Hunting 2015 final results

DividendMax Ltd.

Hunting 2015 final results

Operational Summary

Continued development of global operating footprint

commissioning commenced of high throughput premium connections facility at Ameriport, US, in Q4 2015 to serve North American energy markets;

Cape Town, South Africa, facility commissioned providing threading, storage and service for sub-Sahara African markets;

completion of facility expansion at Houma, US;

expansion of Hunting Dearborn facility to reduce customer lead times;

AMG manufacturing capability established in Singapore;

new Hunting Titan/Drilling Tools shared distribution and service centre opened in Odessa, US.

New product innovations developed and commercialised

new H-1 perforating system trialled by customers in the year and commercialised during Q1 2016 by Hunting Titan;

WEDGE-LOCK™ and SEAL-LOCK XD™ premium connections sales increased following first roll out in early 2015;

new high temperature/high pressure hydraulic couplings developed and launched by Hunting Subsea;

new directional drilling tools jointly developed by Drilling Tools, Hunting Specialty and Hunting Titan businesses.

Cost reduction programme completed during the year

30% reduction in headcount in the year;

four operating sites closed;

three distribution centres being prepared for closure.

Financial Summary

Cost reductions and tight cash management achieved in the year

cost saving measures implemented across the Group;

capital expenditure reduced to $81.1m as major projects were completed.

Positive free cash flows* generated allowing pay down of net debt*

$118.0m of free cash generated to give closing net debt of $110.5m;

gearing* of 9% reported, even with continued capital investment.

Revenue of $810.5m recorded in the year, with management actions limiting the impact on gross margins

revenue decline in line with reductions in Global drilling and production expenditure;

24% underlying gross margin achieved in the year.

Impairment and restructuring charges reflecting current market conditions

charges for restructuring costs and impairment to property, plant and equipment, goodwill and other intangible assets totalling $259.7m.

Underlying profit from operations* of $16.4m

Reported loss from operations of $282.2m.

Final dividend of 4.0 cents per share proposed, subject to shareholder approval

subject to approval, the dividend will be paid on 6 July 2016, to shareholders on the register on 10 June 2016 with a cash cost of $5.9m;

total dividends for the year 8.0 cents per share, with a total cash cost of $11.8m.

Companies mentioned