TIDMHTG
RNS Number : 0954R
Hunting PLC
04 March 2021
For Immediate Release 4 March 2021
Hunting PLC
("Hunting" or "the Company" or "the Group")
Results for the year ended 31 December 2020
Hunting PLC (LSE:HTG), the international energy services group,
today announces its results for the year ended 31 December
2020.
Performance in the year was adversely impacted by the reduction
in activity in the global oil and gas market. The Group's strong
year-end cash and bank, coupled with improving market indicators,
position the Group well for the year ahead and support the final
dividend proposed by the Board. Hunting's resilience through the
past 12 months demonstrates its ability to respond decisively
despite challenging market conditions, while also executing key
strategic initiatives that will deliver future growth.
Financial Summary(*)
* Revenue $626.0m (2019 - $960.0m)
* EBITDA $26.1m (2019 - $139.7m)
* Underlying loss from operations of $16.4m (2019 -
$94.3m profit)
* Amortisation of acquired intangible assets and
exceptional items totalling $203.6m charged in the
year (2019 - $47.5m)
* Reported loss from operations of $220.0m (2019 -
$46.8m profit)
* Underlying diluted loss per share 10.0 cents (2019 -
43.9 cents earnings per share)
* Reported diluted loss per share 143.2 cents (2019 -
23.5 cents earnings per share)
* Net assets of $976.6m (31 December 2019 - $1,223.8m)
* Total cash and bank of $101.7m (31 December 2019 -
$127.0m)
* Final dividend of 4.0 cents per share proposed (2019
- nil) and payable on 14 May 2021 to shareholders on
the register on 23 April 2021, subject to approval at
the Company's AGM
*Underlying results are based on reported results before
amortisation of intangible assets recognised as part of a business
combination and exceptional items. Reported results are based on
the statutory results as reported under International Financial
Reporting Standards as adopted by the EU.
Operational and Corporate Highlights
$32.8m acquisition of Enpro Subsea Limited ("Enpro") completed in February
2020.
* Enpro is a leader in subsea production technology,
offering low cost, flexible field development
solutions including well production and intervention
modules to enhance recovery from oil and gas wells.
Enpro is now integrated into the Subsea business
division.
* Revenue from Subsea products increased 57% to $69.8m
(2019 - $44.5m), largely as a result of our Enpro and
RTI acquisitions.
Divestment of US Drilling Tools business completed in December 2020.
* Hunting transferred key operating assets to Rival
Downhole Tools LC, in exchange for a 23.5% equity
position within the expanded Rival business.
New business model in Canada implemented in August 2020.
* Hunting has closed its manufacturing operation in
Calgary, Alberta, and opened a sales office to pursue
new business opportunities. Future customer OCTG
requirements are to be completed by in-country
licensees.
* A field service centre has been retained in Nisku,
with Hunting Titan continuing to operate its network
of distribution centres across Western Canada.
Investment in Well Data Labs, a well analytics company, completed in February
2021.
* Hunting has provided $2.5m in convertible capital
financing to support Well Data's growth ambitions.
* Key investment in the high growth data analytics
sub-sector of the drilling market.
New products launched in the year to broaden customer offering.
* Completion of detonating cord manufacturing line at
Milford, Texas, to increase Hunting Titan's product
offering. The new line has an annual production
capacity of c.3.0 million feet.
* New V3.0 ControlFire(R) switch launched to enable
higher level of in-field reliability.
* Additional variants of the E-SUB(TM), H-1(R) and
H-2(TM) Perforating Systems launched in the year.
* Rental offering launched for T-Set(TM) One setting
tool.
Non-oil and gas revenue more resilient in the year with good progress
in this area within the Advanced Manufacturing group.
* Medical and aviation certifications secured at
Hunting Electronics to support diversification.
* Hunting Dearborn reports increase in non-oil and gas
order book, including aviation and space orders.
* UK business secured new geothermal project win.
* Oil and gas revenue declined 36% to $586.2m (2019 -
$918.7m).
* Non-oil and gas revenue has been more resilient at
$39.8m (2019 - $41.3m), increasing to 6% of revenue
(2019 - 4%).
Significant restructuring across the Group to align with the prevailing
market and to reduce cost base.
* Five operating sites and three distribution centres
closed or mothballed during the year.
* 35% of workforce released as market conditions
declined.
Board changes .
- Bruce Ferguson appointed Finance Director in April 2020, following
shareholder approval at the AGM.
