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PRECISION ENGINEERING FROM SUBSEA TO SPACE
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3 Strong growth delivered from international and offshore businesses • KOC contracts commenced, contributing to robust H2 performance. • Continuation of major orders for ExxonMobil and TPAO for titanium and stress joints. • Profit contribution from India joint venture, following receipt of API licence. • New manufacturing agreement with Chevron. Non-oil and gas, low carbon and energy transition sales delivering progress • $75.1m of non-oil and gas sales reported. • Up to $60m of orders received for licenced Organic Oil Recovery (“OOR”) technology. • $14.7m of energy transition sales booked. • Further investment in Cumberland Additive (specialists in 3D additive manufacturing). Increased cost efficiency and sustainability of the Group • Restructuring of the Hunting Titan and EMEA operating segments. • Disposal of Rival Downhole Tools announced March 2025, netting $13.1m. • Strong QAHSE performance reported in the year. • Delivered reduction in scope 1 and 2 GHG emissions. Source : ExxonMobil Image source - Saipem
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4 4 Financial highlights Revenue $1,048.9m +13% EBITDA $126.3m +23% Sales order book $508.6m -10% Market highlights Average WTI crude oil price $76 per bbl Global drilling capital investment $214.5bn Global average rig count 1,691 Non-financial highlights Total recordable incident rate 0.93 Internal manufacturing reject rate 0.31% Scope 1 and 2 emissions 22,233 tonnes CO2e Free Cash Flow $139.7m Total Dividend 11.5 cents +15% Net Assets $902.3m -5%
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5 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% FY2022 FY2023 FY2024 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% FY2022 FY2023 FY2024 Offshore v Onshore % of revenue North America v International % of revenue Offshore Onshore NAM International Source: Company Source: Company
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6 20% 17% 9% 3% 1% 12% Subsea OCTG Advanced Manufacturing Other Perforating Systems Group 0 2 4 6 8 10 12 14 16 18 20 EBITDA - $126.3m EBITDA Margin 12% 80.2 1.4 11.8 30.0 2.9 OCTG Perforating Systems Advanced Manufacturing Subsea Other CMD target Source: Company Source: Company
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PRECISION ENGINEERING FROM SUBSEA TO SPACE
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8 • $231m order from Kuwait Oil Company transformed performance in H2 2024. • Strong results delivered in North America with market share gains in US and steady growth in Canada supporting results. • OCTG well completion packages into South America also contributing to material growth. • Energy transition sales also growing in North America, Europe and Asia Pacific. Source: Company
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9 2022 2023 2024 Global threading volume analysis Maiden contribution from India premium threading line Significant uplift in activity due to KOC orders, which commenced in September Good increases seen in North America Market share gains delivered in US onshore despite lower completion activity Source: Company 0% 20% 40% 60% 80% 100% 120% 140% 160% 180% 200% TEC-LOCK WEDGE-LOCK SEAL-LOCK SEAL-LOCK (Asia Pacific) SEAL-LOCK(India) 2022 2023 2024
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10 • Record year of revenue and margin growth driven by Spring business into South America as orders are converted to sales. • Steady growth delivered from hydraulic valves and couplings. • Titanium and steel stress joints increasing in use on FPSOs, being recognised as best in class, resulting in lower lifecycle costs and no downtime. • Flow Access Modules and Flow Intervention Systems sales increasing in year, with cross selling opportunities captured between Spring and Enpro business units. Source: Company
