Expro International Group PLC
26 July 2007
26 July 2007
EXPRO INTERNATIONAL GROUP PLC
("Expro" or "the Group")
Interim Management Statement
Expro International Group PLC, the oil field services company, today issues an
Interim Management Statement for the quarter ended 30 June 2007 under the UK
Listing Authority's Transparency and Disclosure requirements.
Quarter 1 Performance
The first quarter of the 2007/08 financial year has seen continued growth in
revenue on a like for like basis compared to the prior year, despite the twin
effects of foreign exchange and the ending of the exceptional Production Systems
contract for Chayvo, which concluded in the third quarter last year. In recent
years continued weakening of USD has provided a steady headwind to Expro's
performance and 2007/8 is no exception, with sterling strengthening from 1.81
(Q1 2006/7) to 1.98 (Q1 2007/8). This currency movement alone corresponds to a
9.4% revenue headwind against which the business has delivered excellent growth.
As expected, the underlying operating margin has continued to increase,
following the trend of sequential margin improvements that have been a feature
of recent results. There have been no significant changes to the balance sheet.
During the first quarter we completed the disposal of ECGI in Canada, marking
our successful withdrawal from this commodity land market. In Asia we formed a
joint venture with China Oilfield Services Limited, further enhancing our
relationships with national oil companies and indigenous service companies.
As announced on 27 June 2007, Expro has signed a letter of intent with BP plc to
develop and commercialise Expro's AX-S(TM) subsea intervention system. The letter
signifies a clear intent by both parties to reach a mutually agreeable position
to develop and exploit the full potential of Expro's AX-S(TM) technology.
Outlook
The outlook for future periods remains positive, with both short term trading
and macro economic indicators supporting this view. Indeed, recent comments from
the International Energy Agency highlight that increasing world energy demand is
unlikely to be met without increased service intensity and new technologies to
enhance recovery and support the development of challenging reserves. Therefore,
the Board is confident that the Group will meet expectations for the current
year and believes that the outlook for future periods remains positive.
- Ends -
For further information please contact:
Expro International Group PLC 0118 959 1341
Graeme Coutts, Chief Executive
Michael Speakman, Finance Director
Weber Shandwick Financial 020 7067 0700
Nick Oborne / Rachel Taylor / Stephanie Badjonat
Notes to Editors
Expro's business is well flow management. Expro is a leading provider of
products and services that measure, improve, control and process flow from
high-value oil and gas wells. Key niche businesses must be able to command and
sustain market share leadership through a combination of technological
pre-eminence and/or operational economies of scale. They will have a high
knowledge and service content and will be able to anticipate, meet and exceed
customers' expectations. With its head office in the UK, Expro employs more than
4,000 highly-trained staff in 50 countries. For more information, please visit
the Expro website www.exprogroup.com
This information is provided by RNS
The company news service from the London Stock Exchange
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