Expro International Group PLC
25 March 2008
25 March 2008
EXPRO INTERNATIONAL GROUP PLC
Pre-close Trading Update
Expro International Group PLC ("Expro" or the "Company" or the "Group") announces
today that trading during the second half of the year ended 31st March 2008 has
continued to strengthen leading to a full year outcome at the upper end of
management's expectation.
International market conditions in the period have been very favourable towards
Expro's highly differentiated product and service portfolio, and only the domestic
land markets of the United States, to which the group has a relatively low
exposure, have experienced poorer than expected conditions. The steady progression
by the International Oil Companies (IOC) towards technically challenging deepwater
reserves is driving strong demand for our market leading capabilities. Expro is
also now starting to enjoy the benefits of a stronger presence with National Oil
Companies (NOC) particularly in Brazil, Saudi Arabia and Norway. These customers
are highly appreciative of technology which plays heavily to our strengths.
Throughout the financial year, significant progress has been made in all areas
of Expro's business strategy. Performance in the period has also been assisted
by the maturing of the Power Well Services (PWS) integration into our operating
regions, where we have greater critical mass and increased footprint for the
distribution of our technology portfolio. Expro has a strong position in the
global markets for the provision of exploration and appraisal well-testing and
new subsea field commissioning. Although demand for both segments has risen, and
business volumes have increased, our capital expenditure requirements have been
contained by the enhanced utilisation of the combined capacity of the PWS - Expro
businesses.
The development of new technology remains essential to our positioning and we
have invested record amounts to develop and deliver the next generation of Expro
products. Our flagship AX-S rigless intervention concept continues to take
shape. Technically the project is progressing well against a very demanding
schedule and our objective remains to be ready to perform deepwater trials mid
2009.
Our proposed alliance with Aker Offshore Services (AKOFS) will provide both
companies and our future customers with the ideal capability to exploit deepwater
reserves.
As announced on 29 February 2008, the Company received a very preliminary proposal
which may or may not lead to an offer for the Company. The preliminary nature of
the proposal is such that there can be no certainty that any offer will be
forthcoming or as to the terms of any offer. A further announcement will be made
when appropriate.
Graeme Coutts, Group CEO said: "Expro has invested in a well publicised, highly
focused strategy to position the business as a major provider of key technologies
to oil and gas markets which are both appreciative and growing. The strengths of
our core businesses are there for all to see. The effects of the acquisition and
subsequent integration of PWS have added to an already excellent position. It is
very rewarding for our staff, customers and shareholders to increasingly see
evidence of our strategy converting to business performance."
- Ends-
For further information please contact:
Expro International Group PLC 0118 959 1341
Graeme Coutts, Chief Executive Officer
Michael Speakman, Finance Director
Edward Cutts, Investor Relations
Weber Shandwick Financial 020 7067 0700
Nick Oborne / Rachel Martin / Stephanie Badjonat / Hannah Marwood
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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