Final Results
Hunting PLC
5 March 2002
For immediate release
5th March 2002
HUNTING PLC
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2001
* Oil operating profit up 52.2% to £45.2m (2000: £29.7m)
* Operating profit increased 5.3% to £44.1m (2000: £41.9m)
* Profit before tax up 94.6% to £65.0m (2000: £33.4m)
* Earnings per share - basic 36.9p (2000: 11.5p)
* Earnings per share - excluding exceptional items 14.9p (2000: 11.5p)
* Completion of five strategic acquisitions in the Energy Services field
* Proceeds of £109.5m realised from the sale of the Defence interests
Commenting on the results, Dennis Proctor, Hunting PLC Chief Executive, said:
'This has been a significant year for Hunting. During 2001, we successfully
re-defined the Company's focus toward the energy sector by disposing of our
defence activities. We will continue to focus on portfolio management,
capital discipline and cost containment. Our five acquisitions during the
year have enhanced and diversified our global business platforms in the oil
and gas services areas. '
Enquiries:
Hunting PLC 020 7321 0123
___________
Dennis Proctor, Chief Executive
Dennis Clark, Finance Director
Brunswick Group Limited 020 7404 5959
_______________________
Tom Buchanan
Catriona McDermott
Notes to Editors:
Hunting PLC is an international oil services company providing support
solutions to the world's largest oil and gas companies.
Chairman's Statement
Profit before taxation for the year to 31 December 2001 including a £27.0
million exceptional profit £65.0 million, an increase of 94.6% on 2000.
Operating profit from our oil activities increased by 52.2%.
This was an excellent result in a year of strategic transformation in the
composition of the Company with the sale of our Defence interests and the
completion of five strategic acquisitions in our chosen Energy Services
field.
Sale proceeds of £109.5 million were realised from the sale of the Defence
interests of which £52.1 million was re-invested in the expansion of the
Hunting Oilfield Services and Gibson operations. We are pleased with the
successful integration of these acquisitions which add significantly to the
critical mass of our two largest activities and enhance our market position.
Oil and gas prices have reduced somewhat since their 2001 peaks but we are
confident that activity levels will continue to reward our concentration in
this sector.
An interim dividend of 2p was paid on 5 December 2001, together with a
one-off special dividend of 10p per share. This followed the Board's decision
that in the absence of special circumstances, future dividends would be
covered at a level that enables the appropriate investment to be made in the
business. In line with this policy, we are recommending a final dividend of
4p per share, giving a total of 16p; this compares with 9.25p paid in respect
of 2000. We will continue to review future dividends both in the light of
current results and expectations and the need to provide adequate resources
for future expansion.
Dennis Proctor was appointed Chief Executive on 1 January 2001 and has made
an excellent start in the re-focussing of the Group's activities. Ken Miller,
the former Chief Executive, retired as Deputy Chairman on 31 July 2001. In
October 2001 we were pleased to appoint George Helland as a non-executive
director of the Company. His experience at a senior level in the energy
industry will be of much value as the Company progresses.
We have refocused the Company during the past year and I look forward to the
future with confidence. I thank all the Company's staff for their
considerable and successful efforts during a year of significant change.
Richard Hunting
Chairman
Chief Executive's Review
Seldom does a company re-define its focus in a successful manner in such a
short time. The strategy to direct the Company's activities toward oil and
gas services concurrently with the disposal of the defence activities has
been challenging. In addition, the largest total of acquisitions in Hunting's
history occurred during the year to re-deploy the capital from the
divestitures and complement our remaining business platforms. The Group's
management teams executed these events with skill and dedication. As a
result, the Company is uniquely positioned with a single direction in the
energy industry, where growth opportunities are parallel to the increasing
global appetite for oil and gas.
As reflected on the cover of the Annual Report, the Company has had a long
history involved in many different industries. This evolution towards a
focused oil and gas services company embraces an instinctive willingness to
determine which pathway will best serve our shareholders. The world's natural
resources are finite, while the population and standards of living are
growing. The service industry to the oil and gas companies will be put to the
test to ensure these important natural resources are delivered timely and in
greater volumes. For such a task, a single focus is imperative.
