TIDMHTG
RNS Number : 9150I
Hunting PLC
17 December 2020
For Immediate Release 17 December 2020
Hunting PLC
("Hunting" or "the Company" or "the Group")
2020 Year End Trading Update
Hunting PLC (LSE : HTG), the international energy services
group, today issues a year-end trading update. The Group will be
reporting its 2020 Full Year Results on Thursday 4 March 2021.
Jim Johnson, Chief Executive of Hunting, commented:
"As the Group approaches the year-end, market indicators
including the WTI oil price, the onshore rig count and the number
of active frac crews in the US, have all shown modest increases
throughout the quarter which will support activity levels going
into the New Year. With this market backdrop, coupled with a
significantly lower cost base, where c.$81m in annualised savings
have been achieved in the year to date, management anticipates an
improving performance for the year ahead.
"The Group's actions to restructure our global businesses during
2020 will also lead to further efficiencies being recognised as
activity levels ramp up. With the closure of our Canada
manufacturing operation and partial divestment of our Drilling
Tools business, coupled with further consolidation in Singapore and
USA, our business footprint is leaner and better positioned for the
forecast return to growth. Our year end headcount will be below
2,000 employees, or a reduction of 34% since the start of 2020.
"Hunting continues to develop and launch new products and
technology to clients. In the year, 39 new patents were
successfully issued globally, supporting the Group's strong
intellectual property portfolio. As highlighted previously, efforts
to develop non-oil and gas related sales continue throughout the
Group.
"Our efforts to reduce working capital in the year have been
successful which has led to a cash and bank position of $94m as at
30 November 2020. Inventory levels continue to decline, and will
likely result in a closing position at the year end of below
$300m."
Trading Update
As anticipated, the performance of the Group during the final
quarter of the year has reflected slightly lower revenue compared
to the previous two quarters, as an improving US onshore market is
offset by lower international activity, primarily in our North Sea
market, while other offshore projects have been delayed due to
COVID-19 related issues. In the year to 30 November 2020, Group
EBITDA has been c.$26m, with Q4 2020 likely to report a small
EBITDA loss, given the caution exhibited by clients in respect to
capital spending due to market uncertainties and low commodity
prices, coupled with the usual seasonal slowdown.
The Group continues to report a strong cash and bank of c.$94m
as at 30 November 2020, as working capital improvements continue to
generate cash. Given this positive cash position the Board has
agreed a programme to purchase up to 4.0m Ordinary shares for
transferring to our employee share trust. These shares will be used
to satisfy future vestings under the Hunting Performance Share
Plan.
Inventory levels at 30 November 2020 were c.$304m, reflecting a
continued focus to reduce stock. Capital investment for the full
year is projected to be c.$17m.
Hunting Titan's trading results have improved since the half
year point, with the business reporting increasing revenue and a
broadly break-even result in November, supported by an improving
product mix and lower cost base. New order intake in November for
Hunting Titan was the highest since the start of the pandemic,
demonstrating a slowly strengthening order book.
Hunting's US businesses reported relatively stable revenue in
October and November as the segment continues to record modest
activity levels. As announced on 15 December 2020 the segment has
divested its Drilling Tools business and assets to Rival Downhole
Tools in exchange for a 23.5% equity position in the enlarged Rival
business, which allows the Group to retain a presence in the
onshore drilling tools rental market, but with a reduced capital
requirement.
The Group's EMEA segment reports a continuing decline in
activity within the North Sea, leading to losses in the period. The
business has completed a headcount reduction during the quarter to
reduce its cost base, however, all current market indicators
suggest that clients in the region will be recommencing drilling
programmes in 2021 which will support a recovery in this
segment.
In Asia Pacific, the segment has reported lower revenues in
November 2020, compared to the prior month, as international
markets continued to slow. However, the segment has remained
profitable in the quarter.
For further information please contact:
Hunting PLC Tel: +44 (0) 20 7321 0123
Jim Johnson, Chief Executive
Bruce Ferguson, Finance Director
Tarryn Riley, Investor Relations
Buchanan Tel: +44 (0) 20 7466 5000
Ben Romney
Chris Judd
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, Norway, Saudi Arabia, Singapore, United Arab Emirates
and the United States of America.
The Group reports in US dollars across five segments: Hunting
Titan, US, Canada, Europe, Middle East and Africa ("EMEA") and Asia
Pacific. From 1 January 2021, the Group's Canada business will be
incorporated into the US operating segment.
Hunting PLC's Legal Entity Identifier is
2138008S5FL78ITZRN66.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTEAXAKFFNEFFA
(END) Dow Jones Newswires
December 17, 2020 02:00 ET (07:00 GMT)
Grafico Azioni Hunting (LSE:HTG)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Hunting (LSE:HTG)
Storico
Da Apr 2023 a Apr 2024
