Hunting PLC Changes to the Group's Segmental Reporting 2017 (6271W)

TIDMHTG

RNS Number : 6271W

Hunting PLC

16 November 2017

 
 For Immediate Release   16 November 2017 
 

Hunting PLC

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

Change to the Group's Segmental Reporting 2017

Hunting PLC (LSE:HTG), the international energy services group, today announces a change to its segmental reporting under IFRS 8 Segment Reporting.

Further to the Board changes announced during the year which came into effect on 1 September 2017, the Board has reviewed the segmental presentation of financial information it requires to assess performance and allocate resources. It now considers a more geographic-focused reporting format based on the location of operating activities to be more meaningful from a management and forecasting perspective.

In line with these internal changes, external segmental reporting has been revised to present the performance of Hunting's US, Canada, Europe, Asia Pacific and Middle East and Africa operations. Further, due to its size and nature of operations, Hunting Titan's activities are reported separately. Hunting's non-core Exploration and Production business unit is also reported separately as its activities are different in nature to the Group's other reporting segments.

The Board assesses the performance of the operating segments based on revenue and operating results. Operating results is a profit-based measure and excludes discontinued operations and the effects of amortisation of acquired intangible assets and exceptional items such as restructuring costs, onerous provisions and asset impairments.

Further, the Board will provide revenue information by product groups, to assist in investor understanding of the underlying performance trends.

Revised Segmental Information

The Group's external revenue and operating results by operating segment for the period 2013 - 2016 is detailed below. The four years presented below together with 2017's segmental information in the 2017 Annual Report will provide five years' information.

 
 External Revenue                  2016    2015      2014      2013 
                                     $m      $m        $m        $m 
-------------------------------  ------  ------  --------  -------- 
 Hunting Titan                    142.5   200.2     352.9     281.6 
 US                               162.0   321.1     540.9     531.7 
 Canada                            26.3    42.9      69.5      60.8 
 Europe                            70.1   134.6     194.2     176.0 
 Asia Pacific                      43.7    90.1     199.5     216.9 
 Middle East, Africa and Other      8.2    17.4      19.4      18.6 
 Exploration and Production         3.0     4.2      10.1       8.0 
-------------------------------  ------  ------  --------  -------- 
 Total - continuing operations    455.8   810.5   1,386.5   1,293.6 
-------------------------------  ------  ------  --------  -------- 
 
 
 Operating Results                  2016    2015    2014    2013 
                                      $m      $m      $m      $m 
-------------------------------  -------  ------  ------  ------ 
 Hunting Titan                     (3.6)    23.3    82.4    68.1 
 US                               (33.6)    13.5    94.1    92.5 
 Canada                            (4.0)   (3.6)     1.3   (4.6) 
 Europe                           (25.7)   (7.4)     8.0    12.3 
 Asia Pacific                     (13.3)   (1.8)    31.1    29.9 
 Middle East, Africa and Other     (9.3)   (3.1)     0.9     0.7 
 Exploration and Production        (2.7)   (4.5)       -     1.1 
-------------------------------  -------  ------  ------  ------ 
 Total - continuing operations    (92.2)    16.4   217.8   200.0 
-------------------------------  -------  ------  ------  ------ 
 

Hunting Titan: Hunting Titan manufactures and distributes perforating products and accessories. The segment's products include the H-1 Perforating System and the EQUAfrac shaped charge technology. The business has four manufacturing facilities in the US, supported by a distribution centre network at 21 locations across North America.

US: The US businesses supply premium connections, OCTG, drilling tools, subsea equipment, intervention tools, electronics and complex deephole drilling and precision machining services for the US and overseas markets.

Canada: Hunting's Canadian business manufactures premium connections and accessories for oil and gas operators in Canada, often focussed on heavy oil plays which require specialist tubing technologies. Canada also manufactures perforating guns.

Europe: The segment derives its revenue primarily from the supply of OCTG and well intervention equipment to operators in the North Sea.

Asia Pacific: Revenue from the Asia Pacific segment is primarily from the manufacture of premium connections and OCTG supply. Asia Pacific also manufactures perforating guns.

Middle East, Africa and other: Revenue from the Middle East and Africa is from the sale of in-field well intervention services across the region which also acts as a sales hub for other products manufactured globally by the Group.

Exploration and Production: The Exploration and Production business comprises the Group's exploration and production activities in the Southern US and offshore Gulf of Mexico.

Although the Canada and Exploration and Production segments do not meet the quantitative thresholds required by IFRS 8 for reportable segments, these segments are separately reported as they are separately monitored by the Board.

Below is the Group's external revenue by product for the period 2013 - 2016.

 
 External Revenue by Product       2016    2015      2014      2013 
                                     $m      $m        $m        $m 
-------------------------------  ------  ------  --------  -------- 
 OCTG and Premium Connections     189.6   355.5     620.2     607.4 
 Perforating Systems              143.0   205.3     353.8     282.1 
 Subsea                            21.5    54.8      55.1      42.6 
 Intervention Tools                24.5    51.3      79.9      78.6 
 Drilling Tools                    10.9    33.8     100.7     109.5 
 Advanced Manufacturing            45.2    85.4     138.8     138.6 
 Other                             18.1    20.2      27.9      26.8 
 Exploration and Production         3.0     4.2      10.1       8.0 
-------------------------------  ------  ------  --------  -------- 
 Total - Continuing Operations    455.8   810.5   1,386.5   1,293.6 
-------------------------------  ------  ------  --------  -------- 
 

For further information please contact:

 
 Hunting PLC                          Tel: +44 (0) 
  Jim Johnson, Chief Executive        20 7321 0123 
  Peter Rose, Finance Director 
  Tarryn Riley, Investor Relations 
 Buchanan                             Tel: +44 (0) 
  Richard Darby                       20 7466 5000 
  Ben Romney 
  Chris Judd 
 

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

Hunting PLC's Legal Entity Identifier is 2138008S5FL78ITZRN66.

This information is provided by RNS

The company news service from the London Stock Exchange

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November 16, 2017 02:00 ET (07:00 GMT)