Last checked at 15 Apr 2015 07:00
For Immediate Release | 15 April 2015 |
Hunting PLC
("Hunting" or "the Company" or "the Group")
AGM
and
Q1 2015 Trading Statement
Hunting PLC (LSE:HTG), the international energy services group, which will today be holding its Annual General Meeting commencing at 10.30a.m., issues a 2015 Q1 trading update.
During Q1 2015 market conditions across the oil and gas sector continued to be volatile, with global rig counts continuing to decrease, particularly in North America where data indicates a 46% decline since the start of the year. WTI oil prices averaged $49 per barrel during the first quarter of 2015, and capital expenditures across the industry have continued to reduce or be placed on review. This market environment has resulted in operating profits across Hunting's business being approximately 60% lower during Q1 2015 compared to Q1 2014.
Only the Subsea, Electronics and Dearborn divisions performed above their Q1 2014 levels. However, as expected, Canada and US Drilling Tools experienced losses during the period.
While US oil inventory growth and rig count decline has slowed, further cost reductions in the Group have occurred with employee levels down approximately 20% since the beginning of the year.
The Group's capital investment program remains on schedule for completion during the year, with new facilities construction continuing at AmeriPort, Texas; Fryeburg, Maine; and Cape Town, South Africa.
The Company continues to report a strong balance sheet, with no significant change to the financial position of the Group since the publication of the results for the year ended 31 December 2014.The Group's net debt position as at 3 April 2015 was approximately $164 million.
While the current outlook for trading in the remainder of 2015 and into 2016 continues to be unclear, the Board remains of the opinion that capital investment and activity levels in the industry will recover, as and when the supply/demand balance across the industry is resolved. The Group's strategy of supplying a broad range of high value products to all major global regions remains unchanged as investment in South Africa, the Middle East and Singapore position the Group to capitalise on the market recovery as and when it occurs.
For further information please contact:
Hunting PLC Dennis Proctor, Chief Executive Peter Rose, Finance Director
| Tel: +44 (0) 20 7321 0123 |
Buchanan Richard Darby Gabriella Clinkard | Tel: +44 (0) 20 7466 5000 |
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 principal operations in Canada, China, Indonesia, Mexico, Netherlands, Singapore, South Africa, Thailand, United Arab Emirates and the United States of America.