Business
H1 2016 Trading Statement and Bank Facility Update
H1 2016 Trading Statement and Bank Facility Update.
About this update from Hunting Plc
[{"type":"text","content":"\n \nRNS Number : 8732E Hunting PLC 21 July 2016 \n\n \n \n\n\n\n\nFor Immediate Release\n\n\n21 July 2016\n\n\n\n\n \n \n \n \n \n \nHunting PLC\n \n(\"Hunting\" or \"the Company\" or \"the Group\")\n \nH1 2016 Trading Statement\nand \nBank Facility Update\n \nHunting PLC (LSE:HTG), the international energy services group, today provides a H1 2016 Trading Statement and an update on discussions with the Group's lenders regarding the bank covenants attached to its revolving credit facility (the \"RCF\").\n \nTrading Statement\n \nAs highlighted in the announcement dated 12 May 2016, Hunting's trading performance during the first half of the year has remained weak given the current market environment. Guidance given on full year revenues, being 30% to 40% below that of 2015, remains dependent on an improving market in the latter part of the year.\n \nCost cutting initiatives have continued to be implemented across all businesses to curtail losses and capital expenditure has been reduced to essential spend only in order to conserve cash. Capital expenditure in 2016 is projected to be $16 million for the full year. As at 30 June 2016, the Group's workforce numbered approximately 2,200, which reflects a 45% reduction since 1 January 2015, leading to annualised cost savings of approximately $93 million.\n \nOverall the Group's Balance Sheet remains strong and Net Debt at the end of June 2016 has reduced to approximately $90 million. \n \nManagement notes signs of stability within its core markets over the past two months, which includes an improving US rig count from the record lows reported, supported by the price of WTI crude oil which is now approximately $46 per barrel, giving operators a degree of confidence.\n \nA further update to the Group's 2016 full year outturn and market outlook will be provided within Hunting's Half Year Results, to be announced on Monday 5 September 2016.\n \nBank Covenant and Facility Update\n \nDiscussion with the Group's banks on revised covenants and terms for its RCF has now concluded. The key covenants and terms to apply throughout the amendment period, which runs up to and including the 30 June 2018 covenant test date, are:\n \n· Faci...