Expro has announced its financial results for the fiscal year ended March 31, 2016. This includes revenue of $909.1m, down 30%, and adjusted operating profit of $223.5m, down 32% compared to the fiscal year ending March 31, 2015.
Headline results for the fiscal year ended March 31, 2016:
- Revenue was $909.1m, down 30% on the prior fiscal year (2015: $1,307.1m)
- Adjusted EBITDA(2) down 32% to $223.5m (2015: $326.7m)
- Adjusted EBITDA margin remained stable year on year, at 24.6% (2015: 25%)
- Expro outperformed most major peers in terms of EBITDA margin, and revenue and margin decline rates
Financial review
International oilfield services company, Expro, has announced its financial results for the fiscal year ended March 31, 2016. This includes revenue of $909.1m, down 30%, and adjusted operating profit of $223.5m, down 32% compared to the fiscal year ending March 31, 2015.
These results reflect a challenging energy market, led by reduced commodity prices which have seen lower activity levels across the company’s business. To minimise the impact, Expro has proactively managed its cost base, reducing operating expenses to deliver stable adjusted EBITDA margins (compared to the previous fiscal year).
Through its long-term relationships with customers, Expro has managed to increase efficiency and reduce costs for oil companies, demonstrated by a number of key contract wins with Statoil, Tullow and most recently, Apache.
Depreciation, amortization and goodwill impairment
The company booked $220.3m of non-cash depreciation and amortization expenses and incurred non-cash impairment charges of $458.8m against its goodwill, intangible assets and $26.7m against its property, plant and equipment, resulting in a statutory operating loss of $538.1m.
Commenting on this year’s results, Mike Jardon, CEO, said:
“Despite the industry downturn, Expro has outperformed most of its peers in terms of EBITDA margin, and revenue and margin decline rates. We have adjusted the business in line with market conditions, while maintaining the highest levels of safety and service quality – including a strong focus on efficiency.
“Our Middle East and North Africa region revenue is up compared to the prior fiscal year, and activity in the Gulf of Mexico has been remarkably resilient alongside strong results from our market-leading subsea completion business. Emerging technology product lines, including Meters and Wireless Well Solutions, have also performed well.
“While the past year has undoubtedly been challenging for the industry, we continue to work closely with our customers through this market, leaving Expro well positioned for the cycle upside.”