Expro International Group PLC
28 September 2004
Embargoed until 0700
28 September 2004
Expro International Group PLC
("Expro" or "the Group")
Pre-close trading update for the half year ended 30 September 2004
The Board of Expro International Group PLC ("Expro") announces today that the
recovery trends described in the financial statements for the year ended 31
March 2004 have continued in the half year as anticipated. Consequently the
results for the six months to 30 September 2004 are expected to be in-line with
analyst expectations. The implementation of the new strategy outlined in
December 2003 has begun to deliver benefits through improved activity levels
generally within Expro.
Despite much negative press, activity levels in the UK North Sea have remained
buoyant with good demand for our products and services associated with well
performance and Subsea tie-backs. These allow operators to take advantage of
quick gains through additional production from existing well stocks, as well as
connecting stranded accumulations of oil and gas via new subsea wells to the
comprehensive infrastructure hub of the North Sea platforms.
Deep water West Africa remains slow, consistent with our view that these
prospects will take time to move to development. Our late cycle services require
final project sanction and an established well operation prior to generating
revenue. However, underlying progress is being made with technology which will
lead to market share gains. In other markets in the region, such as Asia, we are
making progress focused on project related opportunities which play to Expro's
strengths, particularly in the areas of deep water and cost effective production
solutions.
In the Americas, where Expro had been loss making in the prior year, and despite
the anticipated continuing poor trading conditions in the shallow water Gulf of
Mexico market, progress is being made. This area is continuing to be affected by
a lack of meaningful prospects to drive up activity levels despite strong
commodity prices. Although disappointing, the market is stable and is now
correctly resourced. In the deepwater Gulf we continue to see increased
opportunity for our state of the art electro - hydraulic subsea tools.
Elsewhere, Expro remains focused on introducing new, unique and high value
technology. Our wireless well, electro-magnetic telemetery tools have been
deployed successfully into the land market where they are helping our client
perform advanced analysis of a complex subsurface reservoir during offset
drilling operations. Our Houston facility also houses the engineering activities
for the large Chayvo production plant which is on schedule for delivery to
Sakhalin Island later this year.
Graeme Coutts, Group CEO said; "I am pleased with the progress made by Expro in
the first half of the year. Clients are approached with a greater enthusiasm
than a year ago and both management's focus and the general energy levels in the
business are significantly improved. We continue to develop and build a strong
technology position which is capable of enhancing our clients' business and
delivering sustainable growth for Expro. Although we have built our strategy
around static market conditions we do see signs of underlying improvement which
is reflected in a strengthening enquiry book. "
- Ends -
For further information please contact:
Expro International Group PLC 0118 9591 341
Graeme Coutts, CEO
Michael Speakman, Finance Director
Colin Ainger, Executive Director
Weber Shandwick Square Mile 020 7067 0700
Mike Kirk or Stephanie Badjonat
This information is provided by RNS
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