Expro Group Holdings N.v. · NYSE:XPRO
Expro — Q2 2024 Earnings Presentation
24 slides from Expro's earnings presentation, Jul 25, 2024
Slide 1: Expro Group Holdings N.V. Q2 2024 Highlights
Expro Group Holdings N.V. Q2 | 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% $1,630m I N T E R N AT I O N AL OFFSHORE Asia Pacific ~$2.6bn Market Capitalization2 16% North & Latin America ~$2.6bn Middle East BY 33% North Africa REGION 17% +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
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: Q2 2024 Consolidated Results
Q2 2024 Consolidated Results Favorable long-term outlook and good business momentum following strong Q1 Highlights Revenue of $470m exceeded guidance range of $400m to $420m, primarily driven by higher revenue in NLA and ESSA Revenue improved Q/Q, with notable increased activity in NLA Q2 2024 offsh
Slide 6: North and Latin America (NLA)
North and Latin America (NLA) NLA Revenue ($m) NLA Segment EBITDA ($m)1 Regional Highlights 34% $157m $44m 20% Q/Q 29% Q/Q 16% YoY 21% YoY North & Latin America Q/Q increase was primarily due to higher revenue from all product lines, particularly well construction in the Gulf of Mexico, Guya
Slide 7: Europe & Sub-Saharan Africa (ESSA)
Europe & Sub-Saharan Africa (ESSA) ESSA Revenue ($m) ESSA Segment EBITDA ($m)1 Regional Highlights $168m $35m 36% 38% Q/Q 39% Q/Q 22% YoY 0% YoY Europe & Sub-Saharan Africa Q/Q increase in revenue was driven by a large subsea well access project completed in Angola and higher well flow manag
Slide 8: Middle East & North Africa (MENA)
Middle East & North Africa (MENA) MENA Revenue ($m) MENA Segment EBITDA ($m)1 Regional Highlights $81m $29m 17% 14% Q/Q 17% Q/Q 38% YoY 55% YoY Middle East & North Africa Q/Q increase in revenue was driven by the Coretrax acquisition, which contributed revenue of $10 million, and steady reve
Slide 9: Asia Pacific (APAC)
Asia Pacific (APAC) APAC Revenue ($m) APAC Segment EBITDA ($m)1 Regional Highlights 13% $63m $15m 5% Q/Q 41% Q/Q 3% YoY 342% YoY Asia Pacific Q/Q increase in revenue was primarily due to increased well construction activity in Malaysia and Australia and well flow management activity in Thail
Slide 10: Customer and Technology Highlights
Customer and Technology Highlights Milestone achievement First gas for Expro’s Successful completion with completion of fast-track production of 21-well development 100th SeaCure® job facilities in Congo campaign We successfully completed our 100th job globally Our Congo project to design, construct
Slide 11: Outlook for 2024 and beyond
Outlook for 2024 and beyond Outlook 2024E Refined Financial Outlook1 Medium-Term Targets for Revenue and Adjusted EBITDA Margin2,3 3,000 1 Increasing full-year 2024 revenues guidance range to Revenue ($m) $2,533 0.9 between $1,700m and $1,750m (versus prior guidance 2,500 $2,000 0.8 $ 1,700-$1,750 o
Slide 12: Appendix: Connect with us
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 Asia Pacific Well (APAC) Intervention & Integrity $63 North & $69 Latin America Well (NLA) Construction Middle East North Africa Q2 2024 Q2 2024 (MENA) $157 Revenue $148 Revenue $81 by Geographic Well Flow by Area of Management Market Capability $470m $470m $
Slide 14: Historical Revenue and Adjusted EBITDA
Historical Revenue and Adjusted EBITDA Revenue ($m) Adjusted EBITDA ($m)1 Revenue up 88% since Adjusted EBITDA Q4 2020 (announcement up ~3.7x of Expro/Frank’s merger) since Q4 2020 Well Management Well Construction $470 $95 $407 $85 $397 $383 $370 $148 $351 $339 $72 $330 $334 $70 $314 $67 $313 $145
Slide 15: Historical Adjusted Cash Flow from Operations and Capex
Historical Adjusted Cash Flow from Operations and Capex Adjusted Cash Flow from Operations ($m)1 Adjusted EBITDA2 / Capital Expenditures ($m) TTM Adjusted EBITDA minus Capex up Adjusted EBITDA Capital Expenditures +$190m since Q4 2020 $95 $85 $99 $72 $70 $67 $73 $51 $51 $50 $64 $48 $45 $42 $52 $39 $
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 $470 $470 $63 $407 $407 $69 $397 $397 $383 $383 $370 $370 $351 $62 $351 $57 $339 $65 $81 $54 $33
Slide 17: Historical Revenue and Contribution by Areas of Capability
Historical Revenue and Contribution by Areas of Capability Revenue ($m) Well Construction ($m) $70 44% 42% 43% 44% 45% 43% 43% 43% 44% 43% 45% 50% 41% 42% 41% 42% Well Management Well Construction $60 38% 40% 37% $470 40% $50 $40 30% $407 $30 $397 20% $383 $20 $370 $148 10% $351 $10 $334 $339 $47 $3
Slide 18: Historical Contribution by Product Line
Historical Contribution by Product Line Well Construction ($m) Well Flow Management ($m) $70 50% $70 50% 44% 42% 43% 44% 45% 43% 43% 43% 44% 43% 45% 41% 42% 41% 42% 40% 41% $60 38% 40% 37% $60 38% 39% 38% 38% 38% 37% 40% 36% 36% 34% 40% 34% 35% 33% 34% 33% $50 $50 33% 26% 30% 30% $40 $40 $30 $30 20%
Slide 19: Historical Segment EBITDA by Region
Historical Segment EBITDA by Region North & Latin America ($m) Europe & Sub-Saharan Africa ($m) $50 40% $50 40% $45 35% $45 35% $40 30% 30% 30% $40 29% 31% 27% 28% 27% 26% 30% 26% 25% 30% $35 25% $35 21% 21% 21% 25% 22% 21% 25% $30 $30 21% 21% 19% 19% 18% 18% 18% 18% $25 20% $25 17% 16% 20% 15% 15%
Slide 20: Historical Support Costs
Historical Support Costs Historical Support Costs ($m) Trailing Twelve Months Support Costs ($m) Research, engineering and development Aggregate support costs since Q4 TTM support costs up 13% with $94 2020 down from 30% to run-rate revenue up 15% Product Line and central costs <20% of revenue on a
Slide 21: Order Backlog
Order Backlog Q/Q Change in Order Backlog ($m) Order Backlog at Quarter End ($m) + + + + $2,413 $2,295 $2,271 $2,301 $2,297 $2,178 $2,171 $1,927 $1,878 $1,744 1 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 1) “Other” includes revenue from backlog and re-estimations
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($ in millions) Three Months Ended TTM Q2 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 Q2 24 Adjusted EBITDA 1 $ 35 $ 24 $ 24 $ 26 $ 24 $ 39 $ 45 $ 51 $ 37 $ 51 $ 48 $ 70 $ 42 $ 72 $ 50 $ 85 $ 67 $ 95 $ 297 Deprec
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 Q2 24 Total revenue $ 330 $ 251 $ 233 $ 250 $ 251 $ 284 $ 313 $ 296 $ 280 $ 314 $ 334 $ 351 $ 339 $ 397 $ 370 $ 407 $ 383
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 Q2 24 Net Income (loss) $ (91) $ (11) $ (4) $ (18) $ 13 $ (6) $ 9 $ (14) $ (12) $ (3) 15 Adjustme