Through these transactions we have acquired complementary products and
services to Gibson Petroleum and Hunting Oilfield Services. With Canada's
resource development being a primary focus of oil and gas companies, we
believe it is essential to increase our presence there. Indeed, Canada's
natural gas reservoirs will be vital to the growing demand for power
generation in the United States.
Portfolio management will be the mantra for the Company early in 2002. It is
necessary that we efficiently integrate the cultures and assets of the
acquired companies. We will continue to examine new acquisitions but at a
pace which will allow management to maximize the benefits to the Group.
Commodity prices have declined in late 2001 and early 2002 causing a
contraction in drilling activity in certain geographical arenas. Accordingly,
we must maintain margins and gain the synergy cost savings from the
integrated Group.
Our commitment to quality products, customer service and the environment
continues. We market and transport oil and gas by truck and pipeline. We
provide tubulars and ancillary products used in the deepest, high pressure
and high temperature oil and gas wells in the world. Our manufacturing
facilities are required to produce at extremely tight tolerances. Our
management has a passion for and the skill base to manage these high profile
issues with great effectiveness.
Highlights of the disposals and acquisitions are as follows:
Disposed Acquired
______________________________________________________________________________
Hunting Contract Services and Hunting Technical March
Support
______________________________________________________________________________
Irvin Aerospace UK, USA and Canada June
______________________________________________________________________________
Hunting Engineering October
______________________________________________________________________________
Vinson Supply Company - USA March
______________________________________________________________________________
GN Transportation - Canada March
______________________________________________________________________________
Precision Boring Technology - USA July
______________________________________________________________________________
Columbia Fuels - Canada October
______________________________________________________________________________
Thread Tech - Canada November
______________________________________________________________________________
Moose Jaw Asphalt - Canada January '02
Gibson Petroleum
Strong activity levels were experienced by Gibson's businesses for most of
the year. High oil prices in the first half of the year contributed to the
significant increase in marketing profits from heavy to light oil arbitrages.
These differentials progressively narrowed towards the end of the first half
of the year as crude oil, LPG and natural gas prices declined. During the
second half-year, marketing margins were steady but overall gains declined
from previous levels as inventory values dropped.
The Truck Transportation division acquired GN Transportation in March which,
together with existing LPG assets and high activity levels produced a 30%
growth in earnings. Crude Oil Terminal and Pipeline Gathering experienced
steady volumes throughout the year.
Propane volumes distributed by Canwest Propane increased steadily during
2001, as previous acquisitions were operating for a full year and new
branches were opened in Northern Alberta and British Columbia. The propane
division of Columbia Fuels on Vancouver Island, acquired in October, has
expanded the geographic coverage of Canwest in Western Canada, giving it a
strong position as the second largest Canadian retail propane distributor.
Natural Gas Processing results in the first half of the year were
disappointing, however margins steadily improved as the year progressed.
Declining producer deliveries were offset when new volumes were added to the
Rainbow Gas plant in the second six months.
Gibson's strategy of expanding core business and diversifying product and
services geographically contributed to new growth. Further capital investment
has been in the expansion of the Edmonton terminal, where incremental volumes
of synthetic oil from the Millennium project at Suncor's Fort McMurray Tar
Sands plant is scheduled to begin during the current year.
Lower industry activity, following lower crude oil and natural gas prices,
could reduce current year's earnings, particularly compared with the strong
performance in the first half of 2001. This should be offset by gains from
the capital expenditure and acquisitions that will make a full year
contribution. These acquisitions include Moose Jaw Asphalt, which
manufactures and markets road grade asphalt products. Moose Jaw's assets
include under utilized crude oil storage, pipeline and rail transportation
facilities all of which are core to Gibson's activities.
In the current year, Gibson will continue its strategy of enhancing the value
of people, services and assets in its mid-stream business through product
diversification and increasing geographic coverage.
Hunting Oilfield Services International (HOSINT)
During the first half of 2001, oil and gas exploration and development
continued the rebound that began in 2000. As the US entered a recession in
the third quarter, the drilling rig count began to decline. The major arena
affected was the continental shelf of the Gulf of Mexico where many operators
look for gas. Deep-water exploration continues due to the expected size of
the fields and the time required to exploit them. With oil prices remaining
near US$20/bbl, international rig activity is expected to continue its
growth.
Notwithstanding a declining market our order book is good with Eastern
Hemisphere activity offsetting lower activity in the Western Hemisphere.