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11 • Electronics business exploring diversification into new markets, leveraging its strong heritage in servicing the oil and gas industry. • Steady growth in energy sales, with switches also being manufactured for Perforating Systems. • Aviation, commercial space, defence, medical and power generation sales growing in line with strategy. • New capital equipment purchased driving margin expansion. Source: Company
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12 • New technology launched in year including Tandem perforating system for leading industry perforating accuracy. • International sales continue to accelerate, with growth in South America and Middle East. • Customer consolidation, lower natural gas prices, constraints on LNG and competition all contributed to lower volumes and overall results in the year. • Restructuring commenced in Q2 2024 and extended in Q1 2025 - anticipated to drive higher margins in the year ahead. Technology to drive operational efficiency 1.4 Source: Company
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13 • Steady growth from well intervention, well testing, trenchless and organic oil recovery delivered. • Disposal of E&P business in 2023. • Move of well testing business from the Netherlands ongoing. • New facility in Dubai, to be closer to customers, scheduled to be operational by Q4 2025. Source: Company
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PRECISION ENGINEERING FROM SUBSEA TO SPACE
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15 15 Global growth delivered in OCTG – now 44% of Group revenue Delivery of strong growth in subsea / offshore revenue $14.7m of Energy Transition sales EBITDA margin 12% CMD OBJECTIVE Increase global presence in OCTG and premium connection markets CMD OBJECTIVE Long range sales target on track CMD OBJECTIVE Capture new revenue streams in Geothermal and Carbon Capture CMD OBJECTIVE Medium-term EBITDA margin of 15% $6.5m of cost savings delivered within Hunting Titan EBITDA to Free Cash Flow conversation of 111% at $139.7m Declared 11.5 cents per share total dividend +15% Delivered working capital to revenue ratio of 29% CMD OBJECTIVE Rationalise under performing businesses and streamline cost base CMD OBJECTIVE Medium-term conversion of 50% or more CMD OBJECTIVE Long-term growth of 10% p.a. CMD OBJECTIVE Medium-term target of 35%
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16 Upcoming markets Current client locations • $60 million of contracts secured for licensed OOR technology in August 2024 for deployment in North Sea over the next five years. • Good gross margins attached to technology and revenue • Pilot testing continuing in Europe, US and Southeast Asia, with multiple blue-chip clients.
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Geothermal and Carbon Capture revenue - $14.7m 17 4.9 7.1 2.0 0.7 Geothermal - Asia Pacific Geothermal - Europe Geothermal - US Carbon Capture - US 17 Source: Company • • •
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18 • Opportunities continue to be evaluated, with focus on subsea, intelligent well completions, and non-oil and gas. • Attractive multiples for oil and gas - prepared to acquire non-energy businesses at higher trading multiples if a good fit. • $345m of liquidity available to support strategy.
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PRECISION ENGINEERING FROM SUBSEA TO SPACE
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20 • • • • • • • • • • • Financial overview
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21 • EMEA restructuring to commence in March 2025 following completion of commercial review and cost-base analysis, to focus on growth segments and markets to improve overall efficiency. • Central costs to be reduced. • Further headcount reduction to be completed within Hunting Titan. • RIFs in Electronics completed Q4 2024 to improve efficiency following the purchase of new equipment. • Total annual cost savings c.$10m to be captured from Q1 2026. • Disposal of Rival Downhole Tools for $13.1m in March 2025 providing Hunting with additional funds to pursue accretive acquisitions.
