Expro(US:XPRO)2024-10-24 20:10Revenue Performance - Revenue for the three months ended September 30, 2024, decreased by $46.8 million, or 10.0%, to $422.8 million, compared to $469.6 million for the three months ended June 30, 2024[127]. - Revenue for the nine months ended September 30, 2024, increased by $169.9 million, or 15.4%, to $1,276.0 million compared to $1,106.0 million for the same period in 2023[132]. - Revenue from the NLA segment for the three months ended September 30, 2024, was $139.4 million, accounting for 33.0% of total revenue[141]. - Revenue from the MENA segment for the nine months ended September 30, 2024, was $239.7 million, representing an increase from $168.2 million for the same period in 2023[142]. - NLA segment revenue for Q3 2024 was $139.4 million, a decrease of $17.6 million or 11.2% from Q2 2024[147]. - ESSA segment revenue for Q3 2024 was $131.5 million, a decrease of $37.0 million or 21.9% from Q2 2024[149]. - MENA segment revenue for Q3 2024 was $86.7 million, an increase of $5.3 million or 6.5% from Q2 2024[151]. - APAC segment revenue for Q3 2024 was $65.2 million, an increase of $2.4 million or 3.9% from Q2 2024[153]. - NLA segment revenue for the nine months ended September 30, 2024, was $426.8 million, an increase of $60.5 million or 16.5% from the same period in 2023[158]. - MENA segment revenue for the nine months ended September 30, 2024, was $239.7 million, an increase of $71.5 million or 42.5% from the same period in 2023[162]. - APAC segment revenue increased by $3.4 million, or 1.9%, to $187.9 million for the nine months ended September 30, 2024, compared to $184.4 million for the same period in 2023[163]. Income and EBITDA - Net income for the three months ended September 30, 2024, was $16.3 million, a 6.4% increase from $15.3 million for the three months ended June 30, 2024, with a net income margin of 3.8%[128]. - Adjusted EBITDA for the three months ended September 30, 2024, decreased by $9.5 million, or 10.1%, to $85.0 million from $94.6 million for the three months ended June 30, 2024, maintaining an Adjusted EBITDA margin of 20.1%[129]. - Net income for the nine months ended September 30, 2024, was $28.9 million, compared to a net loss of $10.9 million for the same period in 2023, resulting in a net income margin of 2.3%[132]. - Adjusted EBITDA for the nine months ended September 30, 2024, increased by $83.3 million, or 50.9%, to $247.0 million from $163.7 million for the same period in 2023, with an Adjusted EBITDA margin of 19.4%[133]. - Total Segment EBITDA for Q3 2024 was $111.5 million, a decrease from $123.3 million in Q2 2024[148]. - NLA segment EBITDA margin for Q3 2024 was 23.7%, down from 28.3% in Q2 2024[148]. - ESSA segment EBITDA margin for Q3 2024 was 24.5%, up from 20.8% in Q2 2024[150]. - MENA segment EBITDA for Q3 2024 was $30.0 million, an increase of $1.4 million or 5.0% from Q2 2024[152]. - Segment EBITDA for the APAC segment was $42.2 million, or 22.5% of revenues, for the nine months ended September 30, 2024, a significant increase from a loss of ($3.5) million, or (1.9)% of revenues, for the same period in 2023[163]. Cash Flow and Liquidity - Net cash provided by operating activities for the three months ended September 30, 2024, was $55.3 million, significantly higher than $13.2 million for the three months ended June 30, 2024[130]. - Net cash provided by operating activities for the nine months ended September 30, 2024, was $72.1 million, down from $105.5 million for the same period in 2023, primarily due to increased working capital[135]. - Total available liquidity as of September 30, 2024, was $302.6 million, including cash and cash equivalents of $167.0 million and $135.6 million available for borrowings[170]. - Net cash provided by operating activities decreased by $33.5 million to $72.1 million for the nine months ended September 30, 2024, compared to $105.5 million for the same period in 2023[176]. - Net cash used in investing activities increased by $29.9 million to $120.7 million for the nine months ended September 30, 2024, compared to $90.8 million for the same period in 2023[177]. Market and Industry Trends - Average daily oil demand in the third quarter of 2024 exceeded the average daily demand levels in the third quarter of 2023, with liquid demand expected to grow by 0.9 million b/d in 2024 over 2023[115]. - Brent crude oil prices declined from an average of $85/bbl in July to an average of $74/bbl in September 2024, primarily due to concerns over global oil demand growth[115]. - The EIA forecasts global liquid fuels consumption will average 103.1 million b/d in 2024, increasing by 0.9 million b/d over 2023[118]. - The EIA predicts that global liquids production will average 102.5 million b/d in 2024, up by 0.5 million b/d from 2023[119]. - Henry Hub natural gas prices averaged $2.11/MMBtu in the third quarter, with forecasts suggesting an increase to nearly $2.81/MMBtu in the fourth quarter[122]. - The market outlook for the remainder of 2024 and into 2025 shows commodity prices driving continued expenditures on exploration and production, with near 2015 levels of upstream investment expected[123]. Corporate Developments - The company has seen increased demand for services related to brownfield and production enhancement as operators strive to maximize previous investments[116]. - The clean energy transition continues to gain momentum, with the company actively developing technologies to enhance the sustainability of its customers' operations[116]. - The company’s revenue is primarily derived from well construction, well flow management, subsea well access, and well intervention and integrity solutions[124]. - Corporate costs rose by $21.6 million, or 29.3%, to $95.6 million for the nine months ended September 30, 2024, compared to $74.0 million for the same period in 2023[164]. - Depreciation and amortization expense increased by $11.8 million, or 10.8%, to $121.2 million for the nine months ended September 30, 2024, compared to $109.4 million for the same period in 2023[165]. - Merger and integration expenses surged by $8.1 million, or 185.9%, to $12.4 million for the nine months ended September 30, 2024, compared to $4.3 million for the same period in 2023[166]. - Interest and finance expense, net increased by $9.0 million, or 534.7%, to $10.7 million for the nine months ended September 30, 2024, compared to $1.7 million for the same period in 2023[168]. - The company suspended vessel-deployed light well intervention operations in Q3 2023 due to a wire failure, and is currently assessing the incident and pursuing an insurance claim[134].