Hunting PLC · LSE:HTG
Hunting — H1 2008 Earnings Presentation
30 slides from Hunting's earnings presentation, Aug 28, 2008
Slide 1: Hunting PLC
ATTN INE HUNTING PLC x) © e * ON — a tay) o > —_— ia) At om
Slide 2: 2008 Half Year Results Summary (£m)
2008 Half Year Results Summary Continuing Operations - Pre-exceptional items 2008 2007 Change £m £m % Revenue 201.2 214.5 -6% EBITDA 32.1 28.2 +14% Profit from Operations 23.9 21.5 +11% Profit before Tax 21.3 19.3 +10% Taxation 33.3% 37.8% Basic EPS 9.6p 7.3p +32% Interim dividend 2.90p 2.55p +14% 2
Slide 3: 2008 Half Year Results Summary (US$m)
2008 Half Year Results Summary Continuing Operations - Pre-exceptional items 2008 2007 Change US$m US$m % Revenue 398.4 422.5 -6% EBITDA 63.6 55.6 +14% Profit from Operations 47.3 42.4 +12% Profit before Tax 42.2 38.0 +11% 3
Slide 4: Revenue and Profit from Operations
Revenue and Profit from Operations Continuing Operations - Pre-exceptional Items June 2008 June 2007 Profit from Profit from Revenue Operations Margin Revenue Operations Margin US$m US$m % US$m US$m % Hunting Energy Services - Well Construction 98.0 11.3 12% 70.7 7.9 11% - Well Completion 199.6 27.1
Slide 5: Financial
Financial 2008 2007 2007 June December June Net borrowings £139.7m £139.2m £138.8m Gearing 43% 45% 65% Interest cover 6.8x 6.9x 6.3x (Continuing operations) 5
Slide 6: Capital Expenditure
Capital Expenditure Continuing Operations June 2008 June 2007 £m US$m £m US$m Hunting Energy Services - Well Construction 5.8 11.5 10.9 21.5 - Well Completion 4.1 8.1 5.4 10.6 - Exploration & Production 5.4 10.7 5.9 11.6 - Hunting Energy France 0.2 0.4 0.6 1.2 - Gibson Shipbrokers - - 0.1 0.2 Others
Slide 7: Cash Flow
Cash Flow Continuing Operations June 2008 June 2007 £m US$m £m US$m EBITDA 32.1 63.6 28.2 55.6 Working capital (9.5) (18.8) (27.3) (53.8) Others 0.9 1.8 (6.4) (12.6) Capital expenditure - replacement (11.3) (22.4) (14.0) (27.6) Interest and tax (9.3) (18.4) (7.7) (15.2) FREE CASH FLOW 2.9 5.8 (27.2)
Slide 8: Continuing Operations Pre-exceptional Items
Continuing Operations Pre-exceptional Items Profit Before Tax £m Earnings Per Share p 2008 21.3 2008 9.6 2007 19.3 2007 7.3 2006 12.6 2006 2.0 0 5 10 15 20 25 0.0 5.0 10.0 Profit From Operations £m Interim Dividend p 2008 23.9 2008 2.9 2007 21.5 2007 2.55 2006 13.9 2006 2.3 0 10 20 30 0 1 2 3 4 8
Slide 9: Hunting Energy Services
Hunting Energy Services y eZ HUNTING
Slide 10: Hunting Energy Services Profit from Operations
Hunting Energy Services Profit from Operations June 2008 June 2007 US$m Margin % US$m Margin % Well Construction 11.3 12% 7.9 11% Well Completion 27.1 14% 30.3 14% Exploration and Production 5.9 41% 3.0 29% Hunting Energy France 1.6 9% 2.0 8% 45.9 14% 43.2 13% 10
Slide 11: Vertical Objectives
Hunting Energy Services Vertical Objectives Oil and Gas Touch points • Well Construction • Well Completion • Exploration and Production • Petrochemical Equipment • Ship Broking Product to Market • Defined Product to Market Schemes • Engineered Customer Solutions • “Bundling of Total Solution” Meetin
Slide 12: Well Portfolio
Hunting Energy Services Well Portfolio 12
Slide 13: Well Construction
