For Immediate Release | 13 April 2016 |
Hunting PLC
("Hunting" or "the Company" or "the Group")
AGM
and
Q1 2016 Trading Update
Hunting PLC (LSE:HTG), the international energy services group, which will today be holding its Annual General Meeting commencing at 10.30a.m., issues a Q1 2016 trading update.
As highlighted in the Group's Full Year Results released on 3 March 2016, trading during Q1 2016 across the majority of Hunting's businesses has been weak, with revenue being approximately 50% lower during the quarter compared to Q1 2015. While the price of WTI crude oil has stabilised since the year end at approximately $40 per barrel, the US rig count has declined to below 450 active units, down from over 1,800 units at the start of 2015, reflecting the difficult market environment being experienced by all energy sector companies.
To address this trading environment, Hunting is continuing to reduce its cost base, with the Group's headcount reduction now at 40% since 1 January 2015, providing approximately $82 million in annualised cost savings, together with a sustained programme of decreasing inventories to align to short term demand.
Cash generation and net debt continue to be closely monitored, with the net debt position at 31 March 2016 being approximately $132 million. All non-essential expenditures have been minimised.
Although trading visibility remains very weak, Hunting continues to be focused on maintaining its capability to respond to an improvement in the trading environment, utilising its portfolio of high efficiency manufacturing plants, across the globe, led by an experienced management team.
For further information please contact:
Hunting PLC Dennis Proctor, Chief Executive Peter Rose, Finance Director | Tel: +44 (0) 20 7321 0123 |
Buchanan Richard Darby Madeleine Seacombe | Tel: +44 (0) 20 7466 5000 |
Notes to Editors:
About Hunting PLC
Hunting PLC is an international energy services provider to the world's leading upstream oil and gas companies. Established in 1874, it is a premium listed public company traded on the London Stock Exchange. The Company maintains a corporate office in Houston and is headquartered in London. As well as the United Kingdom, the Company has principal operations in Canada, China, Indonesia, Mexico, Netherlands, Singapore, Saudi Arabia, South Africa, Thailand, United Arab Emirates and the United States of America.
