Oilfield services firm Expro has released a financial update, which said it entered the Covid-19 crisis “with cash in the bank and no debt”, meaning it is “better placed than most in the sector to survive the pandemic intact.”
Expro posted adjusted pre-tax losses of £17.4m, including a £3.8m writedown on the value of property, plant and equipment. This was an improvement on losses of £35m, including a £2.7m writedown, in 2018.
Chief Executive Mike Jardon and Chief Financial Officer Quinn Fanning added that “some rival firms are not so lucky and consolidation is likely as a result of the latest oil and gas downturn.”
Describing Expro as an “aggressive window shopper”, Fanning said the fall-out was likely to deliver acquisition opportunities. Fanning reported a “pretty good” 2019 for Expro, which at the end of March employed more than 4,300 people globally, including nearly 670 in Aberdeen.
Adjusted earnings before interest, taxes, depreciation and amortisation rose nearly 10 per cent to £91m on the back of higher oil prices last year, while revenue also grew by almost 10 per cent to £652.5m.
Mr Jardon said: “As the 2019 financial year concluded, we ended in a strong financial position, trending positively with some great achievements, including exceptional safety and service quality performance.
“While 2020 has brought with it some unprecedented challenges for the oil and gas industry, we believe Expro has certain advantages that will help the company adjust to new market realities and best position itself for a future business recovery.
“Our team has significant experience managing through downturns, and we will quickly adjust the scale and scope of operations based on customer activity. We also have no debt and ample available liquidity.”
Fanning said the group would have to make “temporary adjustments” to its headcount in response to the Covid-19 crisis and lower oil prices. He revealed Expro’s bosses were looking at furloughing schemes, both in the UK and US, but was reluctant to discuss if redundancies were part of the plan to “protect and preserve our current strong financial position”.
Fanning concluded: “The name of the game just now is to make sure revenue doesn’t drop”.
For more information visit www.exprogroup.com