Expro Group Holdings N.v. · NYSE:XPRO
Expro — Q3 2024 Earnings Presentation
24 slides from Expro's earnings presentation, Oct 24, 2024
Slide 1: Expro Group Holdings N.V. Q3 2024 Highlights
Expro Group Holdings N.V. Q3 | 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% $1,683m I N T E R N AT I O N AL OFFSHORE Asia Pacific ~$1.9bn Market Capitalization2 15% North & Latin America S T R O N G C AS H ZERO NET-DEBT Middle East North Africa 18% BY REGION 60 Countries 34% ~$1.8bnEnterprise 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: Q3 2024 Consolidated Results
Q3 2024 Consolidated Results Favorable long-term outlook and good business momentum following in-line Q3, which included losses on Congo production solutions project Highlights Revenue at $423m is within guidance range of $410m to $430m, with the sequential decline primarily driven by lower revenue
Slide 6: North and Latin America (NLA)
North and Latin America (NLA) NLA Revenue ($m) NLA Segment EBITDA ($m)1 Regional Highlights 33% $139m $33m 11% Q/Q 26% Q/Q 32% YoY 66% YoY North & Latin America Q/Q decline in revenue was primarily due to lower revenue from well flow management, well construction and subsea well access activ
Slide 7: Europe & Sub-Saharan Africa (ESSA)
Europe & Sub-Saharan Africa (ESSA) ESSA Revenue ($m) ESSA Segment EBITDA ($m)1 Regional Highlights $131m $32m 31% 22% Q/Q 8% Q/Q 3% YoY 18% YoY Europe & Sub-Saharan Africa Q/Q decline in revenues was primarily driven by an expected decrease subsea well access revenue in Angola due to project
Slide 8: Middle East & North Africa (MENA)
Middle East & North Africa (MENA) MENA Revenue ($m) MENA Segment EBITDA ($m)1 Regional Highlights 21% $87m $30m 7% Q/Q 5% Q/Q 49% YoY 78% YoY Middle East & North Africa The Q/Q increase in revenue was driven by the contribution of one additional month of Coretrax revenue, partially offset by
Slide 9: Asia Pacific (APAC)
Asia Pacific (APAC) APAC Revenue ($m) APAC Segment EBITDA ($m)1 Regional Highlights 15% $65m $16m 4% Q/Q 6% Q/Q 8% YoY 478% YoY Asia Pacific The Q/Q increase in revenue was primarily due to increased well flow management activity in Thailand, higher subsea well access activity in Australia,
Slide 10: Customer and Technology Highlights
Customer and Technology Highlights Digital Oilfield Excellence – winners of Finalists of Gulf Energy Industry First: Sparta 2024 Special Meritorious Awards Excellence Awards Packer Award Our Centri-FI Consolidated Controls The Gulf Energy Information Excellence Awards A super-major operator in the d
Slide 11: Outlook for 2024 and Beyond
Outlook for 2024 and Beyond Outlook 2024 Outlook1 Medium-Term Targets for Revenue, and Adjusted EBITDA margin2,3 Refining full-year 2024 revenues guidance range to Revenue ($m) Capex related revenue Opex related revenue Adjusted EBITDA margin between $1,720m and $1,750m (versus prior guidance 0.6 of
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 $65 North & Latin America $71 (NLA) Well Q3 2024 Q3 2024 Construction Middle East North Africa $139 Revenue $159 (MENA) Revenue by Geographic by Area of $87 Market Well Flow Management Capability $423m $423m $
Slide 14: Historical Revenue and Adjusted EBITDA
