LONDON, UK: Hunting PLC, the international energy services group, has acquired Marubeni-Itochu’s 40% shares in Hunting Energy Services (UK) Limited joint venture (HESUK).
The restructuring will simplify Hunting’s operating presence in the EMEA region, as the North Sea market positions itself for growth following the downturn seen over the past two years.
Hunting Plc, through its subsidiary Hunting Energy Services (International) Limited, is currently a 60% shareholder in the Hunting Energy Services (UK) Limited joint venture (HESUK). Marubeni-Itochu Steel Inc and Marubeni-Itochu Tubulars Europe PLC (collectively referred to as “MI”) hold the balance of the shareholding of 40%.
As a result of the transaction, Hunting has purchased MI’s 40% interest in the joint venture and becomes the sole shareholder in HESUK, which includes the operating facilities in Aberdeen, UK and in Velsen-Noord, the Netherlands.
Hunting and MI have also entered into a Business Purchase agreement, whereby MI has agreed to purchase European Oil Country Tubular Goods (OCTG) inventory held by the joint venture.
Hunting will receive a net cash inflow of $27.7m on completion of the restructuring, reflecting the purchase of MI’s shareholding and the agreed consideration under the Business Purchase agreement.
For the 12 months to 31 December 2020, HESUK reported revenue of $35.3 million and a loss before tax of $8.5 million. The gross assets held as at 31 December 2020 were $60.7 million.
The transaction provides Hunting and MI the opportunity to focus on their respective core competencies of providing world-leading threading, manufacturing and in-field support and OCTG supply and trading.
Jim Johnson, Chief Executive of Hunting, commented: “The restructuring of our European OCTG businesses has generated a $27.7m net cash inflow and has released significant capital for the Group to deploy into new business opportunities. Our operations in Aberdeen and Velsen-Noord will continue to support clients operating in the North Sea and Europe and we look forward to continuing our close relationship with MI.”
Hunting PLC is an international energy services provider to the world’s leading upstream oil and gas companies. Established in 1874, it is a premium listed public company traded on the London Stock Exchange.
The Company maintains a corporate office in Houston and is headquartered in London. As well as the United Kingdom, the Company has operations in Canada, China, Indonesia, Mexico, Netherlands, Norway, Saudi Arabia, Singapore, United Arab Emirates and the United States of America.