TIDMHTG
RNS Number : 5911R
Hunting PLC
02 March 2023
For Immediate Release 2 March 2023
Hunting PLC
("Hunting" or the "Company" or the "Group")
Launch of Hunting 2030 Strategy and Capital Markets Day
Hunting PLC (LSE:HTG), the international energy services group
with proven capabilities for energy and beyond, today announces the
launch of the Hunting 2030 Strategy, a broad-based strategy to grow
and evolve the Company through the remainder of the decade and
beyond.
The highlights of the Hunting 2030 Strategy are detailed below
and will be expanded upon at a Capital Markets Day to be hosted in
September 2023.
Strategic Highlights
-- Continue to capitalise on Hunting's proven capabilities in energy services;
-- Stimulate further growth, rebuild baseload earnings and stabilise profitability:
o Supported by the strong outlook for global oil and gas sales
(North America, Europe, Middle East and Asia Pacific);
o Furthered through diversifying revenue across non-oil and gas
sub-sectors where the Group can leverage existing expertise;
o Delivered through both organic and inorganic growth opportunities;
-- Resulting in a long-term EBITDA margin target of 15%; and
-- Sustainable and growing dividend policy targeting an average
increase of c.10% per annum until the end of 2030.
Commenting on Hunting's 2030 Strategy, Chief Executive Jim
Johnson, said:
"The Board has set a targeted medium-term strategy that derives
revenue from a wider range of sectors including oil and gas, as
well as the wider energy industry and other sectors requiring
precision engineering and systems design, supported by the Group's
proprietary technology and sector leading expertise. This strategy
will stimulate new growth and rebuild a baseload of earnings to
establish greater resilience to the cyclicality of the oil and gas
industry, which will in turn lead to more stable earnings and
increased investment returns in the medium term.
"The evolution of the Group's strategy is underpinned by its
established position as a manufacturer of world-class precision
engineered products across multiple sectors and the belief that
Hunting can achieve strong organic growth within existing and
complementary sectors through an enhanced strategic focus on
compelling growth markets that lend themselves to Hunting's
existing expertise."
Strategic Initiatives
Continued focus on precision engineering to service the global
oil and gas market
-- Primary focus remains on the manufacturing of high-value,
energy services' products and technology for Hunting's core oil and
gas market; of which
-- Premium connections, OCTG, accessories manufacturing and well
intervention tools will underpin revenue and profitability over the
short and medium term, driven by a continued focus on domestic and
regional energy security and following years of material
underinvestment in oil and gas production;
-- Cash flows from core operations will fund new investments in
both the oil and gas sector as well as wider opportunities.
Growth of Subsea Technologies operating segment
-- Subsea Technologies growth to be achieved both organically and inorganically;
-- Since 2009, the Company has acquired a number of key businesses:
o National Coupling Company - a key supplier of hydraulic valves
and couplings to deep water projects;
o RTI Energy Services - a manufacturer of titanium and steel
stress joints, which are applied to FPSOs; and
o Enpro Subsea - a developer of modular deep water production and intervention equipment.
-- These businesses form Hunting's core Subsea Technologies offering;
-- The Group is also focusing on new opportunities across the
energy transition, plug and abandonment and integrated subsea
systems sectors.
Development of Energy Transition market position
-- Establishment of Energy Transition sales group previously announced in December 2022;
-- Strategic focus on cultivating a material revenue stream from
the emerging opportunities within the geothermal and carbon capture
and storage sectors;
-- Near and medium term growth opportunities in Asia Pacific and
North America, where a significant number of developments have been
sanctioned.
Continued development of non-oil and gas revenue
-- Continued diversification within Hunting's Advanced
Manufacturing business, leveraging its expertise in precision
engineering and specialist electronics;
-- Both the Dearborn and Electronics businesses have grown their
respective order books over the past 12 months (>$121m with
>$40m from non-oil and gas sectors in areas such as defence and
aerospace);
-- Anticipate further material growth from our existing
business, supplemented by targeted inorganic growth.
Notice of Capital Markets Day
Hunting will present the details of the Hunting 2030 Strategy at
a Capital Markets Day to be held in London in September 2023.
Further details of this event will be provided in due course.
For further information please contact:
Hunting PLC Tel: +44 (0) 20 7321 0123
Jim Johnson, Chief Executive
Bruce Ferguson, Finance Director
lon.ir@hunting-intl.com
Buchanan Tel: +44 (0) 20 7466 5000
Ben Romney
Jon Krinks
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 has its headquarters in London. As well as the United Kingdom,
the Company has principal operations in Canada, China, Indonesia,
Mexico, Netherlands, Singapore, United Arab Emirates and the United
States of America.
From 1 January 2023, Hunting reports across five operating
segments: Hunting Titan, North America, Subsea Technologies, Middle
East and Africa ("EMEA") and Asia Pacific.
Hunting PLC's Legal Entity Identifier is
2138008S5FL78ITZRN66.
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