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2014 EARNINGS CALL – Hunting Plc

Hunting Plc · Mar 5, 2015 · 30 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. 2014 EARNINGS CALL – Hunting Plc – slide 1
    Global Presence Hunting PLC 2014 Full Year Results
  2. 2014 EARNINGS CALL – Hunting Plc – slide 2
    Financial Highlights Strong 2nd half performance which provided record results for the year. Balance sheet in good order with modest net debt. Sale of Gibson Shipbrokers on track for 31 March 2015 close. Sale proceeds equal to net…
  3. 2014 EARNINGS CALL – Hunting Plc – slide 3
    2014 Full Year Results Summary* ) 2014 Margin 2013) Margin Change m % m) % % Revenue 1,386.5 1,293.6 +7.2 EBITDA 269.8 19 244.0 19 +10.6 Depreciation (52.0) (44.0) +18.2 Profit from operations 217.8 16 200.0 15 +8.9 Finance…
  4. 2014 EARNINGS CALL – Hunting Plc – slide 4
    Segmental Results* 2014 2013 Profit from Profit from Revenue Operations Margin Revenue Operations Margin m m % m m) % Hunting Energy Services Well Construction 378.3 53.0 14 380.9 58.6 15 Well Completion 862.6 140.8 16 796.1…
  5. 2014 EARNINGS CALL – Hunting Plc – slide 5
    Geographical Segmental Results* 2014 2013 Profit from Profit from) Revenue Operations Margin Revenue Operations) Margin m m) % m m) % Hunting Energy Services USA 867.3 170.0 20 798.8 155.8 20 Canada 95.5 3.8 4 75.3 (2.4) UK…
  6. 2014 EARNINGS CALL – Hunting Plc – slide 6
    Amortisation & Exceptional Items Continuing Operations ) 2014 2013 m m Amortisation of intangible assets 42.8 43.4 Goodwill impairment 49.6 - Oil & Gas reserve impairment and dry hole costs 11.3 10.5 Foreign exchange on…
  7. 2014 EARNINGS CALL – Hunting Plc – slide 7
    Balance Sheet ) 2014 2013 m m Property, plant and equipment 473.0 431.8 Goodwill 440.6 495.2 Other intangible assets 224.8 263.0 Working capital 470.6 467.6 Provisions (24.7) (33.4) Taxation (55.2) (48.7) Other 40.2 45.1 Net…
  8. 2014 EARNINGS CALL – Hunting Plc – slide 8
    Capital Investment 2014 m Hunting Energy Services New drill tools and rental equipment 28.9 Manufacturing facility Houma, Louisiana 25.4 Premium threading and test facility Houston, Texas 23.0 Other facility expansion…
  9. 2014 EARNINGS CALL – Hunting Plc – slide 9
    Cash Flow 2014 2013 Change m m m EBITDA 269.8 244.0 Working capital 3.8 (22.7) Interest and bank fees (5.6) (6.5) Tax paid (26.6) (19.9) Replacement capital investment (69.0) (44.8) Other 9.9 (4.5) Free cash flow 182.3 145.6 +36.7…
  10. 2014 EARNINGS CALL – Hunting Plc – slide 10
    Capital Investment Major project update Houma, Louisiana Phase II expansion Serving the Gulf of Mexico and deepwater market Complete Q4 2014 Total project spend - 36.4m Ameriport, Houston, Texas State of the art premium…
  11. 2014 EARNINGS CALL – Hunting Plc – slide 11
    Capital Investment Major project update Cape Town Anchor base for expansion in Sub Sahara Africa Operational mid 2015 Total project spend - 20.0m Spend to date - 8.7m Spend to complete - 11.3m Dearborn Expansion (Fryeburg,…
  12. 2014 EARNINGS CALL – Hunting Plc – slide 12
    Observations: Commodity Price Fundamentals Support The oil price has been supported by a combination of controlled supply, growing economies and the relationship between currency valuation and commodities Typically, these…
  13. 2014 EARNINGS CALL – Hunting Plc – slide 13
    Observations: Crude Oil Market Share US and Saudi Arabia In recent years, the US crude oil production has been increasing rapidly: 2010 to 2014 US crude oil production increased 57%, Saudi Arabias production increased 10% From a market…
  14. 2014 EARNINGS CALL – Hunting Plc – slide 14
    Observations: Gross Domestic Product (GDP) Global GDP is growing, however at a slower pace The rate of GDP growth is flat in the US, down in China and Russia India is currently one of the fastest growing economies World United…
  15. 2014 EARNINGS CALL – Hunting Plc – slide 15
    Observations: Build Up of Oil Inventory Global crude oil storage = 34 days of consumption 3.5 36.0 Global Crude Oil In Storage bn barrels 35.5 Number of Days in Inventory 3.0 35.0 2.5 34.5 2.0 34 34.0 1.5 33.5 1.0…
