Hunting PLC Closure of facilities and sale of E&P assets (2676K)
24 August 2023 - 4:05PM
UK Regulatory
TIDMHTG
RNS Number : 2676K
Hunting PLC
24 August 2023
For Immediate Release 24 August 2023
Hunting PLC
("Hunting" or "the Company" or "the Group")
Closure of facilities and sale of E&P assets
Hunting PLC (LSE: HTG), the global engineering group, today
announces that as part of a wider programme to drive higher
operational efficiencies and reduce future cost outflows, it has
commenced a further restructuring of its operating footprint, in
addition to disposing of its legacy non-core exploration and
production assets.
Within the EMEA operating segment, the manufacturing and
assembly operations of the Group's main well testing site are to be
transferred from the Netherlands to Dubai, which will lead to the
closure of a facility at Velsen-Noord, with activities in the
Netherlands to be merged into a single location. Sales, engineering
and service support functions will be maintained in the Netherlands
to support European clients. Hunting's Dubai operations are to be
relocated to a larger, higher efficiency facility in the UAE to
accommodate the manufacturing operations of the well testing
business, which also positions Hunting to capitalise on the strong
market outlook for the Middle East in the long term. Hunting will
retain a single facility in Velsen-Noord to support oil and gas and
energy transition clients across Europe.
Hunting Titan has commenced the closure of its Oklahoma City
operating site and will transfer the manufacture of perforating
systems to the Group's Pampa, US, and Monterrey, Mexico,
facilities, which have both benefited from recent investment in new
production capacity. A distribution centre will be retained in the
area to continue to service clients.
Since the start of 2023, Hunting has also divested the majority
of its legacy non-core exploration and production assets held by
its wholly-owned subsidiary Tenkay Resources, Inc. The disposals
have been completed on an asset-by-asset basis, with Hunting now
retaining a working interest in a single offshore field. As part of
the disposal process, Hunting has negotiated the transfer of the
majority of the non-producing assets and respective future plug and
abandonment liabilities, which have reduced Hunting's possible
exposure to future decommissioning costs.
Jim Johnson, Chief Executive, commented:
"Hunting is continuing to drive stronger internal operational
efficiencies throughout its global footprint. Management is making
good progress in delivering key initiatives in support of the
Hunting 2030 strategy, which includes locating manufacturing
facilities in areas of high growth and merging operations to
enhance returns and lower the cost base."
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
George Pope
Notes to Editors:
About Hunting PLC
Hunting is a global engineering group that provides
precision-manufactured equipment and premium services, which add
value for its customers. 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, North America, Subsea Technologies, EMEA and Asia
Pacific.
Hunting PLC's Legal Entity Identifier is
2138008S5FL78ITZRN66.
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END
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