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.

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."