Trading update
06 March 2003 - 6:02PM
UK Regulatory
RNS Number:3602I
Expro International Group PLC
06 March 2003
Embargoed until 07.00 6 March 2003
EXPRO INTERNATIONAL GROUP PLC
("Expro" or "the Group")
Trading update
At the time of the announcement of Expro's interim results
on 4 December, the Group indicated in the Chairman's and
Chief Executive's Statement certain concerns over the
outlook for the second half of the year in light of global
economic and political uncertainties. Unfortunately, since
then trading has become more difficult. This reflects
operators' caution that high commodity prices are driven by
developments in the Middle East rather than by a fundamental
supply / demand imbalance.
As a result of these conditions, as an update to the market
the Board currently expects earnings per share (before
goodwill amortisation) for the second half of the year
ending 31 March 2003 to be in the region of half the level
achieved in the first six months of the year and on this
basis below current market expectations.
While general trading has been more challenging there have
also been a number of specific factors that have contributed
to the likely outcome for the second half of the year. In
the Gulf of Mexico in particular, the deferral of
development projects and curtailment of well operations by
customers seeking to maximise cash flow in a high commodity
price environment has affected performance. Conditions in
the US onshore and shallow water of the Gulf of Mexico have
remained very weak during January and February and,
additionally, several deepwater projects have been deferred
into the next fiscal year. In the Africa / FSU and Asia
Pacific regions, underlying confidence remains strong,
though again, awarded work which would have largely
compensated for shortfalls in the Gulf of Mexico has
recently slipped into the early part of the next fiscal
year. In the meantime, Europe has experienced the reduced
levels of activity previously expected. The business has
also been subject to a progressive weakening of the US
dollar and significant cost increases in relation to
insurance which, in a more buoyant market, would have been
more easily absorbed.
John Dawson, Chief Executive, commented: "While today's
announcement is disappointing, it does reflect the difficult
trading environment we, and many of our US and international
peer group, have been experiencing.
"Expro continues to be successful in securing new contract
awards and its market share in key geographic and service
segments remains stable or improving, although industry
caution will inevitably cause the immediate outlook to be
uncertain.
"We continue to be cash generative, have a robust balance
sheet and, in the absence of unforeseen circumstances, the
Board would expect to maintain the final dividend of 7.1p,
following an increase in the interim dividend of 3% to
3.8p."
- Ends -
For further information please contact:
Expro International Group PLC 0118 9591 341
John Dawson, Chief Executive
Eric Woolley, Finance Director
Weber Shandwick Square Mile 020 7067 0700
Tim Jackaman/ Kirsty Hall/ Rachel Taylor
This information is provided by RNS
The company news service from the London Stock Exchange
END
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