It is good to be in Oil at the moment. Here is a way in which you can exploit the oil bonanza in an indirect way. Hunting PLC is an international Oil Service company providing various service solutions to some of the world's largest Oil and Gas operators.
Having been through a tough 2001-2002, things seem to be on the up with the market Hunting operates in being bouyant.

The latest results were good:
Turnover 1,195m (2002: 951m) +25.6%
Total operating profit 25.2m (2002: 24.4m) +3.3%
Pre-tax profit 21.1m (2002: 19.1m) +10.5%
Basic earnings per share 6.4p per share (2002: 4.1p) +56.1%
Ordinary dividend per share 3.50p (2002: 3.0p) +16.7%

Oil and gas prices are sky high so expect a drilling bonanza. Hunting is well placed globally, and especially for Canada’s tar sands.

Vital stats:
Market value: 129m
Historic PE: 20
Prospective PE for 2004: 11
Prospective PE for 2005: 10
Dividend yield: 2.75%
NMS: 5,000
Spread: 3.8%

Solid trading statement released a couple of weeks ago.

This week disposed some loss-making assets that generated $45m.

The chart is enticing.

The stock is demonstrating good strength with the price now moving into a gap from 1.25 to 1.70 and then quickly to 2. This was the fall in June/July 2002 which came after the market realised Hunting was to be hit with the then decline in international oil exploration and drilling activity.

Things are now very different however and the price could move ahead very quickly from here.

Hunting has not been getting much press, but is a great way to play the recent surge in the Oil/Gas sector.

A good solid company...I am in it. Happy to be in it, and it rises.

I've been tracking HTG and also looking at Expro EXR. Here is a comparison (historic figures only) which I put on the Fool previously

............................HTG.........EXR
Share price.................137.5p......255p
M/cap.......................138.9M......168.7M
Turnover (latest FY)........1,195M......203M
Pretax (latest FY)..........21.1M.......20.0M*
eps (latest FY).............6.4p........22.1p*
Dividend (latest FY)........3.5p........10.9p

*pre goodwill and exceptionals

Hunting figures are for FY to 31.12.03. Latest trading is in-line and to internal budgets.

Expro figures are to 31.3.03. Subsequent H1 results and recent statements indicate a slight fall in turnover and profits not much better than half the above, in the year just ended. Next results are out Weds 2nd June

On the face of it HTG looks the better buy. Margins seem terribly low though. EXR has a fairly fixed cost base, very sensitive to turnover. EXR is high techie stuff including for offshore (don't ask me to explain it any more than that), should benefit from deepwater exploration/production. The EXR chart shows an interesting triangle since the big fall last spring, could be seen as a consolidation pattern with high breakout potential.

The oil services sector does seem to be hanging fire including in the USA. Oh well, I expect I shall buy one or the other, but I think you have to take a 2 year view at least

Up she goes!........

just hold steady there HTG - ready for the next push for 150 then 170 then 200

RNS Number:0861Z
Capital Group Companies Inc
26 May 2004
FORM SAR 5

Lodge with Company Announcements Office and Newstrack, if appropriate, and the
Takeover Panel. A copy must also be sent to the company the shares of which are
sold.

Date of disclosure 25 May 2004

DISCLOSURE UNDER NOTE 3 ON RULE 5 OF THE RULES GOVERNING SUBSTANTIAL
ACQUISITIONS OF SHARES ("SARs")

Date of sale 25 May 2004

Sale of Hunting Plc

(1) Class of voting shares Number of shares/rights over shares sold If rights over shares sold, as
opposed to the shares themselves,
(eg ordinary shares) specify nature of rights

658,000 shares

Ordinary shares 0 rights N/A


(2) Resultant total holding of Resultant total holding of rights over Total percentage
voting shares (and % of total voting shares (and % of total voting shares in
shares in issue) issue)

15,696,450 (15.54%) 0 (0.00%) 15.54%


(3) Party making disclosure The Capital Group Companies, Inc.

(4) (a) Name of person selling shares or rights over shares
......................................................

and, if different, beneficial owner
The Capital Group Companies, Inc.

