Hunting PLC · LSE:HTG
Hunting — FY2004 Earnings Presentation
29 slides from Hunting's earnings presentation, 2005
Slide 1: Annual Results
Ee annual results GY Gwe PLC
Slide 2: Hunting PLC - Excellence in Energy Services
Ne - Energy, Marketing & Transportation GIBSON ENERGY a Global Oilfield Services HUNTING ENERGY a Exploration & Production TENKAY RESOURCES Hunting PLC Hunting PLC - Excellence in Energy Services www.hunting.plc.uk International fi Shipbroking GIBSON SHIPBROKERS Petrochemical Equipment HUNTING ENERG
Slide 3: 2004 Results Summary (excluding exceptional items)
2004 Results Summary (excluding exceptional items) Turnover £1,255m (2003 – £1,195m) + 5% EBITDA £52.9m (2003 – £47.4m) + 12% Operating profit £30.8m (2003 – £25.2m) + 22% Profit before tax £25.2m (2003 – £21.1m) + 19% Tax charge 38% (2003 – 35%) Basic EPS 12.7p (2003 – 6.4p) + 98% Dividend 4.5p (20
Slide 4: Turnover and Operating Profit
Turnover and Operating Profit Year End December 2004 December 2003 Operating Operating Turnover Profit Turnover Profit £m £m £m £m Gibson Energy - Marketing 835 7 780 6 - Other 168 8 160 8 Hunting Energy 160 9 169 5 Tenkay 8 3 10 4 Others 84 4 76 2 1,255 31 1,195 25 3
Slide 5: Financial
Financial December December 2004 2003* Net Borrowings £131m £175m Gearing 111% 149% Interest Cover 3.9x 3.2x * For 2003, Preference Share Capital has been included as debt and the preference dividend is included in interest. 4
Slide 6: Capital Expenditure
Capital Expenditure 2004 2003 £m £m Gibson Energy 9 12 Hunting Energy 5 7 Tenkay 7 7 Other Activities 1 2 22 28 Split: Maintenance 13 17 New business 9 11 22 28 5
Slide 7: Free Cash Flow
Free Cash Flow 2004 2003 £m £m Cash from operations 43 49 Tax 7 (2) Capital Expenditure (22) (28) Dividends & Interest etc. (10) (14) FREE CASH FLOW 18 5 6
Slide 8: Profit, Dividend, EPS, Operating Profit and Debt charts
Profit Before Tax Dividend 40 7 35 6 30 5 25 4 20 3 15 2 10 5 1 0 0 2001 2002 2003 2004 2001 2002 2003 2004 Earnings Per Share 16 14 12 10 8 6 4 2 0 2001 2002 2003 2004 Operating Profit DEBT 200 50 180 45 160 40 140 35 120 30 25 100 20 80 15 60 10 40 5 20 0 0 2001 2002 2003 2004 2001 2002 2003 2004
Slide 9: Hunting PLC Corporate Theme
Hunting PLC Corporate Theme Proprietary Products Strategic Geographical Locations Market Share Leadership Asset Utilisation 8
Slide 10: Proprietary Products
Hunting PLC Proprietary Products 31 Patents – including but not limited to: • Premium Connections for High Pressure, High Temperature Oil and Gas Completions • Annular Pressure Release Systems for Deepwater Exploration • “Clear-Run” Environmentally Friendly Thread Compound • “HydraTite Seal” for W
Slide 11: Strategic Geographical Locations
Strategic Geographical Locations 10
Slide 12: Market Share Leadership
Hunting PLC Market Share Leadership Gibson Energy – Oil Transportation Gibson Shipbrokers – Tanker Broking Iberia Manufacturing – Drill Rod Hunting Performance – Mud Motors Canwest – Propane Huaxin – Premium Connections (China) 11
Slide 13: Asset Utilisation
Hunting PLC Asset Utilisation Gibson Energy: Utilises its strategically located pipelines, storage tanks, terminals and truck transportation to combine crude oil of a lesser value with diluent to blend into a crude oil stream of higher value. Hunting Energy: Combines tubulars, premium connection
Slide 14: Gibson Energy
Gibson Energy Gun INTING
Slide 15: Gibson Energy
Gibson Energy Operating Profits: December December 2004 2003 £m £m Marketing 7.3 5.6 Truck Transportation 2.5 1.3 Oil and Gas Operations 4.8 3.9 Canwest and Natural Gas Liquids 1.6 2.3 Moose Jaw Asphalt (1.5) 0.5 14.7 13.6 Highlights: Edmonton North Terminal (July 2005) 14
Slide 16: Hunting Energy
Energy Hunting WI 00 0 HUNTING
Slide 17: Hunting Energy
Hunting Energy Operating Profits: December December 2004 2003 £m £m Tubulars 3.6 0.3 Manufacturing 2.1 3.4 International 3.1 1.7 8.8 5.4 Highlights: Mud Motor Expansion Deepwater Facility Houston Manufacturing Facility 16
Slide 18: Tenkay Resources
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Slide 19: Tenkay Resources
Tenkay Resources Operating Profits: December December 2004 2003 £m £m Oil and Gas Drilling Activities 3.2 4.3 Highlights: Participated in 19 wells with 13 successes 9 Gas, 2 Oil and Gas, 2 Oil Produced 411,000 Net Equivalent Barrels Year End Reserves 2.3m Net Equivalent Barrels 18
Slide 20: Gibson Shipbrokers
Gibson Shipbrokers Mccars
Slide 21: Gibson Shipbrokers
Gibson Shipbrokers Operating Profits: December December 2004 2003 £m £m Broking Activities 2.5 1.8 Highlights: Excellent crude and dry cargo markets Integration of acquisition 20
Slide 22: Hunting Energy France
Hunting Energy France HUNTING
Slide 23: Hunting Energy France
Hunting Energy France Operating Profits: December December 2004 2003 £m £m Petroleum Equipment 1.0 0.7 Highlights: Roforge – Forged and Cast Valves Interpec – Advanced Pumps, Turbines and Compressors Larco – Liquid Storage Solutions, Automated Systems for Oil Depot Management. 22
Slide 24: Rig Count
Rig Count 1400 1200 1000 US 800 CAN 600 Intl 400 200 0 2001 avg 2002 avg 2003 avg 2004 avg 2005 ytd Source: Baker Hughes 23
Slide 25: Avg Gas and Avg Oil Prices
Avg Gas and Avg Oil Prices $55.00 $7.00 $50.00 $6.00 $45.00 $40.00 $5.00 $35.00 Avg Oil price $30.00 $4.00 Avg Gas Price $25.00 $3.00 $20.00 $15.00 $2.00 $10.00 $5.00 $1.00 2001 2002 2003 2004 2005 Source: Spears and Associates & World Oil 24
Slide 26: World Oil Demand
World Oil Demand 88 86 84 82 80 78 76 74 2003 2004 2005 2006 25 Source: EIA
Slide 27: Conclusion
Conclusion: Oil and Gas Prices Remain Strong Oil Demand is Nearing 85 MBL / Day Global Excess Production Capacity Less than 2% 65% of Existing Gas Production is in Decline Most Stranded Gas is Undiscovered Capacity Oil Processing Capacity Pipelines and Tankers Near 100% Refineries Drilli
Slide 28: Outlook
Outlook Hunting in 2005 will: Continue its Debt Reduction Efforts Enhance Product Offerings Within Business Units Improve Margins via Increased Operational Efficiencies (Hunting Energy Services Operations currently running at 24/6) Optimise Earnings Through Market Fundamentals Explore Oppo
Slide 29: Annual Results
Ee annual results GY Gwe PLC