirements       -        (6)        -         -        (6)
    Transfer to Assets
     classified as held for
     sale                       (746)        -         -         -      (746)
    Acquisition of subsidiary
     (Note 6)                    913     1,577        74        12     2,576
    Depreciation charge          (85)   (1,614)     (343)      (41)   (2,083)

    -------------------------------------------------------------------------
    Closing net book value     1,536    10,443     1,585       146    13,711

    As of June 30, 2007
    Cost                       2,039    27,647     7,702       711    39,665
    Accumulated depreciation    (502)  (17,204)   (6,117)     (565)  (25,208)

    -------------------------------------------------------------------------
    Net book value             1,537    10,443     1,585       146    13,711

    Including:
    PPE under finance lease
     contracts, gross             72     3,813       778         -     4,663
    PPE under finance lease
     contracts, accumulated
     depreciation                (72)   (1,218)     (391)        -    (1,681)

    -------------------------------------------------------------------------
    Net book value of PPE
     under finance lease as
     of June 30, 2007              -     2,595       387         -     2,982


    The depreciation expense of PP&E and the amortization expense of
    intangible assets have been charged to the income statement as follows:

    Three month period ended                    June 30, 2007  June 30, 2006
    -------------------------------------------------------------------------

    Cost of sales                                       1,341            508
    General & administrative expenses                      16             16

    -------------------------------------------------------------------------
    Total depreciation and amortization                 1,357            524


    Six month period ended                      June 30, 2007  June 30, 2006
    -------------------------------------------------------------------------

    Cost of sales                                       2,452          1,082
    General & administrative expenses                      32             32

    -------------------------------------------------------------------------
    Total depreciation and amortization                 2,484          1,114


    6.    Goodwill

    Goodwill can be analyzed as follows:

                                                      June 30,   December 31,
    Period ended                                         2007           2006
    -------------------------------------------------------------------------
    Goodwill at period beginning                        1,914          1,914
    Additions                                           2,206              -
    Purchase price adjustments                              -              -
    Impairment loss                                         -              -
    Exchange differences                                  159              -
    -------------------------------------------------------------------------
    Goodwill at period ending                           4,279          1,914


    Business Combination

    The Company acquired through an asset deal substantially all the Canadian
    assets of Connors Drilling Ltd, a surface and underground diamond
    drilling company, on February 1, 2007. The net purchase consideration
    paid in relation to this acquisition and the related goodwill amounted to
    euro 6,566 thousand and euro 2,206 thousand, respectively.

    The additional depreciation and amortization expenses recognized in the
    income statement resulting from the purchase price allocation for the
    three month and the six month period ended June 30, 2007 amounted to
    euro 220 and euro 450, respectively.

    7.    Inventories

    Inventories consist of the following:


                                                      June 30,   December 31,
    Period ended                                       2007         2006
    -------------------------------------------------------------------------
    Spare parts and consumables, gross                 11,847         11,529
    Less inventory allowance                             (448)          (448)

    -------------------------------------------------------------------------
    Inventories, net                                   11,399         11,081


    8.    Borrowings

    Financial debt consists of the following:


                                                      June 30,   December 31,
    Period ended                                       2007         2006
    -------------------------------------------------------------------------
    Non-current
    Other bank financings                               1,745          1,352
    Capital lease obligations                           1,480          1,978
    Bank loan financing the acquisition of Boniface         -             16
    Other debt linked to the acquisition of Boniface       80             80
    Bank loan financing the acquisition of Geomechanik    442            442
    Bank loan financing the acquisition of Connors      6,696              -

    -------------------------------------------------------------------------
                                                       10,443          3,868

    Current
    Bank overdrafts                                     6,799          6,572
    Other bank liabilities                                827            661
    Capital lease obligations                             809            974
    Bank loan financing the acquisition of Boniface        73            170
    Bank loan financing the acquisition of Geomechanik    443            443
    Bank loan financing the acquisition of Connors      1,151              -

    -------------------------------------------------------------------------
                                                       10,102          8,820


    As of June 30, 2007, maturity of financial debt can be analyzed as
    follows:


                                  Less than  One to five      Over
    Maturity                       one year     years     five years   Total
    -------------------------------------------------------------------------

    Bank overdraft                    6,799          -          -      6,799
    Bank financing                      799      1,738          -      2,537
    Capital lease obligations           809      1,480          -      2,289
    Bank loans and debts relating to
     acquisitions                     1,695      4,939      2,286      8,920

    -------------------------------------------------------------------------
    Total financial debt             10,102      8,157      2,286     20,545


    Unused credit facilities amount to euro 7,611 thousand as of
    June 30, 2007.