(b) Names of any other persons acting by
agreement or understanding

N/A

Signed, for and on behalf of the party named in (3) above
_____________________________________

(Also print name of signatory) Liliane Corzo

Telephone and extension number Contact Vivien Tan (213) 615-0469

______________________________________

For full details of the SARs disclosure requirements, see Rules 3 and 5 of the
SARs. If in doubt, contact the Panel on Takeovers and Mergers, Monitoring
Section, Tel. No: 020 7638 0129.

really testing resistance again

Ok so what is a realistic target price for it short term?

Hunting PLC
20 December 2005


20th December 2005

Hunting PLC
('Hunting', the 'Company')

Pre-close trading update


Hunting's results for the full year to 31 December 2005 will be announced on 2
March 2006.

Dennis Proctor, Hunting's Chief Executive, said: 'Current trading is strong. Our
results will be ahead of current market expectations and with strong commodity
prices, a healthy order book and production backlog, we expect the momentum to
continue in 2006. With forecast demand rising combined with Oil and Gas
Companies' budgeting significant E & P increases, Hunting is well positioned to
benefit from its broad product and service assets.'



-Ends-

The shares have been relatively quiet in the last couple of weeks (a spike up to 320p at the beginning of this week quickly evaporated). However expect a very nice run up leading to the results announcement on the 2nd March.

It's a bargain at these levels.

The spectacular performance of Schlumberger on Wall Street yesterday (shares up $7 on a day when the index was down over 200 points) confirms that the oil services sector is in splendid health (no surprise there !!). Schlumberger has forecast that business is continuing to boom ahead in this financial year - rather similar to the Hunting pre-close update that I posted above.

I have a feeling that Hunting could be good for a run up to 4 ish ahead of the results (and IMO they are good value even at that price !!)

GREAT CHART!!!

GREAT CHART!!!

From today's Guardian:

http://business.guardian.co.uk/speculator/story/0,,1692549,00.html

But the first pick among the possibles is Hunting, an oil services business. The big winner in the US reporting season was Schlumberger, the giant of that industry. Hunting is worth just 400m but should be enjoying the same diet of high oil prices and record levels of exploration by the oil majors. It could be an interesting week.

http://business.guardian.co.uk/story/0,,1691614,00.html

Among the small caps, Hunting the oil field services group, gained 4p to 308p on talk that it could be a takeover target for one of its US rivals. In a recent research note, ABN Amro noted that Hunting trades a 40% discount to its rivals.

Could Schlumberger be a possible bidder. its share price is up again today $3.75
As ABN Ambro states Hunting is trading at a 40% discount, with the result due on 2nd march and expected to be well ahead of market expectation, Sp has a lot of catching up to do.

Compared to Schlumberger it is obvious that Hunting is somewhat of a bargain.

It has ticked up a few pence today but, IMO, still a long long way to go.

HI there. A couple of points. I like this share but to quote your words if the results in 5 weeks are "expected to be better than market expectations" then this is already expected. It depends on what EPS and growth the analysts have pencilled in for it. Also, how do you think it compares to the other oil service providers, eg. petrofac , expro, sondex etc.

I believe that the market expectations will be surpassed by a long way and cause a pleasant surprise similar to Schlumberger on Wall Street last Friday. The whole oil services industry is experiencing a boom time and, like the oil and gas exploration companies, much of the success is down to a continuingly strong oil price. However whilst much of the investment focus remains, unsurprisingly, with the explorers, the oil services sector remains IMO a very under researched and undervalued subsector. If a giant like Schlumberger can surprise Wall Street like it did on Friday just imagine the potential that the far smaller UK listed have to provide a similar, if not better, surprise.
All of the companies mentioned in the above post have their qualities and investment potential.
For me Hunting appeals as the most attractive in a quality bunch.

It is really motoring today......................................

Bought in this morning at 326p on the back of a point and figure chart buy signal (triple top breakout) having been monitoring for a while. Big fan of the oil support sector and the fundamentals look stroong with decent growth prospects

Fundy,

top man.

the share price has recently been held back by Fidelity cutting down their stake to less than 10%.

