Hunting Share Discussion Threads

[imastu pidgitaswell] 11/6/2021 12:50

I don't currently hold these, but that article is beyond pathetic.

All quoted companies are required to carry a going concern note in their financial statements, with the required disclosures increased thanks to the pandemic. As such, they must comment on extreme scenarios and their intended responses should that happen. It doesn't mean they expect it to happen, and it certainly does not mean that their auditor is 'concerned'.

The business is cash-rich and cash-generative. And it has been through a pandemic. End of solvency discussion - but that wouldn't provide an article.



The Audit Report - page 132 - makes reference to Going Concern:

"As at 31 December 2020 the Group had $102.9 million of cash at bank and in hand and $1.2 million of bank overdrafts. The Group’s $160 million revolving credit facility (“RCF”) due to expire in December 2022, with the associated covenants being in respect of the ratio of net debt to EBITDA and the ratio of finance charges to EBITDA. The facility remains undrawn at 31 December 2020.

Due to the COVID-19 pandemic and the adverse impact this has had on the Group’s trading results through significant reductions in demand for the Group’s products, we identified an increased risk around the Group’s ability to continue as a going concern. We have however observed that in the second half of the year, trading declines generally flattened and there were signs of gradual recovery in a number of the Group’s businesses towards the end of 2020.

Should the Group generate negative EBITDA over a 12 month rolling covenant test period, and require to draw down on the RCF, then this could result in a technical covenant breach, which would be considered an event of default in the absence of obtaining any covenant waiver. We have therefore focused our work on challenging the ability of the Group to operate within its current cash reserves throughout the going concern period.

Management has assessed the Group’s recent trading performance and its latest forecasts and took account of reasonably predictable changes in future trading performance. Management sensitised these forecasts to reflect plausible downside scenarios as a result of the Covid-19 impact on global economies. These forecasts demonstrated that the Group is able to maintain sufficient cash reserves, without utilising the RCF, within the going concern period.

Management also prepared further stress-test forecasts to identify the conditions that are required to fully consume the Group’s cash reserves by December 2022 (which is beyond the required period over which to assess going concern), causing a breach of banking covenants and restricting access to the Group’s currently undrawn RCF in the going concern assessment period. Further details of the extent of sensitivity performed are included on page 79.

Management, and the Board of Directors, concluded that the likelihood of such severe forecasts occurring in combination was remote and, therefore, no material uncertainties were identified in relation to the Group’s ability to continue as a going concern in the next twelve months."

[heialex1] 11/6/2021 12:41

ThanksI'll have a lookStrikes me as odd as they are still paying a small dividendHaving said that, I haven't looked at the financials closely

[cb34] 11/6/2021 12:00

On the website simplywall.st their is a article, Hunting Plc own auditors Deloitte & Touche LLP.
Will not support the business as a going concern, they are not sure it will survive.

hxxps://simplywall.st/stocks/gb/energy/lse-htg/hunting-shares/news/auditors-are-concerned-about-hunting-lonhtg

The article is worth a read before investing your money.

On a broker site I looked at was showing -116 Interest Cover, the worst it has been for a long time, I was going to buy some shares, but have decided to wait to the interest cover improves a lot.
I do think the business could turn around in the future I hope.

[heialex1] 11/6/2021 11:08

I've got a small holding here and have recently added a bit.First of all because oil services companies in the US have been recovering and there is a lot of positive noise around that sector now, and also because this strikes me as the type of quality company that a predator might try and pick up on the cheap

[flyfisher] 08/6/2021 10:41

What would you expect it to be when at the bottom period of the cycle?

International rig count had a sharp rise in may.

[cb34] 07/6/2021 11:23

Has everyone noticed that HTG interest cover is now -116.37?
What is going on?

[robertball] 01/6/2021 07:59

Oil price high

[robertball] 01/6/2021 07:59

Oil price how

[robertball] 21/4/2021 12:45

Is Biden anti shale?

