Hunting PLC · LSE:HTG
Hunting — H1 2009 Earnings Presentation
35 slides from Hunting's earnings presentation, August 2009
Slide 1: Hunting PLC Half Year Results
H UN TING PoE € A AE F WE A R RB Po @ RT y Grune
Slide 2: Rig Activity
Rig Activity International Average Rig Count 1100 1050 1000 +) 950 900 850 800 750 4 Source: BHI, Spears US Average Rig Count Source: BHI, Spears -2-
Slide 3: 2009 Half Year Results Summary
2009 Half Year Results Summary 2009 2008 Change % £m £m Revenue 219.8 201.2 +9% EBITDA 30.7 32.1 -4% Profit from operations 23.0 24.0 -4% Finance income (expense) 3.3 (2.9) Profit before tax 26.5 21.4 +24% Effective tax rate 32% 33% --1 - Basic EPS 12.3p 9.7p +27% Interim dividend 3.5p 2.9p +21% - 3
Slide 4: Segmental Results
Segmental Results June 2009 June 2008 Profit from Profit from Revenue Operations Margin Revenue Operations Margin £m £m % £m £m % Hunting Energy Services Well Construction 48.9 3.5 7% 49.5 5.8 12% Well Completion 105.2 12.9 12% 89.6 11.8 13% Well Intervention 12.3 1.8 15% 11.2 1.9 17% Exploration an
Slide 5: Exceptional Items
Exceptional Items June 2009 £m Release of warranty provision 1.5 Additional leasehold property provision (1.5) Additional Gibson Energy sale proceeds 17.6 Gibson Energy indemnity and tax provisions (16.0) Net credit to income 1.6 -5--
Slide 6: Balance Sheet
Balance Sheet June December 2009 2008 £m £m Total assets 804.6 874.2 Total liabilities (258.9) (316.9) Net assets 545.7 557.3 Net cash 387.6 372.3 -6--
Slide 7: Capital Expenditure
Capital Expenditure June June 2009 2008 £m £m Hunting Energy Services Well Construction 5.7 5.8 Well Completion 3.8 3.7 Well Intervention 0.8 0.4 Exploration and Production 0.3 5.4 Hunting Energy France 0.1 0.2 Others 0.3 0.3 11.0 15.8 Split: Maintenance 5.8 11.3 New business 5.2 4.5 11.0 15.8 -7--
Slide 8: Cash Flow
Cash Flow June June 2009 2008 £m £m EBITDA 30.7 32.1 Working Capital 24.0 (9.5) Others (4.3) 0.9 Capital expenditure - replacement (5.8) (11.3) Interest and tax (6.3) (9.3) FREE CASH FLOW 38.3 2.9 Capital expenditure - growth (5.2) (4.5) Acquisitions (33.4) - Disposals 19.3 1.6 Foreign Exchange (3.9
Slide 9: Financial Highlights
Financial Highlights Profit Before Tax £m Earnings Per Share p 2009 26.5 2009 12.3 21.4 2008 9.7 2008 2007 19.3 2007 7.3 0 10 20 30 0 5 10 15 Profit From Operations £m Interim Dividend p 2009 23.0 2009 3.5 2008 24.0 2008 2.9 2007 21.5 2007 2.55 0 10 20 30 0 1 2 3 4 -9-
Slide 10: Hunting PLC Global Footprint
2009 HalfPLC Hunting YearGlobal Results Summary Footprint - 10 -
Slide 11: Hunting Energy Services Product Platforms
Hunting Energy Services Product Platforms - 11 -
Slide 12: Hunting Energy Services: Well Construction
Hunting Energy Services: Well Construction Premium Connections • SEAL-LOCK • WEDGE-LOCK • Annular Pressure Relief System (APRS) Drilling Tools Profit from Operations • Hard Banding £m • Mud Motors Full Year 6 mths OCTG 2006 2007 2008 2009 • Global Mill Sources 8.0 8.2 13.6 3.5 -12 -
Slide 13: Well Construction Products
Well Construction Products Mud Motors: Hunting’s mud motors decrease the time it takes to drill wells utilising state of the art technology to manage hydraulics in a means to increase drill bit speed Annular Pressure Relief System: Hunting’s APRS system provides our customers with additional insuran
Slide 14: Well Construction Products
Well Construction Products Non-Magnetic Drill Collars: Allow directional drilling operations to have accurate information from sensors located close to the drill bit WEDGE-LOCK: Hunting’s newest premium connection provides superior capabilities in deviated and directional drilling applications - 14
Slide 15: Hunting Energy Services: Well Completion
Hunting Energy Services: Well Completion Manufacturing • Completion Tools • OEM • Polished Bore Receptacle Premium Tubing • TKC Profit from Operations • 2 Step £m • SEAL-LOCK Full Year 6 mths 2006 2007 2008 2009 Thread Protection • Composite 18.8 30.0 26.8 12.9 • Plastic • Clear-Run • Preserv-
Slide 16: Well Completion Products
Well Completion Products Completion Accessories: Hunting’s global manufacturing footprint provides products and services assisting in the completion of wells Polished Boring: Hunting provides the market products which have the inside diameter bored and polished for flow maximisation in highly critic
Slide 17: Well Completion Products
Well Completion Products Premium Tubing: Hunting’s global footprint provides the marketplace with tubing connections which have engineered gas tight seal designs Advanced Tubular Systems: Hunting provides the market with environmentally sound running and storage compounds - 17 -
