Expro International Group PLC
28 September 2005
EXPRO INTERNATIONAL GROUP PLC
Pre-close trading update for the half year ended 30 September 2005
Expro International Group PLC ("Expro" or the "Company") announces today that
trading during the six months ending 30 September 2005 is in line with
expectations and the Board remains comfortable with the current analysts'
expectations for the Financial Year 2005/6. Success in securing further
significant contracts, detailed below, both underpins current strong market
positions, and, through phased delivery over a number of years, provides a
highly visible platform for our continued growth.
Key Senior Management Appointments
In order to maintain and further improve our strong customer focus in a dynamic
market environment, the Company has evolved its organisational structure to
align more closely with the markets it serves. We are therefore pleased to
announce three key senior management appointments with immediate effect. Robin
Mair will lead the Global Portfolio of businesses, that are largely driven by
customer capital spend, consisting of the Tronic/Matre, Subsea Safety Tool
("SST") and Early Production Facility ("EPF") businesses, whilst Gavin Prise
will take charge of the mainly opex driven Regional Portfolio consisting of the
Cased Hole Services and Well Test businesses. These two internal promotions are
complemented by the appointment of Trevor Burgess who joins the Group to
champion our emerging Rigless (Enterprise) Technology.
New Contract Wins totalling almost $200m
Within the Regional Portfolio there have been over $100m of contract awards in
recent months. This total is a blend of $35m of extensions to existing major
contracts, including Well Testing for KPO in Kazakstan and EGIS services for
Shell in the North Sea, and $65m of new contracts. The new awards include multi
year contracts in Angola for bp (Block 18 and Block 31) and Total (Block 17),
establishing critical mass in the key West African area of deep water field
development.
The value of currently announcible major contract wins across the global
businesses is in excess of $70m, with SST accounting for the majority of this.
Indeed new SST contracts for Chevron (Lombito Tomboco and Agbami), Total (Akpo)
and Exxon (Erha) further strengthen Expro's presence in West Africa. Tronic
continues to enjoy the benefit of increased demand for deep water, hostile
environment, power and instrumentation connectors and the successful integration
of Matre is nearing completion. The EPF engineered for Exxon's flagship Chayvo
Project in Sakalin is now complete and commissioned to plan, and the EPF
equipment committed to the recently concluded Tuscan project has been recovered
and is currently being bid on several other new projects.
Baker Hughes, our 50% JV partner in QuantX, has recently informed us that they
wish to exercise their Call Option to purchase our remaining interest in the
business. The option price will be calculated according to a contractually
predetermined formula. At this point the transaction is anticipated to complete
mid autumn and is not expected to have a material effect on the year end
earnings.
Graeme Coutts, Group CEO commented: "I am very pleased to announce the further
progress Expro is making, evidenced by the evolution of the organisational
structure and almost $200m of new contract wins, bringing the total value of
contracts announced in the current year to $400m.
Our core business continues to perform in line with expectations allowing us to
progress with our key investment strategies. It has come as no surprise to the
Board that our JV partner Baker Hughes should choose to exercise their right to
acquire our 50% stake in the QuantX business. QuantX has always provided a
better fit for their core activities due to the associated product pull-through."
Expro will be announcing its Interim Results for the half year ended 30
September 2005 on Thursday 24 November 2005.
- Ends -
Note to Editors:
Expro International Group PLC is a leading upstream oil and gas technology and
service provider, specialising in well performance and production optimisation.
The Expro Group employs over 2,300 people worldwide and is an innovative leader
in oilfield technology which enables clients to maximise recovery of their
reserves. For more information, please refer to the Group's website at
www.exprogroup.com .
For further information please contact:
Expro International Group PLC Until 30 September 2005: 01224 225951
Graeme Coutts, Chief Executive Thereafter on 0118 9591 341
Michael Speakman, Finance Director
Weber Shandwick Square Mile 020 7067 0700
James Chandler / Stephanie Badjonat
This information is provided by RNS
The company news service from the London Stock Exchange
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