In the US, oil country tubular goods ('OCTG') distribution and accessory
manufacturing experienced record results. Following the acquisition of Vinson
Supply in March, HOSINT was able to leverage greater throughput at its
threading facilities and provide more tubular accessories. The Seal-Lock
proprietary connection products also benefited from the Vinson acquisition
with inventory positions to customer specifications.
With the expected importance of Canadian natural gas supplies to the US,
HOSINT acquired Thread Tech based in Calgary, Alberta. Similar to Vinson,
Thread Tech distributes OCTG but also provides installation of the tubulars
at the well site.
The Aberdeen and North Sea based business saw steady growth since the third
quarter of 2000, and this was reflected in record sales and profit achieved
for 2001. Additional supply contracts were received from British Gas and
Enterprise while existing contracts from Conoco and Kerr McGee were extended.
These contracts comprise significant volumes of pipe allowing HOSINT to
secure favourable material costs and maintain its position as the leading
OCTG supplier position for the North Sea. During the year, a new
manufacturing plant in Edzell, Scotland was opened to supply the increased
demand and reduce the lead times to customers. The Aberdeen facility retained
its 5 Star Safety Award and Investors in People Award showing a continual
commitment to the safety and well being of employees.
The Dutch and Singapore based facilities showed improved performance during
the year following the restructuring implemented in the previous year.
Although the telecommunications industry is in disarray, Hunting continues to
enhance its position in trenchless drilling. HOSINT acquired Precision Boring
Technologies ('PBT') in July. Based in Casper Wyoming, PBT designs, repairs
and manufactures mud motors for use in the oil and gas industry as well as
the trenchless drilling industry. Combining the motor with the drill rod
enables us to offer a more complete package of goods and services to our
customers. PBT produced better than expected earnings during its first six
months with Hunting.
In China, our joint venture with Tianjin Steel has become profitable within
its first year of operation. China continues to become a larger player in the
world market for imported oil, and will increase efforts to find reserves in
country. As a result, more drilling is expected. The company's proprietary
connections recently passed a performance test issued by the China National
Oil Company in anticipation of deeper drilling applications.
Tenkay Resources
Very favourable oil and natural gas prices in the first five months of 2001
contributed to an outstanding year for Tenkay Resources. Profit before tax
more than doubled from the previous year. Although the twelve-month period
was the company's most prolific ever in terms of oil and gas produced,
successful drilling both onshore and offshore enabled Tenkay to replace all
production with new reserves. The company participated in the drilling of 21
wells with 14 successfully completed. Several of the new offshore discoveries
require production platform facility enhancements that are scheduled to be
completed in the first half of 2002.
EA Gibson Shipbrokers
Despite softening markets in all sectors, EA Gibson Shipbrokers produced a
record result with an excellent performance from the Tanker Department backed
by strong support from the Gas Department
Hunting Petroleum France
A renewed focus exists at Hunting Petroleum France. Consistently profitable,
the company is planning an acquisition in 2002 that will enable it to expand
its product offerings.
Other Activities
While the results of Hunting Industrial Coatings were below the previous
year, the company has positioned itself in the sewer and water line
remediation industry. Cities around the world are wrestling with ageing sewer
and water lines and the cost to replace or reline them. Re-lining is the cost
effective and preferred method. Hunting Industrial Coatings has years of
experience with epoxy and other coatings to deploy within this growing field.
Aero Sekur improved its performance, particularly in the second half,
following the management changes implemented.
Field Aviation Company experienced a year of marked contrasts. The Toronto
based operations of Specialised Engineering and Aircraft Sales suffered a
significant reduction in demand for their services due to a general market
contraction. In contrast, the Calgary based operations of Aircraft
Maintenance/Refurbishing and Parts Manufacturing had an excellent year until
the tragic events of 11 September, which immediately had a negative impact.
Outlook
We enter 2002 sharing the industry's diminished expectations for the first
half and optimism for the second half. Portfolio management, capital
discipline, and cost containment will define our basic direction in the
coming months. With a strong balance sheet, dominant positions in many
product offerings and services, coupled with advancing technology evidenced
by three patents pending, Hunting is in a strong position to mitigate the
impact of any short term swings in the oil and gas industry. Our global mix
of operations will afford offsetting activity within certain arenas. The
delicate supply and demand balance combined with the current geopolitics will
certainly create spikes in commodity prices resulting in positive
opportunities for the Company.
