Redwing, you seem “incapableR21;of understanding simple business principles.
Did you really think that turnover can go up 30% and it have zero short term working capital impact? |
18. Events After the Balance Sheet Date
In July 2023, the Group disposed of certain oil and gas exploration and development assets that had a net book amount of $nil (cost of $72.8m and accumulated depreciation and impairment of $72.8m) at 30 June 2023.
Definitely not getting $72.8 million.
Management sounded very confident going forward. |
Thanks both, appreciated. I have a kind of helicopter understanding of these things and it helps me sometimes to pin it down a little more precisely. Relying or forward contracts is always a risk in my view, so having reduced wiggle room due to a low cash position is not ideal. Fingers crossed it will work for HTG I will only re-enter if the price drops to the 201 area and I think it will do that now. |
Hi Stupmy. Yes, Dope007 is right. The negative cashflow is likely to be investment into contracts that get paid for later. Not a huge issue for Hunting as they are dealing with large multinational operators who are a good credit risk.
It is more than likely that the company's cash position will revert back to net cash by year end just as the company says it will. However, there is always some risk of contract disputes etc. Also, negative working capital (as this is) can be a restraint on growth if banks are not prepared to lend more to fund the company's expansion (but no suggestion of that here, I hasten to add). |
It is what they said. Cash upfront investment into contracts that get paid for later. also they have the sold assets not counted in the 6 month cash.
the trading statement flagged it up if you read back giving a FY cash position |
So what does the cash position turning negative imply? That HTG have gone all in and now have significantly less room to manouvre should anything change with respect to their financial planning? Genuine question. |
From the trading update
"Management anticipates total cash and bank at 31 December 2023 to be between $nil and $25m as larger projects are completed in H2 2023" |
Redwing, thanks. Helps me at least. I'm not expert on reading accounts. |
Net cash is already positive though with the available for sale assets now crystallised? |
“the Board believes Hunting has good momentum going into the second half of the year, with an EBITDA performance similar to what has been delivered in H1 2023”
Lays the foundations for a beat FY?
Market strikes me as pretty irrational at the moment- interested to see where this finishes the day (analyst call was at 09:30) |
So for those of you who appear incapable of seeing both sides of a story, let's just examine why the share price has fallen today:
1. Earnings were upgraded in early July leading to a 20%+ bounce in the share price in a falling market. Expectations for today were HIGH.
2. Net cash has gone from +$85m to debt of $51m in a year. Yes, the company expects that to reverse to net cash by year end but that is still on trust.
3. Today's other announcement was a closure of facilities and sale of E&P assets. No figures given, but we all know that this means write-downs (again!).
I hold Hunting and still believe that the medium term prospects are encouraging. However, you can see from above that markets are not quite as 'idiotic' as some suggest. Today's share price move simply reflects a small tempering of expectations from a company that has produced very erratic numbers in the past. |
I would hope that Hunting 2030 includes a US listing. |
From the results the sale of assets are currently held as available for sale. However the cash is now in so there is a known positive effect on the negative cash balance already
"The transfer of these non-producing assets was completed in July 2023 and, therefore, the assets were shown as held for sale at 30 June 2023"
Transfer to held for sale 72.8 million |
In other news Nvidia valued at $1.2 trillion or $500 per shares with with earnings less than $10 per share... |
I dropped out like Salpara and have been waiting to get back in around 200 (from a TA point of view it looks possible). This mornings RNS looked like getting in lower was hopium or living in dream world. But, here we are being sold off. I might yet get my 200/201 again. As others have said, it seems strange and even mad, but should I see that price, I'll be buying back as much of my previous position as possible. |
Agreed hence I added a few on this ridiculous drop. It may drop further in the coming days. If so I still have cash to invest for the long term |
No real volume, so agree that the summer doldrums to blame.
The only negative was that the net cash became net debt debt, but it was explained in the release. WC increased to fund current, higher activity which will reverse out by EOY.
THE Share Price jumped when they had an update after the closed and now on the filing of the interim, with the same numbers it drops.
It seems that good news is bad news in the current market.
Anyway, today’s analyst presentation might help.
The big Hunting 2030 presentation in September should be good.
This is a business that is growing, streamlining and finding new markets and uses for its technology. Longer term, the Share Price will reflect it. A growth company with sub 10 PE re FY24. Ridiculous. |
big boys on hols so the muppets run free.... |
Wow!! added a few in the ISA. 233.46p.
Absolutely nuts |
It does seem that if you are an oil or defence stock you would be better listing in the USA going forward.
If an 11% rise in the divi and a positive forward looking statement does not produce a positive response I don't know what will....it still leaves me wondering if I take a stake again at the current sp, it looks like value but if the market is unwilling to ascribe the value I might just as well invest elsewhere. |
Not clear where the negatives are here.
I would have expected another decent rise today.
I bought these a while ago at 201 and then sold at 245 when it bounced up.
I was going to take a stake before these results as I expected them to lead to another rise towards 300 however the markets seem so negative at present that I didn't get in.
I'm now in two minds about whether I should take a stake again as I don't see them dropping back to 200 again but what do I know! |
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