Hunting PLC Interim Results for the six months to 30 June 2016 (8684I)
05 September 2016 - 4:00PM
UK Regulatory
TIDMHTG
RNS Number : 8684I
Hunting PLC
05 September 2016
For Immediate Release 5 September 2016
Hunting PLC
("Hunting" or "the Company" or "the Group")
Interim Results for the six months to 30 June 2016
Hunting PLC (LSE:HTG), the international energy services group,
today announces its interim results for the six months to 30 June
2016.
Financial Summary - from continuing operations
* Revenue $228.4m (H1 2015 - $463.6m)
* Underlying EBITDA $29.5m loss (H1 2015 - $44.1m
profit)
* Underlying loss from operations of $50.8m (H1 2015 -
$20.4m profit)
* Reported loss from operations of $77.0m (H1 2015 -
$63.1m loss)
* Underlying diluted loss per share 27.8 cents (H1 2015
- 8.4 cents earnings per share)
* Reported diluted loss per share 40.3 cents (H1 2015 -
35.5 cents loss per share)
* Net debt of $87.5m (31 December 2015 - $110.5m)
Operational Summary
-- Focus on cash generation to reduce net debt, with initiatives including:
o $42.3m reduction in inventories since 31 December 2015;
o $29.5m tax reclaimed from carry back of losses; and
o capital investment limited to contracted or essential spend.
-- Cost cutting measures continued during the reporting period and include:
o 46% reduction in headcount to 2,145 since 31 December 2014 position of 4,003; and
o 3 manufacturing facilities and 7 distribution centres closed.
-- Discussions to revise terms of bank Revolving Credit Facility concluded:
o profits based covenants suspended until the 31 December 2018 test date;
o new asset based covenants of Tangible Net Worth and Asset Cover;
o facility size reduced from $350m to $200m;
o facility secured on trade receivables, inventory and property in the USA, UK and Canada; and
o no dividend payments until the end of the amendment period.
Commenting on the results Dennis Proctor, Chief Executive,
said:
"While industry sentiment reached a low point during the early
months of the reporting period, the improved US rig count data seen
through Q2 indicates that the global energy markets are adjusting
to the lower oil price environment. The combination of lower
operating costs and production efficiency gains has led to
increased enquiry levels as operators focus on those projects which
provide the strongest returns. However, given the inherent
uncertainty within the industry at this time, the current market
estimates for the 2016 full year will remain dependent on an
improved trading environment in the latter part of the year.
"While the Group's performance has suffered, we are pleased to
have concluded the renegotiation of our bank covenants to enable
Hunting to continue with strong, liquid resources to respond to an
improving market environment. At the period end our net debt
position has been reduced to $87.5m following ongoing cost cutting
and the receipt of tax refunds, which indicates the strength of our
balance sheet and the resilience of our business model."
Business Review
For access to the Business Review narrative for the six months
to 30 June 2016 please click on the following link.
http://www.rns-pdf.londonstockexchange.com/rns/8684I_-2016-9-2.pdf
Financial Statements and Notes to the Accounts
For access to the Financial Statements and Notes to the Accounts
for the six months to 30 June 2016 please click on the following
link.
http://www.rns-pdf.londonstockexchange.com/rns/8684I_1-2016-9-2.pdf
The attached documents provide complete access to the Group's
2016 Half Year Report and Accounts. The Report can also be accessed
at www.huntingplc.com.
Analyst Briefing and Webcast
Hunting PLC will host an analyst briefing on Monday 5 September
2016 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/2016/hunting050916/registration.htm
This announcement has been determined to contain inside
information.
For further information please contact:
Hunting PLC Tel: +44 (0) 20 7321 0123
Dennis Proctor, Chief Executive
Peter Rose, Finance Director
Tarryn Riley, Investor Relations
Buchanan Tel: +44 (0) 20 7466 5000
Richard Darby
Madeleine Seacombe
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UUAVRNRAKRAR
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