Interim Management Statement

RNS Number : 7519S

Hunting PLC

12 November 2013

 



For Immediate Release

12 November 2013

Hunting PLC

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

Interim Management Statement

Hunting PLC (LSE: HTG), the international energy services group today issues its Interim Management Statement for the period 1 July 2013 to date.

Dennis Proctor, Hunting's Chief Executive said,

"In North America, offshore activity is driving strong demand for our products, coupled with oil-focussed shale activity providing a positive onshore environment. In Canada and Europe demand remains subdued due to rescheduling of drilling programmes in these regions, while the Middle East and Asia Pacific continue to report good results.

"Trading in the period has improved compared to the first half of the year, however, a number of the Group's businesses continue to report mixed trading. The Board remains confident of a strong finish to the year and is encouraged by recent customer discussions which indicate an improvement in planned capital expenditures across the industry, which supports Hunting's view of the medium term outlook."

Well Construction

Hunting's Premium Connections business continues to report good trading, with global offshore activity driving demand.  Construction of a new threading facility in Houston, Texas is shortly to commence incorporating a new connections test facility to accelerate new product approval times.  The Drilling Tools platform is reporting good results as demand in the oil-focussed shale basins remains stable.

Within the Advanced Manufacturing Group, trading at Hunting Electronics remains subdued as customers continue to work off excess inventories, however, the order book is showing improvement with new customers added in the period. Hunting Dearborn is trading in line with expectations with the medium term trading outlook strengthening. An expansion of the facility is planned to be completed in 2014 to shorten customer lead times.

Well Completion

Hunting Titan continues to report good results with strong sales of its perforating and energetics product lines.  The business is benefitting from the internationalisation of the Hunting Titan brand with manufacturing and storage of product now established in a number of global locations.

The US Manufacturing business also reports good results, with offshore demand driving this performance as activity in the Gulf of Mexico accelerates.

Our Canadian operations continue to suffer from poor market conditions and deferral of projects into 2014.

In Asia Pacific, while business has been exceptional in the year to date, a slowing in activity has been reported entering the fourth quarter as customers work off excess inventories.

Well Intervention

Hunting Subsea has reported satisfactory results as momentum recovers, particularly on its hydraulic coupling product lines in the period.

Hunting's pressure control business is developing new markets in North America, offsetting the subdued business environment in the North Sea. In the Middle East new sales opportunities for these product lines are being pursued, supported by a new facility opened in Thailand to service anticipated demand across South East Asia.

Financial Position

Overall the Company has a strong balance sheet, with no significant change to the financial position of the Group since the publication of the half year results in August 2013. Capital investment is forecast to be about £70m in the current year, however actual cash spend will depend on project timing.

The Group's net debt position as at 1 November 2013 was approximately £150m.

For further information please visit www.huntingplc.com or contact:

Hunting PLC Dennis Proctor, Chief Executive Peter Rose, Finance Director	Tel: [phone]
Buchanan Richard Darby Gabriella Clinkard	Tel: [phone]

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 fully 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 principal operations in Canada, China, Hong Kong, Indonesia, Mexico, Netherlands, Singapore, Thailand, United Arab Emirates and the United States of America.

 

END

 

 

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