Dennis Proctor
Chief Executive
Financial Results
For the year to 31 December 2001 Group sales were £1,035m (2000: £1,216m).
Sales for the continuing businesses were £935m (2000: £876m) a 6.8% increase.
Operating profit for the year was £44.1m (2000: £41.9m). Profit from the oil
activities increased to £45.2m, a growth of 52.2%. Profit before tax was
£65.0m (2000: £33.4m) an increase of 94.6%.
Gibson Petroleum's sales were £587.3m (2000: £701.4m) of which marketing was
£484.9m (2000: £586.1m). Gibson's operating profits were £19.0m (2000:
£19.0m). The marketing activity made an excellent contribution in the first
half of the year though the level of profit reduced in the second half as
price differentials narrowed. All other activities achieved a strong result.
HOSINT's sales and operating profit were £268.3m (2000: £106.3m) and £21.5m
(2000: £7.2m) respectively. There were strong performances from all
geographical areas enhanced by the acquisition of Vinson Inc. on 19 March
2001.
Turnover at Tenkay Resources, the Group's exploration and production
subsidiary, increased to £7.8m (2000: £4.4m) with operating profits
increasing to £4.0m (2000: £1.9m). Oil and gas prices averaged US$26.6/bbl
and US$5.3/mcf in the first half of the year declining to an average of
US$21.3/bbl and US$2.7/mcf in the second half. The reserve base of the
company increased to 2.12m equivalent barrels following a year of extensive
activity. Sales by other Group companies were in aggregate £71.7m (2000:
£63.5m) with operating profits of £0.7m (2000: £0.3m loss). EA Gibson
Shipbrokers in particular achieved a record result.
Turnover of the Defence businesses sold during the year was £100.2m (2000:
£340.3m) with £1.1m operating loss (2000: £12.0m operating profit).
The average exchange rates used to convert the two principal currencies, the
US and Canadian Dollars, into Sterling were 1.45 and 2.24 respectively (2000:
1.52 and 2.26).
Net interest payable for the year was £6.1m (2000: £8.5m) which was 7.2 times
covered before the exceptional item profit.
The taxation charge for the year was £14.8m excluding the tax on the
exceptional items. This corresponds to an effective rate of 38.9% (2000:
38.3%). Higher tax rates in Canada and USA will continue to keep the Group
tax charge above the UK rate.
Exceptional Item
The exceptional item profit from the sale of the Defence and other activities
after appropriate provisions was £27.0m. This includes a £2.9m write off of
the investment in the Group's Zimbabwean activity following the uncertainties
in that country.
The cash realised from these sales was £95.9m with a further £13.6m
receivable following the settlement of outstanding claims.
Acquisitions
During the year, acquisitions were made costing £52.1m. The largest of these,
Vinson Supply Company, cost £37.5m of which £2.7m was represented by fixed
assets and £32.0m by working capital.Goodwill on these acquisitions was
£10.8m.
Subsequent to the year end, on 2 January 2002 the acquisition of Moose Jaw
Asphalt Inc. in Saskatchewan, Canada was completed for £14.4m of which net
assets were £9.3m.
Earnings Per Share
Basic earnings per share were 36.9p per share (2000: 11.5p per share) on an
average of 100.3m shares in issue during the year. Excluding the exceptional
item basic earnings per share were 14.9p per share (2000: 11.5p).
Dividends
During the year an interim dividend of 2.0p per ordinary share (2000: 3.0p)
was paid. A special dividend of 10.0p per share was also paid following the
sale of the Defence businesses and the decision to align future dividend
payments more closely to earnings and the distribution policies of other
focused oil service companies. A final dividend of 4.0p per share (2000:
6.25p per share) is now proposed to give a 16.0p (2000: 9.25p) total dividend
for the year.
Cash Flow
Operating cash inflow for the year was £55.7m (2000: £60.2million). Net
interest and dividends absorbed £5.8m (2000: £8.8m) and £26.8m (2000: £20.0m)
respectively while the net cash inflow from acquisitions, disposals and
capital expenditure was £15.1m (2000: cash outflow £47.5m). Group net debt at
31 December 2001 was £73.2m (2000: £100.8m) to give gearing, defined as net
borrowings as a percentage of shareholders' funds and minority interests, of
34% (2000: 55%).
