Hunting Manufactures and distributes products that enable the - - PowerPoint PPT Presentation

Hunting Manufactures and distributes products that enable the extraction of oil and gas

Hunting PLC Global Footprint

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2009 Corporate Highlights

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Completed three acquisitions

£47.3m

Sale of Hunting Energy France

£11.1m

Year end net cash

£365.0m

Free cash flow in the year

£39.5m

Dividend year on year

+ 6%

2009 Results Summary

2009 £m 2008 £m Change % Revenue 359.9 418.5

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EBITDA 50.6 75.7

• 33

Profit from operations 35.8 58.8

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Finance income (expense) 1.8 (3.4) Profit before tax 38.5 56.6

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Effective tax rate 32% 33% Basic EPS 17.7p 26.4p

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Dividend 10.5p 9.9p

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Segmental Results

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2009 2008

Revenue £m Profit from Operations £m Margin % Revenue £m Profit from Operations £m Margin %

Hunting Energy Services Well Construction 77.9 3.3 4 112.0 13.5 12 Well Completion 176.2 20.3 12 189.8 26.6 14 Well Intervention 29.4 4.0 14 23.3 4.6 20 Exploration and Production 5.6 0.3 5 14.8 5.9 40 289.1 27.9 10 339.9 50.6 15 Gibson Shipbrokers 20.8 0.7 3 31.2 6.9 22 Field Aviation 50.0 7.2 14 47.4 1.3 3 359.9 35.8 10 418.5 58.8 14

Exceptional Items

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£m Continuing Release of warranty provision 1.5 Additional leasehold property provision (0.9) 0.6 Discontinued Gain on disposal of Hunting Energy France 2.9 Additional Gibson Energy sale proceeds 17.6 Gibson Energy indemnity and tax provisions (16.6) 3.9

Balance Sheet

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2009 £m 2008 £m Total assets 817.7 874.2 Total liabilities (255.9) (316.9) Net assets 561.8 557.3 Net cash 365.0 372.3

Capital Expenditure

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2009 £m 2008 £m Hunting Energy Services Well Construction 9.1 13.6 Well Completion 8.3 10.9 Well Intervention 1.8 0.8 Exploration & Production 1.9 8.8 Others 0.5 0.7 21.6 34.8 Split: Replacement 9.9 24.2 New Business 11.7 10.6 21.6 34.8

Acquisitions Update

Three acquisitions completed in the period

• NCC for £31.8m
• PT SMB Industri for £6.3m
• Welltonic for £9.2m

Good pipeline of companies still being assessed

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Capital Expenditures

Wuxi, China

• Cost : $10 million
• SQ/FT : 300,000
• Completion Date: Q2 2010

Conroe, Texas

• Cost : $4.5 million
• SQ/FT : 36,000
• Completion Date : Q2 2010

Casper, Wyoming

• Cost : $9 million
• SQ/FT : 60,000
• Completion Date : Q3 2010

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Capital Expenditures (continued)

Houma, Louisiana “Mega Center”

• Cost : $50 million
• SQ/FT : 250,000
• Completion Date : 2011

Aberdeen, Scotland

• Cost : $30 million
• Consolidation and expansion
• Completion Date : Q1 2012

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Cash Flow

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2009 £m 2008 £m EBITDA 50.6 75.7 Working Capital 11.9 (15.7) Others (6.1) (1.9) Capital expenditure - replacement (9.9) (24.2) Interest and tax (7.0) (9.5) FREE CASH FLOW 39.5 24.4 Capital expenditure - growth (11.7) (10.6) Acquisitions (44.4) (1.6) Disposals 24.0 524.4 Dividends (13.8) (11.3) Other (3.8) (2.5) Discontinued Operations 2.9 (11.3) (Decrease)/Increase in net cash (7.3) 511.5

Hunting Energy Well Construction

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Hunting Energy Services Well Construction

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Profit from Operations £m 2006 2007 2008 2009 8.0 8.1 13.5 3.3

Unconventional Gas Land Rigs Deepwater

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Well Construction Product Integration Points

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OCTG Premium Connections Drilling Tools

Mud Motors Drill Collars Shock Tools Carbon Alloy Chrome SEAL-LOCK TKC Licensed Threads APRS

