Trading Update

RNS Number : 8493U

Hunting PLC

01 July 2009

 



For Immediate Release

1 July 2009

Hunting PLC

('Hunting' or 'the Company')

Trading Update

Hunting PLC (LSE:HTG) the international energy services company today provides an update on trading ahead of its Half Year Results to be announced on the Thursday 27 August 2009. 

Dennis Proctor, Hunting's Chief Executive, said:

'Given global financial developments combined with the significant decline in commodity prices, overall trading in the first half of 2009 has been satisfactory. Trading in the Middle East and Southeast Asia is good with earnings from contracts in these regions expected to improve further throughout 2009. Conversely, the rapid decline of drilling activity in North America to 57% of the high level in August 2008 has impacted certain operations in the region. The primary impact of this decline on Well Construction has been felt in HDD trenchless drilling products and the mud motor product line. In Well Completion, premium tubing sales began to decline in the later part of the second quarter. Within these divisions, normal steps of cost containment, including a 16% reduction in staff numbers, have been initiated and will partly mitigate the financial impact. Despite the doubling of the oil price in the last few months providing encouraging signs for the remainder of the year, natural gas is the primary driver of North American rig activity and most likely will remain flat.

'Two acquisitions were announced in the period, PT SMB in Indonesia and National Coupling Company in Houston, Texas. Others remain under review and we hope to make further announcements in the second half of the year. New capital projects for plant enhancement and expansion have been approved and initiated.

'Our liquidity remains strong with a net cash position of approximately £380m at 30 June 2009 anticipated.

'Should current market conditions and commodity prices prevail, trading throughout the remainder of the year will be challenging, however we remain confident that the long term fundamentals are solid and that any recovery in global economies will improve demand for oil and natural gas. With further acquisitions and completed capital projects, the Company will be in a strong position to capitalise on the recovery and return to the excellent earnings previously experienced.'

For further information please contact:

Hunting PLC Dennis Proctor, Chief Executive Peter Rose, Finance Director	Tel: [phone] Tel: [phone]
Buchanan Communications Ben Willey Richard Darby	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 fully 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, France, Holland, Hong Kong, Singapore, United Arab Emirates and the United States of America.

 

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