Hunting Plc · LSE:HTG
Hunting — FY2015 Earnings Presentation
19 slides from Hunting's earnings presentation, 2016
Slide 1: Hunting PLC 2015 Full Year Results
Hunting PLC 2015 Full Year Results 1
Slide 2: Financial Summary
Financial Summary Trading results reflect market conditions. Exceptional asset impairments booked in the year of $252.6m. Balance sheet strength retained. - Net assets $1.2bn - Net debt $110.5m - Gearing 9% Free cash flow generated in the year of $118.0m. Working capital cash release in th
Slide 3: 2015 Full Year Results Summary
2015 Full Year Results Summary* 2015 Margin 2014 Margin $m % $m % Revenue 810.5) 1,386.5) Gross profit 195.2) 24% 443.9) 32% EBITDA 61.9) 8% 269.8) 19% Profit from operations 16.4) 2% 217.8) 16% Finance expense (6.8) (4.9) Profit before tax 9.4) 212.4) Effective tax rate 57% 27% Diluted EPS 3.1c 100
Slide 4: Segmental Results
Segmental Results* 2015 2014 Profit (Loss) from Profit from Revenue Operations Revenue Operations $m $m $m $m Hunting Energy Services Well Construction 211.4 1.9) 378.3 53.0 Well Completion 488.6 14.2) 862.6 140.8 Well Intervention 106.3 4.6) 135.5 23.8 806.3 20.7) 1,376.4 217.6 Exploration & Produc
Slide 5: Geographical Segmental Results
Geographical Segmental Results* 2015 2014 Profit (Loss) from Profit from Revenue Operations Revenue Operations $m $m $m $m Hunting Energy Services USA 507.0 31.7) 867.3 170.0 Canada 56.1 (3.6) 95.5 3.8 Europe 134.6 (4.2) 194.2 10.9 Asia Pacific 90.1 (0.3) 199.5 31.0 Middle East, Africa and Other 18.
Slide 6: Amortisation & Exceptional Items
Amortisation & Exceptional Items 2015 2014 $m $m Impairments - Goodwill 208.2 49.6 - Intangible assets 11.2 - - PPE – Exploration and Production 6.4 11.3 - PPE – Drilling Tools 26.8 - 252.6 60.9 Amortisation of acquired intangible assets 38.9 42.8 Restructuring costs 7.1 - Other - 0.2 Continuing ope
Slide 7: Balance Sheet
Balance Sheet 2015 2014 $m $m Goodwill 230.6) 440.6) Other intangible assets 180.4) 224.8) Property, plant and equipment 460.8) 473.0) Working capital 365.8) 470.6) Taxation 10.7) (55.2) Provisions (18.0) (24.7) Other 48.3) 40.2) Net debt (110.5) (131.0) Net assets 1,168.1) 1,438.3) Gearing 9% 9% RE
Slide 8: Capital Investment
Capital Investment 2015 $m Facilities - Manufacturing – Houma, Louisiana 6.4 - Premium Threading and Testing – Houston, Texas 20.2 - Manufacturing – Cape Town, South Africa 9.3 - Dearborn – Fryeburg, Maine 6.4 - Other expansion programmes 8.9 Machinery and Equipment - North America 21.8 - Asia Pacif
Slide 9: Cash Flow
Cash Flow 2015 2014 $m $m EBITDA 61.9) 269.8) Working capital 96.0) 3.8) Interest and bank fees (7.4) (5.6) Tax paid (10.5) (26.6) Restructuring costs (5.9) - Replacement capital investment (22.0) (69.0) Other 5.9) 9.9) Free cash inflow 118.0) 182.3) Expansion capital investment (59.1) (54.5) Divide
Slide 10: Oilfield Industry 2015
Oilfield Industry 2015 Source: EIA WTI Cushing, Oklahoma RESULTS FOR THE FULL YEAR ENDED 31 DECEMBER 2015 10
Slide 11: Strategy Deployment
Strategy Deployment Develop leading Capture product Develop a global Target a high proprietary sales synergies presence market share of products and within the our high value services wellbore products Leveraging Capacities to Product H1 Perforating Opening of Facilitate availability across system A
Slide 12: Core Of Our Strategy – Sustainability
Core Of Our Strategy – Sustainability We have to aggressively manage today, to compete tomorrow RESULTS FOR THE FULL YEAR ENDED 31 DECEMBER 2015 12
Slide 13: Hunting Global Footprint – Singular Business Model
Hunting Global Footprint 42 Locations Singular Business Model CEO Low bureaucracy and high local accountability - Hunting operates in a flat, lean and locally controlled structure. COO - We operate with four or less handshakes from the CEO to the Local Facility Managing Manager. Director - This st
Slide 14: Agility – Gross Margin
Agility 2014 2015 Gross Gross Margin Margin 32% 24% As a manufacturer, our fixed cost absorption is heavily impacted by a reduction in business. To protect margins, Hunting has aggressively managed our cost and resisted client and customer pressure to reduce price. By cutting cost and manufacturin
Slide 15: Instilled Sustainability
Instilled Sustainability Hunting has endured many business cycles, as a company and management team we have learned over the years the more levers you control of your business, the more change you can enact. Market Driven Internalise When It Create Flexibility Complete Wellbore Internal Investment
Slide 16: Our Commitment to Quality and Safety
Our Commitment to Quality and Safety With extreme cost pressure in the industry, Hunting has not changed our view on quality, health, safety or environmental standards. It is our view that: Shipping a single defective part is unacceptable. Each Hunting facility is committed to no harm to peo
Slide 17: Current Marketplace And Our Fit
Current Marketplace And Our Fit What is happening today Reduction of vendors due to bankruptcy, flight to quality providers Cannibalising of How we fit in the supply chain Reduction in Field on hand Procurement equipment Agile flat line org structure allowing multiple divisions to organise products
Slide 18: Long Term Demand View
Long Term Demand View Million Barrels Per Day Oil prices have been volatile, however one +2.5 +3.6 constant remains – demand for oil continues to grow. The combination of demand, well depletion and limited surplus production capacity means new wells have to be drilled. To replace lost producti
Slide 19: The Group has and will continue to act decisively
“The Group has and will continue to act decisively to safeguard an exciting and profitable future.” RESULTS FOR THE FULL YEAR ENDED 31 DECEMBER 2015 19