Expro, the Aberdeen-based international oil service company, saw losses widen to more than £600million during the year to March, however, the firm did make adjusted operating profits of more than £150million in the same period.
The £612.3million pre-tax deficit, revealed yesterday in Expro’s latest accounts, compared with losses of £423.7million in the previous 12 months.
Revenue of £617.3million during the latest period was down from just over £676million previously.
Finance director Michael Speakman said the latest pre-tax losses were because of significant non-cash interest payments on loans from Expro’s shareholders.
The group is owned by a private-equity consortium – Umbrellastream, made up of Candover, Goldman Sachs and Alpinvest.
Mr Speakman added that adjusted operating profits of £151.4million in the latest period – down from £201.2million a year earlier – were a better reflection of the company’s trading.
All of the figures are based on foreign-exchange rates at the relevant year-end dates because the group – which employs more than 4,500 people in 50 countries, including 700 in the Granite City – presents its annual report in US dollars.
Expro is a provider of management services and products which measure, improve, control and process flow from oil and gas wells in all the major hydrocarbon-producing areas of the world.
The firm’s latest accounts showed its well-testing/commissioning, production systems, wireline-intervention and connectors/measurements divisions made revenue contributions of £428.2million, £25.2million, £105.3million and £58.6million respectively.
Expro said its 2010-11 figures were affected by a review of cash-flow projections, resulting in hefty goodwill impairment charges and a £17.5million inventory writedown. The group added that civil unrest in Libya and Egypt had a significant effect on its Middle East/north Africa business during the final quarter, while a reduction in the level of call-off work in Australia affected operations in Asia.
Expro said that most of the fall in annual revenue was the result of the unrest in north Africa, a “change in scope” of two major contracts in west Africa, the completion of projects in Asia and lower levels of activity in Europe and the Confederation of Independent States (the former Soviet Union).
Earlier this week, the company announced Graeme Coutts – its 52-year-old chairman – was to step down later this month.
o Energy minister Charles Hendry spoke to oil and gas industry leaders on a visit to Aberdeen yesterday.
He said progress was being made in discussions with the industry and that focus had been on the long-term future of production in the North Sea.
The long-term integrity and capacity of offshore infrastructure and the recovery rates achieved from producing reservoirs were also discussed.