Engage Xr Share Discussion Threads

[thebuddha] 25/11/2005 00:14

Over a third increase in profit. Not bad by any standards. 8% increase in share price hardly covers it.

Guaranteed turnover due to required supply. This isn't even close to its top.

[grgkecer] 17/10/2005 07:23

Is the Energy Rout Over?

"For those not willing to take the gamble and who don't subscribe to the Peak Oil theory, there is another alternative. The drop in the oil services index has only been about half as bad as that in energy shares recently and for good reason. As Resource Investor pointed out in late June of this year ( Oil Services stocks are well positioned to perform even if oil prices were to drop $15-$20 from current levels. The idea is that as long as prices remain reasonably high, and at this point only extremists and doomsayers believe otherwise, the oil service companies will still be able to increase earnings due to strong demand and lack of capacity in the sector. On the other hand, if prices can stay over $60 or move higher the services stocks will be able to raise their rates that much more."

[grgkecer] 28/9/2005 09:17

"Baker Hughes, our 50% JV partner in QuantX, has recently informed us that they wish to exercise their Call Option to purchase our remaining interest in the business. The option price will be calculated according to a contractually predetermined formula. At this point the transaction is anticipated to complete mid autumn and is not expected to have a material effect on the year end earnings."

[thamestrader] 13/9/2005 13:33

Agreed, Expro are doing very nicely thankyou on their own.

Abbot have taken over well services companies before. Remember Thistle Well Services ("Tiswas")? Now known as KCA Well Services, but not sure how successful they are, or even if still up and running. So it's not impossible they could do so again. (But actually, I wasn't being altogether serious when I suggested it in the first place).

[grgkecer] 13/9/2005 13:22

None is more unlikely than Abbot. Baker-Hughes are in a joint venture with Expro:

"QuantX was created in April 2003 by the Expro International Group PLC ("the Expro Group" or "Expro") and Baker Hughes Incorporated ("BHI") consolidating their permanent monitoring businesses as a 50/50 joint venture company"

But any takeover possibilities seem remote, and the company can do quite well enough on its own.

[thamestrader] 13/9/2005 11:43

Not a great business fit, though, methinks.

Wood Group has divested itself of its downhole stuff in recent years. They used to compete with Expro on downhole gauges, slickline logging tools and the like, but got out of that game. Having said that, it now means the decks are cleared for a takover without raising any Competition concerns, but I still can't see it.

Others that get mentioned occasionally:
Schlumberger (might want certain parts of EXR)
Halliburton (who compete head on with virtually everything EXR do)
Baker Hughes (good fit, but only because it deliberately got out of these product lines itself ten years ago).
Weatherford (took over Orwell/Wellserv, but might still want certain parts).

[grgkecer] 13/9/2005 07:40

thamestrader

Perhaps you would do better to think about Wood Group who say in today's $90M placing with their interim results:
"These developments are likely to include acquisitions of local businesses,
capital expenditure on new facilities and investment in projects with our
customers. In addition, we will continue to assess larger acquisitions and
investments in our oil & gas and power activities round the world."

[thamestrader] 07/9/2005 19:46

They'll probably get on the list when they take over/get taken over by/merge with Abbot Group.




(Did I say that out loud?)




(oh, well, could be worse, I could have put it in writing!)

[paullove] 01/9/2005 16:56

Yup, have heard that anyone that has anything to do with the US Gulf is up in the US today - McDermott's up 27% - they'll be doing lots of the repir work.

Not sure what Expro's exposure is. Thank goodness it has done something. Was getting quite boring. Bought in at 3.45 though so am starting to wonder how much more it has to go.

[grgkecer] 01/9/2005 15:26

Presumably today's rise is on the expectation of Expro joining the FTSE250.

[grgkecer] 01/9/2005 14:01

Expro is active in the Gulf of Mexico. The effect of Katrina could be significant.

[grgkecer] 02/8/2005 11:41

Those investor visits seem to have been effective.

