For Immediate Release
12 April 2017
("Hunting" or "the Company" or "the Group")
Q1 2017 Trading Update
Hunting PLC (LSE:HTG), the international energy services group, which will today be holding its Annual General Meeting commencing at 10.30a.m., issues a Q1 2017 trading update.
Revenues in the first three months of the year have been ahead of management's expectations, given the continued strong activity levels reported in the US shale regions leading to the Group reporting a positive underlying EBITDA in the period of approximately $5.5 million.
Of note, Hunting's Perforating Systems business remains very busy and continues to increase production to meet demand from customers operating in the US shale plays. Other businesses reporting positive EBITDA during the quarter include Hunting's Premium Connections, Trenchless and Specialty businesses. As noted in the Group's Full Year Results, Hunting's European OCTG businesses have also benefited from orders from the US and Middle East, leading to improved activity levels in the period.
While US onshore activity continues to demonstrate strong momentum, even at current WTI crude oil prices, management note that the US offshore and international operations continue to show weakness, given the lower forecast capital expenditures of the industry and the lower oil price environment.
Cash generation continues to be closely monitored, with working capital controls still in place across many of the Group's businesses. Net debt has increased to approximately $9.0 million since the year end, principally as a result of monthly revenue increases and the resultant trade receivables build up. Group-wide capital expenditures continue to be tightly controlled with spend in the quarter approximately $1.5 million.
While sentiment throughout the industry remains fragile, Hunting is well positioned to respond to the stabilising trading environment, utilising its global footprint of high efficiency manufacturing plants, led by an experienced management team. Management will continue the policy of regular trading updates in order to provide the market with guidance on the likely financial outturn for the calendar year 2017.
For further information please contact:
Dennis Proctor, Chief Executive
Peter Rose, Finance Director
Tarryn Riley, Investor Relations
Tel: +44 (0) 20 7321 0123
Tel: +44 (0) 20 7466 5000
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 Canada, China, Indonesia, Kenya, Mexico, Netherlands, Norway, Saudi Arabia, Singapore, South Africa, United Arab Emirates and the United States of America.
Hunting PLC's Legal Entity Identifier is 2138008S5FL78ITZRN66.