Hunting Share Discussion Threads

[flyfisher] 29/12/2021 16:36

HTG, is not a rental company, it manufactures.

Also, it is not a rig owner, or operator.

[imastu pidgitaswell] 29/12/2021 16:27

Fair enough - but you did ask...

It's not a basket case - it has no net debt apart from lease liabilities, it clearly used to generate a lot of cash. But strategically, I think they have a big issue, of major explorers not doing any more exploring.

But I'm not asserting that I'm right - you just asked for the bear case. It's what makes a market.

[spooky] 29/12/2021 16:21

Ummm...no. Buying shares is really all about the future, although management performance in the past does impact my thinking to a degree. Current profitability is not necessarily a guide to the future and the path ahead for energy prices will probably dictate the appetite for Hunting's products. That path is likely to be higher IMO, demand for Hunting's products is likely to improve too.

[imastu pidgitaswell] 29/12/2021 16:10

It records minimal accounting profit (in fact losses for the past 18 months with a loss for the current 6 months to follow), it has to buy new equipment material all the time but doesn't generate enough cash to do so, and the world has stopped exploring for new hydrocarbons, so not a lot of companies are acquiring their products.

Will that do?

(I used to hold, but once BP and others changed their strategy, I really didn't fancy it. At all.)

[spooky] 29/12/2021 16:00

I am finding it increasingly hard to work out the bear case here. Would someone like to make one for me?

[aublune] 29/12/2021 09:37

wti oil is up 2 dolars on when htg last traded and I think wti is going to 90 dolars soon which will cause powell all sorts of problems but great for htg

[chrisdgb] 24/12/2021 08:55

Feels like we could be in for a really good 2022 here........

[pireric] 23/12/2021 08:29

Seems a smart enough use of a small amount of capital.

I've been buying as I can't think of a good reason why this will continue to trade at a 50% odd discount to its net tangible asset value especially given I expect a far better demand environment into 2022. Seems dramatically undervalued.

Eric

[hamhamham1] 23/12/2021 07:33

RNS Number : 5461W
Hunting PLC
23 December 2021

Hunting PLC

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

Formation of Joint Venture with Jindal SAW Limited

Hunting PLC (LSE : HTG), the international energy services group, today announces the agreement to form a new 49%:51% joint venture with Jindal SAW Limited ("Jindal"), the Indian conglomerate. The agreement formalises a closer working partnership between the two businesses, following the formation of a strategic alliance in 2019 when Hunting and Jindal began cooperating to develop their presence in the rapid growth Oil Country Tubular Goods ("OCTG") market in India.

Under the terms of the joint venture agreement, Hunting and Jindal will build a dedicated premium connection threading facility in Nashik province, near to Jindal's existing steel mill operations, with a proposed 130,000sqft manufacturing footprint. The facility is targeted to be operational by the end of 2022, with three threading lines being commissioned over time with an annual capacity of 50,000 metric tonnes. The facility will be utilised for all such manufacturing work once built and it is anticipated that the venture will employ c.100 staff once fully operational.

The joint venture partners will contribute up to an initial c.$6.0 million in cash, in proportion to the shareholdings noted above, with additional funding to be contributed via loans and/or cash flows generated from the joint venture.

The joint venture provides a mutual platform for significant growth in India, with Hunting's premium connections being designated local content, as they will be manufactured domestically.

As part of the commercial agreement with Jindal, Hunting will provide a premium connection threading licence to the joint venture.

Jim Johnson, Chief Executive of Hunting, commented

"The Indian OCTG market provides significant growth potential for Hunting. We are delighted to have entered this joint venture agreement with Jindal, which leverages our excellent working relationship which we have built since 2019."

[chrisdgb] 22/12/2021 08:37

Nice to see back above the 160p level......

[sea7] 16/12/2021 11:24

yes - we touched the lows again recently, so this update should help nicely.

[sea7] 16/12/2021 11:23

very good value hound - a-ha's track hunting high and low

[stupmy] 16/12/2021 10:56

Hopefully, that will underline the share price and stop the unrelenting drop. Maybe the lacklustre response is due to wider market nerves and the proximity of xmas, maybe many don't want to invest more unil we move into the New Year. I'm glad the RNS is out of the way before Christmas.

[value hound] 16/12/2021 10:51

You'd think Norwegian heart-throbs A-Ha would be able to trade this successfully? :-)

[jw330] 16/12/2021 10:42

most people are staring at charts and looking for technical breakouts instead of fundamentals I'm afraid. I think there is going to be significant uplift once buy volumes start to pick up.

[sea7] 16/12/2021 09:55

last check I did it trades about 67% below book - in this market, it should be ripe for takeover to consolidate players.

[sea7] 16/12/2021 09:30

probably because its been in a downtrend for so long, no one even noticed an upbeat statement.

[chrisdgb] 16/12/2021 08:52

Looks good, why no bounce.........?

[sea7] 16/12/2021 08:24

The Group's order book has strengthened by c.20% in the three months to 30 November 2021 with a significant uptick reported in North America and Europe. The order book will increase further in December following strong contract wins by Hunting's Subsea business, coupled with a general increase in successful bidding within the Group's US and Asia Pacific businesses.

[sea7] 16/12/2021 07:50

Yes - good update

[value hound] 16/12/2021 07:26

Good update. Worth a good deal more. Plus ca change...!

[stupmy] 14/12/2021 16:33

I've been working on that principle for a little while now and accumulating. If POO stays high, it seems very likely that HTG will benefit from increased activity in the sector. It's starting to look late to the party, but it's not alone in that respect. A bit of patience is likely to be rewarded.

[chrisdgb] 14/12/2021 15:14

Better move today, maybe due an update soon./..??

[flyfisher] 02/12/2021 17:09

A distinct possibility, it trades at around a 65% discount to book.

If ever it is going to be approached, then this point in the cycle would be the most opportune.

This excellent O&G note, courtesy of ptolemy, gives an outlook on demand and suppressed drilling.