[flyfisher] 21/4/2021 11:36

I would view the trading update as a mild positive. US rig count is up 25% this year and international rig count is up 6%.

Personally i would expect current year forecasts to be shaded upwards.

[paleje] 21/4/2021 09:23

Reassuring TU this morning? Modest but seemed happy with sector revival and likely continuing, outlook for further progress throughout the year. Steady progress will do.

[imastu pidgitaswell] 24/3/2021 09:01

Apologies all - the only reason that stuff is on here is because I posted on here yesterday, it is therefore showing in my profile as a recent post and he's trying to embarrass me by putting those posts on the threads that I frequent.

Had I not done that yesterday, and had he bothered to read the thread and noticed that I rarely post here, he would have just stuck to putting it on the threads where I am more prolific.

I won't bore you as to the background etc (unless you want to read the KIE thread), except to say - he started it...

:-)

[stdyeddy] 24/3/2021 08:30

Oh masturpig; you are so desperate to have a nice safe little flip-flap fight with me from your comfy chair, aren't you? You've been calling your lies 'poetic licence'. That's nice and deceitful. And btw, 'bad loser'? This is day one. Let me know if you still think I'm losing a fortnight from now.

John's question about you having no friends, is as usual on the money. You seem to be hateful, obsessive and have far too much time on your hands. And that usually goes along with having no friends. Advfn is your 'outlet' and a faux 'friendship' network for you. You are a sad, bitter, lonely man and you feel that someone should be listening to your insipid opinions (which are mostly wrong). That's why you invest so much time in posting on this free chatboard to people you don't know, and whom you will never know. No one on advfn cares about you or what you think. You have fallen into the trap that so many people are now stuck in today, thinking that the digital world is real.

The quality of your posts btw, is very poor; not witty, not insightful, not interesting. If you think you are achieving anything here, you are fundamentally misguided. Spartz gave you some excellent advice a little while ago, to go out and do some gardening. A real-world activity would help you in so many ways. The digital world thrives on hate. You should try to break free.

[imastu pidgitaswell] 24/3/2021 08:29

And all because I simply won't go away and let you lie through your teeth.

You're a bad loser stdy. Very bad.

In the words of one of you many logins, 'you're so angry you're going to... post some more messages'.

Well woo...

[imastu pidgitaswell] 24/3/2021 08:23

Facts stdy, facts. You just don't deal in facts:




And as to why:

[stdyeddy] 24/3/2021 08:08

masturpig (or stupidgit) - it's time for me to start visiting all the boards where you are a problem, including this one.

You like to accuse people falsely of 'lies' when you are the self-confessed fraudster, defrauding your employer of a salary while you spend many hours every day, posting pointless messages across advfn instead of working.

I am very comfortable with the idea that you are wasting your time and energy in hateful exchanges, because it shows your true character. Anyone reading your messages will recognise what you are; an impotent troll.

Why would I filter you? Watching you degenerate is not a problem for me. But it is for you. You are demeaning yourself. Your hatred festers. Your exchange with John, earlier today, is a window into your character, drawing back the very thin veil of your fake humility.

I imagine your family find you tiresome and avoid you, as do most people. Your employer will be enormously grateful when you are gone because they'll be able to hire someone who pulls their own weight to replace a parasitic pompous freeloader. You represent much that is wrong with society, but I suspect that you will not be here long -- I sense that you are heading towards a crisis, one of your own making, and one you do not see coming.

Beyond all of that, you are as silly as a 14-year-old girl, enthralled by social media. You spend an absurd amount of time trying to have a safe online chat-spat; that is ridiculous for someone of your alleged age and shows your lack of worldliness, maturity and achievement. Everyone else here has better things to do.

[imastu pidgitaswell] 23/3/2021 11:35

Not currently in, but retracing and watching.

240 was previous resistance, but there is that gap at 220-odd.

