Hunting PLC · LSE:HTG
Hunting — FY2009 Earnings Presentation
37 slides from Hunting's earnings presentation, 2010
Slide 1: Hunting: manufactures and distributes products for oil and gas extraction
Hunting Manufactures and distributes products that enable the extraction of oil and gas
Slide 2: Hunting PLC Global Footprint
Hunting PLC Global Footprint 2
Slide 3: 2009 Corporate Highlights
2009 Corporate Highlights Completed three acquisitions £47.3m Sale of Hunting Energy France £11.1m Year end net cash £365.0m Free cash flow in the year £39.5m Dividend year on year + 6% 3
Slide 4: 2009 Results Summary
2009 Results Summary 2009 2008 Change £m £m % Revenue 359.9 418.5 -14 EBITDA 50.6 75.7 -33 Profit from operations 35.8 58.8 -39 Finance income (expense) 1.8 (3.4) Profit before tax 38.5 56.6 -32 Effective tax rate 32% 33% Basic EPS 17.7p 26.4p -33 Dividend 10.5p 9.9p +6 4
Slide 5: Segmental Results
Segmental Results 2009 2008 Profit Profit from from Revenue Operations Margin Revenue Operations Margin £m £m % £m £m % Hunting Energy Services Well Construction 77.9 3.3 4 112.0 13.5 12 Well Completion 176.2 20.3 12 189.8 26.6 14 Well Intervention 29.4 4.0 14 23.3 4.6 20 Exploration and Production
Slide 6: Exceptional Items
Exceptional Items £m Continuing Release of warranty provision 1.5 Additional leasehold property provision (0.9) 0.6 Discontinued Gain on disposal of Hunting Energy France 2.9 Additional Gibson Energy sale proceeds 17.6 Gibson Energy indemnity and tax provisions (16.6) 3.9 6
Slide 7: Balance Sheet
Balance Sheet 2009 2008 £m £m Total assets 817.7 874.2 Total liabilities (255.9) (316.9) Net assets 561.8 557.3 Net cash 365.0 372.3 7
Slide 8: Capital Expenditure
Capital Expenditure 2009 2008 £m £m Hunting Energy Services Well Construction 9.1 13.6 Well Completion 8.3 10.9 Well Intervention 1.8 0.8 Exploration & Production 1.9 8.8 Others 0.5 0.7 21.6 34.8 Split: Replacement 9.9 24.2 New Business 11.7 10.6 21.6 34.8 8
Slide 9: Acquisitions Update
Acquisitions Update Three acquisitions completed in the period • NCC for £31.8m • PT SMB Industri for £6.3m • Welltonic for £9.2m Good pipeline of companies still being assessed 9
Slide 10: Capital Expenditures
Capital Expenditures Wuxi, China • Cost : $10 million • SQ/FT : 300,000 • Completion Date: Q2 2010 Conroe, Texas • Cost : $4.5 million • SQ/FT : 36,000 • Completion Date : Q2 2010 Casper, Wyoming • Cost : $9 million • SQ/FT : 60,000 • Completion Date : Q3 2010 10
Slide 11: Capital Expenditures (continued)
Capital Expenditures (continued) Houma, Louisiana “Mega Center” • Cost : $50 million • SQ/FT : 250,000 • Completion Date : 2011 Aberdeen, Scotland • Cost : $30 million • Consolidation and expansion • Completion Date : Q1 2012 11
Slide 12: Cash Flow
Cash Flow 2009 2008 £m £m EBITDA 50.6 75.7 Working Capital 11.9 (15.7) Others (6.1) (1.9) Capital expenditure - replacement (9.9) (24.2) Interest and tax (7.0) (9.5) FREE CASH FLOW 39.5 24.4 Capital expenditure - growth (11.7) (10.6) Acquisitions (44.4) (1.6) Disposals 24.0 524.4 Dividends (13.8) (1
Slide 13: Hunting Energy Well Construction
Hunting Energy Well Construction 13
Slide 14: Hunting Energy Services Well Construction
Hunting Energy Services Well Construction Profit from Operations £m 2006 2007 2008 2009 8.0 8.1 13.5 3.3 14
Slide 15: Well Construction Product Integration Points
Well Construction Product Integration Points Unconventional Gas Land Rigs Deepwater Drilling Tools + OCTG + Premium Connections Mud Motors Carbon SEAL-LOCK Drill Collars Alloy TKC Shock Tools Chrome Licensed Threads APRS 15
Slide 16: 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 17: 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 17
