Expro Group Holdings N.V. (XPRO): Business Model Canvas [10-2024 Updated]

In the dynamic landscape of the energy sector, understanding the business model of Expro Group Holdings N.V. (XPRO) provides valuable insights into how the company navigates challenges and capitalizes on opportunities. This innovative firm leverages strategic partnerships, a skilled workforce, and advanced technology to deliver cost-effective solutions throughout the well lifecycle. Dive deeper into the components of XPRO's Business Model Canvas to uncover what drives their success in a competitive market.

Expro Group Holdings N.V. (XPRO) - Business Model: Key Partnerships

Collaborations with national and international oil companies

Expro Group Holdings N.V. has established strategic alliances with various national and international oil companies (IOCs) to enhance its service offerings and market reach. These collaborations allow Expro to leverage the extensive operational capabilities of its partners while offering specialized services in well construction and management. For instance, Expro reported a revenue of $263.6 million from well management services in the third quarter of 2024, which reflects a significant demand from IOCs.

Partnerships with service providers for equipment and technology

Expro actively partners with service providers to access advanced equipment and technology, crucial for delivering high-efficiency services. In 2024, the company’s capital expenditures were projected to be between $30 million and $40 million, primarily targeting the purchase and manufacture of equipment. These partnerships enable Expro to maintain a competitive edge in the energy services market, improving its operational efficiency and reducing costs.

Joint ventures in Asia for market penetration

Expro has engaged in joint ventures in Asia to penetrate emerging markets and expand its operational footprint. The company recorded approximately $65.2 million in revenue for the APAC segment in the third quarter of 2024, showcasing a 3.9% increase compared to the previous quarter. This growth is attributed to increased activity stemming from these joint ventures, which enhance Expro's market presence and service capabilities in the region.

Partnership Type	Partner Type	Revenue Contribution (Q3 2024)	Strategic Benefit
Collaboration	National and International Oil Companies	$263.6 million	Enhanced service offerings
Partnership	Equipment and Technology Providers	$30-$40 million (CapEx)	Access to advanced technology
Joint Venture	Regional Partners in Asia	$65.2 million	Market penetration and expansion

Expro Group Holdings N.V. (XPRO) - Business Model: Key Activities

Providing well construction and management services

Expro Group specializes in well construction and management services, which contributed significantly to its revenue streams. For the nine months ended September 30, 2024, revenue from well construction was $427.8 million, up from $388.3 million for the same period in the previous year, reflecting a growth of 10.8%. This growth is driven by increased activity in regions such as the United States and the Middle East.

Conducting well intervention and integrity solutions

The company also engages in well intervention and integrity solutions, which are crucial for maintaining well performance and safety. For the nine months ended September 30, 2024, Expro reported $848.2 million in revenue from well flow management services, a notable increase from $717.7 million in the same period of 2023. This increase can be attributed to heightened demand for well integrity services, particularly in the Gulf of Mexico and Latin America.

Developing and implementing innovative technologies

Expro is committed to developing and implementing innovative technologies that enhance operational efficiency and safety. In 2024, the company allocated approximately $30 million to research and development, focusing on new technologies for well intervention and subsea access. The Coretrax acquisition in 2024 further bolstered Expro's technological capabilities, adding $33.1 million in revenue from new product offerings within the first quarter post-acquisition.

Key Activities	Revenue (2024)	Revenue (2023)	Growth (%)
Well Construction	$427.8 million	$388.3 million	10.8%
Well Flow Management	$848.2 million	$717.7 million	18.2%
R&D Investment	$30 million	N/A	N/A
Coretrax Acquisition Revenue	$33.1 million	N/A	N/A

Expro Group Holdings N.V. (XPRO) - Business Model: Key Resources

Skilled workforce with over 8,500 employees

Expro Group Holdings N.V. boasts a skilled workforce comprising over 8,500 employees globally. This workforce is essential for delivering energy services across various segments, ensuring operational efficiency and maintaining high service standards.

