Interim Management Statement

RNS Number : 1466W

Hunting PLC

05 November 2014

 



For Immediate Release

5 November 2014

Hunting PLC

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

Interim Management Statement

Hunting PLC (LSE: HTG), the international energy services group today issues its Interim Management Statement for the period 1 July 2014 to date.

Dennis Proctor, Hunting's Chief Executive said,

"Activity in North America has remained strong during the reporting period, with both onshore and offshore capital expenditures within the industry supporting demand. In Europe, drilling activity has been slow, leading to a more challenging operating environment, while in Asia Pacific and the Middle East activity levels remain positive. Customer demand levels have not to date been affected by the recent weakening of the oil price.

"Our capital investment programmes in the United States and South Africa remain on track for completion over the next nine months, adding approximately 0.4 million square feet of additional manufacturing capacity.

"In summary, Hunting is well positioned to deliver a further year of growth as industry investment and business momentum continues, with the overall outlook for the Group's trading, for the year as a whole, in line with management's expectations."

Well Construction

Hunting's Premium Connections business continues to report positive trading, with the construction of a new threading facility in Houston, Texas progressing. The Drilling Tools platform has reported lower results in the period, partly due to higher levels of tool repair and refurbishment costs arising in Q3 2014.

Within the Advanced Manufacturing Group, trading at Hunting Electronics remains slow, however, the medium term outlook is improving. Hunting Dearborn is trading ahead of expectations as customers increase their order momentum. Expansion of the Dearborn facility in Fryeburg, Maine, continues with commissioning to occur in early Q2 2015.

Hunting Specialty continues to report good results with new customers added throughout the year.

Well Completion

Hunting Titan continues to report strong results with trading ahead of management's expectations in the year to date. The business has increased its market share in a number of key regions across North America, with initiatives to internationalise its product offering, including Europe and Asia Pacific, starting to deliver new revenue streams.

The US Manufacturing business also reports good results, with continuing demand from the Gulf of Mexico driving a positive performance.

Our Canadian operations continue to report an improving performance following the loss reported in 2013, while in Asia Pacific, trading has been positive throughout the reporting period. In Europe, activity levels have been slow leading to a lower than anticipated trading result.

Well Intervention

Hunting Subsea has reported good results in the year to date as demand for hydraulic valves and couplings increases in line with global activity levels.

Hunting's pressure control product lines continue to report good demand globally, with strong sales in Asia Pacific noted throughout Q3 2014.

Financial Position

Overall the Company has a strong balance sheet, with no significant change to the financial position of the Group since the publication of the half year results in August 2014. Capital investment is forecast to be about $130 million in the current year, however actual cash spend remains dependent on project timing.

The Group's net debt position as at 31 October 2014 was approximately $200.0 million.

For further information please visit www.huntingplc.com or contact:

Hunting PLC Dennis Proctor, Chief Executive Peter Rose, Finance Director	Tel: [phone]
Buchanan Richard Darby Gabriella Clinkard	Tel: [phone]

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 principal operations in Canada, China, Hong Kong, Indonesia, Mexico, Netherlands, Singapore, South Africa, Thailand, United Arab Emirates and the United States of America.

 

END

 

 

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