Hunting Plc · LSE:HTG
Hunting — Shareholder Meeting (April 2023)
26 slides from Hunting's shareholder meeting presentation, Apr 19, 2023
Slide 1: Proven capabilities for energy and beyond
Proven capabilities for energy and beyond Annual General Meeting 2023 www.huntingplc.com Highly trusted innovator and manufacturer of technology and products
Slide 2: Agenda
Agenda Annual General Meeting 2023 Royal Automobile Club, 89 Pall Mall, SW1Y 5HS, Wednesday 19 April 2023 at 10.30 a.m. Introduction & Q1 2023 Trading Update Jay Glick, Non-executive Chairman Questions & Answers Chief Executive Review of 2022 Jim Johnson, Chief Executive Questions & Answers Business
Slide 3: Board of Directors
Board of Directors Jay Glick Jim Johnson Bruce Ferguson Annell Bay Non-executive Chairman Chief Executive Finance Director Non-executive Director Chair of Nomination Committee Chair of Remuneration Committee and Ethics and Sustainability Committee Stuart M. Brightman Carol Chesney Keith Lough Paula
Slide 4: Q1 2023 Trading Update
Q1 2023 Trading Update • A strong start to the year, with most businesses trading in-line or ahead of management’s expectations. • EBITDA of $22.6 million reported during the quarter, compared to $6.7 million in Q1 2022 and $15.8 million in Q4 2022, with EBITDA margin of c.10%. • North America has r
Slide 5: Review of 2022
1 Review of 2022 4 Hunting PLC 2023 Annual General Meeting Submit questions to: [email protected]
Slide 6: Highlights
Highlights • Strong increases in activity across all operating segments leading to a return to bottom-line profitability, on an adjusted basis. • External sales order book $473.0m at the year-end reflecting strong increases in momentum (2021 – $211.5m). • $61m increase in year-end sales order book w
Slide 7: Adjusted Group Income Statement
Adjusted Group Income Statement* 2022) Margin 2021) ) Margin $m) % $m) ) % Revenue 725.8) 521.6) Gross profit 171.4) 24 100.6) 19) EBITDA 52.0) 7 3.1) 1) Profit (loss) from operations 14.6) 2 (35.1) (7) Share of associates' & JVs' losses (2.7) (3.5) Profit (loss) before tax 10.2) (40.6) Tax charge (
Slide 8: Group Balance Sheet
Group Balance Sheet 2022 2021 $m $m Property, plant and equipment 256.7 274.4) Right-of-use assets 26.0 24.7) Goodwill and other intangible assets 191.2 200.3) Associates and joint ventures 20.1 19.4) Working capital 362.8 278.0) Taxation 4.0 1.4) Provisions (8.9) (8.1) Other net assets 4.3 2.7) Tot
Slide 9: Group Cash flow
Group Cash flow 2022) 2021 $m $m EBITDA 52.0) 3.1) Add: share based payments 9.9) 9.2) 61.9) 12.3) Working capital (86.6) 22.8) Lease payments (8.0) (10.6) Net interest and bank fees paid (2.9) (0.4) Net tax (paid) received (3.9) 0.6) Proceeds from business and asset disposals 9.0) 35.9) Gains on bu
Slide 10: Revenue by Product Grouping
Revenue by Product Grouping Revenue by Product ($m) 149.2 130.3 121.6 109.6 95.9 95.7 85.8 76.8 41.1 34.0 35.3 33.7 29.1 30.5 29.6 29.2 19.5 18.7 16.9 15.9 12.1 13.7 11.0 12.2 Perforating Systems OCTG Advanced Manufacturing Intervention Tools Subsea Other H1 2021 H2 2021 H1 2022 H2 2022 H1 2021 H2 2
Slide 11: Product Line: OCTG / USM
Product Line: OCTG / USM • Global OCTG, Premium Connections and US Manufacturing businesses all reporting good growth and strong momentum in the year. • Sales order books of US Premium Connection and USM businesses have tripled through 2022. Activity in both the domestic and international markets im
Slide 12: Product Line: Perforating Systems
Product Line: Perforating Systems • Hunting Titan continues to report strong market share positions within the North American onshore for key product groups. • H-3 Perforating System™ introduced to clients during the year. • E-Gun Recon™ now the preferred system for international markets. • Increase
Slide 13: Product Line: Advanced Manufacturing
