Expro’s finance director said yesterday the Aberdeen-based oilfield service group was in good shape for a swift return to profitability after a strong 2012-13 performance.
Jean Vernet, who joined its board early last year, added that the size of Expro and its growth opportunities augured well for a profitable future.
He was speaking as the company reported annual figures showing large jumps in revenue and earnings before interest, taxation, depreciation and amortisation (ebitda).
Expro said revenue grew by 18.5% to £794million in the year to March 31, while ebitda was up by 44.7% at just over £192million.
Bottom-line losses narrowed to £260.8million, from £974million a year earlier, and Mr Vernet said Expro was still in the red because of shareholder loan interest that accrued before a financial overhaul.
About £2.7billion of shareholder loans have been capitalised as equity, reducing the company’s non-cash interest costs by £330million annually. Cash interest costs were also down as a result of Expro reducing debt – which fell by £255milion to £1.2billion – helped by the sale of its non-core connectors and measurements arm to Siemens in a near-£400million deal.
Chief executive Charles Woodburn said: “Our continued focus on efficient delivery in our core competencies of well testing and well intervention, together with our investment in subsea safety systems and production systems, competitively positions us with the marketplace. We feel confident in delivering further growth in 2014.”
Expro said revenue in its Europe and the Commonwealth of Independent States business unit grew by 13.6%. Revenue in Latin America, Asia, sub-Saharan Africa and the Middle East/north Africa rose by 52.9%, 29.5%, 15.4% and 5.2% respectively.
The group – celebrating its 40th year in 2013 – said equipment sales continued to achieve notable growth, increasing revenue by 31.8% in 2012-13.
Expro employs about 5,000 people in 50 countries, including about 800 out of Aberdeen. It recently invested about £5million on a new base in the city for its well-intervention business, but nearly 40 jobs were axed at standalone Aberdeen business Expro AX-S Technology last year after it slid into administration.
Yesterday, Mr Vernet said Expro AX-S Technology, which developed a system used by oil and gas companies to access and work on their subsea wells, was “probably a bit ahead of its time”. Expro spent £126million on the business, but Mr Vernet said further support would have meant too big an investment on the research and development side.
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