    9.    Provisions

    Provisions comprise the following elements:

                                     Pension &
                                     retirement
                                    indemnities        Other
                                     provision       provisions        Total
    -------------------------------------------------------------------------

    At January 1, 2007                   2,995              -          2,995

    Charged to consolidated income
     statement                                              -
    - Addition to provisions                72              -             72
    - Unused amounts reversed                -              -              -
    Used during period                    (152)             -           (152)
    Actuarial gains and losses
     recognized directly in Equity          50              -             50

    -------------------------------------------------------------------------
    At June 30, 2007                     2,965              -          2,965


    The provision relating to French retirement indemnities amounts to
    euro 199 thousand as of June 30, 2007. The pension obligations relating
    to the company Geomechanik are not funded nor covered by pension plan
    assets and consist of the following for the German entity:

                                                      June 30,   December 31,
    Period ended                                       2007         2006
    -------------------------------------------------------------------------

    Projected benefit obligation at the beginning
     of the period                                      2,726          2,212

    Pension benefits paid over the period                (152)          (275)
    Interests accrued on pension obligations               64            106
    Actuarial gains and losses recognized in Equity        50            683

    -------------------------------------------------------------------------
    Projected benefit obligation at the end of the
     period                                             2,688          2,726


    10.   Reorganization and non-current assets held for sale

    During the second quarter, the Company launched a reorganization process
    whereby its real property and premises located in Lunel (France) and
    Woringen (Germany), and obligations under a defined benefit pension plan
    relating the Geomechanik (see Note 9) will be transferred to a
    non-consolidated entity owned and co-managed by two of the directors and
    current shareholders of Foraco.

    The carrying amount of real property and premises that will be
    transferred have been classified as of June 30, 2007 as "Non-current
    assets classified as held for sale". Obligations under capital relating
    to the premises in Lunel have been classified as of June 30, 2007 as
    "Liabilities directly associated with non-current classified as held for
    sale".

    These transactions are expected to result in a net loss of
    euro 0.3 million to the Company, which will impact third quarter of
    2007. Following the close of these transactions the premises in Woringen
    and Lunel will be leased back to the Company at market rates (these
    leases will be entered into following the close of the transactions). The
    lease in respect of the premises in Woringen, Germany is for a term of
    two years, with an annual rent of euro 20 thousand. The lease in
    respect of the premises in Lunel will be for a term of nine years, with
    an annual rent of euro 181 thousand. The Company will benefit from an
    option to terminate the lease for the premises in Lunel at the end of the
    sixth and ninth year of the tenancy. These leases will be renewable.

    The effect of these transactions on the financial statements will be
    reported as part of Company's ongoing disclosure on transactions with
    related parties.

    11.   Share based compensation

    In 2007, 520 common shares (before the effect of share split) have been
    issued to the benefit of certain directors (see Note 15). This issuance
    is treated as share based compensations as these shares have been issued
    at a price that is less than the fair value. The Company recognized an
    expense amounting to euro 781 thousand corresponding to the difference
    between the issue price of these shares and their fair value (deemed to
    be the share price at Initial Public Offering date). These non cash, non
    recurring share based compensations have be disclosed in a separate line
    item of the income statement "Share based compensation granted as part of
    the Initial Public Offering".

    Share based compensation expenses recognized in the income statement are
    as follows:

                                                 Three month     Six month
                                                 period ended   period ended
                                                -----------------------------
                                                        June 30, 2007
    -------------------------------------------------------------------------
    Employee benefit scheme granted in 2006
     that will be replaced by the free share
     plan authorized in 2007 (see Note 15)                   14           28
    Common shares to the benefit of certain
     directors issued in 2007                               781          781
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total share based compensation expense                  795          809


    12.   Expenses by nature

    Operating expenses/(income), net by nature are as follows:

                                      Three       Six       Three       Six
                                      month      month      month      month
                                     period     period     period     period
                                      ended      ended      ended      ended
                                    -------------------   -------------------
                                       June 30, 2007         June 30, 2006
    -------------------------------------------------------------------------

