Future
Engineers.
This is Expro
In bringing together Expro and Frank’s, we created a durable, yet flexible business model and strong financial profile to invest in our growth priorities and drive shareholder value.
Our diversity in terms of offerings, customers and geographies provides us with stability across market cycles and our early well cycle capabilities and strong customer relationships provide us with enhanced revenue visibility.
We believe that this means we are well positioned to perform and protect your investment regardless of the macro-environment.
Given our strong offshore capabilities and presence in key international growth markets, Expro is poised to drive substantial cash flows from the anticipated near-term recovery in drilling activity and oil prices.
The strength of our platform was on full display in the fourth quarter of 2021, our first full quarter as a combined company.
During 2021, we generated $826 million in revenue, a net loss of $132 million and $126 million in adjusted EBITDA, operating efficiently across our businesses to achieve Adjusted EBITDA Margins
of 15.3%.
As we continue executing our thoughtful integration plans, we are on track to realize our targeted cost synergies of $70 million within 24 to 36 months of close, including $55 million within the first 12 months.
We expect these significant savings to expand margins and enhance cash flow, enabling us to accelerate investments in our business and deliver value for shareholders.
Together with Frank’s, we have built a stronger, more resilient company with leading capabilities spanning the entirety of the well lifecycle and a strong financial profile to drive sustainable growth and shareholder value creation. We are doing so while advancing our purpose to support our customers’ energy transition and create a lower carbon future.
On behalf of our management team and Board, I could not be more excited to introduce the new Expro.
First and foremost, we’re a 7,200 person-strong team driven by a culture of innovation with a focus on operating our business to ensure safety and integrity, drive excellence and efficiency, and enable our customers to achieve their goals.
Who we are.
We have a balanced portfolio offering novel, insightful solutions combined with innovative, future-facing technological capabilities across well construction, well flow management, subsea well access and well intervention and integrity.
What we do.
Our reach spans far beyond our Houston headquarters. We have a vast global presence, operating in over 60 countries with the significant majority of our revenue coming from operations outside of the U.S.
Where we are.
Our long-tenured, blue-chip customer base of international and national oil companies provides stability and opportunities to expand our relationships as we introduce new solutions.
Who we serve.
At our core lies our values of People, Performance, Planet and Partnerships. As you review the following report, I hope you will recognize these values are at the heart of everything we do, including our operations, strategy
and long-term goals.
2021 was a year of significant change for organizations and people around the globe. For Expro, it was a year of exciting and transformational change as we combined with Frank’s International to create a new full-cycle energy services leader.
A foundation for value creation.
Our strategic priorities.
Our sturdy foundation supports our clear and comprehensive strategy to win in the market and help our customers achieve their objectives to continue growing our business.
Delivering
Extraordinary Performance.
We believe that Expro wins business because we are the best at what we do, not because we are the biggest. The Expro name is supported by decades of exceptional safety and operational performance, and as we continue to bolster our offerings and expand into new markets, maintaining this reputation of excellence is of the utmost importance.
Offering a complete set of Well Life Cycle solutions.
We have and plan to continue to remain relevant through aggressively pursuing innovation with purpose and technologies that can provide tangible benefits throughout the well lifecycle, from exploration to abandonment. While our portfolio of solutions is highly diversified, our approach to each segment is consistent: we make safety, integrity and efficiency a top priority. There are four key components to our business:
Expro constructs over 4,000 complex and technically demanding onshore and offshore wells annually. As the economy and industry rebound, we are positioned to expand our position in well construction by driving valuable innovation in the space, including automation, digitization and artificial intelligence.
Well Construction
Expro has one of the broadest sets of solutions and the most experienced team in the industry, with capabilities spanning cleanup, exploration and appraisal services to support the full life of field. We expect well flow management to play an important role through the energy transition by harnessing well data to measure, analyze and optimize emissions, and deliver precise and actionable solutions.
Well Flow Management
Expro offers deployment, insight and enhancement solutions to advance well surveillance, production optimization and asset integrity assurance. Integrity has become increasingly important as customers look to decommission old wells responsibly and cost effectively while minimizing greenhouse gas (GHG) emissions.
Well Intervention and Integrity
Expro provides reliable, efficient and cost effective well access systems in the industry, with capabilities across the complete well life cycle from exploration and appraisal through
to well abandonment.
Subsea Well Access
Driving digital transformation.
The COVID-19 pandemic has accelerated the digital transformation already underway in the oil and gas industry. There has been a meaningful, lasting shift in mentality toward the way our customers work, making our technological capabilities more relevant and in demand than ever before.
The innovation and technology platforms we’ve built over many years are poised to drive the next chapter of our industry – and customers are noticing. We are focused on continuing to expand our technology platform by advancing “innovation with a purpose” to develop next-generation solutions to unleash the power of data that enhance customer outcomes.
Enabling customers’ energy transition.
Coupled with our investments in technology is our intense focus on investing to help our customers achieve their carbon objectives.
This past year, we allocated 40% of our research and development spending to carbon reduction innovations and efforts, and we expect that percentage to grow.
In doing so, we are developing and advancing solutions that will enable us to support our customers’ carbon reduction goals and help bring them to the forefront of the energy transition as we work toward a lower carbon future.
Succeeding through our people.
We believe that Expro is positioned for success thanks to the people who take pride in our work every single day. In combining two great companies, we have fostered an environment of diversity, inclusivity and performance that equips and empowers our people for advancement and success.
Our team has navigated the recent industry challenges brilliantly and continued to go above and beyond to deliver for our customers with determination, purpose, enthusiasm and compassion.
A bright future.
As we enter the first full year for our combined company, I expect that we will build on our momentum to continue driving strong financial performance and capture the substantial growth opportunities ahead.
We will remain true to our values
and focus on our mission to help our customers achieve their sustainability goals.
I believe that the future is bright for Expro, and I look forward to continuing to update you on the incredible accomplishments of our team.
Thank you for your support of Expro.
Sincerely,
Michael Jardon,
Chief Executive Officer
2021 Annual Report overview
$826
$126
15.3%
Revenue
Adjusted EBITDA
Adjusted EBITDA margin
m
m
Forward-Looking Statements
In addition to statements of historical fact, this report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature or that relate to future events and conditions are, or may be deemed to be, forward-looking statements. These “forwardlooking statements” are based on our current projections about us and our industry, and our management’s beliefs and assumptions concerning future events and financial trends affecting our financial condition and results of operations. Our forward-looking statements are generally accompanied by words such as “estimate,” “project,” “predict,” “believe,” “expect,” “anticipate,” “potential,” “plan,” “goal” or other terms that convey the uncertainty of future events or outcomes, although not all forward-looking statements contain such identifying words. These statements are only predictions and are subject to substantial risks and uncertainties and are not guarantees of performance. Future actions, events and conditions and future results of operations may differ materially from those expressed in these statements. In evaluating those statements, you should keep in mind the risk factors and other cautionary statements included in our 2021 Annual Report on Form 10-K included in this report. We caution you not to place undue reliance to forward-looking statements, and we undertake no obligation to update this information. We urge you to carefully review and consider the disclosures made in this report and other filings with the Securities and Exchange Commission regarding the risks and factors that may affect our business.