Hunting PLC Trading Update (0481X)
17 Dicembre 2019 - 08:00AM
UK Regulatory
TIDMHTG
RNS Number : 0481X
Hunting PLC
17 December 2019
For Immediate Release 17 December 2019
Hunting PLC
("Hunting" or "the Company" or "the Group")
Trading Update
Hunting PLC (LSE:HTG), the international energy services group,
today provides a year-end Trading Update ahead of announcing its
2019 Full Year Results on Thursday 27 February 2020.
As anticipated, activity levels within the North American oil
and gas industry continue to slow, with the pace of decline
increasing particularly within the US onshore market. Capital
budget exhaustion within Hunting's client base together with
seasonal declines are impacting our Q4 2019 results and certain
clients have closed facilities serving the US onshore sector due to
the slowing market. These market dynamics continue to adversely
impact the results of Hunting's US onshore focused businesses
including the Hunting Titan, Specialty and Drilling Tools business
units. Elsewhere across the Group, offshore and international
market activity is showing modest improvement, which has supported
the performance of Hunting's businesses outside of the North
American region.
At this time, the Board anticipate a full year EBITDA result
remaining in the range of current market expectations, however,
this remains dependent on results for the month of December 2019.
The Group continues to trade profitably and generate cash and given
the strong capital discipline implemented throughout the year, the
Board also anticipates a year-end cash position, before lease
liabilities, in the region of $110 million. Lease liabilities are
expected to be around $45 million at the year-end to give a net
cash position of $65 million.
As anticipated, Hunting Titan's revenue and operating profits
during October and November were below the average monthly run-rate
of Q3 2019 due to the slowing US onshore market. New products and
technologies continue to be developed and commercialised, however,
the market remains highly competitive and continues to decline in
line with activity levels and rig counts.
US segment revenues remain stable as offshore and international
market demand slowly returns to growth. As highlighted previously,
our Advanced Manufacturing Group, and in particular the Hunting
Electronics business, is reporting good results including a higher
contribution of sales from non oil and gas markets. Further, the
Group's Subsea business continues to report improving results as
international offshore projects continue to accelerate, with
opportunities within the recently acquired RTI also emerging.
Within the Canada segment, while activity is lower, the
performance of the business is benefiting from the lower cost base,
following management actions in Q2 2019. In EMEA and Asia Pacific,
while both segments are trading ahead of management expectations
due to the improving international drilling market, some signs of
market softening have been observed, as international trade
tensions continue to dampen market sentiment.
Capital spend for the full year is expected to be circa.$40.0m,
with inventory likely to be at a similar level as at 31 December
2018.
Commentary on the Group's trading outlook for 2020 will be
provided within the 2019 Full Year Results when published in
February 2020. However, at this time early announcements from
Hunting's publicly quoted clients indicate that capital spend in
the year ahead will be lower than 2019, as the oil and gas industry
endeavours to improve returns and increase cash generation for
investors.
For further information please contact:
Hunting PLC Tel: +44 (0) 20 7321 0123
Jim Johnson, Chief Executive
Peter Rose, 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.
Hunting PLC's Legal Entity Identifier is
2138008S5FL78ITZRN66.
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END
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