Historical Revenue and Adjusted EBITDA Revenue ($m) Adjusted EBITDA ($m)1 Revenue up 69% since Adjusted EBITDA Q4 2020 (announcement up ~3.3x of Expro/Frank’s merger) since Q4 2020 $470 $423 $95 $407 $397 $383 $370 $148 $85 $85 $351 $334 $339 $330 $159 $313 $314 $145 $72 $144 $120 $70 $296 $116 $67
Slide 15: Historical Adjusted Cash Flow from Operations and Capex
Historical Adjusted Cash Flow from Operations and Capex Adjusted Cash Flow from Operations ($m)1 Adjusted EBITDA2 / Capital Expenditures ($m) TTM Adjusted EBITDA minus Capex up Adjusted EBITDA Capital Expenditures +$200m since Q4 2020 $95 $85 $85 $99 $72 $70 $67 $73 $64 $65 $51 $51 $50 $48 $52 $45 $
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 $423 $69 $423 $407 $407 $397 $397 $383 $383 $370 $65 $370 $71 $351 $62 $351 $57 $8
Slide 17: Historical Revenue and Contribution by Areas of Capability
Historical Revenue and Contribution by Areas of Capability Revenue ($m) Well Construction ($m) 46% $80 44% 42% 43% 44% 45% 43% 43% 43% 44% 43% 45% 50% 41% 42% 41% 42% $70 38% 40% 37% 40% $470 $60 $50 30% $423 $40 $407 20% $397 $30 $383 $370 $148 $20 10% $351 $10 $334 $339 $47 $34 $32 $39 $39 $44 $49
Slide 18: Historical Contribution by Product Line
Historical Contribution by Product Line Well Construction ($m) Well Flow Management ($m) $80 46% 50% $70 50% 44% 42% 43% 44% 45% 43% 43% 43% 44% 43% 45% 41% 42% 41% 42% 40% 41% $70 38% 40% 37% $60 38% 39% 38% 36% 38% 38% 37% 40% 36% 35% 34% 40% $60 34% 33% 33% 34% 33% $50 31% $50 30% 26% 30% $40 $40
Slide 19: Historical Segment EBITDA by Region
Historical Segment EBITDA by Region North & Latin America ($m) Europe & Sub-Saharan Africa ($m) $50 40% $50 40% $45 $45 35% 35% 31% 30% 30% 30% $40 28% $40 29% 27% 27% 26% 30% 30% 25% $35 26% 25% $35 24% 24% 21% 21% 21% 25% 22% 21% 25% $30 $30 21% 21% 19% 19% 18% 18% 18% 18% $25 20% $25 17% 16% 20%
Slide 20: Historical Support Costs
Historical Support Costs Historical Support Costs ($m) Trailing Twelve Months Support Costs ($m) Research, engineering and development Aggregate support costs since Q4 TTM support costs up 15% with Product Line and central costs 2020 down from 30% to run-rate revenue up 15% due to ~20% of revenue on
Slide 21: Order Backlog - 6 Quarters
Order Backlog - 6 Quarters Q/Q Change in Order Backlog ($m) Order Backlog at Quarter End ($m) + + + + + $2,413 $2,295 $2,301 $2,297 $2,345 $2,271 $2,178 $2,171 $1,927 $1,878 $1,744 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 1 Note: Backlog excludes Coretr
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($ in millions) Three Months Ended TTM Q3 2024 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Adjusted EBITDA 1 $ 51 $ 37 $ 51 $ 48 $ 70 $ 42 $ 72 $ 50 $ 85 $ 67 $ 95 $ 85 $ 332 Depreciation, amortization and impairment expenses (44) (35) (35) (35) (
Slide 23: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) ($ in millions) Three Months Ended TTM Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Total revenue $ 296 $ 280 $ 314 $ 334 $ 351 $ 339 $ 397 $ 370 $ 407 $ 383 $ 470 $ 423 $1,683 (252) (240) (257) (284) (278) (290) (319) (316) (317) (308)
Slide 24: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) Reconciliation of Adjusted Net Income (Loss) ($ 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 Q3 24 Net Income (loss) $ (91) $ (11) $ (4) $ (18) $ 13 $ (6) $ 9 $ (14) $ (12) $ (3) $ 15