Hunting Energy Services Well Construction Drilling Tools US, Canada, Intl Wells Drilled • Mud Motors 124000 • Non-Magnetic Drill Collars 122000 Wells Drilled 120000 • Shock Tools 118000 Wells Drilled 116000 Premium Connections 114000 112000 • SEAL-LOCK 110000 Y2008 Y2009 • TKC Source: Spears and Ass
Slide 14: Patented Well Construction Technology
Patented Well Construction Technology HIWS II Mud Motors Premium Connections 14
Slide 15: Annular Pressure Relief System
Annular Pressure Relief System 2008 World Oil Technology Award Finalist Annular Pressure Buildup is Primarily Found in Deepwater Wells Failure to Manage Annular Pressure Buildup Can Cause Catastrophic Structural Failure of the Well. 15
Slide 16: Well Completion
Hunting Energy Services Well Completion Manufacturing • Polished Bore Receptacle 970000 • OEM 965000 960000 • Completion Tools and 955000 Accessories US Active Wells 950000 945000 • Print Part Work 940000 935000 • Repairs 930000 925000 Well Intervention 920000 915000 Y2008 Y2009 • Pressure Control S
Slide 17: Patented Well Completion Technology
Patented Well Completion Technology Pressure Control VariBall Premium Tubing Clam BOP 17
Slide 18: Revenue Breakout
Hunting Energy Services Revenue Breakout U.S. Pipe, 13% Intl. Well M anufacturing 34% Drilling Tools, 39% Intervention , 7% Holland, 8% U.S. Manf., 24% Aberdeen, 28% Asia Pacific Ops, 17% Trenchless Technologies, Canadian Manf, P remium Connections, 17% 3% 10% Well Construction Well Completion 18
Slide 19: Exploration and Production
Exploration and Production 19
Slide 20: Exploration and Production
Hunting Energy Services Exploration and Production Number of Wells Drilled 11 Number of Successes 5 • ONSHORE 3 • OFFSHORE 2 Discovery • Gas 1 • Oil and Gas 4 2007 Production (thru June): 225,251 NEB US$m 2008 Production (thru June): 215,662 NEB 2006 2007 2008 Full Year (6 mos) Profit from Operation
Slide 21: Hunting Energy France
Hunting Energy France y eZ HUNTING
Slide 22: Petrochemical and Energy Equipment (Hunting Energy France)
Hunting Energy Services Petrochemical and Energy Equipment (Hunting Energy France) Roforge • Roforge forged & Mavinox Cast Valves • Ronfard Flow Control Equipment Setmat • Oil Terminal Management Software • Terminal Management Services Larco • Liquid Storage Equipment • Automated Systems for Oil and
Slide 23: Hunting Energy France
Hunting Energy France 23
Slide 24: Gibson Shipbrokers
Gibson Shipbrokers y eZ HUNTING
Slide 25: Gibson Shipbrokers
Gibson Shipbrokers US$m 2006 2007 2008 Full Year (6 mos) Profit from Operations 5.5 5.8 3.2 25
Slide 26: Hunting Energy Services
Hunting Energy Services Y < AG HUNTING
Slide 27: Global Challenges
Global Challenges Restricted Access to Proven Oil Reserves Oil reserves held NOC oil reserves by new Russian w ith equity Companies access 6% 11% Reserves w ith full IOC access 6% NOC oil reserves No equity access 77% Source: PFC Energy, Schlumberger 27
Slide 28: World Oil Demand
World Oil Demand W orld Oil De m a nd 90 86 Million bpd 82 78 74 70 00 01 02 03 04 05 06 07 08 09 10 Sourc e: EIA, Spears 28
Slide 29: Opportunities
Hunting Energy Services Opportunities Geographical Expansion • Mexico • Malaysia • Middle East Capitalize on our Premium Connection Status Expansion of Product Offerings Titanium Capitalize on Refining and Nuclear Projects Expand LNG Transportation Horizions 29
Slide 30: oF iNTING
oF iNTING