REG - Hunting PLC - AGM and Q1 2020 Trading Update

HuntingAnnouncement

15/04/2020 07:01

RNS Number : 6466J
  
Hunting PLC
  
15 April 2020
  
 





For Immediate Release


15 April 2020




 
 
Hunting PLC
 
("Hunting" or "the Company" or "the Group")
 
AGM and Q1 2020 Trading Update
 
Hunting PLC (LSE:HTG), the international energy services group, will today be holding its Annual General Meeting commencing at 2.30p.m., and ahead of the meeting, issues a Q1 2020 trading update.
 
Our industry is currently experiencing an unprecedented demand and supply shock following the collapse in oil prices and as the effect of the coronavirus is felt across global economies, along with the decline in domestic and international trade. 
 
As a consequence of these factors management has implemented a programme of measures to contain costs including the curtailment of non-essential capital expenditure and an immediate recruitment freeze. A review of all Group costs is also ongoing with plans in place to align each business unit within the Group to the market and trading outlook as the impact of the lower oil price is felt. 
 
Trading in Q1 2020 was broadly in line with management's expectations, however, the impact of the oil price decline has affected demand within the Group's segments focused on US onshore completions since the end of March 2020. Other segments are likely to see declines towards the end of Q2 2020, given that orders are continuing to be completed across all of Hunting's operating regions for a variety of offshore and international projects. 
 
With this market backdrop and trading outlook, the Board will continue to regularly update investors as and when appropriate, but at this time has decided to withdraw 2020 full year guidance given the limited visibility due to the global impact on sentiment and volatility seen across all markets since the middle of March 2020.
 
The Group's Balance Sheet remains robust with good liquidity, including undrawn core bank borrowing facilities of $160.0 million committed until 2022, and a net cash position of $22.3 million at 31 March 2020, compared to $123.1 million at 31 December 2019. The reduction since the year-end of $100.8 million reflects: (i) the $33.0 million consideration paid to acquire Enpro Subsea Limited, (ii) $11.0 million absorbed by the share buyback programme, which completed on 18 March 2020, and shares bought to satisfy future employee share awards, and (iii) the settlement of receivables/payables and other movements of $56.8 million. Inventory levels have remained broadly similar to those at 31 December 2019, but are targeted to reduce going forward. The net cash figures quoted above do not include the IFRS 16 lease liability obligations of $42.0 million at 31 March 2020 (31 December 2019 $45.2 million).
 
The net cash position is also before payment of the interim dividend of 3.0 cents per share as announced by the Company on 3 April 2020. The interim dividend, which replaces the 2019 Final Dividend, is due to be paid on 15 May 2020 and will absorb c.$5.0 million. 
 
Directorate Change
 
As previously announced Peter Rose, Hunting's Finance Director, today retires from the Group after 23 years of service to the Company. Details of Mr Rose's remuneration will shortly be published.
 
Subject to the approval of shareholders at today's Annual General Meeting, Bruce Ferguson will succeed Mr Rose and join the Board with immediate effect.
 
For further information please contact:
 




Hunting PLC 
Jim Johnson, Chief Executive
Peter Rose, Finance Director
Bruce Ferguson, Finance Director designate
Tarryn Riley, Investor Relations
 


Tel: +44 (0) 20 7321 0123




Buchanan 
Ben Romney
Chris Judd


Tel: +44 (0) 20 7466 5000




 
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 operations in Canada, China, Indonesia, Mexico, Netherlands, Norway, Saudi Arabia, Singapore, United Arab Emirates and the United States of America.
 
The Group reports in US dollars across five segments: Hunting Titan, US, Canada, Europe, Middle East and Africa ("EMEA") and Asia Pacific.
 
Hunting PLC's Legal Entity Identifier is 2138008S5FL78ITZRN66.


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