Last checked at 24 Oct 2017 07:00
For Immediate Release | 24 October 2017 |
Hunting PLC
("Hunting" or "the Company" or "the Group")
Q3 2017 Trading Update
Hunting PLC (LSE:HTG), the international energy services group, today provides a trading update covering the period from 1 July to 23 October 2017.
During the period, as previously announced, Jim Johnson was appointed to the Board as Chief Executive with effect from 1 September 2017.
Group revenues during the period have continued to strengthen, primarily driven by US onshore activity levels. Quarterly revenues have shown sequential growth through 2017 and management expectations are now that revenues for the full year are likely to be around the $700 million mark.
As reported in the Group's 2017 Half Year Results, Hunting has returned to positive EBITDA in the year to date. For the nine months to 30 September 2017, EBITDA was approximately $33 million.
Of note, the Group's businesses focussed on US onshore drilling, which include Hunting Perforating Systems and Hunting Specialty continue to report strong results. Hunting's Premium Connections, Trenchless and European OCTG businesses have also supported the Group's positive performance during the year. The Electronics business is seeing an improved trading environment, partly driven by activity levels in the major US shale basins.
The businesses which focus on offshore and international drilling markets remain subdued, however tight cost management has contributed to a narrowing of losses.
The recent hurricane activity within the Gulf of Mexico region has had little impact on business operations - unfortunately a number of our employees suffered personally, with water damage to their homes.
Cash generation continues to be closely monitored, with working capital controls remaining across the Group. Net debt has increased to approximately $15 million, principally as a result of the increase in revenues and the resultant working capital build up. Group-wide capital expenditures continue to be tightly controlled with spend in the year to date being approximately $7 million. By year end the Group is expected to have a positive net cash position.
In summary, the improved trading seen during the year, particularly in the second half, should see the Group deliver a modest pre-tax profit for the full year - this before charges for intangible asset amortisation and any exceptional items. There are currently no exceptional items recorded in the year to date financials.
For further information please contact:
Hunting PLC Jim Johnson, Chief Executive Peter Rose, Finance Director Tarryn Riley, Investor Relations
| Tel: +44 (0) 20 7321 0123 |
Buchanan Richard Darby Chris Judd Madeleine Seacombe | 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 operations in Canada, China, Indonesia, Kenya, Mexico, Netherlands, Norway, Saudi Arabia, Singapore, South Africa, United Arab Emirates and the United States of America.
Hunting PLC's Legal Entity Identifier is 2138008S5FL78ITZRN66.