Expro Group Holdings N.v. · NYSE:XPRO
Expro — Q1 2024 Earnings Presentation
24 slides from Expro's earnings presentation, Apr 25, 2024
Slide 1: Expro Group Holdings N.V. Q1 2024 Highlights
Expro Group Holdings N.V. Q1 | 2024 Highlights NYSE: XPRO
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this presentation that address activities, e
Slide 3: Get to Know XPRO
Get to Know XPRO TTM REVENUE1 ~80% ~70% ~$2.2bn $1,557m I N T E R N AT I O N AL OFFSHORE Asia Pacific Market Capitalization2 17% North & Latin America 33% ~$2.1bn Middle East North Africa BY REGION 16% 60 Countries S T R O N G C AS H ZERO NET-DEBT Enterprise Value3 FLOW OUTLOOK B AL AN C E S H E E T
Slide 4: Balanced Portfolio of High Value-Added Services
Balanced Portfolio of High Value-Added Services Value-Adding Services Market Leadership Global Operating Across the Well Lifecycle Footprint Cost-effective, technology- We “punch above our weight” Activity in +60 countries, enabled services and because of long-standing with 80% of revenue from solut
Slide 5: Q1 2024 Results
Q1 2024 Results Favorable long-term outlook and good business momentum following strong Q1 Company Highlights Revenue of $383m exceeded guidance range of $365m to $375m, primarily driven by higher revenue in MENA As expected, revenue declined Q/Q, with lower activity in NLA Q1 2024 and ESSA partiall
Slide 6: North and Latin America (NLA)
North and Latin America (NLA) NLA Revenue ($m) NLA Segment EBITDA ($m)1 Regional Highlights 33% $130m $34m 10% Q/Q 22% Q/Q 3% YoY 8% YoY North & Latin America Q/Q decrease was primarily due to lower well construction revenue in the Gulf of Mexico, including tubular product sales, due to proj
Slide 7: Europe & Sub-Saharan Africa (ESSA)
Europe & Sub-Saharan Africa (ESSA) ESSA Revenue ($m) ESSA Segment EBITDA ($m)1 Regional Highlights $122m $25m 34% 9% Q/Q 39% Q/Q 7% YoY 21% YoY Europe & Sub-Saharan Africa Q/Q decrease in revenues was driven by seasonally lower well construction activity in Europe, lower revenue recognition
Slide 8: Middle East & North Africa (MENA)
Middle East & North Africa (MENA) MENA Revenue ($m) MENA Segment EBITDA ($m)1 Regional Highlights $71m $25m 16% 9% Q/Q 15% Q/Q 40% YoY 68% YoY Middle East & North Africa The Q/Q increase in revenue was driven higher well flow management revenue in Algeria and Saudi Arabia, partially offset b
Slide 9: Asia Pacific (APAC)
Asia Pacific (APAC) APAC Revenue ($m) APAC Segment EBITDA ($m)1 Regional Highlights 17% $60m $11m 4% Q/Q 102% Q/Q 24% YoY Asia Pacific Q/Q revenue decrease was primarily due to lower activity in Malaysia, while the Q/Q increase in Segment EBITDA is attributable primarily to higher margin activ
Slide 10: Customer and Technology Highlights
Customer and Technology Highlights TRS Supports Carbon Storage Our fast-track production Second iTong Development for Japan’s First facilities support secure deployment in Norway Clean Hydrogen Production energy supplies Demonstration Project Expro has secured a new Carbon Capture Our Congo project
Slide 11: Outlook for 2024 and beyond
Outlook for 2024 and beyond Outlook 2024E Financial Outlook1 Medium-Term Targets for Revenue and Adjusted EBITDA Margin2,3 3,000 1 We reiterate prior guidance and continue to Revenue ($m) $2,533 0.9 expect 2024 revenues of between $1,600m and 2,500 $2,000 0.8 $1,700m, a 9% increase year over year (Y
Slide 12: Appendix
Investors.Expro.com Downloadable Financials Our ESG report Follow us on Connect with us on Appendix: Subscribe to our To learn even more about Expro, check out these additional places to get in touch with us. channel
Slide 13: Revenue by Region and Area of Capability
Revenue by Region and Area of Capability Well Asia Pacific Intervention (APAC) & Integrity $60 North & $59 Latin America (NLA) Well Q1 2024 Q1 2024 Construction Middle East $130 North Africa Revenue Revenue $120 (MENA) by Geographic by Area of Well Flow Capability $71 Market Management $383m $383m $
