Hunting Plc · LSE:HTG
Hunting — FY2024 Earnings Presentation
39 slides from Hunting's earnings presentation, March 2025
Slide 1: Precision Engineering from Subsea to Space
PRECISION ENGINEERING FROM SUBSEA TO SPACE
Slide 2: Disclaimer
Disclaimer By attending the meeting where this presentation is made, or by reading the presentation slides, you acknowledge and agree to comply with the following restrictions. This document and the accompanying verbal presentation and webcast (together the “Presentation”) have been prepared by Hunt
Slide 3: Strong growth delivered from international and offshore businesses
Strong growth delivered from international and offshore businesses • KOC contracts commenced, contributing to robust H2 performance. • Continuation of major orders for ExxonMobil and TPAO for titanium and stress joints. • Profit contribution from India joint venture, following receipt of API licence
Slide 4: Market, financial and non-financial highlights
Market highlights Average WTI crude oil price Financial highlights $ 76 per bbl Revenue Free Cash Flow Global drilling capital investment $ 1,048.9m +13% $ 139.7m $ 214.5bn EBITDA Total Dividend Global average rig count $126.3m +23% 11.5 cents +15% 1,691 Non-financial highlights Sales order book Net
Slide 5: Offshore v Onshore and North America v International revenue
Offshore v Onshore % of revenue North America v International % of revenue 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% FY2022 FY2023 FY2024 FY2022 FY2023 FY2024 Source: Company Source: Company Offshore Onshore NAM International 5
Slide 6: EBITDA $126.3m and EBITDA margin 12%
EBITDA - $126.3m EBITDA Margin 12% 20 20% 2.9 18 16 17% 30.0 14 12 12% 10 8 9% 11.8 80.2 OCTG 6 Perforating Systems 4 Advanced Manufacturing 1.4 3% 2 Subsea Other 1% 0 Subsea OCTG Advanced Other Perforating Group Manufacturing Systems CMD target Source: Company Source: Company 6
Slide 7: Precision Engineering from Subsea to Space
PRECISION ENGINEERING FROM SUBSEA TO SPACE
Slide 8: OCTG performance
• $231m order from Kuwait Oil Company transformed performance in H2 2024. • Strong results delivered in North America with market share gains in US and steady growth in Canada supporting results. • OCTG well completion packages into South America also contributing to material growth. • Energy transi
Slide 9: Global threading volume analysis
Global threading volume analysis 200% 180% Maiden contribution from India 160% premium threading line 140% Significant uplift in activity due to 120% KOC orders, which commenced in September 100% 80% Good increases seen in North America 60% Market share gains delivered in US onshore despite lower co
Slide 10: Subsea Technologies performance
• Record year of revenue and margin growth driven by Spring business into South America as orders are converted to sales. • Steady growth delivered from hydraulic valves and couplings. • Titanium and steel stress joints increasing in use on FPSOs, being recognised as best in class, resulting in lowe
Slide 11: Advanced Manufacturing and electronics
• Electronics business exploring diversification into new markets, leveraging its strong heritage in servicing the oil and gas industry. • Steady growth in energy sales, with switches also being manufactured for Perforating Systems. • Aviation, commercial space, defence, medical and power generation
Slide 12: Technology to drive operational efficiency
Technology to drive operational efficiency • New technology launched in year including Tandem perforating system for leading industry perforating accuracy. • International sales continue to accelerate, with growth in South America and Middle East. • Customer consolidation, lower natural gas prices,
Slide 13: Asia Pacific and EMEA operations
• Steady growth from well intervention, well testing, trenchless and organic oil recovery delivered. • Disposal of E&P business in 2023. • Move of well testing business from the Netherlands ongoing. • New facility in Dubai, to be closer to customers, scheduled to be operational by Q4 2025. Source: C
Slide 14: Precision Engineering from Subsea to Space
PRECISION ENGINEERING FROM SUBSEA TO SPACE
Slide 15: Progress against Capital Markets Day objectives
Global growth Delivery of strong growth $14.7m of EBITDA margin 12% delivered in OCTG – in subsea / offshore revenue Energy Transition sales now 44% of Group revenue CMD OBJECTIVE CMD OBJECTIVE CMD OBJECTIVE CMD OBJECTIVE Increase global presence in OCTG and Long range sales target on track Capture
Slide 16: Organic Oil Recovery technology contracts
• $60 million of contracts secured for licensed OOR technology in August 2024 for deployment in North Sea over the next five years. • Good gross margins attached to technology and revenue • Pilot testing continuing in Europe, US and Southeast Asia, with multiple blue-chip clients. Upcoming markets C
Slide 17: Geothermal and Carbon Capture revenue $14.7m
Geothermal and Carbon Capture revenue - $14.7m 0.7 2.0 • 4.9 • • Geothermal - Asia Pacific Geothermal - Europe 7.1 Geothermal - US Carbon Capture - US Source: Company 17 17
Slide 18: Acquisition strategy and liquidity
