Hunting Regulatory News (HTG)

Hunting PLC

("the Company or Group")

Change in presentational currency

Hunting PLC (LSE:HTG) the international energy services group announces that it is changing the currency in which it presents its financial statements from Sterling to US Dollars.A significant portion of the Group's revenues, cash flows and net assets are now denominated in US Dollars and the Board has decided that a US Dollar presentation will give a more meaningful view of the Group's financial performance and position.

In the unaudited appendix attached to this announcement the Company has presented condensed consolidated US Dollar financial information. These will form the basis of the comparative US Dollar financial information to be included in the full year results for the year ending 31 December 2013 and the half year results for the six month period ending 30 June 2014.

The condensed financial information has been restated from Sterling into US Dollars using the procedures as outlined below and in accordance with the requirements set out in IAS 21: "The Effects of Changes in Foreign Exchange Rates" with respect to translation to the presentational currency:

· assets and liabilities denominated in non-US Dollar currencies were translated into US Dollars at the closing rate prevailing at the balance sheet dates;

· income and expenses denominated in non-US Dollar currencies were translated into US Dollars at the average exchange rate of the reporting period; and

· all resulting exchange differences have been recognised in other comprehensive income, within the foreign currency translation reserve.

As a result of this change, future dividends will be declared in US Dollars but will continue to be paid in Sterling. The Sterling value of the dividend payable per share will be fixed and announced approximately two weeks prior to the payment date based on the average spot exchange rate over the three business days preceding the announcement date.

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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, Hong Kong, Indonesia, Mexico, Netherlands, Singapore, Thailand, United Arab Emirates and the United States of America.

Presentation of Historical Financial Information in US Dollars

Introduction

Following due consideration, the Board of Hunting PLC have decided to report in US Dollars with effect from the publication of the Annual Report for the year ending 31 December 2013. This document restates historical financial information for the years ended 31 December 2012, 2011 and 2010 and for the half year ended 30 June 2013.

Peter Rose

Finance Director

Contents

1. Basis of Accounting

2. Reason for Change in Presentational Currency

3. Dividends

4. For the years ended 31 December 2012, 2011 and 2010

Consolidated Income Statement

Consolidated Balance Sheet

Notes

5. For the six months ended 30 June 2013

Consolidated Income Statement

Consolidated Balance Sheet

Notes

6. Financial Record

1. Basis of Accounting

This report has been prepared to illustrate the effect on the financial statements of changing the presentational currency of the Hunting Group from Sterling to US Dollars. The financial information contained in this report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The financial information is unaudited, and was prepared using accounting policies consistent with those used to prepare the 2012 Annual Report, except as described below.

IAS 19 (revised) Employee Benefits

IAS 19 (revised) Employee Benefits has been adopted from 1 January 2013. The Group has applied the standard retrospectively in accordance with the transition provisions of the standard. Under IAS 19 (revised), scheme expenses have been recognised as incurred rather than through a reserve, which was part of the defined benefit obligation. The combination of the expected return on assets and interest cost on the defined benefit obligation is replaced by the net interest on the defined benefit asset. This comprises interest income on the plan assets, calculated using the IAS 19 (revised) discount rate rather than the expected return on the plan assets, minus the interest cost on the defined benefit obligation.

The impact on the Balance Sheet for the year ended 31 December 2012 was to increase the retirement benefit asset by US$13.0m to US$22.8m, reduce deferred tax assets by US$3.0m to US$8.7m, reduce other components of equity by US$0.8m and increase retained earnings by US$10.8m. The impact on the Income Statement was to reduce profit from continuing operations by US$1.7m, increase finance income by US$1.1m and reduce taxation expense by US$0.1m.

The impact on the Balance Sheet for the year ended 31 December 2011 was to increase the retirement benefit asset by US$12.4m to US$19.9m, increase deferred tax liabilities by US$3.1m to US$58.0m, reduce other components of equity by US$1.3m and increase retained earnings by US$10.6m. The impact on the Income Statement was to reduce profit from continuing operations by US$1.4m, increase finance income by US$1.1m and reduce taxation expense by US$0.1m.

