Hunting Share Discussion Threads

[fundamentalist1] 02/3/2006 08:04

thanks alot guys, nice positive open

[skyracer] 02/3/2006 07:50

Hmm, based on Interims, these do not seem "ahead of current market expectations".

[5eights] 02/3/2006 07:48

Turnover: £1521.9m
Op. Profit: £44.9m
Pre-tax Profit: £40.9m
Basic EPS: 21.2p
Final DPS: 4p (Total 6p)

[a3477681] 02/3/2006 07:47

fundamentalist1. hope this helps

Hunting PLC
02 March 2006



2 March 2006

HUNTING PLC


Preliminary results

For the year ended 31 December 2005

Hunting PLC ("Hunting", the "Group" or the "Company"), the international energy
services company, today announces its preliminary results for the year ended 31
December 2005.

• Turnover £1,521.9m (2004: £1,159.4m) +31%

• Total operating profit £44.9m (2004: £20.8m) +116%

• Pre-tax profit £40.9m (2004: £16.5m) +148%

• Basic earnings per share 21.2p per share (2004: 7.9p) +168%

• Final Dividend Per Share 4.0p (2004 : 3.0p) payable
on 29th June 2006 +33%

Commenting on the outlook for the Group, Dennis Proctor, Hunting's Chief
Executive, said:

"The industry forecasts a continuation of 2005 activity certainly through 2006.
Major oil and gas operators have raised their expenditures to levels higher than
previous years not only for cost increases in drilling and related services, but
also for additional investment in well completions and heavy oil projects. Our
investment in new projects in 2005 will enable us to meet the customers' growing
demands. We believe our timing and execution of a distinctive business strategy
has been excellent and will continue to deliver shareholder value.

With a strengthened balance sheet, well positioned assets, additional capacity
and successful performance trend, Hunting PLC looks forward to the growth
opportunities available in 2006."

For further information, please contact:

Hunting PLC 020 7321 0123
Dennis Proctor, Chief Executive
Dennis Clark, Finance Director



Hogarth Partnership Limited 020 7357 9477
Andrew Jaques
Anthony Arthur

Notes to Editors:
Hunting PLC is an international oil services company providing support solutions
to the world's largest oil and gas companies.



Chairman's Statement

As we announced in December, the Company has benefited from positive market
dynamics and trading for the year has outperformed previous market expectations.
Profit before taxation for the year to 31 December 2005 was £40.9m (2004 -
£16.5m), a 148% increase over the previous year.

The Company has benefited from the continuing surge in expenditure on
exploration and production of oil and gas in the areas we serve, fuelled by high
prices for these vital commodities.

Gibson Energy, our Canadian-based midstream operation, has been at the centre of
the intense level of activity in Alberta and neighbouring provinces. In
particular, we have been able once again to use our physical infrastructure and
highly developed skills successfully to produce fine Marketing results. We have
taken a full part in handling oil production from conventional crude reserves
and from the huge oil sands deposits around Athabasca. We are expanding our
terminal facilities to deal with even higher volumes.

Hunting Energy Services is the Company's engineering operation, producing
sophisticated equipment for the hydrocarbon drilling and production sectors.
With resource companies increasingly concerned about replacing reserves, and
therefore needing to drill for deeper and more difficult deposits, demand for
our products has been at a consistently high level in the southern United
States, in the Rocky Mountains, in Canada and in the North Sea as well as in
other parts of the world.

We were fortunate that the Katrina and Rita hurricanes did little damage to our
important Hunting Energy Services facilities in Louisiana and Texas, and
production was restored rapidly.

In 2005, the Board raised new equity capital for expansion, by way of a one for
four Rights Issue of shares. The resulting increase in share capital and the
steady rise in the price since that time have resulted in the shares becoming a
constituent of the FTSE 250 and FTSE 350 indices of the London Stock Exchange
during January 2006.

I am pleased to report that basic earnings per share were 21.2p, an increase of
168% on the previous year. We are recommending a final dividend of 4.0p per
share, giving a total of 6.0p for the year, a 33% increase.

These excellent results combined with the continuing strength of the markets we
serve give us confidence that, barring unforeseen circumstances, the current
year will show further progress for the company.

I wish to thank all our staff for their fine contributions in a busy and
rewarding year.


Richard Hunting
Chairman





Chief Executive's Review

Strong second half activity provided excellent results for the Company in 2005 -
the third consecutive year of earnings growth. Industry fundamentals combined
with product lines and services leveraged to specific market segments provided
record results in a number of our divisions. As oil and gas operators continued
to increase capital expenditures for drilling and production, coupled with
volume increases in Canadian oil sands projects, your Company's strategy of
market share strength, proprietary technology, geographic position and asset
utilisation combined to deliver above expected results.

The Company improved its balance sheet through increased earnings and the
successful Rights Issue. Gearing at the year end was 53% - a 55% decrease from
2004. Free cash flow grew 16% while capital expenditures increased by 50% to
£32.9m.

In spite of growing material and labour costs, gross margins improved from
production revenue per man-hour (up 21%), and price increases applied throughout
the year.

