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3 Nov 2015 07:00
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For Immediate Release | 3 November 2015 |
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Hunting PLC
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("Hunting" or "the Company" or "the Group")
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Trading Update
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Hunting PLC (LSE: HTG), the international energy services group today issues a Trading Statement covering the Group's performance since 27 August 2015.
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As indicated at the Company's Half Year Results in August 2015, trading during Q3 2015 remained subdued for most businesses across the Group as the global energy industry continued to cancel or defer capital expenditures. Decreases in the price of WTI crude oil during the quarter have led to further caution across the Group's customer base leading to month-on-month trading volatility within each of the Group's businesses. Overall, the Group's profit from continuing operations has declined by 85% in the year to date compared to the comparative period in 2014.
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While the Group has reported a quarter-on-quarter reduction in trading, the majority of business units continue to generate free cash flows principally through a reduction in working capital, staffing levels and margin protection. The Group is also delaying certain of its capital investment programmes, including the Singapore Campus project into 2016 and 2017.
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Management continues to cut costs across the Group's operations, with a year to date reduction of approximately 28% of the global workforce since December 2014, which will provide annualised cost savings of $50m per annum.
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Financial Position
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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 Half Year Results in August 2015. Capital investment is forecast to be approximately $80m in the current year. The Group's net debt position as at 31 October 2015 was approximately $165m, which includes payment of the $6m interim dividend to shareholders on 28 October 2015. A new 5 year, $350m revolving credit facility was agreed with the Group's core banks in October 2015, replacing the old facility which was due to expire in August 2016. The margin and covenant package for the new facility is broadly similar to the old facility.
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2015 Full Year Outturn
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Given these weak market conditions and on the assumption that current levels of profitability prevail for the remainder of the year, our 2015 full year results are likely to reflect a year on year profit from continuing operations decline in the region of 90%. Should trading conditions materially change, then further trading updates will be released prior to the announcement of our full year results on Thursday 3 March 2016.
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For further information please visit www.huntingplc.com or contact:
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Hunting PLC Dennis Proctor, Chief Executive Peter Rose, Finance Director Β | Tel: +44 (0) 20 7321 0123 Β |
Buchanan Richard Darby Gabriella Clinkard | Tel: +44 (0) 20 7466 5000 |
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Notes to Editors:
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About HuntingΒ PLC
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HuntingΒ PLCΒ is an international energy services provider to the world's leadingΒ upstreamΒ 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 inΒ HoustonΒ and is headquartered inΒ London. As well as theΒ United Kingdom, the Company has principal operations in Canada, China, Indonesia, Mexico, Netherlands, Singapore,Β South Africa, Thailand, United Arab EmiratesΒ and theΒ United States of America.
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