For Immediate Release |
24 August 2017 |
Hunting PLC
("Hunting" or "the Company" or "the Group")
Interim Results for the six months to 30 June 2017
Hunting PLC (LSE:HTG), the international energy services group, today announces its interim results for the six months to 30 June 2017.
Financial Summary - from continuing operations1
· Revenue $318.9m (H1 2016 - $228.4m), up 40% |
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· Underlying EBITDA $12.1m profit (H1 2016 - $29.5m loss) |
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· Underlying loss from operations $9.1m (H1 2016 - $50.8m loss) |
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· Reported loss from operations of $23.7m (H1 2016 - $77.0m loss) |
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· Underlying diluted loss per share 6.7 cents (H1 2016 - 27.8 cents loss per share) |
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· Reported diluted loss per share 15.6 cents (H1 2016 - 40.3 cents loss per share) |
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· Net debt of $5.7m (31 December 2016 - $1.9m) |
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1 - Underlying results are based on continuing operations before amortisation of acquired intangible assets and exceptional items. Reported results are based on the statutory results for continuing operations as reported under International Financial Reporting Standards.
Operational Summary
· Strong growth reported by Hunting Perforating Systems due to onshore shale drilling activity in the US:
o Sales of H-1 Perforating System accelerating, with volumes sold in H1 2017 exceeding total sold in 2016;
o Recommissioning of Oklahoma City facility and increasing manufacturing capabilities in Canada to meet demand;
o Hiring of personnel to enable additional shifts to be implemented.
· Headcount at 30 June 2017 - 2,359 (31 December 2016 - 2,107).
· Continued demand for Hunting's proprietary SEAL-LOCK™ and WEDGE-LOCK™ premium connections reported for onshore and offshore markets.
· Order books within Advanced Manufacturing Group improving.
· European OCTG operations reporting good activity levels, with new business secured for US and Middle East markets.
· Other international operations reporting a slowly improving outlook.
Appointment of new Chief Executive
· As announced on 16 August 2017, Jim Johnson, Hunting's Chief Operating Officer, has been appointed to succeed Dennis Proctor as the Group's Chief Executive. Mr Johnson will assume his responsibilities on 1 September 2017, with Mr Proctor retiring and stepping down from the Board on the same date.
Commenting on the results Dennis Proctor, Chief Executive, said:
"We are pleased to report a positive EBITDA, indicating profitability within certain businesses. Results from Hunting's Perforating Systems business have exceeded management's expectations by some margin, thanks to the buoyant US onshore drilling market and a portfolio of industry leading products, which enables cost efficiencies to be captured by operators.
"International drilling activity is now anticipating modest improvements during H2 2017 which provide cautious optimism about the Group's performance in the final months of the year. Management remain disciplined on all costs across the business to ensure that Hunting exits this market downturn, a leaner and more profitable Group, while retaining its experienced workforce.
"Despite trading momentum and order book levels within most businesses improving, the outlook for the full year remains dependent on the oil price."
Half Year Management Report
For access to the Half Year Management Report narrative for the six months to 30 June 2017 please click on the following link.
http://www.rns-pdf.londonstockexchange.com/rns/8229O_-2017-8-23.pdf
Financial Statements and Notes to the Accounts
For access to the Condensed Consolidated Interim Financial Statements and Notes for the six months to 30 June 2017 please click on the following link.
http://www.rns-pdf.londonstockexchange.com/rns/8229O_1-2017-8-23.pdf
The attached documents provide complete access to the Group's 2017 Half Year Report. The Report can also be accessed at www.huntingplc.com.
Analyst Briefing and Webcast
Hunting PLC will host an analyst briefing on Thursday 24 August 2017 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/2017/hunting240817/registration.htm
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 Chris Judd 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.
Hunting PLC's Legal Entity Identifier is 2138008S5FL78ITZRN66.
This announcement, with accompanying attachments, is deemed to contain inside information.
