Hunting PLC - Q3 2020 Trading Update
For Immediate Release
("Hunting" or "the Company" or "the Group")
Q3 2020 Trading Update
Hunting PLC (LSE : HTG), the international energy services group, today issues a Q3 2020 trading update.
"In the most challenging environment ever faced in our industry decisive actions to resize the Group have been successful leading to a broadly break-even EBITDA result, a continued strengthening of our balance sheet, and an ongoing commitment to deliver industry leading service and technology to our customers.
"Third quarter results reflect the low levels of activity caused by the impact of COVID-19 on global energy demand. Clients have continued to curtail drilling and completion activity in the period. However, we believe that in certain sub-sectors of the market, including areas of the US onshore market, activity levels have now stabilised. Our recent acquisitions have increased the Group's position within the more active subsea sector and are already yielding benefits. Monthly revenue has increased within the Hunting Titan and
"Our efforts to resize the Group in response to prevailing market conditions have resulted in annualised cash savings totalling c.
"Our strong balance sheet and improved net cash position also allows the Group optionality to explore further bolt-on acquisition opportunities. The growth of our subsea segment over the past 14 months demonstrates the success and rationale of this strategy.
"Client activity should improve during 2021, but a sustained recovery in the market will be a function of the decline in COVID 19 driving positive global economic activity. The effects of the pandemic continue to depress demand and weigh heavily on oil price sentiment."
In the year to date, Group EBITDA has been c.
Inventory levels at the end of the quarter were c.
Hunting Titan's trading results have improved during Q3 2020, with revenue increasing sequentially throughout the quarter and the segment reporting a positive EBITDA in September. Some stability within the US onshore market has been reported, including a slowly increasing US rig count. Hunting Titan has made good inroads into international markets during the reporting period, with increasing sales into the
Hunting's US businesses have reported positive EBITDA in the quarter despite the decline in revenue noted above, with the segment's Premium Connections and Subsea businesses reporting modest activity levels and profits. Oil and gas equipment sales have declined within the Advanced Manufacturing Group, however, non-oil and gas opportunities have seen good stability, with medical, space, and aviation customers supporting order flow through the period. The segment's Drilling Tools and Speciality businesses continue to report subdued results given the low US onshore rig count.
The Group's EMEA segment reports a continuing decline in activity within the
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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
The Group reports in US dollars across five segments: Hunting Titan, US,
Hunting PLC's Legal Entity Identifier is 2138008S5FL78ITZRN66.
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