Hunting PLC H1 2017 Trading Statement (9854J)
04 July 2017 - 4:00PM
UK Regulatory
TIDMHTG
RNS Number : 9854J
Hunting PLC
04 July 2017
For Immediate Release 4 July 2017
Hunting PLC
("Hunting" or "the Company" or "the Group")
H1 2017 Trading Update
Hunting PLC (LSE:HTG), the international energy services group,
today issues a pre-close trading statement covering the first six
months of the year, ahead of its Half Year Results to be issued on
Thursday 24 August 2017.
Dennis Proctor, Chief Executive of Hunting, said:
"Hunting's performance in the first half of 2017 has benefited
from the increase in onshore drilling in the US, particularly in
the shale oil regions such as the Permian Basin in West Texas. This
growth in activity since the end of 2016 has meant Hunting's
Perforating Systems business has reported results ahead of
management's expectations. Of note has been the wider adoption of
the H-1 Perforating System, which has established a strong market
position given its performance, reliability and safety. To meet
this demand, the Perforating Systems business has increased the
number of shifts, recommissioned a previously mothballed facility
and added personnel.
Elsewhere, the US offshore and international drilling markets
remain weak due to the low oil price. Drilling budgets continue to
be reduced by global operators, which adversely impacts Hunting's
businesses focused on these markets.
While Hunting's Well Construction segment has experienced
difficult trading conditions in the period, sales into the onshore
US drilling market, which include the segment's Premium Connections
and Specialty Supply businesses, have improved during H1 2017. The
Well Completion segment, which incorporates Hunting's Perforating
Systems business, has reported a profit, driven by the activity
noted above, but being offset by the weaker US offshore and
international markets. As previously noted, Hunting's European OCTG
operations have reported good activity levels since the start of
the year, with sales primarily driven by orders for the US shale
and Middle East markets. Hunting's Well Intervention segment also
saw difficult market conditions as deepwater drilling activity
remained subdued due to the lower investment levels seen
particularly in the deepwater Gulf of Mexico.
As a consequence of this activity, the Group expects to report a
positive EBITDA in the period, but remain loss making at the profit
before tax level. Cash generation continues to be closely
monitored, with working capital controls still in place across the
Group's businesses. Net debt at 30 June 2017 has increased to
approximately $8.0 million since the year end, principally as a
result of order book increases and the associated inventory
purchases required. Capital investment continues to be tightly
controlled with spend in the period being approximately $5.0
million.
The outlook for the remainder of year is predicated on sustained
US onshore drilling activity driving the Group's performance,
accompanied by cautious optimism for stable offshore and
international markets during H2 2017."
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
Chris Judd
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 operations in Canada, China, Indonesia, Kenya, Mexico,
Netherlands, Norway, Saudi Arabia, Singapore, South Africa, United
Arab Emirates and the United States of America.
Hunting PLC's Legal Entity Identifier is
2138008S5FL78ITZRN66.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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