[paullove] 02/8/2005 10:48

Spread has just tightened right up. 0.5p (usually 10p)
Any idea why?

[grgkecer] 01/7/2005 09:29

Could Oil Services Outperform E&P in High Oil Price Environment?

[grgkecer] 29/6/2005 17:49

Just as well:
MARQUIS WELL UNSUCCESSFUL

[thamestrader] 29/6/2005 13:10

Thanks for clearing that up, grgkecer

[grgkecer] 29/6/2005 12:04

Expro have no interest in block 21/6b or, so far as is ascertainable, any other oil/gas prospect.

Exploration well 21/6b-6 is Granby's first exploration well and is being
drilled on the Marquis prospect, which is located to the west of the Forties
field in the Central North Sea. Granby was initially awarded 50% of block 21/6b
in the 21st Licensing Round in 2003, before farming out to Century and Elixir.
Granby's costs for the drilling of the well will be fully met by its farm-in
partners.

Interests in block 21/6b are as follows:

Century Exploration (UK) Limited (Operator) 70%

Elixir Petroleum Limited 15%

[Elixir is ELP].

Granby Enterprises Ltd 15%

[thamestrader] 29/6/2005 06:48

Are you sure EXR have a 15% interest, hyper al?

DTI website shows block 21/6b is licenced to Granby/Energy 365 (neither of whom I have heard of). Energy 365's website suggests operator is now Century, Energy 365 retaining 50% interest.

[hyper al] 28/6/2005 15:17

EXR have a 15% interest

[hyper al] 28/6/2005 15:14

Could be that well 21/6b-6 was spudded on 18 June.

Should hit oil within next 48 hours, if we are lucky!

[paullove] 16/6/2005 11:04

Pretty large buying volume today.
Wonder is there is an announcement about something on the way....

[grgkecer] 15/6/2005 16:59

hairman's statement on 2003 results:
Chairman's & Chief Executive's Statement

Results Summary

After two years of very strong growth, market conditions during the year ended
March 2003 and more particularly during the second half, have proved difficult
for Expro. Against a background of high commodity prices there has been
reluctance by our clients to expand their Exploration and Production programmes,
preferring to maximise cash flow from existing operations. Prices have been
driven by security of supply issues rather than demand, which has remained
static through a period of uncertainty surrounding the global economic and
political outlook. Despite this challenging environment, turnover for the year
held up relatively well, falling a modest 5% to #209m for the Group and share of
joint ventures.

Pre-tax profits, excluding goodwill amortisation and exceptional items, at
#20.0m was 19% below prior year, with EPS on the same basis at 22.1p, down 18%,
with EBITDA before exceptional items only 6% below the previous year's level at
#43.4m

[paullove] 15/6/2005 12:02

I notice that the stock fell big time Q1/Q2 2003.

Was that a profit warning?

[grgkecer] 14/6/2005 07:30

What the chairman said:
"Outlook

The outlook for the oil and gas services sector is much brighter, driven by
improved client confidence and stable commodity prices, resulting in a general
uplift in client capital and operational spend. As a late cycle player, Expro is
now beginning to see the benefit of these market conditions. This positive
environment is providing good impetus to Expro's strategy, resulting in a more
favourable trading outlook. Key markets, such as the United Kingdom Continental
Shelf, have held up well for the group and offer continued good prospects. Our
project based SSS business unit is enjoying the benefit of prior investment in
new technology and positive client demand.

These otherwise positive conditions are somewhat tainted by unfavourable
currency movements particularly relating to the weakness of the US Dollar. This
issue creates an erosional effect on Expro's translated earnings and has a
detrimental effect on our competitive position when compared to many of our US
based competitors.

We have a highly focused strategy and an outstanding technology portfolio.
Globally, our levels of tendering and enquiry are very high, in part driven by
enhanced client interaction. Our order book is sufficiently robust to give us
confidence that we remain well set to deliver our strategic goals."