LONDON, UK: Hunting PLC (LSE: HTG), a global engineering group, has announced that it is restructuring its operations and selling its non-core exploration and production assets to improve its efficiency and reduce its costs. The restructuring involves the following changes:
- The well testing business in the EMEA region will move its manufacturing and assembly operations from the Netherlands to Dubai, where Hunting has a larger and more efficient facility. The Netherlands will keep its sales, engineering and service support functions for European clients. Hunting will also consolidate its activities in the Netherlands into one location in Velsen-Noord, where it will serve both oil and gas and energy transition clients.
- Hunting Titan will close its Oklahoma City site and transfer the production of perforating systems to its Pampa, US, and Monterrey, Mexico, sites, which have recently expanded their capacity. A distribution centre will remain in Oklahoma City to service clients.
- Hunting has sold most of its non-core exploration and production assets held by Tenkay Resources, Inc., its wholly-owned subsidiary. Hunting now only has a working interest in one offshore field. As part of the sale process, Hunting has transferred most of the non-producing assets and their future plug and abandonment liabilities, which have lowered Hunting’s potential exposure to future decommissioning costs.
Jim Johnson, Chief Executive, said: “We are continuing to enhance our operational efficiency across our global footprint. We are making good progress in implementing our Hunting 2030 strategy, which includes locating our manufacturing facilities in high growth areas and merging our operations to increase our returns and lower our costs.”