Expro Group Holdings N.V. (NYSE: XPRO) has secured a five-year, $30 million Well Intervention and Integrity contract with TotalEnergies EP Uganda for the Tilenga project. The project aims to provide an innovative environmental solution, supporting carbon reduction efforts and investing in national recruitment. Expro's operation begins Q2 2023, offering drilling support, production optimization, and well workover support across 400 wells in six fields.
Iain Farley, Expro’s Regional Vice President for Europe and Sub-Saharan Africa, stressed Expro's commitment to environmental sensitivities and overall project objectives, reinforcing the company's experience in delivering successful projects in frontier field developments.
Last month Expro announced it had secured a multi-year contract worth over $20 million with Harbour Energy for a decommissioning project in the UK Continental Shelf.
Utilizing Expro’s Subsea Well Access technology, the project aims to mitigate wellhead loading and fatigue issues with a new, lightweight intervention system. The solution leverages Expro’s unique subsea ball valve technologies and extends the company's subsea well access portfolio.
This award underscores Expro's innovative approach and commitment to delivering safe, reliable, and environmentally secure subsea well access, reinforcing its position in the plug and abandonment market. The project will be delivered from Expro’s Aberdeen facilities.
Meanwhile, in Q1, 2023, Expro Group reported revenue of $339 million, a slight decrease from Q4 2022 but a 21% increase Y/Y. CEO Michael Jardon attributed the downturn to seasonal patterns and the budget cycles of oil company customers.
The net loss for the quarter stood at $6 million, compared to a net income of $13 million in Q4 2022. Adjusted EBITDA for Q1 2023 was $42 million, with an adjusted net income of $1 million. Cash flow from operations was $21 million, down from $93 million in Q4 2022, mainly due to a decrease in Adjusted EBITDA.
Despite challenges, the quarter saw significant operational achievements, including commissioning the vessel-deployed, light well intervention (LWI) system, and securing a contract for a well decommissioning project in the APAC region. The acquisition of DeltaTek Global also bolstered Expro's well-construction services.
As the clean energy transition gains momentum, Expro acknowledges the critical role of hydrocarbons and is making strides in the early-stage carbon capture and storage segment. The company's commitment to sustainability is evident in its 2022 Sustainability Review.
Expro's CEO is optimistic about the future, citing favorable commodity price trends, positive customer spending, and a healthy order book. With new partnerships, an expanded customer base, and the acquisition of new technologies, Expro is strategically poised to leverage its market position and expertise in the energy sector.
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