Hunting Manufactures and distributes products that enable the extraction of oil and gas
Hunting PLC Global Footprint 2
2009 Corporate Highlights 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% 3
2009 Results Summary 2009 m 2008 m Change % Revenue 359.9 418.5-14 EBITDA 50.6 75.7-33 Profit from operations 35.8 58.8-39 Finance income (expense) 1.8 (3.4) Profit before tax 38.5 56.6-32 Effective tax rate 32% 33% Basic EPS 17.7p 26.4p -33 Dividend 10.5p 9.9p +6 4
Segmental Results 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 5
Exceptional Items Continuing m 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 6
Balance Sheet 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 7
Capital Expenditure Hunting Energy Services 2009 m 2008 m 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 Split: 21.6 34.8 Replacement 9.9 24.2 New Business 11.7 10.6 21.6 34.8 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 9
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 10
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 11
Cash Flow 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 12
Hunting Energy Well Construction 13
Hunting Energy Services Well Construction Profit from Operations m 2006 2007 2008 2009 8.0 8.1 13.5 3.3 14
Well Construction Product Integration Points Unconventional Gas Land Rigs Deepwater Drilling Tools + OCTG + Premium Connections Mud Motors Drill Collars Shock Tools Carbon Alloy Chrome SEAL-LOCK TKC Licensed Threads APRS 15
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 16
Well Construction Products Non-Magnetic Drill Collars: Allow directional drilling operations 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 17
Hunting Energy Well Completion 18
Hunting locations for Shale and Tight Gas plays 19
Hunting Energy Services Well Completion Profit from Operations m 2006 2007 2008 2009 20.0 30.0 26.6 20.3 20
Well Completion Product Integration Points Unconventional Gas Land Rigs Deepwater Accessory Manufacturing Specialty Threading + + Tubular Systems Completion Accessories Assembly Print Part Work Polished Bore Receptacles SEAL-LOCK TKC Licensed Threads API Deepwater Facilities Managed Inventory Completion Design Thread Protection 21
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 22
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 23
Hunting Energy Well Intervention 24
Hunting Energy Services Well Intervention Profit from Operations m 2006 2007 2008 2009 3.6 4.1 4.6 4.0 25
Well Intervention Product Integration Work Over Coiled Tubing Subsea Manufacturing + Thru-Tubing Tools + Subsea 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 26
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 27
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 28
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 of intervention equipment from mud motors, tubular severance and perforating products to fishing tools. Coiled tubing Services Advanced services from the inhouse design and engineering team for well intervention and workover operations, enhanced by on location sales support, inventory management and rentals. 29
Gibson Shipbrokers Core activities remain focused on the shipping of energy Selective recruitment to continue purposeful global expansion Profit from Operations m 2006 2007 2008 2009 2.9 2.9 6.9 0.7 30
Others Hunting Exploration and Production Profit from Operations m 2006 2007 2008 2009 1.8 4.4 5.9 0.3 Field Aviation Profit from Operations m 2006 2007 2008 2009 4.2 (0.3) 1.3 7.2 31
US Spot Oil Price (US$ / bbl) 32
World Oil Demand (mbpd) 33
Offshore Capital Spending 34
Operational / Acquisition Strategy 35
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 36