Operating and financial review
International oilfield services company, Expro, posted strong business growth and enhanced safety performance, for the fiscal year ending March 31, 2014. Revenue increased 15.3% to $1.4bn, headline EBITDA grew 32.4% to $384.9m compared to the fiscal year ending March 31, 2013, while safety performance closed well ahead of industry benchmarks.
Growth for the fiscal year 2014, compared to 2013, was fuelled by robust activity across all geographies:
Europe CIS revenue increased 15.2%, driven by its core markets in the UK and Norway, benefiting from higher levels of well testing and subsea activity. This was complemented by sustained growth in Kazakhstan.
Sub-Saharan Africa achieved a 21.7% growth in revenue over the prior year. Activity was robust across Angola, Nigeria, Gabon and Congo, with additional expansion in a number of more recent territories, particularly Kenya, Tanzania, Ethiopia and Chad.
The highest growth came from the Asia, Middle East and North Africa (AMENA) region, with a 27% rise in revenue. Performance was lifted by strong results in our production system services, following several major contracts to deliver early production facilities (EPF). Continued deepwater activity in Asia led growth, with the booking of a substantial contract for subsea in India and an increase in equipment sales in China. Performance was further enhanced by higher revenue from land-based activity across Middle East and North Africa.
North and Latin America revenue was up 3.2%, with strong activity in the Gulf of Mexico, primarily in well testing and tubing conveyed perforating (TCP) services. In addition, Brazil’s revenue was bolstered by robust well intervention activity and wireless well solutions (WWS) sales.
Cashflow and balance sheet
Expro’s robust business growth combined with a continuous focus on working capital management, resulted in strong cash flow generation leading to a reduction of Leverage down to 5.0x from 6.1x.
The company’s heightened focus on safety and service quality, supported by a fully engaged workforce, has continued to foster responsiveness to customer needs – this has resulted in sustained high performance amidst a thriving international oil and gas environment.
With solid growth prospects for the oilfield service sector, Charles Woodburn, CEO commented:
“I am delighted to announce Expro’s strong annual results this year, which is testimony to the hard work undertaken across our global operations. Our investment in equipment, technology and people has demonstrated clear returns across the business. I am also pleased to see the impact of our WWS and drill stem testing (DST)/TCP product lines, as we continue to see them expand successfully.
“Deepwater drilling and development activity within the Gulf of Mexico, Brazil and Angola continues to drive demand for our subsea and well testing expertise.
“Sustained exploration and appraisal activity is driving operators to replace reserves, which in turn, bolsters our well testing, DST/TCP, subsea and well intervention business.
“We have also seen an increase in demand for early and/or production enhancement solutions, as operators strive for accelerated production from new and existing fields.
“A heightened focus on quality, safety and environmental factors, is supported by our well integrity and intervention services, combined with WWS remote monitoring technology.
“Expro’s outstanding business performance, together with increasing market demand for our products and services, has positioned us well for future opportunities.”
Notes to Editors:
* Headline EBITDA – Headline EBITDA reflects operating profit excluding depreciation, amortisation and other similar non-cash items, together with other exceptional items that distort the underlying trends of the business.
** Leverage – the ratio of net debt to Headline EBITDA over the last twelve months.
Expro’s mission is well flow management. We provide services and products that measure, improve, control and process flow from high-value oil and gas wells, from exploration and appraisal through to mature field production optimisation and enhancement.
For more information, please visit our about page.
Expro – Kay Marshall +44 (0) 1224 225 700
Weber Shandwick – Stan Arnaud +44 (0) 1224 806 600