Trading update

Expro International Group PLC 06 March 2003 Embargoed until 07.00 6 March 2003 EXPRO INTERNATIONAL GROUP PLC ("Expro" or "the Group") Trading update At the time of the announcement of Expro's interim results on 4 December, the Group indicated in the Chairman's and Chief Executive's Statement certain concerns over the outlook for the second half of the year in light of global economic and political uncertainties. Unfortunately, since then trading has become more difficult. This reflects operators' caution that high commodity prices are driven by developments in the Middle East rather than by a fundamental supply / demand imbalance. As a result of these conditions, as an update to the market the Board currently expects earnings per share (before goodwill amortisation) for the second half of the year ending 31 March 2003 to be in the region of half the level achieved in the first six months of the year and on this basis below current market expectations. While general trading has been more challenging there have also been a number of specific factors that have contributed to the likely outcome for the second half of the year. In the Gulf of Mexico in particular, the deferral of development projects and curtailment of well operations by customers seeking to maximise cash flow in a high commodity price environment has affected performance. Conditions in the US onshore and shallow water of the Gulf of Mexico have remained very weak during January and February and, additionally, several deepwater projects have been deferred into the next fiscal year. In the Africa / FSU and Asia Pacific regions, underlying confidence remains strong, though again, awarded work which would have largely compensated for shortfalls in the Gulf of Mexico has recently slipped into the early part of the next fiscal year. In the meantime, Europe has experienced the reduced levels of activity previously expected. The business has also been subject to a progressive weakening of the US dollar and significant cost increases in relation to insurance which, in a more buoyant market, would have been more easily absorbed. John Dawson, Chief Executive, commented: "While today's announcement is disappointing, it does reflect the difficult trading environment we, and many of our US and international peer group, have been experiencing. "Expro continues to be successful in securing new contract awards and its market share in key geographic and service segments remains stable or improving, although industry caution will inevitably cause the immediate outlook to be uncertain. "We continue to be cash generative, have a robust balance sheet and, in the absence of unforeseen circumstances, the Board would expect to maintain the final dividend of 7.1p, following an increase in the interim dividend of 3% to 3.8p." - Ends - For further information please contact: Expro International Group PLC 0118 9591 341 John Dawson, Chief Executive Eric Woolley, Finance Director Weber Shandwick Square Mile 020 7067 0700 Tim Jackaman/ Kirsty Hall/ Rachel Taylor This information is provided by RNS The company news service from the London Stock Exchange
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