For Immediate Release |
1 March 2018 |
Hunting PLC
("Hunting" or "the Company" or "the Group")
Results for the year ended 31 December 2017
Hunting PLC (LSE:HTG), the international energy services group, today announces its results for the year ended 31 December 2017.
Financial Summary - from continuing operations1
· Revenue $722.9m (2016 - $455.8m) |
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· Underlying EBITDA $55.4m (2016 - $48.9m loss) |
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· Underlying profit from operations of $13.7m (2016 - $92.2m loss) |
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· Reported loss from operations of $25.4m (2016 - $140.7m loss) |
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· Underlying diluted earnings per share 7.6 cents (2016 - 45.3 cents loss per share) |
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· Reported diluted loss per share 16.4 cents (2016 - 76.8 cents loss per share) |
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· Net cash of $30.4m (31 December 2016 - $1.9m net debt) |
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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 as adopted by the EU.
Operational and Corporate Highlights
Strong operational and financial performance by Hunting Titan recorded in the year.
· Units of production exceeding 2014 levels.
· Strong sales of H-1 Perforating System.
· Utilisation of production capacity in US, Canada, China and Mexico to meet demand.
· Recommissioning of Oklahoma City, US, manufacturing facility in Q1 2017.
· New distribution centre at Pleasanton, Texas, opened to address new activity in the Eagle Ford shale basin.
· Filing of 13 new patents during the year, with one registered.
Closure of Cape Town, South Africa, manufacturing facility commenced.
· $10.0m charge recorded, reflecting an impairment to property, plant and equipment and other closure costs.
· Sales presence in-country to be retained to support new business opportunities.
Restructuring and cost containment initiatives continued throughout the year.
· Closure of five operating facilities in the Netherlands, Singapore, South Africa, UK and US.
· Closure of five distribution centres.
Lifting of suspension period bank covenants with removal of financial restrictions completed in January 2018.
· Original covenants based on EBITDA, net interest and net debt reinstated.
Capital investment controls remain in place.
· Capital investment in the year $11.4m (2016 - $17.2m).
Senior Leadership changes completed in the year.
· Promotion of Jim Johnson to Chief Executive in September.
· Appointment of Jay Glick as Chairman, also in September.
Commenting on the results Jim Johnson, Chief Executive, said:
"The Group's results for 2017 have been supported by an exceptional performance by Hunting Titan, leading to Hunting reporting a return to underlying profit for the year as a whole. Onshore drilling and completion activity in the US shale basins has led the strong recovery for those businesses within Hunting focused on this market. Elsewhere across the Group, cost cutting initiatives and general market stability have helped narrow losses.
"We are pleased to have completed the process of exiting our suspension period bank covenants. While the Company is not proposing a dividend in respect of the 2017 financial year, shareholder distributions will be considered, subject to the Group's current performance being sustained."
Group Results Narrative
For access to narrative on the Group's results (incorporating the Chairman's and Chief Executive's Statements, Market Review, Group Review, Outlook and Segmental Review) for the year ended 31 December 2017 please click on the following link.
http://www.rns-pdf.londonstockexchange.com/rns/2994G_-2018-2-28.pdf
Financial Statements and Notes to the Accounts
For access to the Financial Statements and Notes to the Accounts for the year ended 31 December 2017 please click on the following link.
http://www.rns-pdf.londonstockexchange.com/rns/2994G_1-2018-2-28.pdf
Listing Rules / Disclosure Guidance and Transparency Rules Information
For access to Hunting's Business Model and Strategy, Risk Management (including Principal Risks) and Key Performance Indicators information and the Statement of the Directors' Responsibilities for the year ended 31 December 2017 please click on the following link.
http://www.rns-pdf.londonstockexchange.com/rns/2994G_2-2018-2-28.pdf
Page number references refer to the full Annual Report when available.
The linked documents provide access to all major financial and operational disclosures contained in the Group's 2017 Annual Report and Accounts. The complete 2017 Annual Report and Accounts will be published on 13 March 2018 and can then be accessed at www.huntingplc.com.
The financial information set out in the above links does not constitute the Company's statutory accounts for the years ended 31 December 2017 or 31 December 2016, but is extracted from those accounts. Statutory accounts for 2016 have been delivered to the Registrar of Companies and those for 2017 will be delivered in due course. The auditors have reported on those accounts; their reports were unqualified, did not draw attention to any matter by way of emphasis without qualifying their report and did not contain statements under S498(2) or (3) of the Companies Act 2006. Whilst the financial information included in this preliminary announcement has been computed in accordance with International Financial Reporting Standards, this announcement does not itself contain sufficient information to comply with IFRS.
Analyst Briefing and Webcast
Hunting PLC will host an analyst briefing on Thursday 1 March 2018 at 10.30a.m. at the offices of Buchanan, 107 Cheapside, London, EC2V 6DN.
An audio webcast will be available on:
http://vm.buchanan.uk.com/2018/hunting010318/registration.htm
For further information please contact:
Hunting PLC Jim Johnson, Chief Executive Peter Rose, Finance Director Tarryn Riley, Investor Relations |
Tel: +44 (0) 20 7321 0123 |
Buchanan Ben Romney Chris Judd |
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, Kenya, Mexico, Netherlands, Norway, Saudi Arabia, Singapore, United Arab Emirates and the United States of America.
Hunting PLC's Legal Entity Identifier is 2138008S5FL78ITZRN66
This announcement contains inside information.