Accounting Standards
We have continued to account for pensions during the year in compliance with
Statement of Standard Accounting Practice ('SSAP') 24. The transitional
arrangements have been exercised in adopting the disclosure requirements of
Financial Reporting Standard ('FRS') 17 -Retirement Benefits with appropriate
balance sheet disclosure of pension commitments at 31 December 2001. Note 40
on pages 51 and 52 shows that the Group's UK defined benefit pension scheme
is adequately funded on both bases of valuation. FRS 18 - Accounting Policies
was adopted during the year and FRS 19 -Deferred Tax will be adopted in 2002.
Financial Risk Management
Treasury policies and procedures approved by the Board exist to monitor
interest rate, currency and other market price risks with strict controls on
the use of financial instruments. To reduce the risk that fluctuations in
exchange rates have on the Group's results, currency options are entered into
to hedge approximately 50% of each year's budgeted Canadian and US dollar
earnings into Sterling. Currency exposure on the balance sheet is reduced by
financing assets with borrowings in the same currency. Forward foreign
exchange contracts cover the net exposure of purchases and sales in
non-domestic currencies.
Interest rate derivatives, for example swaps, caps and forward rate
agreements, are used to reduce the risk of adverse movements in interest
rates on borrowings. The Group's objective is to hedge approximately 50% of
these borrowings into fixed interest rates. At 31 December 2001, 48% of
medium and long-term borrowings were hedged. Crude oil futures contracts and
options are used to manage the Group's exposure to fluctuations in the
selling price of crude oil inventory.
Borrowing facilities are arranged with maturities appropriate to the Group's
needs. Committed facilities are £190m of which £94.0m were drawn at the end
of the year. These facilities include the Group's £70m syndicated loan
facility which runs until August 2003, a £50m loan facility expiring July
2002 with an option to extend to July 2004, and US$65m private placement
notes with maturities of US$15m in 2002, US$35m in 2005 and US$15m in 2007.
The committed facilities together with substantial uncommitted facilities,
provide the Group with sufficient liquidity to meet anticipated future
borrowing requirements. Surplus short-term cash is invested, in accordance
with the Board's approved policy, with banks or in money market funds.
Going Concern
The directors, on the basis of current financial projections and the
facilities available, believe that the Company and the Group have adequate
financial resources to continue in operation for the foreseeable future and
have continued to adopt the going concern basis in preparing the financial
statements.
Dennis Clark
Finance Director
Consolidated Profit and Loss Account
For the Year ended 31 December 2001
Continuing Discontinued Total Total
Ongoing Acquisitions
2001 2001 2001 2001 2000
Notes £m £m £m £m £m
Turnover 774.7 160.4 100.2 1,035.3 1,218.4
Less: share of - - - - (2.5)
joint venture
______ ______ ______ _______ ________
Group turnover 1 774.7 160.4 100.2 1,035.3 1,215.9
Cost of sales (678.5) (148.9) (91.8) (919.2) (1,090.1)
______ ______ ______ _______ ________
Gross profit 96.2 11.5 8.4 116.1 125.8
Net operating (57.1) (5.4) (9.5) (72.0) (86.0)
expenses
______ ______ ______ _______ ________
Group 39.1 6.1 (1.1) 44.1 39.8
operating
profit (loss)
Share of - - - - 2.1
operating
profit in
joint venture
and associated
undertakings
______ ______ ______ _______ ________
Total 1 39.1 6.1 (1.1) 44.1 41.9
operating
profit (loss)
Exceptional
items:
Profit on - - 29.9 29.9 -
disposal of
discontinued
operations
Impairment of (2.9) - - (2.9) -
net assets of
de-consolidated
subsidiary
______ ______ ______ _______ ________
Profit on 36.2 6.1 28.8 71.1 41.9
ordinary
activities
before interest
______ ______ ______
Interest 2.3 3.6
receivable and
similar income
Interest (8.4) (12.1)
payable and
similar
charges
_____ ______
Profit on 65.0 33.4
ordinary
activities
before taxation
Taxation on (19.7) (12.8)
profit on
ordinary
activities
_____ ______
Profit on 45.3 20.6
ordinary
activities
after taxation
Equity (4.4) (5.2)
minority
interests
_____ ______
Profit for the 40.9 15.4
financial year
Dividends (19.9) (13.2)
_____ ______
Retained 21.0 2.2
profit for the
year
===== ======
Basic earnings 36.9p 11.5p
per 25p
ordinary share
===== ======
Diluted 36.9p 11.4p
