(Alliance News) - Hunting PLC announced on Friday that it was restructuring its European oil country tubular goods businesses.
The London-based supplier to the oil and gas industry said the restructuring would serve to simplify its operating presence in the regions of Europe, the Middle East and Africa.
Hunting is currently a 60% shareholder in the Hunting Energy Services UK Ltd joint venture through its subsidiary Hunting Energy Services International Ltd. Marubeni-Itochu Steel Inc and Marubeni-Itochu Tubulars Europe PLC hold the remaining 40%.
Hunting has now purchased Marubeni-Itochu Steel and Marubeni-Itochu Tubulars's 40% interest in the joint venture and has become the sole shareholder in Hunting Energy Services UK Ltd.
A business purchase agreement also has been put in place, whereby Marubeni-Itochu has agreed to purchase European oil country tubular goods inventory held by the joint venture.
Hunting will receive a net cash inflow of USD27.7 million on completion of the restructuring, reflecting the purchase of Marubeni-Itochu's shareholding and the agreed consideration under the business purchase agreement.
For 2020, Hunting Energy Services UK Ltd reported revenue of USD35.3 million and a loss before tax of USD8.5 million. The gross assets held as at December 31, 2020 were USD60.7 million.
Shares in Hunting were up 3.5% at 165.60 pence on Friday in London.
By Heather Rydings; heatherrydings@alliancenews.com
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Hunting (HTG)