However I am now reliably informed that this is out of the way so the SP can begin to behave 'normally'.

Without the Fidelity nonsense I think we would already be at 4 and this remains the target for me during this month.

From today's Guardian:


Hunting, the oil field services group, was the best performer in the FTSE 250 yesterday. Its shares gained 22p to 342, lifted by the clearance of an overhang and inevitably takeover speculation. According to analysts Hunting's mixture of businesses - oil services, trading and transportation - could be attractive to its rivals, most of whom have higher stock market ratings. That said, Hunting should benefit from the fact that spending on new oil and gas exploration projects is set to soar in the next couple of years.

Broker Recommendations - Tuesday 28th February 2006, 12:15 pm
Teather & Greenwood says buy Hunting (LSE: HTG.L)

It's the day before the results are announced.
Good luck to all holders for tomorrow (although I don't think you'll need it !!)

;o)

http://moneyam.uk-wire.com/cgi-bin/articles/200603020700511679Z.html

Quite spectacular results.

Onwards to 400p and beyond !!!!!!!!

Ian

agreed, a very solid set of results and prospects going forward very strong (chart looking nice too)

Hunting pretax profit jumped 148% in 2005 to 40.9m from 16.5m in 2004.

Yes a spectacular result indeed!!!

I am sure a lot more to come on the SP.

Looks like the rights issue money has been well used and the acquisition of Cromer being well integrated and exceding expectations and the balance sheet gives scope for more "purchased" growth as well as the organic growth

Fundy & Kaysmart

Glad there is at least three of us in this !!!!
I am really impressed by the strength of the SP all morning - solid and a steady upward trajectory.

I am sure the press will give a unanimous 5 star write up tomorrow (just like they all did at the time of the interims).

I just hope others take a bit of time to look into this one instead of spending their efforts on the small cap ramps and deramps (probably hoping for too much).

Also in this one for my long term PEP - fulfils criteria of profits, strong cash generation and dividends, with decent growth prospects. Results excellent - my only gripe is that "Other Activities" appeared to produce an operating loss of just over 2M on sales 58M. Hope they don't get complacent in some areas just because most are booming.

Partridge
Welcome on board !!!!
Good point.
I'll email the Company regarding that to see what it is about.
I'll post the reply as soon as I hear from them.

Ian and all

Quite happy to be in the sort of company that is mainly ignored by the masses and rampers and derampers (HWY and HDG are 2 others i hold which get little if any comment on BBs but both are performing wonderfully. And before people ask, yes i do buy shares that begin with letters other than H lol)

I only bought in quite recently, initially on a point and figure chart indicator and a small check on the fundamentals. Subsequently have done more work on the fundamentals and added to my position, with it being split part medium term swing trade and a core holding i will keep longer term.

For anyone who understands point and figure I have posted the current chart. The 3 horizontal blue lines are where successive buy signals have been given (the third needs to be confirmed by closing above 357p today) and should provide support (if needed)The first signal produced a target of 351p which was only slightly exceeded before the recent pull back. The second signal has given a target of 450p (no timescale)

Fundy
Thanks for posting the point and figure chart and the explanation - it is greatly appreciated.
My initial target was 400p (at which point the plan was to sell a third or perhaps half my holding to reinvest elsewhere) and am greatly reassured by your posting although I am a touch more bullish in that I think that price will be reached in the next couple of weeks.
In the absence of any suitable targets for reinvestment I may well run the entire holding for a tad longer.
I'll do a bit of research on the two other 'H' stocks that you mentioned above !
Cheers

;o)

Just got this from the Yahoo financial site:


Among the mid-caps, Hunting (LSE: HTG.L - news) led the gainers, up 24-3/4 at 372, after reporting a huge jump in pretax profit on soaring oil and gas prices, which prompted ABN Amro to raise its target to 440 pence from 400 and reaffirm its 'buy' rating.

