Expro announces full year 2019 financial results

Headline results for the year ended 31 December 2019:

• Revenue was $810 million, up 9.7% on the previous year (2018: $739 million)
• Adjusted EBITDA2 was $113 million, up 9.6% (2018: $103 million)
• Adjusted EBITDA margin³ remained flat at 14.0% (2018: 14.0%)
• Acquired Norwegian technology company Quality Intervention, thereby expanding the company’s capabilities in rigless intervention and well integrity solutions

Financial review

International oilfield services company Expro has announced its financial results for the year ended December 31, 2019. This includes revenue of $810 million, up 9.7%, and adjusted EBITDA of $113 million, up 9.6%, compared to the year ending December 31, 2018. 

The results are reflective of a year when the oil price strengthened and there was an increase in exploration success and upstream investment.

Most significant for Expro was the mid-year acquisition of Norwegian technology company Quality Intervention AS (Qi). Consistent with the company’s strategy to deliver technology-driven, cost effective solutions to its customers, the acquisition of Qi amplifies the company’s capabilities in coil tubing, wireline, pumping and other intervention technologies.

Expro’s Asia and Middle East and North Africa (MENA) regions saw a significant performance increase relative to 2018, with key contracts secured in Algeria, Australia, Brunei, China, India, Indonesia and Qatar, reflecting the company’s ability to provide both cost effective solutions to enhance production and improve recoveries and high quality service. The company’s North and Latin America (NLA) region also saw a substantial increase in activity, with notable success in well intervention, subsea and well testing across Argentina, Bolivia, Colombia and the USA. Activity in Europe and the Commonwealth of Independent States (ECIS) and Sub Saharan Africa (SSA) regions remained strong, driven by key contracts in Norway, the UK, the Netherlands, the Democratic Republic of Congo, Angola, Gabon, Nigeria, Mozambique and Cameroon.

Core areas of the business, including well testing and subsea, maintained market share to meet an increasing demand for production and intervention related services. This is highlighted by Expro’s focus on new and innovative technologies such as the company’s new subsea well access offering.

Commenting on the company’s results, Mike Jardon, CEO, said:

“As the 2019 financial year concluded, we ended in a strong financial position, trending positively with some great achievements, including exceptional safety and service quality performance.

“While 2020 has brought with it some unprecedented challenges for the oil and gas industry, we believe Expro has certain advantages that will help the company adjust to new market realities and best position itself for a future business recovery.

“In recent years, the majority of our business has been driven by customers’ production optimisation efforts, more so than their exploration and other drilling-related activity.  Our team has significant experience managing through downturns, and we will quickly adjust the scale and scope of operations based on customer activity.  We also have no debt and have ample available liquidity, we continue to have positive engagement with our customers and we have introduced a compelling range of innovative technologies that have been well received by the industry.

“New technologies include the CoilHose and Annulus Intervention technologies acquired through the acquisition of Quality Intervention and the Galea Automated Wax Removal System and riser-less and riser-based Subsea Well Access systems we have developed internally. 

“As ever, we remain focused on addressing the critical energy challenges of today and delivering the maximum value from our customer’s assets by utilising our technology to provide flexible and cost effective solutions to their problems.”