Engage Xr Regulatory News (EXR)

25 Mar 2008 07:01

Expro International Group PLC25 March 2008 25 March 2008 EXPRO INTERNATIONAL GROUP PLC Pre-close Trading Update Expro International Group PLC ("Expro" or the "Company" or the "Group") announces today that trading during the second half of the year ended 31st March 2008 has continued to strengthen leading to a full year outcome at the upper end of management's expectation. International market conditions in the period have been very favourable towards Expro's highly differentiated product and service portfolio, and only the domestic land markets of the United States, to which the group has a relatively low exposure, have experienced poorer than expected conditions. The steady progression by the International Oil Companies (IOC) towards technically challenging deepwater reserves is driving strong demand for our market leading capabilities. Expro is also now starting to enjoy the benefits of a stronger presence with National Oil Companies (NOC) particularly in Brazil, Saudi Arabia and Norway. These customers are highly appreciative of technology which plays heavily to our strengths. Throughout the financial year, significant progress has been made in all areas of Expro's business strategy. Performance in the period has also been assisted by the maturing of the Power Well Services (PWS) integration into our operating regions, where we have greater critical mass and increased footprint for the distribution of our technology portfolio. Expro has a strong position in the global markets for the provision of exploration and appraisal well-testing and new subsea field commissioning. Although demand for both segments has risen, and business volumes have increased, our capital expenditure requirements have been contained by the enhanced utilisation of the combined capacity of the PWS - Expro businesses. The development of new technology remains essential to our positioning and we have invested record amounts to develop and deliver the next generation of Expro products. Our flagship AX-S rigless intervention concept continues to take shape. Technically the project is progressing well against a very demanding schedule and our objective remains to be ready to perform deepwater trials mid 2009. Our proposed alliance with Aker Offshore Services (AKOFS) will provide both companies and our future customers with the ideal capability to exploit deepwater reserves. As announced on 29 February 2008, the Company received a very preliminary proposal which may or may not lead to an offer for the Company. The preliminary nature of the proposal is such that there can be no certainty that any offer will be forthcoming or as to the terms of any offer. A further announcement will be made when appropriate. Graeme Coutts, Group CEO said: "Expro has invested in a well publicised, highly focused strategy to position the business as a major provider of key technologies to oil and gas markets which are both appreciative and growing. The strengths of our core businesses are there for all to see. The effects of the acquisition and subsequent integration of PWS have added to an already excellent position. It is very rewarding for our staff, customers and shareholders to increasingly see evidence of our strategy converting to business performance." - Ends- For further information please contact: Expro International Group PLC 0118 959 1341Graeme Coutts, Chief Executive Officer Michael Speakman, Finance DirectorEdward Cutts, Investor Relations Weber Shandwick Financial 020 7067 0700Nick Oborne / Rachel Martin / Stephanie Badjonat / Hannah Marwood Notes to EditorsExpro's business is well flow management. Expro is a leading provider of products and services that measure, improve, control and process flow from high-value oil and gas wells. Key niche businesses must be able to command and sustain market share leadership through a combination of technological pre-eminence and/or operational economies of scale. They will have a high knowledge and service content and will be able to anticipate, meet and exceed customers' expectations. With its head office in the UK, Expro employs more than 4,000 highly-trained staff in 50 countries. For more information, please visit the Expro website www.exprogroup.com. This information is provided by RNS The company news service from the London Stock Exchange