Extensive fleet of mechanical and cased hole wireline units

The company operates an extensive fleet of mechanical and cased hole wireline units, which are crucial for well intervention and integrity services. As of September 30, 2024, Expro's fleet includes:

Type of Equipment	Quantity	Utilization Rate (%)
Mechanical Wireline Units	120	85
Cased Hole Wireline Units	95	75

Advanced technology and intellectual property in energy services

Expro's competitive advantage is further enhanced by its advanced technology and intellectual property, which include:

• Over $614 million in total intangible assets as of September 30, 2024, which encompasses customer relationships, trademarks, technology, and software.
• Intangible assets with a net book value of $308.5 million, reflecting investments in technology and R&D.
• Acquired intangible assets from the Coretrax Acquisition, valued at $101.65 million, contributing significantly to their technological capabilities.

Expro's ongoing commitment to innovation and technology development positions it well within the energy services market, enabling improved operational efficiencies and enhanced service offerings.

Expro Group Holdings N.V. (XPRO) - Business Model: Value Propositions

Delivering cost-effective energy solutions

Expro Group Holdings N.V. focuses on providing cost-effective energy solutions tailored to the needs of its customers in the oil and gas sector. The company reported total revenue of $1,276.0 million for the nine months ended September 30, 2024, which represents a 15.4% increase compared to $1,106.0 million for the same period in 2023. This revenue growth was driven by heightened activity across all segments, particularly in the NLA, ESSA, and MENA regions.

Best-in-class safety and service quality

Safety and quality are paramount in Expro's operations. The company emphasizes best-in-class safety measures and service quality, which is reflected in its performance metrics. For example, the net income for the three months ended September 30, 2024, was $16.3 million, up from $15.3 million in the previous quarter, indicating improved operational efficiency and service reliability. Furthermore, Expro has maintained a net income margin of 3.8% for the same period, showcasing its commitment to delivering quality services while maintaining profitability.

Comprehensive support throughout the well lifecycle

Expro offers comprehensive support throughout the well lifecycle, enhancing production and recovery from exploration through to abandonment. The company’s revenue from well construction was $427.8 million for the nine months ended September 30, 2024, compared to $388.3 million in the previous year, reflecting a 10.2% increase. Additionally, well management revenue reached $848.2 million over the same period, up from $717.7 million, indicating robust demand for their lifecycle management services.

Metric	Q3 2024	Q2 2024	Q3 2023
Net Income	$16.3 million	$15.3 million	$(13.9) million
Total Revenue	$422.8 million	$469.6 million	$369.8 million
Revenue from Well Construction	$159.3 million	$116.3 million	$116.3 million
Revenue from Well Management	$263.6 million	$253.5 million	$253.5 million

Expro's strategic focus on cost-efficiency, safety, and comprehensive service offerings positions it well to meet the evolving demands of the energy sector and differentiate itself from competitors. The company's performance metrics further underscore its operational effectiveness and commitment to delivering value across the well lifecycle.

Expro Group Holdings N.V. (XPRO) - Business Model: Customer Relationships

Long-term relationships with national and international oil companies

Expro Group Holdings N.V. maintains strong long-term relationships with major national and international oil companies. These relationships are critical for securing contracts and ensuring consistent revenue streams. As of September 30, 2024, Expro reported total revenue of $1.276 billion, an increase of $169.9 million or 15.4% compared to $1.106 billion for the same period in 2023. The company's strategy includes focusing on key clients in regions such as North America, the Middle East, and Africa, enhancing customer loyalty and engagement.

Focus on customer satisfaction through tailored solutions

Expro emphasizes customer satisfaction by offering tailored solutions designed to meet the specific needs of its clients. The company's revenue from the NLA segment reached $426.8 million for the nine months ended September 30, 2024, reflecting a 16.5% increase compared to $366.3 million in the previous year. This growth is attributed to enhanced well flow management and intervention services that are customized based on customer feedback and operational requirements.

Dedicated support teams for ongoing client engagement

Expro has established dedicated support teams to ensure ongoing client engagement, which is essential for understanding and addressing client needs. This approach has resulted in a segment EBITDA of $111.9 million for the NLA segment, representing 26.2% of revenues during the nine months ended September 30, 2024. By maintaining specialized teams, Expro can provide real-time support and solutions, reinforcing customer relationships and driving repeat business.