Slide 18: Hunting Energy Services: Well Intervention
Hunting Energy Services: Well Intervention Hunting Subsea • Subsea Couplings and Valves • Chemical Injection Systems Pressure Control Equipment • BOP • Accessories Profit from Operations Downhole Tools £m • Slickline Full Year 6 mths 2006 2007 2008 2009 • Wireline • Print Part 3.6 4.1 4.6 1.8
Slide 19: Well Intervention Products
Well Intervention Products Pressure Control Equipment: Hunting provides the market with a highly technical and innovative line of products and services in support of wellhead control and management Downhole Tools: Hunting provides specialty tools for Slickline and Wireline applications as an OEM for
Slide 20: Well Intervention Products: Hunting Subsea
Well Intervention Products: Hunting Subsea Chemical Injection System: Hunting provides a positive displacement metering system with a maximum working pressure of 17,500 PSI. This cost effective, reliable system will redefine flow measurement accuracy Specialty Valves: Hunting provides a series of hi
Slide 21: Hunting Subsea
Hunting Subsea - 21 -
Slide 22: Hunting Energy Services
Hunting Energy Services Hunting Subsea • Chemical Injection Systems • Hydraulic Valves Capitalise on Premium Connection Position Expand Global Footprint Acquisitions which Compliment Existing Operations and Products - 22 -
Slide 23: Acquisitions Update
Acquisitions Update HMIT has removed time limit for reinvestment Two acquisitions completed in the period • NCC for $53.8 million • PT SMB Industri for $10.7 million Target A - Steel Processing : In process Target B - Intervention/Rental Products : Dropped Good pipeline of companies still
Slide 24: Pacific Rim Supply Chain
Pacific Rim Supply Chain - 24 -
Slide 25: Chrome Supply Chain
Chrome Supply Chain North Sea \ Aberdeen a | Finished Tubular Products ~, From Aberdeen to North Sea, Nigeria Semi-Finished Tubular Products From Japan To and Angola Aberdeen Inbound Semi-Finished Products ® Outbound Finished Products -25-
Slide 26: Middle East Supply Chain
Middle East Supply Chain - 26 -
Slide 27: Alloy Supply Chain
Alloy Supply Chain Finished Products WELL CONSTRUCTION © Premium Connections ®@ APRS © Drilling Tools © Drill Collars WELL COMPLETION © Premium Tubing ® Completion Accessories WELL INTERVENTION ® Slickline/Wireline ® Pressure Control Equipment Inbound Semi-Finished Products BRAZIL ® Outbound Finishe
Slide 28: Alloy Supply Chain
Alloy Supply Chain NORTHEAST US Finished Products WELL CONSTRUCTION » Premium Connections © APRS © Drilling Tools © Drill Collars WELL COMPLETION © Premium Tubing © Completion Accessories WELL INTERVENTION ® Slickline/Wireline y_< © Pressure Control Equipment GULF OF MEXICO Inbound Semi-Finished Pro
Slide 29: Capital Expenditures
Capital Expenditures Houma, Louisiana “Mega Center” • Cost : $50 million • SQ/FT : 290,000 • Completion Date : 2011 Casper, Wyoming • Cost : $9 million • SQ/FT : 60,000 • Completion Date : Q2 2010 Conroe, Texas • Cost : $4.5 million • SQ/FT : 36,000 • Completion Date : Q1 2010 - 29 -
Slide 30: Capital Expenditures (continued)
Capital Expenditures (continued) Houston, Texas (Rankin Expansion) • Cost : $5 million • SQ/FT : 15,000 • Completion Date : Q1 2009 Aberdeen, Scotland • Cost : $30 million • Operational Development • Completion Date : Q1 2011 Shanghai, China • Cost : $10 million • SQ/FT : 260,000 • Completion
Slide 31: Operational / Acquisition Strategy
Operational / Acquisition Strategy • Technology Proprietary • R&D Products • Product offering • Footprint Global Pricing Leverage Market share Footprint strength • Integrate • New business Synergies • Products • Services • Customers - 31 -
Slide 32: Offshore Capital Spending
Offshore Capital Spending 25000 1000 900 20000 800 $MM or Km of SPU 700 No. Subsea Trees 15000 600 500 10000 400 300 5000 200 100 0 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Onstream Year Source: Quest Offshore $MM - subsea production umbilicals installed $MM
Slide 33: Gibson Shipbrokers
Gibson Shipbrokers Well placed for global economic recovery with growing pressure in Asia-Pacific Region Maintains agility to tailor staffing expertise to anticipated market demand £m Full Year 6 mths 2006 2007 2008 2009 Profit from Operations 3.0 2.9 6.9 0.3 - 33 -
Slide 34: Hunting Energy France
Hunting Energy France Maintained profits despite difficult trading conditions Continued development of product range and software enhancements £m Full Year 6 mths 2006 2007 2008 2008 Profit from Operations 1.2 2.6 2.0 0.9 - 34 -
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