Hunting, the international energy services group, reported interim results for the six months ended June 30, 2016. Revenue of $228.4 million for the period was down 51% from $463.6 million a year earlier. The company noted an underlying loss from operations of $50.8 million compared to $20.4 million profit in the first half of 2015.
Discussions to revise the terms of its bank revolving credit facility were concluded with the following results:
- Hunting entered into a $350 million revolving committed facility in October 2015 with a syndicate of five banks, comprising Lloyds, Barclays, HSBC, Wells Fargo and DBS.
- The credit facility size was reduced from $350 million to $200 million
- The facility is secured by trade receivables, inventory and property in the U.S., UK and Canada
- Profits based covenants are suspended until the December 31, 2018 test date
- New asset-based covenants of tangible net worth and asse cover
- No dividend payments until the end of the amendment period
Dennis Proctor, chief executive, commented, “While industry sentiment reached a low point during the early months of the reporting period, the improved U.S. rig count data seen through Q2/16 indicates that the global energy markets are adjusting to the lower oil price environment.
“While the group’s performance has suffered, we are pleased to have concluded the renegotiation of our bank covenants to enable Hunting to continue with strong, liquid resources to respond to an improving market environment. At the period end, our net debt position has been reduced to $87.5 million following ongoing cost cutting and the receipt of tax refunds, which indicates the strength of our balance sheet and the resilience of our business model.”