REG - Hunting PLC - Closure of facilities and sale of E&P assets

HuntingAnnouncement

24/08/2023 07:15

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RNS Number : 2676K  Hunting PLC  24 August 2023

 For Immediate Release  24 August 2023

 

 

 

 

 

Hunting PLC

 

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

 

Closure of facilities and sale of E&P assets

 

Hunting PLC (LSE: HTG), the global engineering group, today announces that as
part of a wider programme to drive higher operational efficiencies and reduce
future cost outflows, it has commenced a further restructuring of its
operating footprint, in addition to disposing of its legacy non-core
exploration and production assets.

 

Within the EMEA operating segment, the manufacturing and assembly operations
of the Group's main well testing site are to be transferred from the
Netherlands to Dubai, which will lead to the closure of a facility at
Velsen-Noord, with activities in the Netherlands to be merged into a single
location. Sales, engineering and service support functions will be maintained
in the Netherlands to support European clients. Hunting's Dubai operations are
to be relocated to a larger, higher efficiency facility in the UAE to
accommodate the manufacturing operations of the well testing business, which
also positions Hunting to capitalise on the strong market outlook for the
Middle East in the long term. Hunting will retain a single facility in
Velsen-Noord to support oil and gas and energy transition clients across
Europe.

 

Hunting Titan has commenced the closure of its Oklahoma City operating site
and will transfer the manufacture of perforating systems to the Group's Pampa,
US, and Monterrey, Mexico, facilities, which have both benefited from recent
investment in new production capacity. A distribution centre will be retained
in the area to continue to service clients.

 

Since the start of 2023, Hunting has also divested the majority of its legacy
non-core exploration and production assets held by its wholly-owned subsidiary
Tenkay Resources, Inc. The disposals have been completed on an asset-by-asset
basis, with Hunting now retaining a working interest in a single offshore
field. As part of the disposal process, Hunting has negotiated the transfer of
the majority of the non-producing assets and respective future plug and
abandonment liabilities, which have reduced Hunting's possible exposure to
future decommissioning costs.

 

Jim Johnson, Chief Executive, commented:

 

"Hunting is continuing to drive stronger internal operational efficiencies
throughout its global footprint. Management is making good progress in
delivering key initiatives in support of the Hunting 2030 strategy, which
includes locating manufacturing facilities in areas of high growth and merging
operations to enhance returns and lower the cost base."

 

For further information please contact:

 

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

 Jim Johnson, Chief Executive

 Bruce Ferguson, Finance Director

 lon.ir@hunting-intl.com

 Buchanan                           Tel: +44 (0) 20 7466 5000

 Ben Romney

 George Pope

 

Notes to Editors:

 

About Hunting PLC

 

Hunting is a global engineering group that provides precision-manufactured
equipment and premium services, which add value for its customers. 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, North
America, Subsea Technologies, EMEA and Asia Pacific.

 

Hunting PLC's Legal Entity Identifier is 2138008S5FL78ITZRN66.

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