Hunting PLC (LSE: HTG) the international energy services group today announces its full year results for the year ended 31 December 2015.
- Continued development of global operating footprint
- commissioning commenced of high throughput premium connections facility at Ameriport, US, in Q4 2015 to serve North American energy markets;
- Cape Town, South Africa, facility commissioned providing threading, storage and service for sub-Sahara African markets;
- completion of facility expansion at Houma, US;
- expansion of Hunting Dearborn facility to reduce customer lead times;
- AMG manufacturing capability established in Singapore;
- new Hunting Titan/Drilling Tools shared distribution and service centre opened in Odessa, US.
- New product innovations developed and commercialised
- new H-1 perforating system trialled by customers in the year and commercialised during Q1 2016 by Hunting Titan;
- WEDGE-LOCK and SEAL-LOCK XD premium connections sales increased following first roll out in early 2015;
- new high temperature/high pressure hydraulic couplings developed and launched by Hunting Subsea;
- new directional drilling tools jointly developed by Drilling Tools, Hunting Specialty and Hunting Titan businesses.
- Cost reduction programme completed during the year
- 30% reduction in headcount in the year;
- four operating sites closed;
- three distribution centres being prepared for closure.
- Cost reductions and tight cash management achieved in the year
- cost saving measures implemented across the Group;
- capital expenditure reduced to $81.1m as major projects were completed.
- Positive free cash flows generated allowing pay down of net debt
- $118.0m of free cash generated to give closing net debt of $110.5m;
- gearing of 9% reported, even with continued capital investment.
- Revenue of $810.5m recorded in the year, with management actions limiting the impact on gross margins
- revenue decline in line with reductions in Global drilling and production expenditure;
- 24% underlying gross margin achieved in the year.
- Impairment and restructuring charges reflecting current market conditions
- charges for restructuring costs and impairment to property, plant and equipment, goodwill and other intangible assets totalling $259.7m.
- Underlying profit from operations of $16.4m
- Reported loss from operations of $282.2m.
- Final dividend of 4.0 cents per share proposed, subject to shareholder approval
- subject to approval, the dividend will be paid on 6 July 2016, to shareholders on the register on 10 June 2016 with a cash cost of $5.9m;
- total dividends for the year 8.0 cents per share, with a total cash cost of $11.8m.
Commenting on the results, Dennis Proctor, Chief Executive, said:
‘Today’s results reflect the severity and speed of the reduction in oil and gas activity, particularly across North America. While this has created challenges for all market participants, the Group has adapted quickly to the changing market environment and remains ready to respond when industry investment recovers.’
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