UK-based energy services firm Expro has delivered its last set of results before its “merger” with Dutch rival Frank’s International.
The two firms announced earlier this year they were combining to create a billion-dollar revenue oilfield services giant.
Posting second and half-year figures tonight (August 19), Expro said pre-tax losses narrowed to £18.7 million during the six months to June 30, from £207.4m a year ago, but revenue slid 10.6% to £248.4m.
Chief executive Mike Jardon said Expro delivered a “solid” performance in the second quarter.
He added: “Our broad portfolio of services, global operating footprint and continued cost and capital discipline enabled us to effectively manage and mitigate ongoing industry headwinds related to the pandemic.
“Through six months, we are generally on track with our full year expectations for 2021. Our current outlook for the third quarter of 2021 is for sequential revenue growth of approximately 15% and adjusted Ebitda (earnings before interest, taxes, depreciation, and amortisation) of approximately 15% of consolidated revenue.”
The group said about 40% of its research and development spending in 2021 was targeted at helping customers achieve their carbon reduction objectives.
Mr Jardon added: “We are dedicated to driving operational efficiency, reducing the environmental impact of our operations and, through our clearly defined strategy, achieving a 50% reduction in CO2e (carbon dioxide equivalent) by 2030 and net-zero by 2050.
Expro said its well testing, appraisal and production services operations achieved “substantial” first-half growth, thanks to “improving industry fundamentals”, and it ended the period with “no debt, ample available liquidity and an outlook for sustainable free cash flow”.
Tie-up with Frank’s ‘on track’
It added its pending combination with Frank’s to create a “new global leader in energy services” was on track to complete during the third quarter.
Announcing the deal in March, Mr Jardon said it was unlikely to lead to any “significant” headcount change in Aberdeen.
As of March 11, Reading-headquartered Expro boasted a total global headcount of about 3,900, around 530 of whom worked in the Granite City, where the firm has a base in Dyce.
Frank’s, which has an operation in Altens Industrial Estate, Aberdeen, employed 2,400 people globally, with 110 of these in the north-east.
Although the two companies insisted on calling their deal a merger and gave no financial value to the transaction, Expro shareholders will own around 65% of the new business – leaving Frank’s investors with 35%.
The enlarged firm – headquartered in Houston, in the US, and listed on the New York Stock Exchange – will trade under the Expro name, with Mr Jardon as its chief executive. Frank’s president, chairman and chief executive Mike Kearney will be its chairman. The two companies are targeting annual cost savings of around £50m.
£220m-plus losses last year
Expro has also posted results for the year to December 31, 2020, on its website. Pre-tax losses came in at £223.4m, compared with a trading deficit of £46.6m in 2019, on revenue that slumped by nearly 17% to £495m. The 2020 figures were affected by hefty writedowns in torrid market conditions.
Expro provides a wide range of 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.
The group was founded by John Trewhella, Jim Ross and Humphrey Green as Exploration and Production Services (North Sea) in Great Yarmouth in 1973 and helped produce the UK’s first oil from the Argyll field on June 11 1975.