Well services giant Expro International hailed record sales growth as deep water activity – particularly in Asia – narrowed the firm’s bottom line losses.
The Reading-based firm, which employs 1,200 of its 5,000-strong global workforce in Aberdeen, said its revenues in Europe – of which 85% is based in UK and Norwegian North Sea – were up 15.2% to £231million.
Growth was driven by a large increase in well testing and subsea activity from existing clients, the firm said.
Jean Vernet, chief financial officer, said its North Sea business had enjoyed “ incredible growth”.
“It is because a lot of what we do has to do with completion and interventions, which irrespective of exploration and appraisal is actually very strong,” he said.
“There have been some major discoveries in the North Sea, we see that as a great opportunity for the years to come when these come into development and completions – that is where we have big activity.”
Expro produced the first UK oil from the Argyll Field in 1975.
“Aberdeen is the cradle of the history of the company. All the intelligence is there,” he added.
Revenues grew a record 15.3%to £836million, while underlying profits (EBITDA) rose 32.3% to £208million in the year to the end of March.
Nevertheless, the company made a £43.6million overall loss for its owners – a group made up of private equity group Arle Capital Partners, Alpinvest Partners NV and Goldman Sachs. But this was an improvement on the £234million loss in 2013.
The finance director declined to comment on “rumours” the company’s owners were eyeing a £3billion sale of the business to US conglomerate GE.
In its accounts yesterday the firm estimated the global market for well flow management services is around £5.4billion and is set to grow 10% per year.
Expro recently announced a flurry of contract wins, including landing a £60milion deal to support the second phase of the Shah Deniz development.
Chief executive Charles Woodburn said:
“Expro’s outstanding business performance, together with increasing market demand for our products and services, has positioned us well for future opportunities.”
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