Hunting Regulatory News (HTG)

Hunting PLC

("Hunting" or "the Company" or "the Group")

H1 2016 Trading Statement

and

Bank Facility Update

Hunting PLC (LSE:HTG), the international energy services group, today provides a H1 2016 Trading Statement and an update on discussions with the Group's lenders regarding the bank covenants attached to its revolving credit facility (the "RCF").

Trading Statement

As highlighted in the announcement dated 12 May 2016, Hunting's trading performance during the first half of the year has remained weak given the current market environment. Guidance given on full year revenues, being 30% to 40% below that of 2015, remains dependent on an improving market in the latter part of the year.

Cost cutting initiatives have continued to be implemented across all businesses to curtail losses and capital expenditure has been reduced to essential spend only in order to conserve cash. Capital expenditure in 2016 is projected to be $16 million for the full year. As at 30 June 2016, the Group's workforce numbered approximately 2,200, which reflects a 45% reduction since 1 January 2015, leading to annualised cost savings of approximately $93 million.

Overall the Group's Balance Sheet remains strong and Net Debt at the end of June 2016 has reduced to approximately $90 million.

Management notes signs of stability within its core markets over the past two months, which includes an improving US rig count from the record lows reported, supported by the price of WTI crude oil which is now approximately $46 per barrel, giving operators a degree of confidence.

A further update to the Group's 2016 full year outturn and market outlook will be provided within Hunting's Half Year Results, to be announced on Monday 5 September 2016.

Bank Covenant and Facility Update

Discussion with the Group's banks on revised covenants and terms for its RCF has now concluded. The key covenants and terms to apply throughout the amendment period, which runs up to and including the 30 June 2018 covenant test date, are:

· Facility size reduces from $350 million to $200 million to reflect the Group's reduced requirements.

· EBITDA and Finance Charge covenants suspended during the amendment period.

· First priority security charge taken by the bank group over trade receivables and inventories held by Group subsidiaries in the USA, Canada and UK together with security charges over the Group's principal properties in the USA and UK.

· Drawings under the RCF to be covered by the secured assets.

· Annual cash-flow targets tested semi annually.

· Capital expenditure limited to a maximum of $30 million per annum in 2017 and 2018.

· Cessation of dividend payments until the end of the amendment period.

· An amendment fee of $400,000 is payable and the interest margin over LIBOR on funds drawn increases to 2.75%.

If trading conditions improve before the end of the amendment period then Hunting can elect to return to the original covenants of the RCF.

Commenting on the developments in the period, Dennis Proctor, Hunting's Chief Executive said:

"Hunting is seeing a level of stability returning to its core markets, which coupled with increased customer enquiries indicates potential for a more positive short to medium term outlook for the Group.

"With the conclusion of our bank discussions, Hunting remains adequately funded with the continued support of our lenders."

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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, Indonesia, Mexico, Netherlands, Saudi Arabia, Singapore, South Africa, Thailand, United Arab Emirates and the United States of America.