Expro Group Holdings NV (XPRO, Financial) released its Q3 2023 earnings report on October 26, 2023. The company reported a revenue of $370 million, marking a 7% sequential decrease but an 11% increase year-over-year. The net loss for the quarter was $14 million, compared to a net income of $9 million in Q2 2023. Adjusted EBITDA was reported at $50 million, a decrease of 31% sequentially but an increase of 4% year-over-year.
Financial Highlights and Challenges
Expro's Q3 2023 results were impacted by lower activity, primarily in the North and Latin America (NLA) region. The company reported a net loss of $14 million, or $0.10 per diluted share, compared to a net income of $9 million, or $0.08 per diluted share, for Q2 2023. Adjusted net loss for Q3 2023 was $3 million, or $0.03 per diluted share, compared to an adjusted net income for Q2 2023 of $19 million, or $0.17 per diluted share.
Segment Performance
Revenue for the NLA segment decreased by 22% to $105 million, primarily due to lower U.S. onshore activity and a number of dry wells in the region. The Europe and Sub-Saharan Africa (ESSA) segment saw a slight decrease in revenue by 2% to $135 million, while the Middle East and North Africa (MENA) segment reported a 2% decrease in revenue to $58 million. The Asia Pacific (APAC) segment, however, reported a 10% increase in revenue to $71 million, primarily due to higher activity across all product lines.
Stock Repurchase Plan
On October 25, 2023, the company's Board of Directors approved an extension to the stock repurchase program, which was set to expire on November 24, 2023. Under the extended program, the company is now authorized to acquire up to $100 million of its outstanding common stock through November 24, 2024.
Future Outlook
Despite the challenges faced in Q3 2023, Expro's CEO, Michael Jardon, remains optimistic about the company's future. He stated, "Despite near-term volatility, the macro backdrop for energy services remains quite constructive and the international and offshore markets to which Expro is most leveraged are expected to be resilient, with increased upstream spending supporting a multi-year growth phase."
Expro plans for capital expenditures in the range of approximately $30 million to $40 million for the remainder of 2023. As of September 30, 2023, Expro’s consolidated cash and cash equivalents, including restricted cash, totaled $257 million.
Explore the complete 8-K earnings release (here) from Expro Group Holdings NV for further details.