    Depreciation, amortization and
     impairment charges              (1,357)    (2,484)      (524)    (1,114)
    Accruals increases/(reversals)       23         50          -         37
    Raw materials, consumables
     used and external charges       (9,702)   (17,141)    (5,845)    (9,831)
    Employee benefit expense         (4,950)    (8,852)    (1,629)    (3,732)
    Other tax expense                  (301)      (503)      (127)      (398)
    Share of profit/(loss)
     from associates                     44         94
    Other operating expenses, net         -        (13)        (6)       (22)
    Share based compensations
     granted as part of the initial
     public offering                   (781)      (781)         -           -

    -------------------------------------------------------------------------
    Total operating expenses        (17,024)   (29,630)    (8,131)   (15,060)


    13.   Commitments and contingencies

    The guarantees given are the following:


                                                      June 30,   December 31,
    Period ended                                       2007         2006
    -------------------------------------------------------------------------

    Bid bonds                                           1,018            698
    Advance payment guarantees and performance
     guarantees                                         8,738         10,261
    Retention guarantees                                2,856          2,109
    Financial guarantees                                1,385          1,385

    -------------------------------------------------------------------------
    Total                                              13,997         14,453


    Since 2004, the Company launched an arbitration process against a former
    customer Codelco, a Chilian state owned company. This dispute arose
    following the breach of the provisions of a drilling contract in
    relation to the period 2002 and 2003. In late 2006, the arbitrator issued
    a first conciliation proposal whereby Codelco is required to indemnify
    the Company for an amount approximating US$ 2.5 million. This proposal
    has not been accepted by the parties and the arbitration process is still
    ongoing. At this stage, the management can not make any reliable estimate
    of the future outcome of this arbitration.

    In the context of the acquisition of the Company Boniface which took
    place in 2000, the Company was granted with a guarantee on assets
    acquired and liabilities assumed. The guarantee related to potential new
    liabilities does not apply anymore. Management considers that the risk
    that such a liability arises is remote. Under certain specified
    circumstances, the Company may be required to repay to the vendors
    amounts received in excess of the acquired assets resulting in no impact
    on net income for the Company.

    Generally, the Company is subject to legal proceedings, claims and legal
    actions arising in the ordinary course of business. The Company's
    management does not expect that the ultimate costs to resolve these
    matters will have a material adverse effect on the Company's consolidated
    financial position, results of operations or cash flows.

    14.   Related-party transactions

    The Company entered into certain reorganization process (see Note 10) and
    issued additional common shares (see Note 15) which involve related
    parties.

    Banque de Vizille, one of the shareholders of the Company, is a
    subsidiary of group CM-CIC. A subsidiary of group CM-CIC, CIC Bonnasse
    Lyonnaise de Banque, is also one of the bank with whom the Company holds
    a current account. Bank fees paid to Bonnasse Lyonnaise de Banque
    amounted to euro 26 thousand for the first half-year of 2007, including
    euro 13 thousand for the second three month period ended June 30, 2007.
    The Company made lease payments to the same bank for an amount of
    euro 99 thousand for the first half-year of 2007, including
    euro 49 thousand for or the second three month period ended
    June 30, 2007.

    Key Management compensations for the six month period as of June 30, 2007
    amount to euro 232 thousand.

    15.   Operations related to share capital

    In a general meeting of shareholders held on June 7, 2007, the Company
    issued 596 common shares (including 520 to the benefit of certain
    directors) at par value of euro 15.25 per share. These common shares
    have been issued to existing shareholders on a pro-rata basis, so that
    the capital has been increased to euro 665 thousand. This general
    meeting also approved a distribution of a euro 14.00 dividend per
    share. In an extraordinary meeting of shareholders held on June 29, 2007,
    a share split was approved whereby each shareholder received 999
    additional common shares for each one common share held in the capital of
    the Company. Following these transactions, the outstanding and issued
    shares in the capital of the Company became 43,596,000. The calculation
    of the basic and diluted earnings per share has been adjusted
    retrospectively to reflect the share split.