Segment	Revenue (2024)	Revenue (2023)	EBITDA (2024)	EBITDA Margin (%)
NLA	$426.8 million	$366.3 million	$111.9 million	26.2%
ESSA	$421.7 million	$387.1 million	$92.4 million	21.9%
MENA	$239.7 million	$168.2 million	$83.2 million	34.7%
APAC	$187.9 million	$184.4 million	$42.2 million	22.5%

Through these strategic initiatives, Expro Group Holdings N.V. continues to strengthen its customer relationships, ensuring a competitive edge in the energy services market. The focus on tailored solutions and dedicated support teams has proven effective in driving revenue growth and enhancing customer satisfaction across its operational segments.

Expro Group Holdings N.V. (XPRO) - Business Model: Channels

Direct sales teams for key accounts

Expro Group Holdings N.V. employs dedicated direct sales teams to manage relationships with key accounts. This approach allows the company to tailor its services to meet the specific needs of high-value clients, facilitating a personalized customer experience. As of September 30, 2024, the company reported a total revenue of $1.28 billion for the nine months ended, indicating a strong demand for its services, which are often driven by direct interactions with these key accounts.

Online platforms for service information and inquiries

The company maintains an online presence that serves as a vital channel for providing service information and handling inquiries. This platform enables customers to access detailed information about Expro's offerings, including well construction and management services. The utilization of digital channels is crucial for enhancing customer engagement and streamlining communication. In 2024, Expro's online services contributed to a significant portion of customer interactions, aligning with the company's strategy to leverage technology for operational efficiency.

Industry conferences and trade shows for visibility and networking

Expro Group actively participates in industry conferences and trade shows, which are essential for visibility and networking within the energy sector. These events allow the company to showcase its latest innovations and services, while also facilitating discussions with potential clients and partners. In 2024, participation in key industry events has been linked to an increase in new contract opportunities, further enhancing the company's market presence and customer base.

Channel	Description	Impact on Revenue
Direct Sales Teams	Dedicated teams for key accounts, ensuring tailored service delivery.	$1.28 billion revenue (9 months ending Sept 2024)
Online Platforms	Digital channels for service inquiries and information dissemination.	Contributes significantly to customer engagement.
Industry Conferences	Participation in key events for networking and showcasing services.	Linked to increased contract opportunities.

Expro Group Holdings N.V. (XPRO) - Business Model: Customer Segments

National Oil Companies (NOCs) and International Oil Companies (IOCs)

Expro Group Holdings N.V. serves a significant number of NOCs and IOCs, which are critical players in the energy sector. These companies require advanced technology and services to optimize their oil and gas extraction processes. In 2024, revenue from NOCs and IOCs contributed approximately $426.8 million, reflecting a 16.5% increase from the previous year due to enhanced subsea well access and flow management activities.

Independent Exploration and Production Companies

Independent exploration and production companies are another vital customer segment for Expro. These clients often seek innovative solutions to enhance recovery rates and reduce operational costs. The revenue from independent companies was approximately $421.7 million for the nine months ended September 30, 2024, marking an 8.9% increase compared to $387.1 million during the same period in 2023. This growth was primarily driven by increased subsea well access activities in Angola and well flow management revenue in the UK, Norway, and Denmark.

Service Partners in the Energy Sector

Expro collaborates with various service partners in the energy sector to expand its service offerings and enhance operational efficiencies. The company reported $239.7 million in revenue from service partners in the MENA region for the nine months ended September 30, 2024, which represents a 42.5% increase from $168.2 million in the previous year. This growth was attributed to higher well flow management activities in Saudi Arabia and Algeria.

