Headline results for the year ended 31 December 2018:
International oilfield services company, Expro, has announced its financial results for the year ended December 31, 2018. This includes revenue of $738.6m, up 17.3%, and an adjusted EBITDA of $103.3m, up 89.1% compared to the year ending December 31, 2017.
The results reflect the market’s slow recovery, with mid–term offshore capital investment showing a modest upward trend as operators continue to exercise strong capital discipline.
With several major contract awards over the year, all regions’ performance rose from 2017. Asia, the Middle East and North Africa secured significant contracts in Algeria, Egypt, Saudi Arabia, China, Thailand and Malaysia. The company’s Sub Saharan Africa division secured key contracts in Nigeria and a market entry opportunity for the Integrated Riser System in Mauritania. North and Latin America’s performance rose significantly with the region seeing an increased demand for Powerchokes and pipeline services in the US, the award of new contracts in Brazil and Mexico and increasing market activity with well intervention services in Argentina. Activity in Europe CIS was also strong, driven by key contracts awarded in Norway, Azerbaijan, UK and Netherlands.
Core areas of the business, including well testing and subsea, have maintained market share to meet an increasing demand for production and intervention related services. This is highlighted by a focus on new and innovative technologies such as the Next Generation Landing String (NGLS) which won the OTC Spotlight on New Technology award in 2018. The NGLS delivers an in-riser well intervention solution and is designed to fully comply with all aspects of the industry’s new API17G standard.
Depreciation, amortisation, goodwill impairment and Gain on restructuring
The company booked $127.6m of non-cash depreciation and amortisation expenses, incurred non-cash impairment charges of $3.2m against its property, plant and equipment and $563.9m of exceptional and non-cash gain on the restructuring of its debt for equity, resulting in a statutory net profit of $511.8m.
Commenting on the company’s results, Mike Jardon, CEO, said:
“In February 2018 we completed our financial restructuring, allowing us to obtain a sustainable financial foundation.
“Despite the market still being hesitant and after facing the volatility of quarter four 2018, Expro has sustained activity through the downturn with positive growth in revenue and margin.
“With some major projects being sanctioned this year, and as we continue to develop new technologies and invest in innovative solutions, we look forward to seeing continued activity and demand within our core business.”