Results & reports

Order book increased by 19% to $565.2m.

Revenue increased by 28% to $929.1m.

Non-oil and gas revenue increased 59% from $47.6m to $75.9m.

Gross margin improved to 25% from 24%.

EBITDA, ahead of previous guidance provided, and increased by 98% to $103.0m.

EBITDA margin of 11% up from 7%.

$83.1m of previously unrecognised deferred tax assets recognised at year-end.

Total dividends declared in the year of 10.0 cents per share, up from 9.0 cents in 2022.

Record $91m OCTG contract award with Cairn Oil and Gas

On 30 May 2023, the Company announced a record contract that management estimates to be worth up to $91m with Cairn Oil and Gas, Vedanta Limited, for the supply of Hunting’s SEAL-LOCK XDTM premium connection along with OCTG.

Continued launch of new technology and innovative products

The Group continues to develop and introduce new technology to clients. Research and development initiatives focus on increasing in-field safety, while also delivering completion efficiencies and lowering drilling and development costs for clients. With approximately one-third of North American horizontal wells relying exclusively on oriented perforating techniques, Hunting launched the H-4 Perforating SystemTM during the year, first to the US onshore and then in Q4 2023 to customers in Canada.

Expansion into high growth Indian energy markets

In Q2 2023, the Company completed the construction and commissioning of its new threading facility at Nashik Province, India, with its joint venture partner, Jindal SAW Ltd. The official opening of the facility took place in September 2023. Hunting’s precision engineered premium connection technology will be applied to Jindal SAW’s premium seamless casing and tubing.

Strong growth in Subsea businesses

The Subsea Technologies operating segment was formed on 1 January 2023. The segment completed a number of significant orders in the year, especially in Guyana, as investment in offshore projects increased. Revenue increased 43% to $98.6m, with an EBITDA margin of 14% compared to 5% in 2022. The Spring business had a number of material order wins for its titanium stress joints in the year for floating production, storage and offloading vessels in Guyana and the Turkish area of the Black Sea. The segment ended the year with an order book of $152.2m, including a strong backlog for Enpro.

Enhanced strategic supply channels for OCTG to support energy transition strategy

On 5 June 2023, the Company announced a ten-year strategic alliance with Zhejiang Jiuli Hi-Tech Metals Co. Ltd (“Jiuli”), for the supply of corrosion resistant alloys (“CRA”) for OCTG, geothermal and carbon capture and storage (“CCUS”) applications. The partnership brings together Hunting’s SEAL- LOCKTM premium connection technology with Jiuli’s CRA, suchas duplex/super duplex and high nickel- based alloys, for downhole casing and production tubing applications, which meet some of the harshest well conditions in the traditional oil and gas industry as well as the emerging CCUS and geothermal markets.

Entered new marketing, manufacturing and technology partnership to expand product offering

On 13 July 2023, Hunting announced a collaboration agreement with CRA-Tubulars B.V., to further develop the Company’s presence in energy transition markets. The collaboration provides the Company with access to novel titanium composite tubing technology, which is showing strong potential in CCUS project applications.

Continued restructuring to increase operational efficiencies and returns on capital

Hunting is continuing to drive stronger internal operational efficiencies throughout its global footprint, which will lower our operating costs and lower our carbon footprint. During the year, Hunting Titan closed its Oklahoma City operating site and transferred the manufacture of perforating systems to the 3 Group’s Pampa, Texas, and Monterrey, Mexico, facilities. A distribution centre has been retained in Oklahoma City to continue to service clients in the Mid-Continent Region of the US. Within the EMEA operating segment, the manufacturing and assembly operations of the Group’s main well testing site are to be transferred from the Netherlands to Dubai in 2024, which will lead to the closure of a facility at Velsen-Noord, with activities in the Netherlands to be merged into a single location. In January 2024, further consolidation of our footprint and cost base in the UK continued as the Enpro operations were transferred to the existing Badentoy, Aberdeen facility. During H1 2023, the Group has completed a disposal process of all but one of its US onshore and offshore oil and gas producing assets, which are held by Hunting’s wholly owned subsidiary, Tenkay Resources, Inc (“Tenkay”). The Group has negotiated the transfer of the majority of the non-producing assets and respective future plug and abandonment liabilities, which have reduced Hunting’s possible exposure to future decommissioning costs.

Launch of Hunting’s 2030 Strategy at the Capital Markets Day in September 2023 which included:

Leveraging Hunting’s global presence and high-technology product offering, to drive multiple end-market sales growth. Delivering EBITDA margin growth through higher utilisation, stronger pricing and operating efficiencies. Improved shareholder returns, with increased return on capital, along with an 11% increase in total declared dividends in 2023. Driving sector leading technology delivered through innovation and supported by robust intellectual property. Progressing the sustainability agenda with positive trends in key non-financial metrics.

Strong progress on revenue diversification with non-oil and gas sales of $75.9m.

EBITDA conversion and good cash generation reported with $50.9m inflow delivered in H2 2023.