Hunting PLC Year End Trading Statement (5865K)
17 December 2018 - 6:00PM
UK Regulatory
TIDMHTG
RNS Number : 5865K
Hunting PLC
17 December 2018
For Immediate Release 17 December 2018
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
2018 Full Year Results on Thursday 28 February 2019.
Group results to the end of November 2018 have remained in line
with management's expectations, underpinned by broad-based
stability within the Group's operations. As expected and previously
noted in the October 2018 Trading Update some market softness has
been observed within those businesses focussed on the US onshore as
public holidays and the exhaustion of clients' budgets have
marginally impacted daily sales run-rates.
Hunting Titan has continued to deliver record results in 2018
due to US onshore completion activity, coupled with increased
market acceptance of the Group's proprietary technologies, which
has led to a strong year-on-year increase in revenue and operating
profit. Q4 operating profits are likely to record a marginal
decline compared to the previous two quarters, for reasons noted
above, in addition to increased competition seen within certain
product lines. Further, clients are indicating caution on committed
spend for the early part of 2019 as the lower oil price and
pipeline bottlenecks in the Permian basin indicate a short term
slowing in completion activity. As reported by market commentators,
the pipeline bottlenecks in the Permian are forecast to improve by
mid-2019.
The Group's US segment has also reported an improved performance
during 2018. Hunting Electronics reported a further growth in sales
during the quarter on the back of downhole tool replacement
programmes for key clients, supported by continued production of
firing switches on behalf of Hunting Titan. The Group's Premium
Connections, Dearborn, Specialty Supply, Trenchless and Drilling
Tools businesses also report an improving financial performance as
the region's core markets maintain stability, despite the recent
oil price decline.
The Group's Canada, Europe, Middle East and Asia Pacific
segments, report a similar performance in Q4 compared to Q3, with
cost containment initiatives continuing to narrow losses.
Given the Group's performance in the year, supported by robust
cash generation and disciplined capital expenditure, Hunting
maintains a strong Balance Sheet. The Group's net cash position as
at 7 December 2018 was $44.6 million, which includes the cash
refund of $10.6 million from the Company's UK pension surplus.
During November 2018, the Company's employee share trust purchased
750,000 Hunting PLC ordinary shares, which absorbed $5.7 million of
cash. These shares will be used to partially satisfy future share
award vestings. Hunting Titan continues to progress the production
capacity expansion programmes at its Pampa and Milford facilities.
Both projects remain on track for completion in late Q1 2019. The
Group anticipates that capital expenditure for the full year 2018
will be c.$30 million.
In December 2018, Hunting concluded discussions with its bank
group to improve the terms of the Group's committed borrowing
facilities. Total committed facilities are now $160 million
(previously $200 million), with the facility now due to expire in
2022. Subject to agreement with the bank group, the facility can be
increased to $235 million and the term extended by one year to
2023.
Further commentary on the Group's trading expectations for 2019
will be provided within the 2018 Annual Report when published in
February 2019. However, given the current volatile market
environment, management anticipate these market conditions will
impact short term budgetary decision making by our customers with
possible deferrals of work. Management enter 2019 with a cautious
outlook, but believe that Hunting is in a robust position to manage
these challenging market conditions.
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 seven segments: Hunting
Titan, US, Canada, Europe, Asia Pacific, Middle East/Africa/Other
and Exploration and Production.
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.
END
TSTZMMMZVDLGRZM
(END) Dow Jones Newswires
December 17, 2018 02:00 ET (07:00 GMT)
Hunting (LSE:HTG)
Historical Stock Chart
From Apr 2024 to May 2024
Hunting (LSE:HTG)
Historical Stock Chart
From May 2023 to May 2024