Closure of facilities and sale of E&P assets

Hunting PLC

24 August 2023

 

For Immediate Release

24 August 2023

Hunting PLC

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

Closure of facilities and sale of E&P assets

Hunting PLC (LSE: HTG), the global engineering group, today announces that as part of a wider programme to drive higher operational efficiencies and reduce future cost outflows, it has commenced a further restructuring of its operating footprint, in addition to disposing of its legacy non-core exploration and production assets.

Within the EMEA operating segment, the manufacturing and assembly operations of the Group's main well testing site are to be transferred from the Netherlands to Dubai, which will lead to the closure of a facility at Velsen-Noord, with activities in the Netherlands to be merged into a single location. Sales, engineering and service support functions will be maintained in the Netherlands to support European clients. Hunting's Dubai operations are to be relocated to a larger, higher efficiency facility in the UAE to accommodate the manufacturing operations of the well testing business, which also positions Hunting to capitalise on the strong market outlook for the Middle East in the long term. Hunting will retain a single facility in Velsen-Noord to support oil and gas and energy transition clients across Europe.

Hunting Titan has commenced the closure of its Oklahoma City operating site and will transfer the manufacture of perforating systems to the Group's Pampa, US, and Monterrey, Mexico, facilities, which have both benefited from recent investment in new production capacity. A distribution centre will be retained in the area to continue to service clients.

Since the start of 2023, Hunting has also divested the majority of its legacy non-core exploration and production assets held by its wholly-owned subsidiary Tenkay Resources, Inc. The disposals have been completed on an asset-by-asset basis, with Hunting now retaining a working interest in a single offshore field. As part of the disposal process, Hunting has negotiated the transfer of the majority of the non-producing assets and respective future plug and abandonment liabilities, which have reduced Hunting's possible exposure to future decommissioning costs.

Jim Johnson, Chief Executive, commented:

"Hunting is continuing to drive stronger internal operational efficiencies throughout its global footprint. Management is making good progress in delivering key initiatives in support of the Hunting 2030 strategy, which includes locating manufacturing facilities in areas of high growth and merging operations to enhance returns and lower the cost base."

For further information please contact:

Hunting PLC Jim Johnson, Chief Executive Bruce Ferguson, Finance Director [e-mail]	Tel: [phone]
Buchanan Ben Romney George Pope	Tel: [phone]

Notes to Editors:

About Hunting PLC

Hunting is a global engineering group that provides precision-manufactured equipment and premium services, which add value for its 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 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 five segments: Hunting Titan, North America, Subsea Technologies, EMEA and Asia Pacific.

Hunting PLC's Legal Entity Identifier is 2138008S5FL78ITZRN66.

 

END