Slide 14: Historical Revenue and Adjusted EBITDA
Historical Revenue and Adjusted EBITDA Revenue ($m) Adjusted EBITDA ($m)1 Revenue up 53% Adjusted EBITDA since Q4 2020 up ~2.6x Well Management Well Construction since Q4 2020 $407 $397 $383 $370 $85 $351 $334 $339 $330 $313 $314 $145 $70 $72 $144 $120 $296 $116 $67 $284 $280 $138 $251 $250 $251 $12
Slide 15: Historical Adjusted Cash Flow from Operations and Capex
Historical Adjusted Cash Flow from Operations and Capex Adjusted Cash Flow from Operations ($m)1 Adjusted EBITDA2 / Capital Expenditures ($m) TTM Adjusted EBITDA minus Capex up Adjusted EBITDA Capital Expenditures +$150m since Q4 2020 $85 $99 $72 $70 $67 $73 $51 $51 $50 $64 $48 $45 $42 $52 $39 $37 $
Slide 16: Historical Revenue by Region and Product Line
Historical Revenue by Region and Product Line By Geographical Market ($m) By Product Line ($m) NLA ESSA MENA APAC Well Construction Well Flow Management Subsea Well Access Well Intervention and Integrity $407 $407 $397 $397 $383 $383 $370 $370 $62 $57 $351 $65 $351 $54 $334 $339 $60 $334 $339 $59 $3
Slide 17: Historical Revenue and Contribution by Areas of Capability
Historical Revenue and Contribution by Areas of Capability Revenue ($m) Well Construction ($m) $70 44% 42% 43% 44% 45% 43% 43% 43% 44% 43% 50% Well Management Well Construction 41% 42% 41% 42% $60 38% 40% 37% 40% $50 $407 $40 30% $397 $383 $30 $370 20% $351 $20 $334 $339 10% $330 $10 $313 $314 $145
Slide 18: Historical Contribution by Product Line
Historical Contribution by Product Line Well Construction ($m) Well Flow Management ($m) $70 50% $70 50% 44% 42% 43% 44% 45% 43% 43% 43% 44% 43% 41% 42% 41% 42% 40% 41% $60 38% 40% 37% $60 38% 39% 38% 38% 38% 37% 40% 36% 36% 40% 34% 35% $50 $50 33% 34% 33% 34% 33% 30% 30% $40 $40 $30 $30 20% 20% $20
Slide 19: Historical Segment EBITDA by Region
Historical Segment EBITDA by Region North & Latin America ($m) Europe & Sub-Saharan Africa ($m) $50 40% $50 40% $45 35% $45 35% 30% 31% $40 30% 30% $40 29% 27% 27% 26% 30% 25% 30% $35 25% $35 26% 21% 21% 21% 21% 25% 22% 21% 25% $30 $30 19% 19% 18% 18% 18% 18% $25 20% $25 17% 16% 20% 15% 15% 15% 14%
Slide 20: Historical Support Costs
Historical Support Costs Historical Support Costs ($m) Trailing Twelve Months Support Costs ($m) Research, engineering and development Aggregate support costs since Q4 TTM support costs up 6% with $94 Product Line and central costs 2020 down from 31% to run-rate revenue up 16% Geography-based suppor
Slide 21: Order Backlog
Order Backlog Q/Q Change in Order Backlog ($m) Order Backlog at Quarter End ($m) + + + + $2,413 $2,295 $2,271 $2,301 $2,297 $2,178 $1,927 $1,878 $1,744 1 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 1) “Other” includes revenue from backlog and re-estimations. Copyright 202
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($ in millions) Three Months Ended TTM Q1 2024 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Adjusted EBITDA 1 $ 35 $ 24 $ 24 $ 26 $ 24 $ 39 $ 45 $ 51 $ 37 $ 51 $ 48 $ 70 $ 42 $ 72 $ 50 $ 85 $ 67 $ 274 Depreciation, amo
Slide 23: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) ($ in millions) Three Months Ended TTM Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Total revenue $ 330 $ 251 $ 233 $ 250 $ 251 $ 284 $ 313 $ 296 $ 280 $ 314 $ 334 $ 351 $ 339 $ 397 $ 370 $ 407 $ 383 $1,557
Slide 24: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) Reconciliation of Adjusted Net Income (Loss) ($ in millions, except per share amounts) Three Months Ended Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Net Income (loss) $ (91) $ (11) $ (4) $ (18) $ 13 $ (6) $ 9 $ (14) $ (12) $ (3) Adjustments: Merg