Trading Update

RNS Number : 1003Y

Hunting PLC

12 May 2016

 

For Immediate Release

12 May 2016

Hunting PLC

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

Trading Update

Hunting PLC (LSE:HTG), the international energy services group, today provides a Trading Update.

As noted within the Company's Trading Statement released on 13 April 2016, performance across the Group's businesses in Q1 2016 was very weak, which has extended throughout April and into May and is now predicted to continue over the next few months.

On the basis of further deteriorating market conditions, the Board has completed its latest review of the 2016 full year outturn, with management's revenue expectations now predicting a decline of between 30% and 40% compared to 2015. In the four months to the end of April 2016 an underlying EBITDA loss of $16.2 million has been recorded and with current market conditions, the outturn for the full year remains very uncertain. Along with a number of other market commentators, management anticipate the trading environment to stabilise in the latter part of 2016.

Management continue to implement cost saving measures at all levels across the Group, including staff reductions and facility closure plans. In addition, measures to manage cash and minimise capital expenditures, with a particular focus on working capital, are in place to continue the reduction of debt.

While near term trading visibility remains poor, the Board reports that the Group's Balance Sheet remains strong and that Net Debt continues to reduce. In the year to date, the Group has received a tax refund of $31 million with other tax initiatives likely to lead to the receipt of a further $7 million over the coming months. As at 30 April 2016, the Group's Net Debt position was approximately $105 million and with Net Assets remaining around $1.1 billion, Group gearing remains at a modest level.

The Group has a supportive lending group, comprising of five banks. Management has been in discussions with its lenders and has commenced negotiations to amend its EBITDA based bank covenants. A further announcement will be made once this amendment has been secured.

For further information please contact:

Hunting PLC Dennis Proctor, Chief Executive Peter Rose, Finance Director Tarryn Riley, Investor Relations	Tel: [phone]
Buchanan Richard Darby Madeleine Seacombe	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 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 principal operations in Canada, China, Indonesia, Mexico, Netherlands, Singapore, South Africa, Thailand, United Arab Emirates and the United States of America.

 

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