Slide 18: Hunting Energy Well Completion
Hunting Energy Well Completion 18
Slide 19: Hunting locations for Shale and Tight Gas plays
Hunting locations for Shale and Tight Gas plays 19
Slide 20: Hunting Energy Services Well Completion
Hunting Energy Services Well Completion Profit from Operations £m 2006 2007 2008 2009 20.0 30.0 26.6 20.3 20
Slide 21: Well Completion Product Integration Points
Well Completion Product Integration Points Unconventional Gas Land Rigs Deepwater Accessory Specialty Tubular Manufacturing + Threading + Systems Completion Accessories SEAL-LOCK Deepwater Facilities Assembly TKC Managed Inventory Print Part Work Licensed Threads Completion Design API Polished Bore
Slide 22: Well Completion Products
Well Completion Products Completion Accessories: Hunting’s global manufacturing footprint provides products and services assisting in the completion of wells • Proprietary products • OEM Equipment Polished Boring: Hunting provides the market products which have the inside diameter bored and polished
Slide 23: 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 • TKC • SEAL-LOCK • 2-Step Advanced Tubular Systems: Hunting provides the market with environmentally sound running, storage compounds and
Slide 24: Hunting Energy Well Intervention
Hunting Energy Well Intervention 24
Slide 25: Hunting Energy Services Well Intervention
Hunting Energy Services Well Intervention Profit from Operations £m 2006 2007 2008 2009 3.6 4.1 4.6 4.0 25
Slide 26: Well Intervention Product Integration + Subsea
Well Intervention Product Integration Work Over Coiled Tubing Subsea Manufacturing + Thru-Tubing Tools + Subsea Pressure Control Equip Coiled Tubing Tools Chemical Injection System OEM Tools Coiled Tubing Motors Hydraulic Valves E-Line Tools Hydraulic Couplings Slickline Tools Weldment Services 26
Slide 27: 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 28: 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 hig
Slide 29: Thru-Tubing Technology Hunting-Welltonic
Thru-Tubing Technology Hunting-Welltonic Thru-Tubing Specialists Coiled tubing tools Design, manufacture and sales of specialist and custom designed tools to companies worldwide. This covers an extensive range of intervention equipment from mud motors, tubular severance and perforating products to f
Slide 30: Gibson Shipbrokers
Gibson Shipbrokers Core activities remain focused on the shipping of energy Selective recruitment to continue purposeful global expansion Profit from Operations £m 2006 2007 2008 2009 2.9 2.9 6.9 0.7 30
Slide 31: Others: Exploration and Production, Field Aviation
Others Hunting Exploration and Production Profit from Operations £m 2006 2007 2008 2009 1.8 4.4 5.9 0.3 Field Aviation Profit from Operations £m 2006 2007 2008 2009 4.2 (0.3) 1.3 7.2 31
Slide 32: US Spot Oil Price (US$ / bbl)
US Spot Oil Price (US$ / bbl) 32
Slide 33: World Oil Demand (mbpd)
World Oil Demand (mbpd) 7 World Oil Demand (mbpd) 92.5 90.0 87.5 85.0 82.5 80.0 775 75.0 H oP EDEDER LEER TELE LE LE LE LE TELE LET 70.0 | | | | | J 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: Eta 33
Slide 34: Offshore Capital Spending
Offshore Capital Spending 34
Slide 35: Operational / Acquisition Strategy
Operational / Acquisition Strategy 35
Slide 36: Hunting Energy Services Strategy
Hunting Energy Services Strategy Hunting Subsea – emphasis on ultra deep water High Pressure High Temperature Capitalise on Premium Connection Position Expand Global Footprint Continued Development of Well Intervention Platform Acquisitions which Complement Existing Operations and Products 36
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