  16. 2014 EARNINGS CALL – Hunting Plc – slide 16
    Observations: US Oil Stockpiling 450 2015 US crude oil in storage million barrels 400 1980 350 2010 2005 1990 300 1995 1985 2000 250 4 5 6 7 8 9 10 US daily oil production (million barrels /…
  17. 2014 EARNINGS CALL – Hunting Plc – slide 17
    Observations: Strong US Dollar Weak Price of Oil 160 115 140 110 Price Per Barrel WTI (USD) US Dollar Index (USDX) 120 105 100 80 100 60 95 40 90 20 0 85 Price of Oil (WTI) US Dollar Index Results for the year…
  18. 2014 EARNINGS CALL – Hunting Plc – slide 18
    Observations: Oil Commodity Prices While exploration and production spending has consistently grown in previous years, 2015 will decline The downward movement in commodity prices influencing the industry is very similar to what…
  19. 2014 EARNINGS CALL – Hunting Plc – slide 19
    Observations: Estimated Production-Weighted Average Annual Post Peak Decline Rates If the average global depletion rate is 6.7%, the net 2015 loss in supply due to depletion is over 6.2 mb/d The difference between 2015 and 2020 demand…
  20. 2014 EARNINGS CALL – Hunting Plc – slide 20
    Observations: Average Oil Production Per Shale Well During The First 48 Months Of Operation Source: EIA Results for the year ended 31 December 2014 20
  21. 2014 EARNINGS CALL – Hunting Plc – slide 21
    Observation: E&P Spending - A Moving Target Driven by economics, the industry players have scaled back spending. Initial projections continue to be revised Early 2015 industry view Global E&P spending down 8.8% End of 2014 North…
  22. 2014 EARNINGS CALL – Hunting Plc – slide 22
    Managing Within The Market: Flexing Our Global Presence However, we leverage our global footprint and balance throughput across the organisation to lower cost and maximise production Geographic Diversity 43 manufacturing facilities…
  23. 2014 EARNINGS CALL – Hunting Plc – slide 23
    Managing Within The Market: Adjust Locally Our philosophy is to operate from a lean, decentralised framework, keeping decision making at the local levels to adapt quickly to the market We adjust and apply the correct measures based on…
  24. 2014 EARNINGS CALL – Hunting Plc – slide 24
    Typical North America Manufacturing Operation 3 Shifts 2 Shifts 1 Shift 25 15 20 Fixed Cost to Revenue (%) EBITDA Margin (%) 10 15 10 5 5 0 0 125 100 75 50 25 Oil Price () Results for the year ended 31…
  25. 2014 EARNINGS CALL – Hunting Plc – slide 25
    New Products KnockOut Circulating Charge State of the art energetic which allows perforation in horizontal and directional wells that have multiple strings of production tubing Allows a specific charge to maximise hole size in…
  26. 2014 EARNINGS CALL – Hunting Plc – slide 26
    New Products EQUAfrac Shaped Charge Patented charge technology that provides an industry solution to non- centered perforating systems within the well bore Provides hole consistency no matter where the perforating gun is…
  27. 2014 EARNINGS CALL – Hunting Plc – slide 27
    New Products Digital Bonding Tool A tool used to evaluate the integrity of the bonding of the casing to the cement The design of our transmitter and receiver provides highly directional information and produces an accurate view of…
  28. 2014 EARNINGS CALL – Hunting Plc – slide 28
    New Products Hydraulic Shuttle Valve Developed for Subsea oilfield drilling control applications, including BOP control systems where high pressure can destroy other shuttle valve technologies Accepts flow from two different…
  29. 2014 EARNINGS CALL – Hunting Plc – slide 29
    New Products WEDGE-LOCK SF Patented Wedge specially designed for High Pressure High Temperature (HPHT) Deepwater applications The full thread engagement and dual metal-to-metal sealing provides maximum performance under tension,…
  30. 2014 EARNINGS CALL – Hunting Plc – slide 30
    Global Presence Hunting PLC 2014 Full Year Results

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