The Company does not ignore the improved market conditions as a key factor in
its performance. Average oil and gas prices were up 27% and 39% respectively,
year over year. Average rig counts were up 14% in the US, 21% in Canada and 7%
in the international arena. The differential between light and heavy crude
averaged US $21.10 up 53% from 2004. However, the Gulf of Mexico rig count was
89, its lowest level since 1993. Two hurricanes caused production at Tenkay
Resources to decline by approximately 50% in the fourth quarter and delivery of
tubulars and accessories to be delayed by two months.

Prices for oil services climbed steadily as the rig activity increased and
operators seemingly are focused more on availability than price. The cyclicality
of the industry has abated as growth has occurred in the past three years with
expectations of continued demand going forward. The Company's commitment to
expansion projects during the last 18 months will provide measurable gains in
the future. While additional capacity was added in 2005, the replacement of
ageing equipment for greater output per hour adds to reduced costs and earnings
enhancement.

[fundamentalist1] 02/3/2006 07:35

Could someone please posts headline numbers from the results - cant access any news items here

TIA

[jakleeds] 02/3/2006 07:24

Excellent results, made even better by the fact that their acquisition, Cromar, has exceeded expectations.

[huggybear1954] 01/3/2006 13:47

Yes, it all looks positive. The trading statement said that 2006 looks like being strong. If they can indicate that the good times should continue, then it may dissuade some profit-taking.

[e-boffin] 01/3/2006 11:47

SP looks positive as we come up to the results.

[charterhouse3] 25/2/2006 22:28

I think that quite exceptional full year figures are already factored into the price.
However I am expecting the Company to announce that the prospects for the next 12 months (if not 2 to 3 years) are also exceptionally good.
This will be the catalyst to drive the shares forward as all the analysts re-evaluate their forecasts for y/e 2006 and 2007.
Barring any further messing about by Fidelity I cannot see any reason for the shares not to be trading above £4 on fundamentals (at which price they would still be good value IMO) not to mention the, albeit small, possibility of being taken over (already speculated by the Guardian a couple of weeks ago) whereby the share price will be well north of £5.
It is still a strong buy at the current 350p levels.

CH3

[old giggleswickian] 24/2/2006 20:01

Crikey dodge7, I have to admire your patience. I am not expecting HTG to go ex divi till June! Huggy, I am hoping the answer to your question is "not too much". I have just taken delivery of a case of Cloudy Bay Sauvignon Blanc which is about as common as hen's teeth and I would like to think I will have reason to be opening the first bottle "soon". But then again I am usually wrong!

Ian.

[dodge7] 24/2/2006 16:23

watching very closely, looking to get in soon, possibly on ex div

d7

[huggybear1954] 24/2/2006 16:20

Always watching and expecting great results next week. Just can't be sure how much is already factored into the current price.

[e-boffin] 24/2/2006 15:42

Making a fine recovery. Is no one else watching??

[e-boffin] 20/2/2006 14:03

Nice spike up. The recovery seems to be continuing.

[jakleeds] 17/2/2006 12:47

Yes, and the dollar continues its recent surge. Their results are going to be cracking

[e-boffin] 17/2/2006 12:45

We seem to be in recovery mode.

[willower] 17/2/2006 11:41

Fidelity seem to be playing around with a number of popular shares - presumably behind the selling in BYG and the buying in MJW - I wish they would leave things alone because these WLF and HTG are all good companies.

[huggybear1954] 17/2/2006 09:54

I find it very difficult to understand why Fidelity are selling here. I thought they'd finished a few weeks ago when they took their holding to just under 10% but that theory has been blown out of the water. This has obviously caused the drag on the share price

Just re-read the trading statement issued late December and also part of the interims. It mentions the Alberta oil sands which was featured on the BBC a few days ago. Oil production there is substantial, increasing and could go on for another couple of centuries. Given that the US would be far happier having their oil dependancy from a politically stable area, this must bode well.

With commodity prices high and the dollar (CAD and US) having appreciated by about 15% against sterling in the last year, I can't believe the numbers will be anything less than stellar in a couple of weeks time.

All IMHO, no advice intended.

[e-boffin] 17/2/2006 08:53

Things here seem to have stabilised. Near the bottom of the trend line. Looking for an entry point to buy back in.

Have Fidelity stopped messing around?

[willower] 15/2/2006 10:25

Fidelity are selling here and also in Wolfson presumably a simple desire to book profits from shares which have given good growth.The effect is to bring both share prices down - how many others are they in to?

[gswredland] 14/2/2006 16:56

Looks like yuo could be right there e-boofin.Sold a few earlier today but long term this is still good.

[e-boffin] 14/2/2006 13:30

Looks like support around 320 to me.

[dazw] 13/2/2006 16:24

Blueforce, I can't as Java applets are not enabled on my work PC.

As it is the flag looks like it is breaking downwards today. I am watching this carefully as it may be time to take profits and then get back in before the results.

[blueforce] 12/2/2006 15:23

Daz

Would you post the marked up chart please

[dazw] 12/2/2006 14:22

We have a flag forming on the chart, looks like a break up or break down is on the cards, hopefully the former!