REG - Hunting PLC - Launch of 2030 Strategy & Capital Markets Day

HuntingAnnouncement

02/03/2023 07:16

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230302:nRSB5911Ra&default-theme=true

RNS Number : 5911R  Hunting PLC  02 March 2023

 For Immediate Release  2 March 2023

 

Hunting PLC

 

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

 

Launch of Hunting 2030 Strategy and Capital Markets Day

 

Hunting PLC (LSE:HTG), the international energy services group with proven
capabilities for energy and beyond, today announces the launch of the Hunting
2030 Strategy, a broad-based strategy to grow and evolve the Company through
the remainder of the decade and beyond.

 

The highlights of the Hunting 2030 Strategy are detailed below and will be
expanded upon at a Capital Markets Day to be hosted in September 2023.

 

Strategic Highlights

 

·           Continue to capitalise on Hunting's proven capabilities
in energy services;

·           Stimulate further growth, rebuild baseload earnings and
stabilise profitability:

o    Supported by the strong outlook for global oil and gas sales (North
America, Europe, Middle East and Asia Pacific);

o    Furthered through diversifying revenue across non-oil and gas
sub-sectors where the Group can leverage existing expertise;

o    Delivered through both organic and inorganic growth opportunities;

·           Resulting in a long-term EBITDA margin target of 15%;
and

·           Sustainable and growing dividend policy targeting an
average increase of c.10% per annum until the end of 2030.

 

Commenting on Hunting's 2030 Strategy, Chief Executive Jim Johnson, said:

 

"The Board has set a targeted medium-term strategy that derives revenue from a
wider range of sectors including oil and gas, as well as the wider energy
industry and other sectors requiring precision engineering and systems design,
supported by the Group's proprietary technology and sector leading expertise.
This strategy will stimulate new growth and rebuild a baseload of earnings to
establish greater resilience to the cyclicality of the oil and gas industry,
which will in turn lead to more stable earnings and increased investment
returns in the medium term.

 

"The evolution of the Group's strategy is underpinned by its established
position as a manufacturer of world-class precision engineered products across
multiple sectors and the belief that Hunting can achieve strong organic growth
within existing and complementary sectors through an enhanced strategic focus
on compelling growth markets that lend themselves to Hunting's existing
expertise."

 

Strategic Initiatives

 

Continued focus on precision engineering to service the global oil and gas
market

 

·           Primary focus remains on the manufacturing of
high-value, energy services' products and technology for Hunting's core oil
and gas market; of which

·           Premium connections, OCTG, accessories manufacturing
and well intervention tools will underpin revenue and profitability over the
short and medium term, driven by a continued focus on domestic and regional
energy security and following years of material underinvestment in oil and gas
production;

·           Cash flows from core operations will fund new
investments in both the oil and gas sector as well as wider opportunities.

 

Growth of Subsea Technologies operating segment

 

·           Subsea Technologies growth to be achieved both
organically and inorganically;

·           Since 2009, the Company has acquired a number of key
businesses:

o    National Coupling Company - a key supplier of hydraulic valves and
couplings to deep water projects;

o    RTI Energy Services - a manufacturer of titanium and steel stress
joints, which are applied to FPSOs; and

o    Enpro Subsea - a developer of modular deep water production and
intervention equipment.

·           These businesses form Hunting's core Subsea
Technologies offering;

·           The Group is also focusing on new opportunities across
the energy transition, plug and abandonment and integrated subsea systems
sectors.

 

Development of Energy Transition market position

·           Establishment of Energy Transition sales group
previously announced in December 2022;

·           Strategic focus on cultivating a material revenue
stream from the emerging opportunities within the geothermal and carbon
capture and storage sectors;

·           Near and medium term growth opportunities in Asia
Pacific and North America, where a significant number of developments have
been sanctioned.

 

Continued development of non-oil and gas revenue

 

·           Continued diversification within Hunting's Advanced
Manufacturing business, leveraging its expertise in precision engineering and
specialist electronics;

·           Both the Dearborn and Electronics businesses have grown
their respective order books over the past 12 months (>$121m with >$40m
from non-oil and gas sectors in areas such as defence and aerospace);

·           Anticipate further material growth from our existing
business, supplemented by targeted inorganic growth.

 

Notice of Capital Markets Day

 

Hunting will present the details of the Hunting 2030 Strategy at a Capital
Markets Day to be held in London in September 2023. Further details of this
event will be provided in due course.

 

 

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

 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 has its headquarters
in London. As well as the United Kingdom, the Company has principal
operations in Canada, China, Indonesia, Mexico, Netherlands, Singapore, United
Arab Emirates and the United States of America.

 

From 1 January 2023, Hunting reports across five operating segments: Hunting
Titan, North America, Subsea Technologies, Middle East and Africa ("EMEA") and
Asia Pacific.

 

Hunting PLC's Legal Entity Identifier is 2138008S5FL78ITZRN66.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDUAOKRORUORAR