Hunting PLC AGM and Q1 2022 Trading Update (6446I)

TIDMHTG

RNS Number : 6446I

Hunting PLC

20 April 2022

 
 For Immediate Release   20 April 2022 
 

Hunting PLC

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

AGM and Q1 2022 Trading Update

Hunting PLC (LSE:HTG), the international energy services group, issues the following Trading Update for Q1 2022, ahead of its Annual General Meeting that will take place today at 1:30p.m. BST in London.

Commenting on Q1 2022 trading and the market outlook, Hunting's Chief Executive, Jim Johnson said:

"The world is in a fundamentally different place today than when the quarter began with energy security now at the top of the policy agenda on both sides of the Atlantic. Trading in the quarter has remained in line with management's expectations, with an EBITDA of c.$6.7m reported reflecting strengthening markets, particularly for Hunting Titan and the Group's US onshore operations, along with a further narrowing of losses within Hunting's other operating segments. Results have accelerated throughout the period with EBITDA in March 2022 now the best since April 2020. These results were achieved despite a residual drag from COVID-19 in January and early February."

"Hunting's order book grew further during the quarter and now exceeds pre-pandemic levels, supporting management's view that global drilling activity and investment is improving. While the Group's order backlogs are increasing, traditional lead times are, however, being impacted across the industry with raw material and electronic component deliveries being extended by the pandemic."

"The sharp increase in global commodity prices is also leading to an increase in industry investment sentiment, with energy security and oil and gas reserve depletion driving a new phase of growth. Hunting remains well positioned to take advantage of this improving market environment."

Hunting Titan has reported good improvement in revenue during Q1 2022 compared to Q4 2021, with sales c.12% ahead of the prior quarter and c.45% ahead of Q1 2021 and recorded an operating profit for the period.

Revenue within the North America operating segment remains in line with management expectations as the Group's Premium Connections, US Manufacturing and Subsea businesses report increasing orders.

Within the EMEA operating segment, revenue has increased in the quarter compared to Q4 2021 as drilling programmes across the region recommenced.

The Group's Asia Pacific operating segment continues to see some volatility in sales; however, operating losses continue to reduce as enquiries and order book levels slowly improve.

The Group's Balance Sheet remains robust with good liquidity, including undrawn core bank borrowing facilities of $150.0 million committed until February 2026, and a cash and bank position of c.$71.6 million at 31 March 2022 compared to $114.2 million at 31 December 2021. This reflects the normal settlement of accounts payables after year-end, coupled with increases to working capital as market conditions improve.

The final dividend recommended for 2021 of 4.0 cents per share is due for payment on 13 May 2022, which will absorb c.$6.4 million.

For further information please contact:

 
 Hunting PLC                         Tel: [phone] 
  Jim Johnson, Chief Executive 
  Bruce Ferguson, Finance Director 
  Tarryn Riley, Investor Relations 
 Buchanan                            Tel: [phone] 
  Ben Romney 
  Jon Krinks 
 

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, Mexico, Netherlands, Norway, Saudi Arabia, Singapore, United Arab Emirates and the United States of America.

The Group reports in US dollars across four segments: Hunting Titan; North America; Europe, Middle East and Africa ("EMEA") and Asia Pacific.

Hunting PLC's Legal Entity Identifier is 2138008S5FL78ITZRN66.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

TSTUKAVRUKUSAAR

(END) Dow Jones Newswires

April 20, 2022 02:00 ET (06:00 GMT)