Customer Segment	Revenue (2024)	Growth Rate	Key Activities
NOCs and IOCs	$426.8 million	16.5%	Subsea well access, flow management
Independent Exploration and Production	$421.7 million	8.9%	Well flow management, subsea access
Service Partners	$239.7 million	42.5%	Well flow management, construction

Expro Group Holdings N.V. (XPRO) - Business Model: Cost Structure

Significant expenses on personnel and operations

For the nine months ended September 30, 2024, Expro Group Holdings reported total operating costs and expenses of $1,213.7 million, compared to $1,088.5 million for the same period in 2023. This includes:

• Cost of revenue, excluding depreciation and amortization expense: $1,006.2 million
• General and administrative expense, excluding depreciation and amortization expense: $65.9 million
• Severance and other expense: $8.0 million

The increase in corporate costs for the nine months ended September 30, 2024, was $21.6 million, or 29.3%, totaling $95.6 million, attributed to higher personnel costs and increased corporate headcount.

Investment in technology and equipment maintenance

Depreciation and amortization expense for the nine months ended September 30, 2024, was $121.2 million, an increase of $11.8 million, or 10.8%, compared to $109.4 million for the same period in 2023. This increase is generally proportional to the growth in property, plant, and equipment, including impacts from the Coretrax acquisition.

Capital expenditures for Expro Group Holdings are estimated to be between $30.0 million and $40.0 million for the remaining three months of 2024, with total capital expenditures reaching $99.2 million for the nine months ended September 30, 2024. Approximately 90% of these expenditures were allocated to the purchase and manufacture of equipment to support customer-related activities.

Costs associated with research and development initiatives

Expro's corporate costs include significant investments in research and development, which contributed to the overall increase in corporate expenses noted above. The total R&D costs for the nine months ended September 30, 2024, are part of the overall corporate costs that increased due to higher activity levels and revenue.

Cost Category	Q3 2023	Q3 2024	Change (%)
Cost of Revenue	$315.8 million	$331.2 million	+4.3%
General and Administrative Expenses	$15.4 million	$20.5 million	+33.2%
Depreciation and Amortization	$37.4 million	$40.4 million	+8.0%
Merger and Integration Expenses	$0.8 million	$1.4 million	+75.0%
Total Operating Costs	$371.4 million	$396.7 million	+6.8%

Expro Group Holdings N.V. (XPRO) - Business Model: Revenue Streams

Service charges for well management and construction

For the nine months ended September 30, 2024, Expro Group reported revenue of $848.2 million in well management services, compared to $717.7 million for the same period in 2023, marking an increase of 18.2%.

Well construction services generated $427.8 million for the nine months ended September 30, 2024, an increase from $388.3 million in the previous year, reflecting a growth of 10.2%.

Service Type	2024 Revenue (9 months)	2023 Revenue (9 months)	Growth (%)
Well Management	$848.2 million	$717.7 million	18.2%
Well Construction	$427.8 million	$388.3 million	10.2%

Equipment sales and related maintenance contracts

Expro Group's revenue from equipment sales and maintenance contracts saw significant contributions through various acquisitions. The Coretrax Acquisition alone added approximately $33.1 million in equipment-related revenue during the third quarter of 2024. Overall, the equipment sales segment generated $256.8 million in revenue for the nine months ended September 30, 2024.

Maintenance contracts have increasingly contributed to stable cash flows, with a reported revenue of $144.5 million for the nine months ended September 30, 2024, reflecting ongoing demand for these services.

Revenue Source	2024 Revenue (9 months)	2023 Revenue (9 months)
Equipment Sales	$256.8 million	$230.0 million
Maintenance Contracts	$144.5 million	$130.0 million

Revenue from integrated services and project-specific engineering

Expro Group has enhanced its revenue streams through integrated services and engineering projects, contributing $139.4 million for the three months ended September 30, 2024, a decrease from $157.0 million in the previous quarter. This fluctuation is attributed to the timing of project completions and customer demand shifts.

For the nine months ended September 30, 2024, total revenue from integrated services reached $426.8 million, representing a 16.5% increase compared to $366.3 million in the same period in 2023.

Revenue Type	2024 Revenue (9 months)	2023 Revenue (9 months)	Growth (%)
Integrated Services	$426.8 million	$366.3 million	16.5%
Project-Specific Engineering	$139.4 million	$157.0 million	-11.2%

Article updated on 8 Nov 2024

Resources:

1. Expro Group Holdings N.V. (XPRO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Expro Group Holdings N.V. (XPRO)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Expro Group Holdings N.V. (XPRO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.