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22 Strong revenue growth Source: Company Revenue by Product - $m OCTG Perforating Systems Subsea Advanced Manufacturing Other Manufacturing +17% -9% +49% +13% +12%
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Earnings and profitability growth in the year *Results for the year, as reported under IFRS, adjusted for certain items as determined by management. 23
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25 * Restated to include the import tax provision and associated tax impact. CMD targetSource: Company
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26 - - - Working capital
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27 Strong increase in working capital and assets supporting sales order book
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28 $135m - $145m EBITDA c.12% - 13% EBITDA margin 25% - 28% Effective tax rate $35m - $40m Capex c.50% Free cash flow conversion (post capex) PRECISION ENGINEERING FROM SUBSEA TO SPACE 2025 GUIDANCE $135m - $145m Total cash and bank / (borrowings)
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PRECISION ENGINEERING FROM SUBSEA TO SPACE
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30 Oil and gas Non-oil and gas Order book by product group - $508.6m Order book by operational activity - $508.6m 420.1 88.5 Source: Company
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31 123 -38 9.7 1.5 3551 1312 351 134 LNG supply by region US Electricity Demand (Billion tonnes) CCS (Billion tonnes) Projected global geothermal capacity (MW) 0 100 200 300 400 500 600 700 800 900 1000 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 North America Middle East Oceania Africa Asia Russia and the Caspian Latin America and the Caribbean Europe 0 0.5 1 1.5 2 2.5 3 3.5 2024 2029 2034 2039 2044 2049 CCS Base Case CCS Delayed Transition 90% 95% 100% 105% 110% 115% 120% 125% 130% 2000 2005 2010 2015 2020 2025 2030 US electricity demand - 50GW US electricity demand - 25GW - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 2022 2023 2024 2025 2026 2027 2028 2029 2030 Source : Wood MacKenzieSource : Wood MacKenzie Source : Wood MacKenzie Source : Wood MacKenzie
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32 Suriname Following the success in Guyana, we see strong growth opportunities for our Subsea product group as exploration continues. Brazil With a sales presence and a legal entity being established we will be able to participate in large tenders in- country. Guyana The offshore exploration success led by ExxonMobil is likely to lead to strong growth opportunities over the next decade. Argentina The acceleration of unconventional drilling in-country has allowed Hunting Titan to increase international sales in line with our strategy.
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33 • • • • • • •
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• 2024 another strong year of growth in revenue and profits. • Hunting 2030 Strategy on track, given the milestones achieved in the year. • c.$350 million of liquidity including c.$100 million of cash balances provides significant resources for acquisitions. • 2025 guidance indicates a further year of good growth. 34
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PRECISION ENGINEERING FROM SUBSEA TO SPACE APPENDICES
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Statutory Income Statement 36 * Results for 2023 have been restated to include import tax provision and the Group’s share of associates’ and joint venture’s results in operating (loss) profit.
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The environment People and society Responsible products Governance Scope 1 and 2 GHG data assurance completed for a second year Safety remains a priority Zero fatalities (2023 – zero) 25 recordable incidents (2023 – 24) 3.15 near-miss frequency rate (2023 – 2.69) The 2023 employee engagement survey recorded an engagement score of 42%, compared to 36% recorded in 2019. 76% of our facilities are compliant with ISO 9001:2015, a globally recognised standard for quality management. Continued focus on Board accountability for ESG Ethics and Sustainability Committee met twice in 2024 (2023 – twice). Waste and environmental impact: Zero environmental fines or noncompliance environmental incidents (2023 – zero). Workforce diversity 25% of workforce are women (2023 – 25%) Board diversity 50% of the Board are women* (29 February 2024 – 44%) * At 6 March 2025 ISO 14001:2015 Our Quality Management System is aligned with ISO 14001:2015 (Environmental management system) with 68% of facilities accredited ESG scores Senior Management diversity 32% of senior management are women (2023 – 32%) Voluntary turnover rate 10.3% down from 13.5% in 2023 ISO 50001:2018 We align our Quality Management System with ISO 50001:2018 the international standard for designing, implementing, and maintaining an energy management system 37 20.4 40 AA C-
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7,100 6,605 4,171 5,778 4,169 3,630 3,350 28,774 18,811 14,688 16,644 18,430 18,603 14,387 2019 2020 2021 2022 2023 2024 2030 target tonnes Scope 1 and 2 GHG emissions 38 0.13% 0.20% 0.31% 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% 2022 2023 2024 Manufacturing reject rate 0.97 0.91 0.93 2022 2023 2024 Recordable incident rate / fatalities Fatalities 1.2 1.0 0.8 0.6 0.4 0.2 0 Skilled employees driving quality and HSE 4% 12% 16% 20% 23% 21% 50% 0% 10% 20% 30% 40% 50% 60% 2019 2020 2021 2022 2023 2024 2030 target Renewable energy purchased Source: Company 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Continued improvement in key ESG metrics driving client loyalty Source: Company Scope 1 Scope 2Incident rate