earnings per
25p ordinary
share
===== ======
Consolidated Statement of Total Recognised Gains and Losses
For the Year ended 31 December 2001
2001 2000
£m £m
Profit for the financial year 40.9 15.4
Revaluation of fixed assets - 3.9
Currency translation differences on foreign currency net (1.9) 2.8
investments
_____ ______
Total recognised gains and losses for the year 39.0 22.1
===== ======
Consolidated Balance Sheet
At 31 December 2001
2001 2000
£m £m
Fixed assets
Intangible assets 36.7 28.9
Tangible assets 138.4 144.2
Investment in joint venture:
________ ________
Share of gross assets - 7.9
Share of gross liabilities - (6.0)
________ ________
- 1.9
Investments in associates 1.0 3.6
Other investments 6.8 15.0
________ ________
182.9 193.6
________ ________
Current assets
Stocks 123.9 107.9
Debtors 156.8 178.1
Investments 6.1 11.8
Cash at bank and in hand 17.5 14.7
________ ________
304.3 312.5
Creditors: amounts falling due within one year (173.6) (196.0)
________ ________
Net current assets 130.7 116.5
________ ________
Total assets less current liabilities 313.6 310.1
Creditors: amounts falling due after more than one (92.4) (123.0)
year
Provisions for liabilities and charges (8.2) (4.3)
________ ________
213.0 182.8
======== ========
Capital and reserves
Called up share capital 73.1 73.1
Share premium 41.2 41.0
Revaluation reserve 14.1 24.3
Profit and loss account 40.4 0.5
Shareholders' funds
________ ________
Equity interests 120.9 91.0
Non-equity interests 47.9 47.9
________ ________
168.8 138.9
Equity minority interests 44.2 43.9
________ ________
213.0 182.8
======== ========
Reconciliation of Movements in Consolidated Shareholders' Funds
For the Year ended 31 December 2001
2001 2000
£m £m
Profit for the financial year 40.9 15.4
Dividends (19.9) (13.2)
_________ _______
Retained profit for the year 21.0 2.2
Currency translation differences on foreign currency (1.9) 2.8
net investments
Revaluation of fixed assets - 3.9
Share capital issued (repaid) 0.2 (0.7)
Goodwill written back on disposals 10.6 0.3
_________ _______
Net addition to shareholders' funds 29.9 8.5
Opening shareholders' funds 138.9 130.4
_________ _______
Closing shareholders' funds 168.8 138.9
========= =======
Consolidated Cash Flow Statement
For the Year ended 31 December 2001
2001 2000
£m £m
Net cash inflow from operating activities 55.7 60.2
_________ _______
Returns on investments and servicing of finance
Interest received 3.4 3.1
Interest paid (9.2) (11.9)
Preference dividends paid (3.9) (3.9)
Dividends paid to minorities (1.8) (6.9)
_________ _______
Net cash (outflow) from returns on investments and (11.5) (19.6)
servicing of finance
_________ _______
Taxation paid (12.5) (6.1)
_________ _______
Capital expenditure and financial investment
Purchase of tangible fixed assets (26.2) (21.7)
Sale of tangible fixed assets 2.1 1.6
Purchase of trade investments (0.9) (0.2)
_________ _______
Net cash (outflow) from capital expenditure and (25.0) (20.3)
financial investment
_________ _______
Acquisitions and disposals
Purchase of subsidiary undertakings (51.5) (28.9)
Net (overdrafts) cash acquired with subsidiary (0.7) 1.4
undertakings
Purchase of associated undertakings - (0.7)
Purchase of minority interests in subsidiaries - (1.4)
Net proceeds from disposal of operations 95.9 -
Net cash disposed of with subsidiary undertakings (16.4) -
Net proceeds from disposal of joint venture and 4.1 1.6
associated undertakings
Proceeds from disposal of other investments 8.7 0.8
_________ _______
Net cash inflow (outflow) from acquisitions and 40.1 (27.2)
disposals
_________ _______
Equity dividends paid (21.1) (9.2)
_________ _______
Net cash inflow (outflow) before use of liquid 25.7 (22.2)
resources and financing
_________ _______
Management of liquid resources
Net movement in short term money market deposits 5.7 (1.0)
_________ _______
Financing
Ordinary share capital issued 0.2 -
Preference share capital repaid - (0.7)
(Decrease) in borrowings due within one year (0.3) (20.8)
(Decrease) increase in borrowings due beyond one year (24.8) 28.8
Capital element of finance leases (0.2) (0.2)
_________ _______
Net cash (outflow) inflow from financing (25.1) 7.1
_________ _______
Increase (decrease) in cash 6.3 (16.1)
========= =======
Notes to the Financial Statements
1. SEGMENTAL ANALYSIS
Turnover and operating profit, including associated and joint venture
undertakings but before net interest costs, exceptional items and taxation,
are shown below.
