|
For
Immediate Release
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15 May 2024
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Hunting PLC
("Hunting" or "the Company" or "the Group")
Major OCTG
Order
Hunting secures record $145
million OCTG order from Kuwait Oil Company
Highlights
· Record
$145 million OCTG order with the Kuwait Oil Company
("KOC").
· Revenue
expected to be recognised from late Q4 2024 and into
2025.
· Group
sales order book has increased to a record c.$665 million
(including this new order).
· Supports Hunting's 2030 Strategy to deliver revenue and profit
growth through OCTG and in geographies such as the Middle
East.
·
Given the quantum of this
order, management now expects EBITDA to be towards the top end of
its current guidance of $125-135 million for 2024.
Hunting PLC (LSE:HTG), the global
engineering group, is delighted to announce that it has secured a
$145 million OCTG order with KOC through our distributor in
Kuwait.
The order comprises a large quantity
of premium OCTG casing, to be supplied by Hunting via its
end-to-end integrated OCTG supply chain in Asia Pacific. The casing
will be threaded with Hunting's proprietary SEAL-LOCK premium
connection technology at its facilities across Asia Pacific, with
revenue expected to be recognised from late Q4 2024 and into
2025.
Hunting has leading-edge
manufacturing capabilities across Asia Pacific, India and the
Middle East and since 2019 has invested to establish a leading
strategic supply chain, manufacturing capacity and connection
technology offering to support the Group's international OCTG
growth ambitions and to support KOC and other key customers'
operational needs across this important region. Delivering the
highest quality OCTG products on time together with Hunting's
unsurpassed service offering remains key to the Group's
success.
Including this new order, the
Group's sales order book has increased to c.$665 million, which is
the highest in the Company's history and provides strong earnings
visibility for the Group's Asia Pacific operating segment and OCTG
product group into 2025.
Given the quantum of this order,
management now expects EBITDA to be towards the top end of its
current guidance of $125-135m for 2024. Given the timing of revenue
recognition and working capital movements, more detailed guidance
for full year 2024 will be provided in the Company's H1 2024
Trading Statement.
The order supports the Hunting 2030
Strategy to deliver revenue and profit growth through its OCTG
product line, particularly in geographies such as the Middle East
where drilling activity continues to be strong and is likely to be
so to the end of the decade.
The order will be funded from the
Group's existing $150 million Asset Based Lending facility and, in
addition, accelerated receivable solutions and bank acceptance
bonds are also being put in place to shorten the overall cash
conversion cycle. Previous guidance on working capital efficiency
targets remains unchanged.
Hunting PLC's next Trading Statement
will be announced on Tuesday 9 July 2024.
Commenting on the KOC order win, Jim
Johnson, Hunting's Chief Executive, said:
"We would like to thank KOC for this order and look forward to
working with them over the coming months as we deliver on this
material order.
"This OCTG order win is the largest in the Company's history
and underscores our Hunting 2030 strategic ambitions, combining our
leading premium connection technology and strong end-to-end
integrated supply chain in Asia Pacific. The Group's OCTG product
team has worked incredibly hard to qualify the OCTG feedstock and
connections technology with KOC and today's announcement is
testament to their stellar work collaborating with our many
stakeholders.
"Furthermore, the order enhances Hunting's order book to its
highest ever backlog, which provides strong visibility on earnings
for the OCTG product line and Group as a whole, thereby
underpinning management's confidence in the
outlook."
For further information please
contact:
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Hunting PLC
Jim
Johnson, Chief Executive
Bruce
Ferguson, Finance Director
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Tel: +44 (0) 20 7321
0123
|
|
Buchanan
Ben Romney
Barry Archer
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Tel: +44 (0) 20 7466
5000
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or
lon.IR@hunting-intl.com
Notes to Editors:
About Hunting PLC
Hunting is a global engineering
group that provides precision-engineered equipment and premium
services, which add value for our 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 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 operating segments: Hunting Titan; North America;
Subsea Technologies; Europe, Middle East and Africa ("EMEA") and
Asia Pacific.
Hunting PLC's Legal Entity
Identifier is 2138008S5FL78ITZRN66.
