Expro Up 6% on Halliburton Bid

123jump.com Staff
23 May, 2008
New York City

Expro International surged 6% after it received a bid from Halliburton that valued the company at 1.7 billion pounds or 1,525 pence per share. The offer lifted the share above the offer price on the hopes of a revised offer from Candover Partners and Goldman Sachs.

[R]12:45PM New York – Halliburton made a bid for second largest deep driller Expro International. Stock closed 6% higher on higher bid from Candover Partners.[/R]

Halliburton Company, the military contractor and oilfield service provider made an offer of £1.71 billion for second largest driller Expro International. The deal values the company at 1,525 pence per share.

The oilfield drillers and contractors are enjoying on the steepest rise in business on sustain demand for oil from the U.S., China and India. The all cash offer for deep driller from Halliburton comes at a time when crude oil is trading at a record high near $133 a barrel.

The rise in crude oil supply has not kept up with the surge in demand in the last five years. Much of oil that is discovered in the recent past has been in difficult geographies and complex geologies. The oil companies have been searching for oil at depths below 3,000 feet or 1,000 meters. Expro is known for its deep drilling and testing capabilities.

The Halliburton bid tops the earlier bid on April 17 from Candover Partners and Goldman Sachs Group of 1,435 pence per share. The stock in London trading today jumped 5.5% to 1,626 pence on the hopes that Candover will return with a higher offer.

Recently, Expro International Group PLC, world''s second- biggest oilfield contractor reported its preliminary results for year ended March 2008 net revenue increased 18% to £609.7 million compared to £518.8 million for the same period of 2007.

Underlying earnings per share increased to 48.0p from 37.8p. Operating profit was £93.2 million compared with £72.5 million.

Global revenue increased 9% to £215.5 million compared to £196.9 million at the year ended 2007. Operating profit was up by 3% to £46.9 million compared to £45.5 million. Regional revenue rose 22% to £394.2 million from £321.9 million. Operating profit edged up 54% to £75.6 million compared to £49 million for year ended 2007.

As on March 31, 2008, Expro’s net asset was £348.5 million compared to £309.4 million of year end of 2007.

Expro International Group PLC, ((EXR)), in the last one year of trading, fell as low as 877 pence in May 2007 and reached a high of 1,626 pence in May of 2008.

Halliburton ((HAL)) in New York trading fell 78 cents to $47.50.