Fundy - think you may be on to something with the letter H. I have done very well over the years from Halma,HBOS and HSBC, to add to your list!

Apologies for off topic all

Partridge,

HBOS is a share i have done well out of, never been in HSBC and Halma is currently a share i am analysing as it has just thrown up a very strong P&F buy signal (but i need to have a look at the fundies for the longer term)

I have popped the chart below, the buy signal at 158p had a target price of 188p which it achieved then pulled back and consolidated (having issued another signal at 174p). It has now produced another buy signal at 190p and the 174p buy signal has a target of 224p (approx 20% short to medium term upside upside)

Fundy,

Excellent post, I like your analysis of HTG. AND now even brokers are agreeing with you. As noted in the earlier Post by Lanayel ABN Amro has raised its target price to 440 pence from 400 and reaffirm its 'buy' rating. I have no intention of selling infect I regret not topping up yesterday but did this morning paying slightly more than I had hopped. Its an excellent sector to be IN. For me its a LTBH.

Fundy

Have followed Halma for 30 years and it has been a very rewarding ride. Held in PEP since 1990.They have increased the dividend in most (if not all) those years - cash generation is fabulous and they have market leading positions in a number of industries related to industrial safety. Article in the Sunday Times last week mentioned their expertise in water engineering projects. Also have small interest in oil/gas which should be doing well at present. Been quite acquisitive over the years, tend to buy well established and profitable businesses rather than turnround situations and with one or two exceptions they have spent wisely. Hardly ever borrowed any money. Last posted on HLMA thread in Dec - not speculative enough for much BB interest,but I would sooner back solid companies which prove long term winners!

Think Ill go hunting here tomorrow.

Threads a bit out of date.

thanks for heads up on this one GF ...... here's a better chart too .....

Yep certainly a better chart cyners, cheers mate.

sp interestingly poised, though special sit makes the chart even less reliable than usual ...... i think the best course would be a pretty modest stake, insofar as if the shrae bolts then you'll still make a good return and if it tumbles, the downside should not terrify

Just like VPC's graph !.

hmm! ..... admittedly a weak market day today, but 25 dma looks to have proved a bit of an excuse to resist ..... shall hold off buying and watch for the moment .... 380 may be a reasonable point, and 340 def so

Gone in this morning.(long)


Had a punt on this one this morning after further investigation and research. Risk reward ratio looks to be in the buyers favour at this market SP. Myers has a very good track record of late both long and short. SP is lower than when he tipped it. Cawkwells apprentice seems to be doing well.


The Bard of the Boleyn Is Hunting for a Bargain

Hunting PLC at 382p has a market cap of 500 million. The company has two divisions: firstly Gibson Energy, Canadas largest mid stream oil company (mid stream links upstream which is production and downstream which is refining i.e. it is involved in transportation, storage, pipelines etc.) Secondly it has Hunting Energy Services which provides services to major upstream oil companies (well construction: that sort of thing)

The investment case for Hunting is straight forward. In August it announced the sale of Gibson to Riverstone holdings, a large private equity group for 600 million. This would leave it with 400 million net cash (300p per share) and Hunting Energy Services which is forecast to make 43p of earnings in 2009.

Put another way Riverstone is paying Hunting aproximately 450p per share for Gibson and it will still be left with a debt free profitable business. So whats the catch I hear you ask? The catch is that Riverstone may walk away from the deal which was struck with oil at $140 per barrel against todays $52pb. Against this however is the fact that it has paid Hunting 50 million upfront which will not be refunded if the deal fails . Furthermore the company announced on 3rd November Hunting and Riverstone are working together towards completion of the disposal of Gibson Energy in early December 2008

In my opinion three things can happen in early December. One the company announces the completion of the disposal . Two it announces a date for completion of the disposal. Three it announces the deal is off. If one the shareprice rockets: two it goes up a fair bit, three it falls but given that the price is already discounting the deal fails, the fall should be short lived and investors are left with a bombed out Oil services play. Given that there is a good chance the deal goes through, the present price gives punters a chance to invest in a first class debt free oil services group for next to nothing.

