REG - Hunting PLC - Restructuring of European OCTG Businesses

HuntingAnnouncement

31/12/2021 11:35

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RNS Number : 2076X  Hunting PLC  31 December 2021

 For Immediate Release  31 December 2021

 

 

 

Hunting PLC

 

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

 

Restructuring of European OCTG Businesses

 

Hunting PLC (LSE : HTG), the international energy services group, today
announces the completion of a restructuring of its European Oil Country
Tubular Goods ("OCTG") businesses. The restructuring will simplify Hunting's
operating presence in the EMEA region, as the North Sea market positions
itself for growth following the downturn seen over the past two years.

 

·           Hunting, through its subsidiary Hunting Energy Services
(International) Limited, is currently a 60% shareholder in the Hunting Energy
Services (UK) Limited joint venture ("HESUK"). Marubeni-Itochu Steel Inc and
Marubeni-Itochu Tubulars Europe PLC (collectively referred to as "MI") hold
the balance of the shareholding of 40%.

 

·           As a result of the transaction, Hunting has purchased
MI's 40% interest in the joint venture and becomes the sole shareholder in
HESUK, which includes the operating facilities in Aberdeen, UK and in
Velsen-Noord, the Netherlands. Hunting and MI have also entered into a
Business Purchase agreement, whereby MI has agreed to purchase OCTG inventory
held by the joint venture.

 

·           Hunting will receive a net cash inflow of $27.7m on
completion of the restructuring, reflecting the purchase of MI's shareholding
and the agreed consideration under the Business Purchase agreement.

 

·           For the 12 months to 31 December 2020, HESUK reported
revenue of $35.3 million and a loss before tax of $8.5 million. The gross
assets held as at 31 December 2020 were $60.7 million.

 

The transaction provides Hunting and MI the opportunity to focus on their
respective core competencies of providing world-leading threading,
manufacturing and in-field support and OCTG supply and trading.

 

Jim Johnson, Chief Executive of Hunting, commented:

 

"The restructuring of our European OCTG businesses has generated a $27.7m net
cash inflow and has released significant capital for the Group to deploy into
new business opportunities. Our operations in Aberdeen and Velsen-Noord will
continue to support clients operating in the North Sea and Europe and we look
forward to continuing our close relationship with MI."

 

 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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