Q4 2024 Expro Group Holdings NV Earnings Call Transcript
Key Points
- Expro Group Holdings NV (XPRO) reported a solid Q4 2024 with revenue of $437 million and adjusted EBITDA of $100 million, marking their best financial performance since the Expro Frans merger in 2021.
- The company achieved a 13% year-over-year increase in full-year 2024 revenue, reaching $1.7 billion, with significant contributions from North and Latin America, Europe, Sub-Saharan Africa, and the Middle East North Africa regions.
- Expro Group Holdings NV (XPRO) successfully resolved outstanding variation orders related to the Congo project, allowing for the completion of the construction and commissioning phase and an adjustment to the contract rate for the operations and maintenance phase.
- The company captured approximately $314 million in new contract awards, including significant extensions and new contracts in Argentina, Norway, and the UK, maintaining a healthy backlog of $2.3 billion.
- Expro Group Holdings NV (XPRO) initiated the Drive 25 operating efficiency campaign, targeting a 7% to 8% reduction in run rate support costs over the next 12 to 18 months, with half of the savings expected in 2025.
- Expro Group Holdings NV (XPRO) anticipates a slow start to 2025 due to near-term concerns about an oversupplied oil market, with a sequential revenue decline of about 15% expected in Q1 2025.
- The company faces challenges in the North and Latin America region, with lower-than-expected well construction activity and tubular sales in the Gulf of America impacting Q4 2024 results.
- Expro Group Holdings NV (XPRO) expects a 10% year-over-year revenue decline in the Europe and Sub-Saharan Africa region for 2025, largely due to the completion of the Congo project's construction and commissioning phase.
- The Asia Pacific region experienced a 5% sequential revenue decrease in Q4 2024, primarily due to decreased well flow management activity in Malaysia and Australia.
- Expro Group Holdings NV (XPRO) is cautious about the near-term outlook, with expectations for stable to modest growth in 2025, reflecting a transition year for the energy services industry.
Hello and welcome to the Expro Q4 2024 earnings presentation. My name is Carla and I will be coordinating your call today. (Operator Instructions). I would now like to hand you over to Chad Stephenson, director of investor relations, to begin. Chat, please go ahead when you're ready.
Welcome to Expro's fourth quarter 2024 conference call. I'm joined today by Expro CEO Mike Jardon and Expro CFO Quinn Fanning. First, Mike and Quinn have some prepared remarks, then we'll open it up for questions. We have an accompany presentation on our fourth quarter results that is posted on the Expro website expro.com under the investors section.
In addition, supplemental financial information for the fourth quarter results is downloadable on the Expro website. Likewise, under the investor section. I'd like to remind everyone that some of today's comments may refer to or contain forward-looking statements.
Such remarks are subject to risk and uncertainties that could cause actual results
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