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Well Construction Products

• Mud Motors: Hunting’s mud motors

decrease the time it takes to drill wells utilising state of the art technology to manage hydraulics in a means to increase drill bit speed

• Annular Pressure Relief System:

Hunting’s APRS system provides our customers with additional insurance against casing collapse and loss of well in deepwater applications

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Well Construction Products

• Non-Magnetic Drill Collars:

Allow directional drilling

• perations to have accurate

information from sensors located close to the drill bit

• WEDGE-LOCK: Hunting’s

newest premium connection provides superior capabilities in deviated and directional drilling applications

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Hunting Energy Well Completion

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Hunting locations for Shale and Tight Gas plays

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Hunting Energy Services Well Completion

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Profit from Operations £m 2006 2007 2008 2009 20.0 30.0 26.6 20.3

Well Completion Product Integration Points

Unconventional Gas Land Rigs Deepwater

Specialty Threading Tubular Systems Accessory Manufacturing

Completion Accessories Assembly Print Part Work Polished Bore Receptacles

SEAL-LOCK TKC Licensed Threads API

Deepwater Facilities Managed Inventory Completion Design Thread Protection

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Well Completion Products

• Completion Accessories:

Hunting’s global manufacturing footprint provides products and services assisting in the completion of wells

• Proprietary products
• OEM Equipment
• Polished Boring: Hunting

provides the market products which have the inside diameter bored and polished for flow maximisation in highly critical applications

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Well Completion Products

• Premium Tubing: Hunting’s

global footprint provides the marketplace with tubing connections which have engineered gas tight seal designs

• TKC
• SEAL-LOCK
• 2-Step
• Advanced Tubular Systems:

Hunting provides the market with environmentally sound running, storage compounds and thread protectors

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Hunting Energy Well Intervention

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Hunting Energy Services Well Intervention

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Profit from Operations £m 2006 2007 2008 2009 3.6 4.1 4.6 4.0

Well Intervention Product Integration

Work Over Coiled Tubing Subsea

Thru-Tubing Tools Subsea Manufacturing

Pressure Control Equip OEM Tools E-Line Tools Slickline Tools Coiled Tubing Tools Coiled Tubing Motors Chemical Injection System Hydraulic Valves Hydraulic Couplings Weldment Services

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Well Intervention Products

• Pressure Control Equipment:

Hunting provides the market with a highly technical and innovative line of products and services in support of wellhead control and management

• Downhole Tools: Hunting

provides specialty tools for Slickline and Wireline applications as an OEM for major Oilfield Service companies to the global market. Specialty or “print part” work is provided for close tolerance highly technical manufacturing

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Well Intervention Products Hunting Subsea

• Chemical Injection System:

Hunting provides a positive displacement metering system with a maximum working pressure of 17,500 PSI. This cost effective, reliable system will redefine flow measurement accuracy

• Specialty Valves: Hunting

provides a series of highly engineered patented valves to ensure positive pressure in the umbilical line or back pressure at the blow out preventer

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Thru-Tubing Technology Hunting-Welltonic

Thru-Tubing Specialists

• Coiled tubing tools Design,

manufacture and sales of specialist and custom designed tools to companies worldwide. This covers an extensive range

• f intervention equipment from

mud motors, tubular severance and perforating products to fishing tools.

• Coiled tubing Services

Advanced services from the in- house design and engineering team for well intervention and workover operations, enhanced by on location sales support, inventory management and rentals.

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Gibson Shipbrokers

Core activities remain focused on the shipping of energy Selective recruitment to continue purposeful global expansion

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Profit from Operations £m 2006 2007 2008 2009 2.9 2.9 6.9 0.7

Others

Hunting Exploration and Production Field Aviation

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Profit from Operations £m 2006 2007 2008 2009 1.8 4.4 5.9 0.3 Profit from Operations £m 2006 2007 2008 2009 4.2 (0.3) 1.3 7.2

US Spot Oil Price (US$ / bbl)

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World Oil Demand (mbpd)

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Offshore Capital Spending

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Operational / Acquisition Strategy

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Hunting Energy Services Strategy

Hunting Subsea – emphasis on ultra deep water High Pressure

High Temperature

Capitalise on Premium Connection Position Expand Global Footprint Continued Development of Well Intervention Platform Acquisitions which Complement Existing Operations and

Products

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