HOUSTON - August 19, 2021 - Expro Group Holdings International Limited (the “Company” or “Expro”) today reported financial and operational results for the three and six months ended June 30, 2021. Expro’s total revenue for the second quarter of 2021 was $176.3 million, compared to revenue of $156.3 million in the first quarter of 2021, an increase of 13% sequentially. The Company’s net loss for the second quarter of 2021 was $8.4 million compared to a net loss of $20.4 million for the first quarter of 2021.
Adjusted EBITDA of $26.3 million increased 58% sequentially, driven by higher revenue, a more favorable activity mix and lower corporate costs.
Mike Jardon, Expro’s Chief Executive Officer, said, “Expro delivered solid performance in the second quarter as our broad portfolio of services, global operating footprint and continued cost and capital discipline enabled us to effectively manage and mitigate ongoing industry headwinds related to the pandemic.
“Financial highlights for the second quarter included strong sequential improvement in our ESSA and Asia regions, which both grew revenue approximately 22% as demand increased for production optimization services. In ESSA, our growth largely reflected increases in core well test and subsea activity, and in Asia our performance reflected strong demand across most services and in most of the markets we serve. Overall, Well Testing and Appraisal Services and Production Services each grew revenue 18% sequentially, largely because of an increase in brownfield enhancement activity and our team’s ability to deliver cost-effective, innovative solutions to customers.
“Through six months, we are generally on track with our full year expectations for 2021. Our current outlook for the third quarter of 2021 is for sequential revenue growth of approximately 15% and Adjusted EBITDA of approximately 15% of consolidated revenue.
“Thanks to the hard work, expertise and commitment of our talented employees, as well as our leading technology platform, we continued to advance our capabilities and deliver differentiated services and solutions that safely enhance our customers’ operational efficiency and improve the sustainability of both Expro’s and our customers’ operations. For example, Expro employed its unique CoilHose intervention system to initiate production by unloading heavy completions fluids from a highly deviated well in Asia. This solution successfully delivered both time and cost efficiencies to the client. Additionally, the compact system footprint and associated ease of logistics resulted in a significant improvement in the environmental impact of the operations as compared with traditional solutions. We are committed to further advancing our energy transition technology portfolio and ongoing sustainability initiatives by prioritizing the development of faster, lighter, more automated operations.
“Also during the second quarter, we achieved an industry first by deploying our unique OctopodaTM annulus intervention system to a depth of 300 meters in the C annulus of a well in Latin America. This system successfully introduced a plug in the annulus which restored casing integrity and enabled production to be safely resumed from the well. We are very excited about the potential of Octopoda™ as it will allow customers to, cost effectively restore well integrity, resume production and reduce fugitive gas emissions from wells.
“Approximately 40% of our research and development spending in 2021 is targeted to help customers achieve their carbon reduction objectives. We are dedicated to driving operational efficiency, reducing the environmental impact of our operations and, through our clearly defined strategy, achieving a 50% reduction in CO2e by 2030 and net zero by 2050.
“We are seeing strong signals of a multi-year recovery, which is expected to gradually gain traction as 2021 progresses. While many of our customers’ near-term focus may remain on maximizing their investments in existing well stock, we believe the low level of investment in new oil supply in recent years will result in new FIDs and sustained growth in all of our businesses and across all geo-markets. In recent years, the majority of Expro’s business has been driven by our customers’ production optimization efforts and their operational expenditures more so than their drilling-related activities and capital expenditures. As a result (and despite the possibility of continuing headwinds related to the pandemic), we currently expect at least modest revenue and margin momentum for Expro over the next couple of quarters, driven by an overall increase in international activity, and positive trends in well testing and production services and well intervention and integrity services, in particular. Beyond the next couple of quarters, an expected recovery in offshore development across geographies reinforces our confidence that Expro is well-positioned for sustained growth, which we believe will be driven by increasing demand for subsea well access services and more complex well construction services, respective strengths of Expro and Frank’s International with whom we announced a definitive merger agreement on March 11, 2021.
“Expro ended the first half of 2021 in a strong financial position with no debt, ample available liquidity and an outlook for sustainable free cash flow. Driven by performance and powered by our people, we remain confident in our ability to deliver and we expect to further benefit as we progress through a multi-year cyclical recovery and join together with Frank’s International.”
Karen David-Green - Chief Communications, Stakeholder & Sustainability Officer
+1 281 994 1056
Hannah Rumbles - Global Marketing and Communications Manager
+44 1224 796 729