Bear raiding prodigy Lucian Miers is the Bard of the Boleyn

Posted by Lucian Miers on Tue Nov 25, 04:52 PM in Comment



Looks cheap and look at the NAV under pinning it.

Hunting PLC

SUMMARY CHARTS DIRECTOR DEALINGS FORECASTS WIRES
2008 2009
Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)
Blue Oar Securities
28-11-08 BUY 61.00 27.80 9.10 92.10 42.00 10.20
Oriel Securities
27-11-08 HOLD 56.80 26.70 9.50 79.70 37.70 9.50
Arden Partners
24-11-08 BUY 76.70 36.80 9.00 76.10 36.00 9.50
Evolution Securities Ltd
01-11-08 BUY 63.30 28.80 8.80 117.70 55.80 9.50
Kaupthing Singer Friedlander
30-10-08 BUY 48.50 53.40 9.00 88.50 36.50 10.00
ABN AMRO
29-08-08 BUY 59.65 26.39 9.08 97.27 44.99 9.53
Seymour Pierce
16-05-08 BUY 99.90 46.00 9.00 115.10 53.00 10.00

2008 2009
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)
Consensus 61.45 29.81 9.04 85.29 38.78 9.50
1 Month Change 4.05 -0.32 0.00 -7.39 -3.43 -0.12
3 Month Change -33.31 -15.12 -0.02 -11.41 -7.03 -0.01


GROWTH
2007 (A) 2008 (E) 2009 (E)
Norm. EPS 7.06% -32.70% 30.09%
DPS 23.02% 16.64% 5.09%

INVESTMENT RATIOS
2007 (A) 2008 (E) 2009 (E)
EBITDA 127.20m 73.46m 95.67m
EBIT 100.20m m m
Dividend Yield 2.01% 2.35% 2.47%
Dividend Cover 5.72x 3.30x 4.08x
PER 8.69x 12.91x 9.92x
PEG 1.23f -0.40f 0.33f
Net Asset Value PS 164.45p 454.24p 490.07p

dyor

but sp is looking very unhappy at the moment, though i concur with what you (GF) posted about this company, albeit on the wrong thread! ...... for a change and thank goodness, managed to keep my itchy fingers off the buy button

i am somewhat concerned to see that volume is already twice the norm ..... perhaps someone knows the deal is being scrapped ..... be careful

Could be right cyners, but from what ive researched 50 million is held on escrow and if buyer defaults on terms agreed Hunting have the above less legal expenses etc.

Just a reminder......


For immediate release
3 November 2008











Hunting PLC




('Hunting')




Gibson Regulatory Clearances Received




Hunting PLC, the international energy services company, advises that all regulatory clearances required for the disposal of Gibson Energy have now been received. Hunting and Riverstone are working together towards completion of the disposal of Gibson Energy in early December 2008. All conditions relating to the completion process are either complete or remain on schedule.




For further information please contact:




Hunting PLC

Dennis Proctor, Chief Executive

Peter Rose, Finance Director

what happened to the 340p support!

indeed, though the whole market is so dire that going short of almost any stock is a profitable exercise .... if the (partial) t/o fails, then there is prob at least a further 1.00 downside, but it it goes through, then the upside is much greater

A lot of oilys down up to 10% on friday.

Fear within the sector at the moment.

very lively today ..... positive action imminent or just wishful thinkers?

Yep it really went for it today which leaves me hopefull of the sale news appearing anytime now.

Energy services firm Hunting said on Monday it had completed the delayed sale of its Canadian oil and gas division for C$1.26 billions ($1 billion) and would step up its search for acquisitions with the proceeds.

thanks GF .... you're a star ..... not sure of the upside at present

Looking good cyners looking good.

what's a reasonable upper limit? .... any idea? .... can't find the original note you posted

just e-mailed you

Original note here cyners, from charts its anybodys guess where they go from here i reckon......

