Expro has reported sharply lower revenue and operating profits for the year to March 31 because of the downturn in upstream oil and gas activity fuelled by lower oil prices.
In its annual report and accounts, just released by Companies House, the provider of well flow-management services to the global oil and gas industry, showed pre-tax losses more than doubled to £431.45million.
Financial controller Mark Collis said this was largely accounted for by non-cash charges, principally shareholder loans of equity, depreciation and amortisation.
The accounts showed revenue for the period was down 18.8% on the year before at £688.44million. Adjusted operating profits, or earnings before interest, depreciation and amortisation, were 16.2% lower year-on-year to £204.95million.
The company, which employs 4,200 people globally in 50 countries including 700 in Aberdeen, where its North Sea operational headquarters are, said in the annual report that higher and more stable oil prices were leading operators to begin contemplating increased activity.
It added that the outlook for the global upstream oil and gas market, on which 100% of Expro’s business is focused, was expected to improve in the short to medium term, but it said that while it should benefit from this improved outlook, near-term performance would continue to be affected by operator confidence in the oil price and the timing and phasing of some larger contracts.
It added that the need for increasing levels of activity by operators was inevitable and Expro’s excellent market position and strong brand would ensure it was well placed.
It said the impact of the Gulf of Mexico oil spill was as yet uncertain. While Expro had a relatively low exposure to this market, until more was known on the cause it was impossible to predict the impact on the Gulf of Mexico or on the wider deepwater market worldwide.
Recommended for you
