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Dec 31, 2022
Frank's International Q4 2022 Earnings Report
Reported robust operational performance and profitable growth driven by breadth of portfolio, depth of expertise, global operating footprint and strong financial profile.
Key Takeaways
Expro Group Holdings N.V. reported strong Q4 2022 results with revenue of $351 million, a net income of $13 million, and adjusted EBITDA of $70 million. The company realized annualized merger-related cost synergies of approximately $66 million through the fourth quarter of 2022. They also provide 2023 revenue and Adjusted EBITDA margin outlook.
Revenue increased to $351 million, a sequential increase of $17 million, or 5%, driven by increased activity in Europe and Sub-Saharan Africa (ESSA) and Middle East and North Africa (MENA).
Net income was $13 million, or $0.12 per diluted share, compared to a net loss of $18 million, or $0.16 per diluted share, for the third quarter of 2022.
Adjusted EBITDA was $70 million, a sequential increase of $22 million, or 46%, driven by higher activity during the fourth quarter and lower start-up and commissioning costs on a large subsea project in Asia Pacific (APAC).
Adjusted EBITDA margin was 20%, compared to 14% for the third quarter of 2022.
Forward Guidance
For 2023, the company expects improving profitability to drive improved cash flow generation as they capitalize on tailwinds in their industry and the strong demand for their innovative, sustainable solutions. They anticipate generating revenues of between $1,450 million to $1,550 million in 2023. Adjusted EBITDA in 2023 is expected to be between $275 million and $325 million, and Adjusted EBITDA margin is expected to be between 19% and 21% of revenue.
Challenges Ahead
- Revenue and profitability in the first quarter of 2023 are expected to be negatively impacted by the winter season in the Northern Hemisphere.
- Revenue and profitability in the first quarter of 2023 are expected to be negatively impacted by the budget cycles of our national oil company customers.
- Revenue in the first quarter of 2023 are expected to be flat to down modestly sequentially.
- Adjusted EBITDA margin in the first quarter of 2023 is expected to be in the mid-teens.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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