The Bard of the Boleyn is hunting for a bargain
Hunting PLC at 382p has a market cap of 500 million. The company has two divisions: firstly Gibson Energy, Canadas largest mid stream oil company (mid stream links upstream which is production and downstream which is refining i.e. it is involved in transportation, storage, pipelines etc.) Secondly it has Hunting Energy Services which provides services to major upstream oil companies (well construction: that sort of thing)

The investment case for Hunting is straight forward. In August it announced the sale of Gibson to Riverstone holdings, a large private equity group for 600 million. This would leave it with 400 million net cash (300p per share) and Hunting Energy Services which is forecast to make 43p of earnings in 2009.

Put another way Riverstone is paying Hunting aproximately 450p per share for Gibson and it will still be left with a debt free profitable business. So whats the catch I hear you ask? The catch is that Riverstone may walk away from the deal which was struck with oil at $140 per barrel against todays $52pb. Against this however is the fact that it has paid Hunting 50 million upfront which will not be refunded if the deal fails . Furthermore the company announced on 3rd November Hunting and Riverstone are working together towards completion of the disposal of Gibson Energy in early December 2008

In my opinion three things can happen in early December. One the company announces the completion of the disposal . Two it announces a date for completion of the disposal. Three it announces the deal is off. If one the shareprice rockets: two it goes up a fair bit, three it falls but given that the price is already discounting the deal fails, the fall should be short lived and investors are left with a bombed out Oil services play. Given that there is a good chance the deal goes through, the present price gives punters a chance to invest in a first class debt free oil services group for next to nothing.

Bear raiding prodigy Lucian Miers is the Bard of the Boleyn

Posted by Lucian Miers on Nov 25, 04:52 PM in Comment

just took my profit ..... sp is more likley to stagnate or fall a bit from this level, at least for the moment

Yep might go for the same.

had a good run here.

I'm back in.

Added yesterday looking for 500p.

Goes ex-divi 8th Jun '11 (8.3p)

Hunting PLC

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

Trading Update

Hunting PLC (LSE:HTG), the international energy services group, today provides a Trading Update.

As noted within the Company's Trading Statement released on 13 April 2016, performance across the Group's businesses in Q1 2016 was very weak, which has extended throughout April and into May and is now predicted to continue over the next few months.

On the basis of further deteriorating market conditions, the Board has completed its latest review of the 2016 full year outturn, with management's revenue expectations now predicting a decline of between 30% and 40% compared to 2015. In the four months to the end of April 2016 an underlying EBITDA loss of $16.2 million has been recorded and with current market conditions, the outturn for the full year remains very uncertain. Along with a number of other market commentators, management anticipate the trading environment to stabilise in the latter part of 2016.

Management continue to implement cost saving measures at all levels across the Group, including staff reductions and facility closure plans. In addition, measures to manage cash and minimise capital expenditures, with a particular focus on working capital, are in place to continue the reduction of debt.

While near term trading visibility remains poor, the Board reports that the Group's Balance Sheet remains strong and that Net Debt continues to reduce. In the year to date, the Group has received a tax refund of $31 million with other tax initiatives likely to lead to the receipt of a further $7 million over the coming months. As at 30 April 2016, the Group's Net Debt position was approximately $105 million and with Net Assets remaining around $1.1 billion, Group gearing remains at a modest level.

The Group has a supportive lending group, comprising of five banks. Management has been in discussions with its lenders and has commenced negotiations to amend its EBITDA based bank covenants. A further announcement will be made once this amendment has been secured.

Trading Statement Tuesday 6th September. On watch list.

LATEST BROKER VIEWS

Date Broker New target Recomm.
24 Aug Barclays... 500.00 Equal weight
19 Aug Deutsche Bank 560.00 Buy
12 Aug Goldman Sachs 654.90 Buy
22 Jul Deutsche Bank 560.00 Buy
22 Jul Barclays... 500.00 Equal weight
11 Jul Deutsche Bank 560.00 Buy
3 Jun Goldman Sachs N/A Buy
13 May Liberum Capital 240.00 Sell
16 May Liberum Capital 232.00 Sell
13 May Canaccord... 225.00 Sell
Broker Recommendations for Hunting


If it can break and stay above 480p next target 500p.