The impact on the Balance Sheet for the year ended 31 December 2010 was to increase the retirement benefit asset by US$12.6m to US$21.2m, increase deferred tax liabilities by US$3.4m to US$43.6m, reduce other components of equity by US$1.1m and increase retained earnings by US$10.3m. The impact on the Income Statement was to reduce profit from continuing operations by US$1.4m, increase finance income by US$0.9m and reduce taxation expense by US$0.1m.

The impact on the Balance Sheet for the year ended 31 December 2009 was to increase the retirement benefit asset by US$12.9m to US$25.8m, increase deferred tax liabilities by US$3.6m to US$33.3m, reduce other components of equity by US$0.9m and increase retained earnings by US$10.2m. The impact on the Income Statement was to reduce profit from continuing operations by US$1.9m, increase finance income by US$1.4m and reduce taxation expense by US$0.1m.

2. Reason for Change in Presentational Currency

Following the disposal of Gibson Energy at the end of 2008 and the acquisition programme undertaken in recent years that focused on US domiciled businesses, the Hunting Group's US operations have expanded and become the most significant operations of the Group. The dominant functional currency of the operating subsidiaries is US Dollar. This is not only driven by US domiciled businesses but also by businesses outside the US, which have a US Dollar functional currency. The Group's revenues, cash flows and economic returns are now principally denominated in US Dollars. Hunting PLC has changed the currency in which it presents its consolidated and parent Company Financial Statements from Sterling to US Dollars, as this will give a more meaningful view of the Group's financial performance and position.

A change in presentational currency is a change in accounting policy, which is accounted for retrospectively. Financial information reported in Sterling in the Group's 2012 Annual Report and 2013 Half Year Report has been restated into US Dollars using the procedures outlined below:

a) assets and liabilities denominated in non-US Dollar currencies were translated into US Dollars at closing rates of exchange. Non-US Dollar trading results were translated into US Dollars at average rates of exchange. Differences resulting from the retranslation of the opening net assets and the results for the year have been taken to the translation reserve;

b) the cumulative translation reserve was set to nil at 1 January 2004 (i.e. the transition date to IFRS). All subsequent movements comprising differences on the retranslation of the opening net assets of non-US Dollar subsidiaries have been charged to the translation reserve; and

c) Share capital, share premium and capital redemption reserves were translated at the historic rates prevailing at the dates of transactions.

d) The average exchange rates used to translate the Group's results into US Dollars and the closing rates for each reporting period included in this report are as follows:

3. Dividends

As a result of these changes, future dividends will be declared in US Dollars but will continue to be paid in Sterling. The Sterling value of the dividend payable per share will be fixed and announced approximately two weeks prior to the payment date based on the average spot exchange rate over the three business days preceding the announcement date. 

4. For the years ended 31 December 2012, 2011 and 2010

Condensed Consolidated Income Statement

(Unaudited)

Condensed Consolidated Income Statement

(Unaudited)

Condensed Consolidated Balance Sheet

(Unaudited)

Notes

1. Segmental Reporting

The Group's segments are strategic business units that offer different products and services to international oil and gas companies and the shipping sector.

Results from operations

Geographical Information: External Revenue

2. Amortisation and Exceptional Items

3. EBITDA

"EBITDA" is a non-GAAP measure and underlying EBITDA is defined as pre-exceptional profit from continuing operations before interest, tax, depreciation, amortisation and impairment to property, plant and equipment. Underlying EBITDA is used by the Board as a measure of the Group's performance.

4. Earnings per Share

Basic earnings per share is calculated by dividing the earnings attributable to Ordinary shareholders by the weighted average number of Ordinary shares outstanding during the period.

For diluted earnings per share, the weighted average number of outstanding Ordinary shares is adjusted to assume conversion of all dilutive potential Ordinary shares. The dilution in respect of share options applies where the exercise price is less than the average market price of the Company's Ordinary shares during the period and the possible issue of shares under the Group's long-term incentive plans.

Reconciliations of the earnings and weighted average number of Ordinary shares used in the calculations are set out below:

5. For the six months ended 30 June 2013

Condensed Consolidated Income Statement

(Unaudited)

Condensed Consolidated Balance Sheet

(Unaudited)

Notes

1. Segmental Reporting

The Group's segments are strategic business units that offer different products and services to international oil and gas companies and the shipping sector.

Results from operations

Geographical Information: External Revenue

2. Amortisation and Exceptional Items