Hunting Share Discussion Threads

[chrisdgb] 02/12/2021 15:44

Do we think this could ever be a takeover candidate, might the family want to sell..?

[sea7] 29/11/2021 13:31

yep- i did friday afternoon

[chrisdgb] 29/11/2021 10:59

Great opportunity to top up here...

[chrisdgb] 25/11/2021 15:06

Hoping the Q4 update will start to show a recovery in US shale, like the Barclays 300p target....

[jw330] 23/11/2021 19:33

I'm going to add on pull backs after the turnaround is in full swing. Catching a falling knife atm and it could be for a while. David Tepper is is currently bullishly betting on oil plays

[sea7] 22/11/2021 11:21

should get an update on this soon - - which may improve the volumes overall...

Proposed launch of a Level 2 Sponsored American Depositary Receipt ("ADR") programme. The Board of Hunting has begun planning for the launch of a level 2 sponsored ADR programme, to enable Hunting shares to be traded more easily by US investors. The programme is likely to commence towards the end of 2021, following the appointment of a suitable sponsor and the receipt of approvals from the relevant US regulatory authorities. The Directors have commenced this process to increase the profile of Hunting with US investors, as the US has been the core of Hunting's business for a number of years, driving the majority of revenue and profits, and the US is where most of our quoted peers are listed.

[sea7] 22/11/2021 11:05

started to scale in today - trading at sub net current asset value - 20% gap up to reach NAV

[chrisdgb] 11/11/2021 10:15

With a stronger $, this is now looking like a prime takeover candidate for a North America operator.......

[ldrcvm] 11/11/2021 10:11

Agree. It is disappointing. Inventory levels were practically unchanged after 3 months which is a bit worrying because they are high and supposed to be falling.

[imastu pidgitaswell] 25/10/2021 16:25

Haven't held for a some time now - but the chart is under pressure at this level.

Needs to hold having hit it a few times from above. A little surprised given the price of oil, but on the other hand the big boys have stopped exploring, so not a lot of exploration rigs being hired?


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[robertball] 21/9/2021 08:35

Fracking revival?

[imastu pidgitaswell] 30/6/2021 08:19

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[rookwood52] 18/6/2021 19:44

posted a chart on nauseating twitts search for

@rookwood52

sb publicly visible, let me know if not

[heialex1] 11/6/2021 13:33

Thanks for posting and totally agree. Any suggestion of going concern at this stage is total nonsense

[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.