Hunting Share Discussion Threads

[apad] 22/2/2012 08:08

As posted on KENZ board:
FT on AMEC:
Samir Brikho has switched on the fog lights. On Tuesday, the chief executive of Amec, the UK oil services group, not only reported a 13 per cent jump in annual earnings per share; he also peered into the gloom to forecast that it would hit 100p by 2015, two-fifths higher than 2011's level. In addition, he announced a £400m share buy-back and a 15 per cent dividend increase – sharing the spoils of Amec's growing order book and a backlog of £3.7bn. That is rare optimism and Mr Brikho probably expected investors to be impressed. Instead, Amec's share price over the day barely moved. But that was not too surprising. Amec's shares already trade at about 14 times 2012 earnings, close to the FTSE 350 oil equipment services index's multiple. Although the company boosted EPS 13 per cent last year, it will need to maintain this clip to hit its 2015 target. The company believes it can do this organically. But it has also flagged that acquisitions are on the horizon. Debt-free Amec certainly has the capacity to buy some rivals. The £400m buy-back will soak up four-fifths of its current cash balance. But it is a strong cash generator. Assuming that it keeps its net debt below twice its earnings before interest, tax, and amortisation (£300m last year), and any purchase yields ebita of 23 per cent of its equity value – in line with Amec's – a £900m-odd acquisition is possible.

So rumours it may try to buy UK rival Petrofac are likely to be false. Petrofac's market capitalisation is £5.3bn. That means any attempt would require a chunky equity call from Amec's shareholders – something Tuesday's share buy-back appears to negate. Smaller rivals Hunting or Cape are possible targets, but could be more asset heavy than Amec would like. But with its shares trading at fair value, further upside looks dependent upon acquisitions.

apad reply:
If you want to go hunting for AMEC takeover targets, go looking amongst the specialist engineers that bring a significant technical advantage to AMEC, rather than its general competitors. AMEC has significant technical expertise in nuclear technology (e.g. safety codes) - it will be looking for adding technical value in preparation for the start of the Nuclear New Build program. The Hunting speculation in the FT article was spot on, in terms of technical fit, if it is for sale.
The interesting question is: "what's the short list?".
apad

[the shuffle man] 17/2/2012 10:15

I have been waiting for an opportunity to take a position and after the recent pull back have taken the plunge.

Results next month should provide the catalyst for the next move up

[rogerrail] 20/1/2012 12:36

v good results from Schlumberger should be reflectd in HTG's performance

[rogerrail] 13/1/2012 16:34

If I knew that I would make a mint! depends on a number of things including whether the trend in shale gas rigs continues on its increasing trend , how well HTG integrates it's recent takeovers, whether the demand for energy stays strong, whether the world goes into recession etc. not without risks but a good bet based on it's last IMS even in current economic conditions, we shall see if they are on course at the next prelims announcment in march.

[a3477681] 13/1/2012 15:23

Roger Thank you. Do you think they should make 1150? If they do it will have made my wait, since 20/12/05 @ 310, worth it !

[rogerrail] 10/1/2012 13:16

Recent broker recommnedation from Goldman Sachs, target 1150 in 6 months

[a3477681] 10/1/2012 08:48

Quiet on here considering the move its making. I have held this for ages expecting it had to pick-up. Anyone know of some broker recomendations?

[pyman] 21/10/2011 17:02

10-20. wow. Ta!

[rogerrail] 21/10/2011 13:53

probaly an "overweight" recommendation from Barclays with a target price of 1020 no less.

[pyman] 21/10/2011 09:37

good run. 30 p this morning! whats up?

[nellie1973] 07/3/2011 15:42

Upgraded to buy from Hold Fox Davis

[pip_uk] 07/12/2010 15:06

Looking strong today.
Something brewing????
We wait in anticipation.

[flyfisher] 01/11/2010 15:51

after the recent IMS , a big upgrade from evo .

2010 / 2011 Pre-tax (£) EPS(£p) DPS(£p)
Evolution Securi... 29-10-10 BUY 45.10 20.70 11.00 60.70 28.50 12.00

[shoee62] 29/10/2010 10:15

Hunting IMS looks strong.

Following our comments at the interims, trading through the period has remained
very strong with Hunting now positioned to exceed current full year market
expectations. Rig counts within the Company's various operating regions
continue to improve and the demand for high pressure, high temperature products
is robust. Due to the continued strength of horizontal and directional
drilling, the Company's latest acquisition, Innova-Extel, is performing better
than expected."

[gleach23] 21/10/2010 14:39

Based on the share price performance today Goldman you might be right!

[goldman] 21/9/2010 08:23

Someone is eyeing up Wellstream, could Hunting be interested. The Wellstream business could fit in nicely, would cost a good bit more than they have in the pot, but it could be worth it though.

[flyfisher] 30/8/2010 08:44

The market seems to like both the aquisition and results , with evolution confirming their buy stance , and finncap also making a buy comment .



A clean balance sheet with 238p p/share in cash , a possible uplift on maturity or sale of the gibson bond which was written down 50% at the height of the banking crash , no f/s pension deficit issues , in a great position to buy good assets at knockdown prices.

This seems to me to be a prudently managed company which was oversold on gulf of mexico concerns , perhaps the discount to it's peer group will not last too long.

As a holder i may have a bias.

[deadly] 26/8/2010 22:44

Not impressed by results; overpriced apart from perhaps the cash.

[galles] 26/8/2010 13:34

Hunting PLC (LSE:HTG) the international energy services group today announces
its results for the six months to 30 June 2010.

Financial Highlights - from continuing operations

+---------------------------------------------------------------------+
| � Revenue increased to GBP214.2m (2009: GBP209.0m) |
+---------------------------------------------------------------------+
| � Profit from operations before exceptional items of GBP22.0m |
| (2009: GBP22.0m), compares with GBP13.8m profit from operations |
| achieved in the second half of 2009 |
+---------------------------------------------------------------------+
| � Profit from operations of GBP14.8m (2009: GBP22.0m) |
+---------------------------------------------------------------------+
| � Basic earnings per share before exceptional items 11.2p |
| (2009: 11.7p) |
+---------------------------------------------------------------------+
| � Basic earnings per share 7.3p (2009: 11.7p) |
+---------------------------------------------------------------------+
| � Interim dividend declared of 3.7p (2009: 3.5p) |
+---------------------------------------------------------------------+
| � Net cash of GBP314.1m (2009: GBP387.6m)

[gswredland] 17/8/2010 19:14

Thanks Nellie

[nellie1973] 17/8/2010 16:29

Broker upgrade

[flyfisher] 17/8/2010 13:32

evolution have upgraded their 2011 forecast and increased their valuation on the back of the recent aquisition .

[gswredland] 16/8/2010 17:08

Yep this is just what the market wanted to see.With thier cashpile they needed to spend!

[shoee62] 16/8/2010 13:10

Market seems to like the acquisition so far. Reduces their cash pile by less than 20%. Hopefully they will find some more deals, although it would have been nicer if they had bought a year ago when oil service cos were cheaper.