Long on the spreads @ 476.70 this morn tight stop.

Seems stuck in this range 460-480p.

For Immediate Release
5 September 2016



Hunting PLC

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

Interim Results for the six months to 30 June 2016

Hunting PLC (LSE:HTG), the international energy services group, today announces its interim results for the six months to 30 June 2016.

Financial Summary - from continuing operations

· Revenue $228.4m (H1 2015 - $463.6m)

· Underlying EBITDA $29.5m loss (H1 2015 - $44.1m profit)

· Underlying loss from operations of $50.8m (H1 2015 - $20.4m profit)

· Reported loss from operations of $77.0m (H1 2015 - $63.1m loss)

· Underlying diluted loss per share 27.8 cents (H1 2015 - 8.4 cents earnings per share)

· Reported diluted loss per share 40.3 cents (H1 2015 - 35.5 cents loss per share)

· Net debt of $87.5m (31 December 2015 - $110.5m)


Operational Summary

· Focus on cash generation to reduce net debt, with initiatives including:
o $42.3m reduction in inventories since 31 December 2015;
o $29.5m tax reclaimed from carry back of losses; and
o capital investment limited to contracted or essential spend.

· Cost cutting measures continued during the reporting period and include:
o 46% reduction in headcount to 2,145 since 31 December 2014 position of 4,003; and
o 3 manufacturing facilities and 7 distribution centres closed.

· Discussions to revise terms of bank Revolving Credit Facility concluded:
o profits based covenants suspended until the 31 December 2018 test date;
o new asset based covenants of Tangible Net Worth and Asset Cover;
o facility size reduced from $350m to $200m;
o facility secured on trade receivables, inventory and property in the USA, UK and Canada; and
o no dividend payments until the end of the amendment period.

Commenting on the results Dennis Proctor, Chief Executive, said:

"While industry sentiment reached a low point during the early months of the reporting period, the improved US rig count data seen through Q2 indicates that the global energy markets are adjusting to the lower oil price environment. The combination of lower operating costs and production efficiency gains has led to increased enquiry levels as operators focus on those projects which provide the strongest returns. However, given the inherent uncertainty within the industry at this time, the current market estimates for the 2016 full year will remain dependent on an improved trading environment in the latter part of the year.

"While the Group's performance has suffered, we are pleased to have concluded the renegotiation of our bank covenants to enable Hunting to continue with strong, liquid resources to respond to an improving market environment. At the period end our net debt position has been reduced to $87.5m following ongoing cost cutting and the receipt of tax refunds, which indicates the strength of our balance sheet and the resilience of our business model."
LATEST BROKER VIEWS

Date Broker New target Recomm.
5 Sep Liberum Capital 305.00 Sell
1 Sep Deutsche Bank 560.00 Buy
24 Aug Barclays... 500.00 Equal weight
19 Aug Deutsche Bank 560.00 Buy
12 Aug Goldman Sachs 654.90 Buy
22 Jul Deutsche Bank 560.00 Buy
22 Jul Barclays... 500.00 Equal weight
11 Jul Deutsche Bank 560.00 Buy
3 Jun Goldman Sachs N/A Buy
13 May Liberum Capital 240.00 Sell

