Financial Highlights - from continuing operations
|
Revenue £424.4m (H1 2012: £406.9m) |
+4.3% |
|
Underlying EBITDA of £75.6m (H1 2012: £77.7m) |
-2.7% |
|
Underlying profit from operations of £61.2m (H1 2012: £64.7m) |
-5.4% |
|
Reported profit from operations of £40.8m (H1 2012: £40.3m) |
+1.2% |
|
Underlying diluted earnings per share 27.3p (H1 2012: 28.4p) |
-3.9% |
|
Reported diluted earnings per share 18.5p (H1 2012: 18.3p) |
+1.1% |
|
Interim dividend declared of 4.75p (H1 2012: 4.50p) |
+5.6% |
|
Net debt of £158.8m (31 December 2012: £163.8m) |
|
Operational Summary
Positive business performance reported across many Group operations including:
o strong results from Premium Connections and US Manufacturing driven by global offshore activity and North American oil shales;
o improving operating environment for Drilling Tools, with market share captured in key oil focused shale basins;
o good results from Hunting Titan with new sales strategies and increasing geographic footprint;
o strengthening demand for Hunting Subsea products.
Continued investment in manufacturing footprint:
o purchase of 40 acre site in Houston, Texas is nearing completion, to provide additional premium threading capacity and accommodate a facility to develop, test and certify new premium connection thread designs - projected capital investment of US$54m;
o due diligence nearing completion to purchase a 9 acre site in Cape Town, South Africa, to provide sub-Sahara manufacturing and repair capabilities - projected capital investment of US$20m;
o commencement of US$36m phase two expansion at Houma, Louisiana to service offshore activity;
o Capital investment in the period of £20.1m (H1 2012: £37.2m);
o Number of employees 3,952 (31 December 2012: 3,866).
Low rig activity levels in Canada and excess inventories held by customers of the Hunting Electronics and US Pipe businesses have adversely impacted underlying profit from operations in H1 2013 compared to H1 2012 by £7.1m. Rig activity levels have since improved and demand for our products and services has strengthened.
Commenting on the results Dennis Proctor, Chief Executive, said:
"Hunting reports today underlying results broadly in line with the Group's financial performance in the second half of 2012. We are pleased that momentum has been maintained throughout the first six months, with improving order book and activity levels reported in the majority of our businesses. Our confidence in the longer term outlook for the industry underpins the programme of capital investment to further expand the Group's manufacturing capacity."
