REG - Hunting PLC - AGM and Q1 2025 Trading Update

HuntingAnnouncement

16/04/2025 07:00

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RNS Number : 1606F  Hunting PLC  16 April 2025

 For Immediate Release  16 April 2025

 

Hunting PLC

 

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

 

AGM and Q1 2025 Trading Update

 

Hunting PLC (LSE: HTG), the precision engineering group, issues the following
Trading Update for Q1 2025, ahead of its Annual General Meeting that will take
place today at 10:30a.m. BST in London.

 

Q1 2025 Trading Update

 

The Group has traded in line with expectations during the quarter, delivering
an EBITDA of c.$38.7 million (Q1 2024 - c.$28.9 million) at an EBITDA margin
of 14% (Q1 2024 - 12%).

 

All product groups have traded in line with management's expectations in the
quarter.

 

As is typical for this time of year, the Group has invested in working capital
in the period to satisfy committed orders, which has led to a net cash outflow
in the quarter, leading to a cash and bank / (borrowings) position of c.$58.0
million (31 December 2024 - $104.7 million). This outflow also includes the
maturity of certain bank acceptance drafts, in relation to working capital
instruments utilised in 2024, and the purchase of Ordinary shares by the
Company's Employee Benefit Trust to satisfy the vesting of future long-term
incentive awards, with $3.4 million absorbed purchasing 849,701 Ordinary
shares in Q1 2025.

 

In line with the Hunting 2030 Strategy, in the quarter the Group completed the
acquisition of the Organic Oil Recovery technology from its founding
shareholders for a consideration of $17.5 million and disposed of its non-core
interest in Rival Downhole Tools for a consideration of $13.1 million.

 

Management continues to assess bolt-on acquisitions, with a number of
transactions being progressed during the period. Areas of focus remain subsea
and intelligent well completion businesses.

 

The restructuring of the EMEA operating segment continues, with a projected
$10 million annualised cost saving being targeted.

 

International Trade Tariffs

 

The Group has assessed the potential international trade tariffs proposed by
the US administration and presents in the table below a high-level analysis of
the potential impact of these tariffs if they are introduced. The analysis is
qualitative and has not been audited.

 

 Operating Segment    Potential Impact
 Hunting Titan        -       Minimal impact, given the majority of revenue and costs are
                      derived from US- based supply chains.
 North America        -       Minimal impact, given the majority of revenue and costs are
                      derived from US- based supply chains.
 Subsea Technologies  -       Minimal impact, given majority of revenue is derived from
                      non-tariffed countries such as Guyana.
 EMEA                 -       No impact, given no sales are into North America.
 Asia Pacific         -       No impact, given no sales are into North America.

 

The Directors believe that, subject to international supply chains settling
following the announcements made by the US administration in recent weeks, the
ongoing impact of tariffs on the Group's prospects and trading are immaterial
and broadly align to the potential impact noted above. This is before taking
into account any indirect impact of commodity pricing on the global economy.

 

Sales Order Book and Commodity Prices

 

At 31 March 2025, the Group's sales order book was $439.3 million (Q4 2024 -
$506.8 million), which includes the recently announced new subsea orders,
totalling $38 million. The order book also reflects the continued work-off of
larger orders for clients including Kuwait Oil Company and ExxonMobil.
Management currently estimates that 77% of the current order book balance will
be traded in the remainder of the current financial year, which supports a
good proportion of our targeted revenue. The Group remains focused on reducing
working capital and increasing cash generation.

 

The Directors have also assessed the impact of the decline in commodity prices
since 2 April 2025, with the WTI crude oil price trading at c.$61 per barrel
as of 15 April 2025. To date, we have not seen any negative response to the
lower pricing environment from our client base, but management continues to
monitor the situation closely and will provide a further update in the H1 2025
Trading Update. The Group's consolidated balance sheet remains strong, with
the above working capital and cash initiatives providing ongoing flexibility
and optionality during this time of increased market volatility.

 

The H1 2025 Trading Update will be issued on Wednesday 16 July 2025.

 

For further information please contact:

 

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

 Jim Johnson, Chief Executive

 Bruce Ferguson, Finance Director

 Burson Buchanan                    Tel: +44 (0) 20 7466 5000

 Ben Romney

 Barry Archer

 

or

 

lon.IR@hunting-intl.com

 

About Hunting PLC

 

Hunting is a global, precision engineering group that provides
precision-manufactured equipment and premium services, which add value for our
customers. Established in 1874, it is a listed public company, quoted on the
London Stock Exchange in the Equity Shares in Commercial Companies ("ESCC")
category. The Company maintains a corporate office in Houston and is
headquartered in London. As well as the United Kingdom, the Company has
operations in China, India, Indonesia, Mexico, Netherlands, Norway, Saudi
Arabia, Singapore, United Arab Emirates and the United States of America.

 

The Group reports in US dollars across five operating segments: Hunting Titan;
North America; Subsea Technologies; Europe, Middle East and Africa ("EMEA"),
and Asia Pacific.

 

The Group also reports revenue and EBITDA financial metrics based on five
product groups: OCTG, Perforating Systems, Subsea, Advanced Manufacturing and
Other Manufacturing.

 

Hunting PLC's Legal Entity Identifier is 2138008S5FL78ITZRN66.

 

 

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