Trading Update

RNS Number : 4571O

Hunting PLC

30 June 2010

 



For Immediate Release

30 June 2010

Hunting PLC

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

Trading Update

Hunting PLC (LSE:HTG) the international energy services group today provides an update on trading ahead of its Half Year Results to be announced on Thursday 26 August 2010.

Dennis Proctor, Hunting's Chief Executive said,

"Despite current events in the Gulf of Mexico (GOM) and sluggish natural gas prices, overall trading in the first half of 2010 has been very positive.  With the exception of Canada, all global markets experienced much improvement over the second half of 2009 with Well Construction, Well Completion and Well Intervention reporting improved results and a strong backlog.  Hunting's E&P Division experienced one dry hole resulting in a £2.9m exceptional charge. Gibson Shipbrokers saw tanker and dry cargo rates improve to levels 24% better than 2009 averages.

Well Construction

Drilling tools, primarily mud motors, benefited from increased onshore oil related activity and shale gas development.  Most drilling tools used in the GOM can be diverted to onshore work which may impact pricing strength.  Despite the GOM deep water moratorium, this platform has benefited from the improved trading environment.

Well Completion

Well Completion has traded strongly although some exposure to deep water GOM will have an impact during the rest of the year.  Approximately 22% of the current premium connection backlog within this Division is for deep water GOM and in the first half of the year approximately 16% of production in its manufacturing facilities related to deep water GOM. The financial impact on this division of the drilling moratorium for the remainder of 2010 and beyond remains uncertain.

Southeast Asia and the North Sea showed continued strength during the period as did the Middle East operations.

Well Intervention

With prior acquisitions and improved oil prices in the first half of 2010, this Division outperformed the second half of last year and has built a significant backlog, the majority of which is for international activity in Angola, Brazil, Australia and the Middle East.  In the year to date the GOM has not had a material impact on results for this division.

Overall Outlook

The current U.S. rig count is up 70% year over year.  Much of the equipment provided for the 30 rigs currently idled in the GOM was purchased 12-24 months ago.  The full financial impact regarding the moratorium may not be known for several months and is dependent on the U.S. Government's actions. 

Our facilities outside North America are benefiting from strong oil prices, improved drilling activity, new facilities and a good performance year-to-date.  Our balance sheet remains strong with a net cash position of approximately £310m at 30 June 2010 and we continue to seek value enhancing acquisitions.  The current circumstances in the GOM will inevitably have some effect on the second half of the year within the Well Completion division, but we remain confident in the outlook for the overall group in the current year.  The circumstances in the GOM have not altered the global demand fundamentals for oil and gas.  Thus, we remain in a strong position with well placed assets."

For further information please contact:

Hunting PLC Dennis Proctor, Chief Executive Peter Rose, Finance Director	Tel: [phone] Tel: [phone]
Buchanan Communications Richard Darby Jeremy Garcia	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, Holland, Hong Kong, Indonesia, Mexico, Singapore, United Arab Emirates and the United States of America.

 

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