It's also just above the trendline from the lows (didn't have a chance to include the straight line before being timed out...) 😠

It does seem to swing quite significantly - so when it turns up again, it should be a significant move. Just waiting to see what happens.


free stock charts from uk.advfn.com

[value hound] 15/3/2021 17:54

Tipped on Master Investor by Mark Watson Mitchell FWIW (I hold)....

==============

"Hunting – sounding the horn for the recovery"

Hunting has had its ups and downs over the years, but Mark Watson-Mitchell reckons better times are ahead.

Although it has been in existence for over 140 years, I have only followed this group for the last four decades.

From its origins of shipowning, it ventured into oil tankers, and later it went into aircraft servicing and manufacturing, even owning an airline. Then in 1938, it started oil prospecting in Texas and later moved into Canada, before progressing into petroleum retailing, lubricants and specialised products.

It has reinvented and reorganised its operations several times in its history and always shown its ability to adapt to changing fortunes in its marketplace.

I can remember having several breakfast and lunchtime meetings in the company’s offices overlooking Nelson’s Column in Trafalgar Square, with Richard Hunting, the group’s former Chairman. I always enjoyed listening to him and his team describing the operations of their business.

It has had its ups and its downs over the years. However, I have always been impressed by the professionalism that its management has shown.

The gradual metamorphosis

Today Hunting (LON:HTG) is an international energy services provider to the world’s leading upstream oil and gas companies.

Irrespective of whether it is intended for oil, gas, onshore or offshore, conventional or unconventional, its broad range of products and associated services spans the lifecycle of the wellbore.

It manufactures the premium, high-end tools and components that are required to extract hydrocarbons across that lifecycle of an oil and gas well.

An impressive portfolio of intellectual property

Hunting’s substantial IP portfolio is a significant barrier to entry for competitors and allows it to defend margins and offer more operational flexibility, particularly in a downturn.

It has a truly global footprint, employing nearly 3,000 people operating in 11 countries with distribution and with the use of its products extending well beyond those countries.

Recent results

The group declared its final results for the 2020 year two weeks ago and its Report and Accounts are due to be published this coming Thursday (18).

The group’s AGM is due on 21 April, at which time we should get the latest trading update.

The reported finals showed that 2020 was not a good year for the group, which was understandable due to the massive reduction of activity in the global oil and gas marketplace.

Last year’s revenues fell from $960m to just $626m, while 2019’s $93.1m pre-tax profit was replaced with an underlying adjusted $19.4m loss.

Current estimates

But oil prices have moved significantly better in the last few months and better times are now being anticipated.

Estimates for the current year suggest similar revenues, with the loss falling to only $5.4m.

Going into 2022 sales could pick up slightly to $650m, with a break back upwards into profitability of around $5m.

Undervalued assets

On the face of it, that looks both dismal and dull, but I have faith in the group’s management to safely turn the group’s profitability around before resuming its previous growth path.

The group had net assets of $976m, at the last balance sheet date, with $101.7m cash in the bank.

With some 165m shares in issue the group is today capitalised at only £454m ($630m).

It is obvious that the group has a strong enough balance sheet and cashflow to cope with its recovery back into profitability this year. About £702m of assets shows the company standing at around a 35% discount.

Broker ratings

Brokers are not in unison as to their price objectives for the group’s shares – RBS rate the shares a ‘sector perform’ up to 305p, while Jefferies rate the shares as a ‘buy’ looking for 360p. Barclays raised its price from 260p to 300p and recommend ‘overweight217; portfolio positions.

Less than three years ago the shares were trading at 845p, but by September of last year they had eased back to just 120p. At the start of this month the shares peaked at 297p, and they closed at 275p last Friday night.

My view

I am looking for the shares to be back over that peak and heading for 350p fairly soon and then head even higher.

Accordingly, I now set my target price at 350p.

[gswredland] 05/3/2021 16:42

Big institutional buy at the end of the day
Very encouraging