Credit Suisse note today:
Upgrade to Outperform. With greater exposure to well completions (mostly because of Titan) and US unconventionals, HTG should have more operational leverage to this recovery cycle than 2009. The recent improvement in orders suggests customers have consumed excess inventories of certain product lines. Rig count (up more than 50% from the bottom across major basins) and DUC completion trends add substance to this thesis, while a Trump Administration should also be a boon to the US Oil & Gas Industry. All this suggests a brighter outlook for HTG.
Patience required. Many HTG customers may need to fill their own plants / facilities before sourcing product from HTG. The competitive environment has intensified recently, while burning through higher-cost inventory may also hamper margin expansion initially in the recovery phase. HTG’s business outside NAM may also be a drag through 2017, notably offshore markets in the North Sea and Asia Pacific. One should therefore expect HTG’s recovery to lag that of its mainstream customer base.
Strengthened balance sheet: HTG had made solid progress reducing net working capital and net debt through the downturn. The successful placing in late October raised over GBP70m (~USD87.5m) of gross proceeds, which effectively eliminates group net debt. This enables HTG to better respond to growing business development opportunities while providing even greater headroom to banking covenants. It also removes a barrier to HTG potentially participating in industry consolidation.
Valuation: We increase 2017/18E revenues / EBITDA by 2%/2% and 4%/8% respectively, although the EPS impact is muted by the placing. Putting our forecasts in context, 2018E EBITDA is ~60% below the 2014 peak, but we are 15% above the street, and see an EV/EBITDA multiple of 8x, which is materially below peers in the 9-14x range. We utilise higher peer group multiples in our SOTP valuation, and, in aggregate, this drives an increase in TP to GBp575p (from GBp500).

Hunting PLC (LSE:HTG), the international energy services group, today announces its results for the year ended 31 December 2016.

Financial Summary - from continuing operations
· Revenue $455.8m (2015 - $810.5m)
· Underlying EBITDA $48.9m loss (2015 - $61.9m profit)
· Underlying loss from operations of $92.2m (2015 - $16.4m profit)
· Reported loss from operations of $140.7m (2015 - $282.2m loss)
· Underlying diluted loss per share 45.3 cents (2015 - 3.1 cents earnings per share)
· Reported diluted loss per share 76.8 cents (2015 - 156.1 cents loss per share)
· Net debt of $1.9m (31 December 2015 - $110.5m)

1 Underlying results are based on continuing operations before amortisation of acquired intangible assets and exceptional items. Reported results are based on the
statutory results for continuing operations as reported under International Financial Reporting Standards as adopted by the EU.

Operational and Financial Summary

·New product lines continue to be developed and rolled out to customers to lower their operational costs and increase project efficiencies including:
o further commercialisation of the H-1 Perforating System, which is now being used by major oil companies in the US;
o broadening of the WEDGE-LOCK™ premium connection family to include 14" and 16" variants for commercialisation in 2017; and
o introduction of the EQUAfrac™ charge, providing uniform hole technology in the wellbore.

·Focus on debt reduction with initiatives including:
o $61.7m reduction in inventories since 31 December 2015;
o $31.3m received in net tax refunds; and
o $17.2m capital investment made in year - limited to contracted or essential spend.

·Cost cutting measures continued during the year and include:
o 24% reduction in headcount to 2,107 since 31 December 2015; and
o 3 manufacturing facilities and 10 distribution centres decommissioned during 2016.

·Borrowing facilities' terms revised:
o profit-based covenants for the committed bank facilities suspended up to and including 30 June 2018 bank covenant test date;
o committed facilities reduced from $350m to $200m;
o drawings under the bank facilities secured on assets;
o capping of annual capital investment; and
o no dividend payments until the end of the suspension period.

·Placing of 14.6m new Ordinary shares raising $83.9m net of transaction expenses completed:
o proceeds used to reduce borrowings and increase financial flexibility; and
o placing price of 485.0 pence per share.

·Facility expansion programme now completed:
o commissioning of Ameriport, US, facility in the year; and
o global operational footprint of 3.1m square feet.


Commenting on the results Dennis Proctor, Chief Executive, said:

"Hunting's 2016 results reflect the difficult market conditions facing the global oil and gas industry caused by the sustained low oil price leading to lower demand for our products and services.

"Towards the end of 2016 optimism was seen across the energy market, following the announcements by OPEC to reduce oil production and improving onshore activity levels in the US, particularly in West Texas. While this is positive news for the industry, Hunting is still focused on cost controls and aligning its operations with the short-term outlook. US onshore activity levels are increasing, providing better trading for businesses such as Hunting Perforating Systems, while the international picture remains subdued."

"For the Group as a whole, operating losses have been incurred during the opening months of 2017, however, management anticipate moving back to monthly profitability later in the year, subject to a continuing recovery across the whole market."