Hunting PLC HTG Interim Management Statement

  Hunting PLC (HTG) - Interim Management Statement

RNS Number : 0212Q
Hunting PLC
01 November 2012




For Immediate Release 1 November 2012

                                      

                                      

                                      

                                 Hunting PLC

                                      

                 ("Hunting" or "the Company" or "the Group")

                                      

                         Interim Management Statement

                                      &

                              Analyst Site Visit

                                      

                                      

Hunting PLC (LSE: HTG), the  international energy services group today  issues 
its Interim Management Statement for the period 1 July 2012 to date.



Dennis Proctor, Hunting's Chief Executive said,



"Hunting's businesses continue to perform well, with strong global demand  for 
premium connections, accessories, OCTG,  MWD/LWD components and  manufacturing 
services. An increase in competition  within the short perforating gun  market 
has persisted during the  third quarter which has  reduced demand for  Hunting 
Titan products  in  this size  range.  Further,  efforts to  comply  with  new 
offshore standards continue  to hamper our  subsea product deliveries  despite 
having an increased  sales backlog.  However, the Board  remains confident  of 
trading in line with its expectations for the 2012 full year results."



Well Construction



Hunting's premium  connections  businesses continue  to  be driven  by  strong 
global demand and the increased drilling  activity in the Gulf of Mexico.  The 
Advanced Manufacturing Group  continues to  report good order  intake for  its 
electronic  and  precision  engineered  products  and  has  traded  ahead   of 
management's expectations during the period. MWD/LWD components also  continue 
to trade strongly.



The Drilling Tools  business has  seen a marginal  decline in  trading as  the 
industry  moves  activity  toward  the  shale  liquids  regions  across  North 
America.



Well Completion



Hunting Titan  has  seen  an  increase  in  competition  for  its  short  size 
perforating gun systems  in recent  months, primarily from  a year-on-year  9% 
decline in the US rig  count as well as operators  moving from gas to  liquids 
drilling targets. The  business continues  to progress  its expansion  plans, 
with new distribution centres  planned for North  America, Europe, the  Middle 
and Far  East. The  investment at  the  Group's facility  in Wuxi,  China  is 
continuing, with manufacturing of perforating  guns planned to commence in  Q1 
2013.



Hunting's US Manufacturing business continues to report strong activity levels
as momentum in the Gulf of Mexico  builds. The unit is now utilising its  new 
facility in Houma,  Louisiana, which adds  98,000 square feet  to the  Group's 
manufacturing footprint.



Well Intervention



At Hunting's Stafford facility,  the expansion project to  double the size  of 
its manufacturing capacity has been completed. Hunting Welltonic is expanding
geographically into North  America where demand  for its Thru-Tubing  products 
lines has been identified.

Financial Position



Overall the Company has a strong balance sheet, with no significant change  to 
the financial position  of the Group  since the publication  of the half  year 
results in August 2012.



Capital expenditure is  forecast to  be about £70m  in the  current year.  The 
reduction to previous  guidance is  primarily due to  slippage of  expenditure 
into 2013.



The Group's net debt position as at 31 October 2012 was approximately £210m.



Analyst Site Visit



Hunting will be hosting an analyst visit  to a number of its US facilities  on 
5-7 November 2012.  During the  visit no  new financial  information will  be 
disclosed.



For further information please visit www.huntingplc.com or contact:



Hunting PLC                                             

Dennis Proctor, Chief Executive      Tel: +1 713 595 2950

Peter Rose, Finance Director    Tel: +44 (0) 20 7321 0123

                                                       
Buchanan                        Tel: +44 (0) 20 7466 5000

Richard Darby

Jeremy Garcia



OCTG - Oil Country Tubular Goods

MWD/LWD - Measurement-while-drilling/Logging-while-drilling



Notes to Editors:



About HuntingPLC



HuntingPLCis an  international  energy  services  provider  to  the  world's 
leadingupstreamoil and gas  companies. Established  in 1874, it  is a  fully 
listed public  company  traded  on  the London  Stock  Exchange.  The  Company 
maintains a  corporate office  inHoustonand is  headquartered inLondon.  As 
well as theUnited Kingdom,  the Company has  principal operations in  Canada, 
China, Hong  Kong,  Indonesia,  Mexico,  Netherlands,  Singapore,United  Arab 
Emiratesand theUnited States of America.



                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


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