Brief trading update in the mean-time... http://www.stockopedia.com/news/announcement/HTG/090701htg000372.htm
Dennis Proctor, Hunting's Chief Executive, said:
"Given global financial developments combined with the significant decline in commodity prices, overall trading in the first half of 2009 has been satisfactory. Trading in the Middle East and Southeast Asia is good with earnings from contracts in these regions expected to improve further throughout 2009. Conversely, the rapid decline of drilling activity in North America to 57% of the high level in August 2008 has impacted certain operations in the region. The primary impact of this decline on Well Construction has been felt in HDD trenchless drilling products and the mud motor product line. In Well Completion, premium tubing sales began to decline in the later part of the second quarter. Within these divisions, normal steps of cost containment, including a 16% reduction in staff numbers, have been initiated and will partly mitigate the financial impact. Despite the doubling of the oil price in the last few months providing encouraging signs for the remainder of the year, natural gas is the primary driver of North American rig activity and most likely will remain flat.... Our liquidity remains strong with a net cash position of approximately GBP380m at 30 June 2009 anticipated.
"Should current market conditions and commodity prices prevail, trading throughout the remainder of the year will be challenging, however we remain confident that the long term fundamentals are solid and that any recovery in global economies will improve demand for oil and natural gas. With further acquisitions and completed capital projects, the Company will be in a strong position to capitalise on the recovery and return to the excellent earnings previously experienced."
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