Product Line: Advanced Manufacturing • Electronics and Dearborn businesses now report a sales order book of $121m, of which 35% is non-oil and gas sales. • Electronics reports oil and gas sales of $17.0m (2021 – $12.5m). Some microchip supply chain issues in year. Non-oil and gas sales $3.6m (2021 –
Slide 14: Product Line: Subsea
Product Line: Subsea • Subsea Technologies has reported good growth in the year, as offshore projects were commissioned. • Year end order book $105.1m (2021 - $44.0m) • As the leading premier provider of titanium stress joints, Subsea Spring has successfully secured large orders in Guyana and Brazil
Slide 15: Product Line: Intervention Tools and Other Revenue
Product Line: Intervention Tools Other Revenue • Well intervention businesses report good growth as • Improvement in sales driven by Trenchless, E&P and capital equipment spend cycle recommences. Well Testing businesses. • Businesses restructured in Q4 2022 to focus on sales • Trenchless business re
Slide 16: Hunting 2030
Hunting 2030 • Hunting 2030 strategic ambition launched. • Subsea build out forms a key part of growth, supported by reporting as a new operating segment. • Good growth expected in Energy Transition and non-oil and gas sectors. • Revenue diversification to shift the balance of oil and gas/non-oil an
Slide 17: Energy Transition
Energy Transition • Sales group formed in December 2022, with inputs Hunting projects since 2009 – footage run from global sales and technology teams. 30000 25000 • Focus on geothermal and carbon capture and storage projects. 20000 • Hunting has an established track record in supplying 15000 global
Slide 18: ESG
ESG Quality Assurance / Manufacturing Reject Rate (%) Total Recordable Incident Rate “TRIR” 2022 0.13 2022 0.97 2021 0.13 2021 0.99 2020 0.24 2020 0.67 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0 0.2 0.4 0.6 0.8 1 Senior Management Diversity Workforce Diversity 28% 24% 72% 76% Male Female Male Female 17 Hu
Slide 19: ESG
ESG • New carbon emission targets agreed by the Board in December 2022, targeting 50% reduction of Scope 1 and Scope 2 emissions from 2019 base line year by 2030. • High level modelling of climate scenarios to be published in March 2023. • Scope 3 evaluation to comprise business travel, commuting, r
Slide 20: Global Presence, Global Progress
Global Presence, Global Progress Strong increases in activity across all operating segments. OCTG / Formation of global Energy Transition group to build sales in Accessories geothermal and carbon capture market sub-sectors. order book 3x increase. $100m Target Revenue 2030 $266m $121m Revenue New th
Slide 21: Summary
Summary • Hunting is well positioned for the anticipated multi-year upcycle in oil and gas. • Global drilling spend is anticipated to growth further in 2023. • Revenues to expand further in the year ahead as activity levels improve. • EBITDA margin expansion anticipated as facility utilisation and p
Slide 22: Questions And Answers
2 Questions And Answers 21 Hunting PLC 2023 Annual General Meeting Submit questions to: [email protected]
Slide 23: Questions & Answers
Questions & Answers 22 Hunting PLC 2023 Annual General Meeting Submit questions to: [email protected]
Slide 24: Resolutions & Proxy Votes
3 Resolutions & Proxy Votes 23 Hunting PLC 2023 Annual General Meeting Submit questions to: [email protected]
Slide 25: Proxy votes received as at 17 April 2023
Proxy votes received as at 17 April 2023 Resolution, For Against Withheld 1 To receive the 2022 Annual Report. 116,506,083 7,589 329,371 2 101961709 101,961,709 14,855,627 25,707 3 To declare a final dividend of 4.5 cents per share. 116,703,723 139,020 300 4 To re-appoint Stuart Brightman as a Direc
Slide 26: Hunting PLC 2023 Annual General Meeting
25 Hunting PLC 2023 Annual General Meeting Submit questions to: [email protected]