Commenting on the results Jim Johnson, Chief Executive,
said:
"The early weeks of 2021 have seen a steady increase in a number
of key market indicators, including a rising WTI oil price and
improving rig count. This positive sentiment, if sustained, bodes
well for the global energy industry for the coming months as
operators seek stability across the sector to enable them to
confirm new drilling programmes and capital investment. Supporting
this sentiment is the availability of COVID-19 vaccines and the
rollout of immunisation programmes across the World.
"Within the US market, our Hunting Titan segment has seen a
steadily improving revenue profile in recent months as onshore
activity levels have increased. The business has reopened a
distribution centre to meet this demand and has made selective
additions to headcount. Hunting Titan's technology offering
continues to be industry-leading, which will support new sales
opportunities both in the US and internationally as onshore
drilling programmes recommence.
"The Group's US operating segment, which provides equipment to
both onshore and offshore projects, anticipates accelerating
activity in H2 2021, following the slowing of offshore projects in
the second half of 2020.
"In Canada, our new business model is seeing good customer
acceptance as we work with our new licence partners. Hunting's
European operations report optimism for the year ahead as deferred
drilling programmes recommence. In the UK, a number of clients have
already indicated that drilling will take place in 2021, while in
the Netherlands international orders received since the start of
the year will ensure our OCTG facility will remain busy for the
short-term.
"In the Middle East and Asia Pacific, new opportunities are
emerging following the increase in the oil price and the beginning
of vaccination programmes, with growth now projected from the
middle of the year.
"The Group has made strong inroads into new sectors in the year.
Our presence in the medical devices, aviation and space sectors has
increased and our various operating segments have all progressed
initiatives that utilise our core competencies, as well as
diversify our revenue streams.
"The Board of Hunting believes that the Group has been decisive
in its actions during 2020 to manage the market downturn. The Group
enters 2021 a leaner organisation, with its global capabilities
intact and poised to capitalise on any new opportunities
presented."
Group Results Narrative
For access to narrative on the Group's results (incorporating
the Chairman's and Chief Executive's Statements, Outlook, Market
Analysis, Group Review and Segmental Review) for the year ended 31
December 2020 please click on the following link.
http://www.rns-pdf.londonstockexchange.com/rns/0954R_1-2021-3-3.pdf
Financial Statements and Notes to the Accounts
For access to the Financial Statements and Notes to the Accounts
for the year ended 31 December 2020 please click on the following
link.
http://www.rns-pdf.londonstockexchange.com/rns/0954R_2-2021-3-3.pdf
Listing Rules / Disclosure Guidance and Transparency Rules
Information
For access to Hunting's Business Model and Strategy, Risk
Management (including Principal Risks) and Key Performance
Indicators information and the Statement of the Directors'
Responsibilities for the year ended 31 December 2020 please click
on the following link.
http://www.rns-pdf.londonstockexchange.com/rns/0954R_3-2021-3-3.pdf
Page number references refer to the full Annual Report when
available.
The linked documents provide access to all major financial and
operational disclosures contained in the Group's 2020 Annual Report
and Accounts. The complete 2020 Annual Report and Accounts will be
published on 18 March 2021 and can then be accessed at
www.huntingplc.com .
The financial information set out in the above links does not
constitute the Company's statutory accounts for the years ended 31
December 2020 or 31 December 2019, but is extracted from those
accounts. Statutory accounts for 2019 have been delivered to the
Registrar of Companies and those for 2020 will be delivered in due
course. The auditor has reported on those accounts; their reports
were unqualified, did not draw attention to any matter by way of
emphasis without qualifying their report and did not contain
statements under s498(2) or (3) of the Companies Act 2006. Whilst
the financial information included in this preliminary announcement
has been computed in accordance with International Financial
Reporting Standards, this announcement does not itself contain
sufficient information to comply with IFRS.
Analyst Briefing and Webcast
Hunting PLC will host an analyst webcast on Thursday 4 March
2021 commencing at 1:00p.m. GMT.
The live webcast can be accessed via the following link:
https://
webcasting.buchanan.uk.com/broadcast/600fdb93c4904929abd81ff1
Analysts wishing to participate in a Q&A session following
the webcast must contact Buchanan at hunting@buchanan.uk.com to
receive the dial-in details.
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
Chris Judd
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 China, Indonesia, Mexico, Netherlands,
Norway, Saudi Arabia, Singapore, United Arab Emirates and the
United States of America.
The Group reports its 2020 Full Year Results in US dollars
across five segments: Hunting Titan, US, Canada, Europe, Middle
East and Africa ("EMEA") and Asia Pacific. From 1 January 2021, a
sales and administration function will remain in Calgary to support
the Group's presence in Canada and the results under the new
business model will be reported in the US segment.
Hunting PLC's Legal Entity Identifier is
2138008S5FL78ITZRN66.
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