For Immediate Release |
5 September 2016 |
Hunting PLC
("Hunting" or "the Company" or "the Group")
Interim Results for the six months to 30 June 2016
Hunting PLC (LSE:HTG), the international energy services group, today announces its interim results for the six months to 30 June 2016.
Financial Summary - from continuing operations
· Revenue $228.4m (H1 2015 - $463.6m) |
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· Underlying EBITDA $29.5m loss (H1 2015 - $44.1m profit) |
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· Underlying loss from operations of $50.8m (H1 2015 - $20.4m profit) |
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· Reported loss from operations of $77.0m (H1 2015 - $63.1m loss) |
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· Underlying diluted loss per share 27.8 cents (H1 2015 - 8.4 cents earnings per share) |
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· Reported diluted loss per share 40.3 cents (H1 2015 - 35.5 cents loss per share) |
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· Net debt of $87.5m (31 December 2015 - $110.5m) |
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Operational Summary
· Focus on cash generation to reduce net debt, with initiatives including:
o $42.3m reduction in inventories since 31 December 2015;
o $29.5m tax reclaimed from carry back of losses; and
o capital investment limited to contracted or essential spend.
· Cost cutting measures continued during the reporting period and include:
o 46% reduction in headcount to 2,145 since 31 December 2014 position of 4,003; and
o 3 manufacturing facilities and 7 distribution centres closed.
· Discussions to revise terms of bank Revolving Credit Facility concluded:
o profits based covenants suspended until the 31 December 2018 test date;
o new asset based covenants of Tangible Net Worth and Asset Cover;
o facility size reduced from $350m to $200m;
o facility secured on trade receivables, inventory and property in the USA, UK and Canada; and
o no dividend payments until the end of the amendment period.
Commenting on the results Dennis Proctor, Chief Executive, said:
"While industry sentiment reached a low point during the early months of the reporting period, the improved US rig count data seen through Q2 indicates that the global energy markets are adjusting to the lower oil price environment. The combination of lower operating costs and production efficiency gains has led to increased enquiry levels as operators focus on those projects which provide the strongest returns. However, given the inherent uncertainty within the industry at this time, the current market estimates for the 2016 full year will remain dependent on an improved trading environment in the latter part of the year.
"While the Group's performance has suffered, we are pleased to have concluded the renegotiation of our bank covenants to enable Hunting to continue with strong, liquid resources to respond to an improving market environment. At the period end our net debt position has been reduced to $87.5m following ongoing cost cutting and the receipt of tax refunds, which indicates the strength of our balance sheet and the resilience of our business model."
Business Review
For access to the Business Review narrative for the six months to 30 June 2016 please click on the following link.
http://www.rns-pdf.londonstockexchange.com/rns/8684I_-2016-9-2.pdf
Financial Statements and Notes to the Accounts
For access to the Financial Statements and Notes to the Accounts for the six months to 30 June 2016 please click on the following link.
http://www.rns-pdf.londonstockexchange.com/rns/8684I_1-2016-9-2.pdf
The attached documents provide complete access to the Group's 2016 Half Year Report and Accounts. The Report can also be accessed at www.huntingplc.com.
Analyst Briefing and Webcast
Hunting PLC will host an analyst briefing on Monday 5 September 2016 at 10.30am at the offices of Buchanan, 107 Cheapside, London, EC2V 6DN.
An audio webcast will be available on:
http://vm.buchanan.uk.com/2016/hunting050916/registration.htm
This announcement has been determined to contain inside information.
For further information please contact:
Hunting PLC Dennis Proctor, Chief Executive Peter Rose, Finance Director Tarryn Riley, Investor Relations |
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, Saudi Arabia, Singapore, South Africa, United Arab Emirates and the United States of America.
