International oilfield service group Expro is operating with about 900 fewer people than a year ago after an “aggressive” drive to cut costs, one of its top bosses said yesterday.
Chief financial officer Jean Vernet, speaking from Houston, said total headcount was down by about 20% to just under 4,400.
But the company was outperforming most of its peers financially and recent efficiency measures meant future growth would deliver more jobs in operations than support, he added.
Mr Vernet, who has been on Aberdeen and Reading-based Expro’s board since 2012, said the group had “done quite well” during the year to March 31, compared with rivals such as Halliburton, Baker Hughes and Schlumberger.
Underlying pre-tax profits were flat at about £10.4million, while write-offs totalling more than £336million meant statutory operating losses came in at around £373million.
Adjusted operating profits of £155million were down by 32% on a year earlier, with revenue 30% lower at £630million as Expro and the rest of its industry suffered the fallout from sharply lower oil prices.
Mr Vernet said it was too early to “call for a trough” in market conditions, adding it would take at least a couple more months of oil prices around $50 a barrel or above to be confident of a long-term recovery.
But he also said Expro’s business had picked up during the first quarter of the new financial year.
The firm highlighted its long-term relationships with clients, success in creating efficiency savings and key contract wins with Statoil, Tullow and most recently Apache as reasons for optimism in a challenging market.
Chief executive Mike Jardon said: “Despite the industry downturn, Expro has outperformed most of its peers in terms of ebitda (earnings before interest, taxes, depreciation and amortisation) margin, and revenue and margin decline rates.
“We have adjusted the business in line with market conditions, while maintaining the highest levels of safety and service quality – including a strong focus on efficiency.
“Our Middle East and North Africa region revenue is up compared to the prior fiscal year, and activity in the Gulf of Mexico has been remarkably resilient alongside strong results from our market-leading subsea completion business.
“While the past year has undoubtedly been challenging for the industry, we continue to work closely with our customers through this market, leaving Expro well positioned for the cycle upside.”
Expro is owned by an investment consortium, Umbrellastream, comprising Arle Capital Partners, Goldman Sachs and Alpinvest.
The group has a presence in 50 countries, with 650 people employed in its Aberdeen operations base.
