Expro announces full year 2016 financial results

2nd June 2016

Headline results for the fiscal year ended March 31, 2016:

Revenue was $909.1m, down 30% on the prior fiscal year (2015: $1,307.1m)
Adjusted EBITDA(2) down 32% to $223.5m (2015: $326.7m)
Adjusted EBITDA margin remained stable year on year, at 24.6% (2015: 25%)
Expro outperformed most major peers in terms of EBITDA margin, and revenue and margin decline rates

Financial review

International oilfield services company, Expro, has announced its financial results for the fiscal year ended March 31, 2016. This includes revenue of $909.1m, down 30%, and adjusted operating profit of $223.5m, down 32% compared to the fiscal year ending March 31, 2015.  

These results reflect a challenging energy market, led by reduced commodity prices which have seen lower activity levels across the company’s business.  To minimise the impact, Expro has proactively managed its cost base, reducing operating expenses to deliver stable adjusted EBITDA margins (compared to the previous fiscal year).

Through its long-term relationships with customers, Expro has managed to increase efficiency and reduce costs for oil companies, demonstrated by a number of key contract wins with Statoil, Tullow and most recently, Apache.

Depreciation, amortization and goodwill impairment

The company booked $220.3m of non-cash depreciation and amortization expenses and incurred non-cash impairment charges of $458.8m against its goodwill, intangible assets and $26.7m against its property, plant and equipment, resulting in a statutory operating loss of $538.1m.

Commenting on this year’s results, Mike Jardon, CEO, said:

“Despite the industry downturn, Expro has outperformed most of its peers in terms of EBITDA 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.  Emerging technology product lines, including Meters and Wireless Well Solutions, have also performed well. 

“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.”


Notes to Editors:

[1] All financial numbers reported under International Financial Reporting Standards (IFRS)

[2] Adjusted EBITDA (or adjusted operating profit as reported under IFRS) is defined as operating profit excluding impairment, depreciation, amortization and other similar non-cash items, together with other items that either distort the underlying trends of the business or are not considered by management to be part of the core operations of Expro. Management believes that adjusted EBITDA is a useful measure of operating performance due to the significance of Expro’s long-lived assets and level of indebtedness. 

The consolidated financial data as of and for the years ended March 31, 2016 and 2015 has been derived from Expro Holding UK 3 Limited’s audited financial statements, which have been prepared in accordance with IFRS.

Expro’s mission is well flow management.  We provide services and products that measure, improve, control and process flow from high-value oil and gas wells, from exploration and appraisal through to mature field production optimisation and enhancement.

For more information, please visit: www.exprogroup.com/about-us

Issued by:

Expro – Kay Marshall                        +44 (0) 1224 225 700

Fifth Ring – Hannah Rumbles             +44 (0) 1224 626 288