REG - Hunting PLC - AGM and Q1 2022 Trading Update

HuntingAnnouncement

20/04/2022 07:00

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RNS Number : 6446I  Hunting PLC  20 April 2022

 For Immediate Release  20 April 2022

 

 

Hunting PLC

 

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

 

AGM and Q1 2022 Trading Update

 

Hunting PLC (LSE:HTG), the international energy services group, issues the
following Trading Update for Q1 2022, ahead of its Annual General Meeting that
will take place today at 1:30p.m. BST in London.

 

Commenting on Q1 2022 trading and the market outlook, Hunting's Chief
Executive, Jim Johnson said:

 

"The world is in a fundamentally different place today than when the quarter
began with energy security now at the top of the policy agenda on both sides
of the Atlantic. Trading in the quarter has remained in line with management's
expectations, with an EBITDA of c.$6.7m reported reflecting strengthening
markets, particularly for Hunting Titan and the Group's US onshore operations,
along with a further narrowing of losses within Hunting's other operating
segments. Results have accelerated throughout the period with EBITDA in March
2022 now the best since April 2020. These results were achieved despite a
residual drag from COVID-19 in January and early February."

 

"Hunting's order book grew further during the quarter and now exceeds
pre-pandemic levels, supporting management's view that global drilling
activity and investment is improving. While the Group's order backlogs are
increasing, traditional lead times are, however, being impacted across the
industry with raw material and electronic component deliveries being extended
by the pandemic."

 

"The sharp increase in global commodity prices is also leading to an increase
in industry investment sentiment, with energy security and oil and gas reserve
depletion driving a new phase of growth. Hunting remains well positioned to
take advantage of this improving market environment."

 

Hunting Titan has reported good improvement in revenue during Q1 2022 compared
to Q4 2021, with sales c.12% ahead of the prior quarter and c.45% ahead of Q1
2021 and recorded an operating profit for the period.

 

Revenue within the North America operating segment remains in line with
management expectations as the Group's Premium Connections, US Manufacturing
and Subsea businesses report increasing orders.

 

Within the EMEA operating segment, revenue has increased in the quarter
compared to Q4 2021 as drilling programmes across the region recommenced.

 

The Group's Asia Pacific operating segment continues to see some volatility in
sales; however, operating losses continue to reduce as enquiries and order
book levels slowly improve.

 

The Group's Balance Sheet remains robust with good liquidity, including
undrawn core bank borrowing facilities of $150.0 million committed until
February 2026, and a cash and bank position of c.$71.6 million at 31 March
2022 compared to $114.2 million at 31 December 2021. This reflects the normal
settlement of accounts payables after year-end, coupled with increases to
working capital as market conditions improve.

 

The final dividend recommended for 2021 of 4.0 cents per share is due for
payment on 13 May 2022, which will absorb c.$6.4 million.

 

For further information please contact:

 

 Hunting PLC                        Tel: +44 (0) 20 7321 0123

 Jim Johnson, Chief Executive

 Bruce Ferguson, Finance Director

 Tarryn Riley, Investor Relations

 Buchanan                           Tel: +44 (0) 20 7466 5000

 Ben Romney

 Jon Krinks

 

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 four segments: Hunting Titan; North
America; Europe, Middle East and Africa ("EMEA") and Asia Pacific.

 

Hunting PLC's Legal Entity Identifier is 2138008S5FL78ITZRN66.

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