• Opportunities continue to be evaluated, with focus on subsea, intelligent well completions, and non-oil and gas. • Attractive multiples for oil and gas - prepared to acquire non-energy businesses at higher trading multiples if a good fit. • $345m of liquidity available to support strategy. 18
Slide 19: Precision Engineering from Subsea to Space
PRECISION ENGINEERING FROM SUBSEA TO SPACE
Slide 20: Financial overview
Financial overview • • • • • • • • • • • 20
Slide 21: Restructuring and cost savings
• EMEA restructuring to commence in March 2025 following completion of commercial review and cost-base analysis, to focus on growth segments and markets to improve overall efficiency. • Central costs to be reduced. • Further headcount reduction to be completed within Hunting Titan. • RIFs in Electro
Slide 22: Strong revenue growth
Strong revenue growth Revenue by Product - $m +17% -9% +49% +13% +12% OCTG Perforating Systems Subsea Advanced Manufacturing Other Manufacturing Source: Company 22
Slide 23: Earnings and profitability growth in the year
Earnings and profitability growth in the year *Results for the year, as reported under IFRS, adjusted for certain items as determined by management. 23
Slide 24: Product groups and operating segments 2024 performance
Product groups and operating segments 2024 performance Hunting North Subsea Asia External EBITDA Titan America Technologies Pacific Revenue EBITDA Margin $m $m OCTG 27 199.8 0 27.5 233.7 463.7 80.2 17% Perforating Systems 211.1 0 oO 11.6 oO 222.7 1.4 1% Advanced Manufacturing 67 120.2 0 0 0 126.9 11
Slide 25: Source: Company CMD target * Restated to include the import tax provision and associated
Source: Company CMD target * Restated to include the import tax provision and associated tax impact. 25
Slide 26: Working capital
Working capital Inventories - Hunting Titan - North America - Other segments Net inventories Receivables Payables Total Working capital to annualised revenue Inventory days Receivables days Payables days Advances from customers Payments on account to suppliers 2024 $m 107.8 140.5 98.7 107.8 96.8 80.
Slide 27: Strong increase in working capital and assets supporting sales order book
Strong increase in working capital and assets supporting sales order book 27
Slide 28: 2025 Guidance
EBITDA PRECISION ENGINEERING $ 135m - $145m FROM SUBSEA EBITDA margin TO SPACE 2025 GUIDANCE c. 12% - 13% Effective tax rate 25% - 28% Capex $ 35m - $40m Free cash flow conversion (post capex) c. 50% Total cash and bank / (borrowings) $ 135m - $145m 28
Slide 29: Precision Engineering from Subsea to Space
PRECISION ENGINEERING FROM SUBSEA TO SPACE
Slide 30: Order book by product group and operational activity
Order book by product group - $508.6m Order book by operational activity - $508.6m 88.5 420.1 Oil and gas Non-oil and gas Source: Company 30
Slide 31: LNG supply, CCS, geothermal and US electricity demand outlook
LNG supply by region CCS (Billion tonnes) 1000 3.5 900 3 800 700 2.5 600 2 500 400 1.5 300 200 1 100 123 9.7 3551 351 0.5 0 CCS Base Case 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 CCS Delayed Transition 0 North America Middle East Oceania Africa Asia Russia and the Caspian Latin Am
Slide 32: Americas growth opportunities
Guyana Suriname The offshore exploration Following the success led by success in Guyana, ExxonMobil is likely to we see strong growth lead to strong growth opportunities for our opportunities over the Subsea product next decade. group as exploration continues. Argentina Brazil The acceleration of Wi
Slide 33: Middle East, India and Africa
Wiigdle East, India, and'Africa a Strong tender activity across region driving opportunities in OCTG, well intervention and well testing. Bahrain, lraq, Kuwait and Saudi Arabia all seeing strong growth in activity. Perforating Systems sales also to accelerate as unconventional resource development i
Slide 34: Summary
• 2024 another strong year of growth in revenue and profits. • Hunting 2030 Strategy on track, given the milestones achieved in the year. • c.$350 million of liquidity including c.$100 million of cash balances provides significant resources for acquisitions. • 2025 guidance indicates a further year
Slide 35: Appendices
PRECISION ENGINEERING FROM SUBSEA TO SPACE APPENDICES
Slide 36: Statutory Income Statement
Statutory Income Statement * Results for 2023 have been restated to include import tax provision and the Group’s share of associates’ and joint venture’s results in operating (loss) profit. 36
Slide 37: Scope 1 and 2 GHG data
The environment People and society Responsible products Governance Safety remains a priority The 2023 employee Continued focus on Board Scope 76% accountability for ESG Zero engagement survey of our facilities are Ethics and 1 and 2 fatalities recorded an compliant with ISO 9001:2015, Sustainability
Slide 38: Continued improvement in key ESG metrics
Skilled employees driving quality and HSE Continued improvement in key ESG metrics driving client loyalty Manufacturing reject rate Renewable energy purchased 60% 0.35% 0.31% 0.30% 50% 50% 0.25% 40% 0.20% 0.20% 30% 0.15% 0.13% 20% 23% 0.10% 20% 21% 10% 16% 0.05% 12% 4% 0.00% 0% 2022 2023 2024 2019 2
Slide 39: Contact
www.huntingplc.com Gg https://www.linkedin.com/company/hunting-energy-services/ HUNTING https://www.youtube.com/@HuntingPLC