    16.   Events after the balance sheet date

    16.1. Free share plans

    According to the authorization given by the ordinary and extraordinary
    general meeting of shareholders held on June 29, 2007, the board of
    directors of the Company approved at a meeting held on July 18, 2007, two
    free stock award plans. The common shares to be transferred under the
    plans will be shares purchased by the Company and will be transferred to
    beneficiaries for no consideration. The total number of shares to be
    transferred under these plans is limited to 3% of the issued and
    outstanding share capital of the Company on the date grants are made.
    These plans were approved subject to the closing the Initial Public
    Offering, which occurred on August 2, 2007. These common shares grants
    are expected to occur on the third quarter 2007.

    These free stock award plans with employees are within the scope of
    IFRS 2, Share-based payment as they are at a price that is less than the
    fair value of those equity instruments. From grant date, the Company will
    measure and recognized the impact of such share-based compensations at
    the fair value of the common shares granted. For clarity, these non cash,
    non recurring share based payment expenses will be disclosed in a
    separate line item of the income statement for the period ended of
    September 30, 2007.

    16.2. Initial Public Offering

    Description of the offering

    On July 23, 2007, the Company filed a final prospectus with the
    securities regulatory authorities in each of the provinces of Canada in
    connection with the Company's IPO of common shares and a secondary
    offering by certain shareholders of the Company.

    On August 2, 2007 the Company completed its Initial Public Offering (IPO)
    of 14,040,870 common shares at a price of CAD$2.40 per share. In
    conjunction with the completion of the IPO, certain selling shareholders
    of the Company have sold an aggregate of 520,000 common shares of the
    Company at a price of CAD$2.40 per share for gross proceeds to the
    selling shareholders of CAD$1,248,000. Immediately after the offering,
    the share capital amounted euro 877 thousand and the outstanding and
    issued common shares became 57,636,870.

    The reconciliation of the gross proceeds to the net proceeds to the
    Company summarized as follows:

                                                                In thousands
                                                                 of CAD$(1)

    Gross proceeds from the treasury offering,
     14,040,870 at CAD$2.40                                           33,698
    Agents fees corresponding to 7% of the gross
     proceeds of the offering                                         (2,359)
    Estimated expenses of the offering                                (1,350)
    -------------------------------------------------------------------------
    Net proceeds to the Company                                       29,989

    (1) Conversion rate from the euro to the Canadian dollar at the date of
        the closing of the offering is 1.4413.

    The net proceeds arising from the IPO will be used by the Company to
    retire existing indebtedness of the Company, to expand the business by
    way of strategic acquisitions or through organic growth and for general
    corporate purposes. On August 10, 2007 the Company repaid the outstanding
    balance of the borrowing relating to the acquisition of Connors and
    Boniface for approximately euro 7.9 million.

    The Company has also granted the agents responsible for the offering:

    -   an over-allotment option exercisable within 60 days following closing
        of the IPO to purchase up to an additional 15% (up to 2,106,130
        common shares) of the number of common shares sold under the Initial
        Public Offering at CAD$2.40 per common share, and

    -   a compensation option entitling the agents to acquire up to that
        number of common shares equal to 5% of the common shares sold in the
        offering at an exercise price equal to the lowest price paid by any
        purchaser acquiring common shares, exercisable for a period of
        18 months from the closing.

    The Company's common shares have commenced trading on the Toronto Stock
    Exchange, Canada, under the symbol "FAR".

    Accounting considerations

    Incremental costs that are directly attributable to the issuance of
    shares and that would not have been incurred if the Company had not
    issued such shares, will be reported as a reduction of the amounts
    paid-in. Incremental costs generally include agents fees and other
    external costs directly attributable, but exclude internal costs and
    marketing costs, including those related to the road show, which will be
    recorded within net profit. As of June 30, 2007 costs relating to the
    offering have been deferred within prepaid expenses and will be
    recognized on the closing date of the offering in accordance with the
    principles described above.

    In addition, none of the IPO expenses estimated to be CAD$1,350,000 will
    be borne by the selling shareholders. Transaction costs related to the
    selling shareholders estimated to be euro 33 thousand will be recorded
    as an expense within profit for the period in the third quarter. Such non
    recurring external costs related to the transaction as a whole will be
    disclosed in a separate line item of the income statement for the period
    ended September 30, 2007.

    
    %SEDAR: 00025480E




For further information:

For further information: Bruce Wigle, Investor Relations, The Equicom
Group, T: (416) 815-0700 X 228, F: (416) 815-0080, E: bwigle@equicomgroup.com


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