2001 2001 2001 2000 2000 2000
Turnover Operating Net assets Turnover Operating Net assets
profit (liabilities) profit (liabilities)
(loss) (loss)
ACTIVITY £m £m £m £m £m £m
Oil and 587.3 19.0 96.9 703.9 19.0 95.1
gas marketing
and
distribution
Less share of - - - (2.5) - -
joint venture
undertaking
Share of joint - - - - 1.4 1.9
venture
undertaking
Oilfield 268.3 21.5 131.5 106.3 7.2 96.4
services
and tubular
products
Share of - - 1.0 - - 1.0
associate
undertakings
Exploration 79.5 4.7 37.8 67.9 1.6 37.0
and other
activities
Share of - - - - 0.5 2.3
associated
undertakings
______ _______ ______ _____ ______ ______
Continuing 935.1 45.2 267.2 875.6 29.7 233.7
operations
Discontinued
operations
Defence 100.2 (1.1) - 340.3 12.0 41.4
Share of - - - - 0.2 0.3
associated
undertakings
______ _______ ______ _______ ______ ______
1,035.3 44.1 267.2 1,215.9 41.9 275.4
======= ======= ======= ======
Net funding (73.2) (100.8)
Pension fund 11.0 8.6
prepayment
(net)
Central assets 8.0 (0.4)
(liabilities)
_______ ______
213.0 182.8
======= ======
AREA OF
OPERATIONS
Continuing
operations
Europe
- UK 68.0 5.1 1.4 36.4 (1.9) 20.2
- Continent 29.0 (0.7) 9.5 15.0 (3.3) 13.8
Canada 624.3 21.3 125.3 678.1 21.3 116.8
Share of - - - (2.5) 1.4 1.9
joint
venture -
Canada
US 209.7 19.4 129.3 145.0 12.3 76.1
Share of - - - - 0.5 2.5
associates
- UK
- Other - - 1.0 - - 0.8
Other 4.1 0.1 0.7 3.6 (0.6) 1.6
_____ _____ _____ _____ _____ ____
935.1 45.2 267.2 875.6 29.7 233.7
Discontinued
operations
Europe
- UK 89.9 0.2 - 307.6 9.7 24.9
- Continent 2.7 (0.4) - 5.1 (0.3) 1.4
Canada 2.2 (0.3) - 9.1 1.2 4.0
US 5.4 (0.6) - 11.0 0.3 7.0
Share of - - - - 0.2 0.3
associates
- Other
Other - - - 7.5 1.1 4.1
_______ _____ _____ ________ _____ _____
1,035.3 44.1 267.2 1,215.9 41.9 275.4
Net funding (73.2) (100.8)
Pension fund 11.0 8.6
prepayments (net)
Central assets 8.0 (0.4)
(liabilities) ______ _______
213.0 182.8
====== =======
Inter-divisional turnover is not material and turnover by destination is
not materially different to the area of operation. Most of the Group's
financing is arranged centrally and is not specifically attributable to
individual activities or geographic areas.
2. The summary of the results for the year ended 31 December 2001 does not
constitute full financial statements within the meaning of Section 254 of the
Companies Act 1995. Full consolidated accounts for Hunting PLC for the year
ended 31 December 2001 will be delivered to the Registrar of Companies and an
unqualified auditors' report has been given on the accounts.
This information is provided by RNS
The company news service from the London Stock Exchange
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