For Immediate Release |
13 December 2016 |
Hunting PLC
("Hunting" or "the Company" or "the Group")
Pre Close Trading Statement
Hunting PLC (LSE:HTG), the international energy services group, today provides a Pre Close Trading Statement ahead of the announcement of its 2016 Full Year results on Thursday 2 March 2017.
Trading Statement
As noted in our trading update on 27 October 2016, management believes the 2016 full year outturn remains in line with its expectations. Management continues to see improving market indicators within US onshore activities benefiting our Perforating business particularly in West Texas. Elsewhere within the Group's operations market conditions, particularly within deepwater and international drilling activities remain subdued.
Following the Company's equity placing, which completed on Monday 31 October 2016 with the receipt of net proceeds of US$84m, the Group's Balance Sheet remains strong with Net Debt at the year end expected to be broadly neutral. Inventory levels continue to reduce and remain on track to be around US$260m by the year end.
2017 Outlook
Looking ahead into 2017, with the benefits of cost cutting measures implemented over the last two years and the improving market indicators, management expects EBITDA to move into positive territory during 2017. However, as has been the case in recent years the eventual outcome for the 2017 financial year remains highly dependent on the continued and sustained improvement of both North American and international markets. While management expects a year of growth, the scale of that growth remains unclear at present. Management will look to update the market regularly on progress made during the course of the financial year.
Dennis Proctor, Hunting's Chief Executive said:
"2016 has been a tough year for the Company. Necessary measures have been taken to address the cost base and strengthen the financial position of the Company. Our capability to manufacture and distribute our range of products from our global footprint is retained which will allow us to take advantage of the anticipated market recovery."
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 operations in Canada, China, Indonesia, Mexico, Netherlands, Saudi Arabia, Singapore, South Africa, United Arab Emirates and the United States of America.
