HUNTING PLC

Hunting Plc 2138008S5FL78ITZRN66 2023-01-01 2023-12-31 2138008S5FL78ITZRN66 2024-01-01 2024-12-31 2138008S5FL78ITZRN66 2023-12-31 2138008S5FL78ITZRN66 2024-12-31 2138008S5FL78ITZRN66 2022-12-31 2138008S5FL78ITZRN66 2023-01-01 2023-12-31 ifrs-full:SharePremiumMember 2138008S5FL78ITZRN66 2023-01-01 2023-12-31 ifrs-full:IssuedCapitalMember 2138008S5FL78ITZRN66 2023-01-01 2023-12-31 ifrs-full:NoncontrollingInterestsMember 2138008S5FL78ITZRN66 2023-01-01 2023-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 2138008S5FL78ITZRN66 2023-01-01 2023-12-31 htg:TotalRetainedEarningsAndTreasurySharesMember 2138008S5FL78ITZRN66 2023-01-01 2023-12-31 ifrs-full:OtherReservesMember 2138008S5FL78ITZRN66 2024-01-01 2024-12-31 ifrs-full:NoncontrollingInterestsMember 2138008S5FL78ITZRN66 2024-01-01 2024-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 2138008S5FL78ITZRN66 2024-01-01 2024-12-31 htg:TotalRetainedEarningsAndTreasurySharesMember 2138008S5FL78ITZRN66 2024-01-01 2024-12-31 ifrs-full:OtherReservesMember 2138008S5FL78ITZRN66 2024-01-01 2024-12-31 ifrs-full:SharePremiumMember 2138008S5FL78ITZRN66 2024-01-01 2024-12-31 ifrs-full:IssuedCapitalMember 2138008S5FL78ITZRN66 2022-12-31 ifrs-full:SharePremiumMember 2138008S5FL78ITZRN66 2022-12-31 ifrs-full:IssuedCapitalMember 2138008S5FL78ITZRN66 2022-12-31 ifrs-full:NoncontrollingInterestsMember 2138008S5FL78ITZRN66 2022-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 2138008S5FL78ITZRN66 2022-12-31 htg:TotalRetainedEarningsAndTreasurySharesMember 2138008S5FL78ITZRN66 2022-12-31 ifrs-full:OtherReservesMember 2138008S5FL78ITZRN66 2023-12-31 ifrs-full:NoncontrollingInterestsMember 2138008S5FL78ITZRN66 2023-12-31 ifrs-full:IssuedCapitalMember 2138008S5FL78ITZRN66 2023-12-31 ifrs-full:SharePremiumMember 2138008S5FL78ITZRN66 2023-12-31 ifrs-full:OtherReservesMember 2138008S5FL78ITZRN66 2023-12-31 htg:TotalRetainedEarningsAndTreasurySharesMember 2138008S5FL78ITZRN66 2023-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 2138008S5FL78ITZRN66 2024-12-31 ifrs-full:IssuedCapitalMember 2138008S5FL78ITZRN66 2024-12-31 ifrs-full:SharePremiumMember 2138008S5FL78ITZRN66 2024-12-31 ifrs-full:OtherReservesMember 2138008S5FL78ITZRN66 2024-12-31 htg:TotalRetainedEarningsAndTreasurySharesMember 2138008S5FL78ITZRN66 2024-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 2138008S5FL78ITZRN66 2024-12-31 ifrs-full:NoncontrollingInterestsMember iso4217:USD iso4217:USD xbrli:shares PRECISION ENGINEERING FROM SUBSEA TO SPACE Hunting PLC Annual Report and Accounts 2024 We are Hunting Hunting is a global precision engineering group, which provides quality-assured products and services for the energy, aviation, commercial space, defence, medical, and power generation sectors. Financial highlights Revenue $ 1,048.9 m (2023 – $929.1m) EBITDA $ 126.3 m (2023 – $102.4m restated) Diluted (loss) earnings per share (17.6) cents (2023 – 65.9 cents restated) Non-ﬁnancial highlights Total recordable incident rate 0.93 (2023 – 0.91) Internal manufacturing reject rate 0.31 % (2023 – 0.20%) Scope 1 and 2 emissions tonnes CO 2 e 22,233 (2023 – 22,599 restated) Gross proﬁt $ 271.9 m (2023 – $227.7m) (Loss) proﬁt before tax $ (33.5) m (2023 – $41.1m restated) Sales order book $ 508.6 m (2023 – $565.2m) Market highlights Average WTI crude oil price $ 76 per bbl (2023 – $78 per bbl) Global drilling capital investment $ 214.5 bn (2023 – $212.6bn) Global average rig count # 1,691 (2023 – 1,765) Non-GAAP Measure see pages 255 to 262. Strategic Report At a Glance 2 Company Chair’s Statement 6 Hunting 2030 Strategy 10 Key Performance Indicators 18 Market Indicators 19 Business Model 20 Chief Executive’s Report 34 Market Summary 40 Product Review 44 Operating Segment Review 55 Group Financial Review 60 ESG and Sustainability 68 Task Force on Climate-related Financial Disclosures (“TCFD”) 88 Risk Management 102 Viability Statement and Going Concern 110 Section 172(1) Statement 112 Corporate Governance Introduction to Corporate Governance 114 Board of Directors 116 Executive Committee 118 Corporate Governance Report 119 Nomination Committee Report 131 Ethics and Sustainability Committee Report 133 Remuneration Committee Report 136 – Remuneration at a Glance 140 – Directors’ Remuneration Policy 142 – Annual Report on Remuneration 151 Audit and Risk Committee Report 161 Directors’ Report 167 Financial Statements Independent Auditor’s Report to the Members of Hunting PLC 171 Consolidated Income Statement 184 Consolidated Statement of Comprehensive Income 185 Consolidated Balance Sheet 186 Consolidated Statement of Changes in Equity 187 Consolidated Statement of Cash Flows 189 Notes to the Consolidated Financial Statements 190 Company Balance Sheet 246 Company Statement of Changes in Equity 247 Notes to the Company Financial Statements 248 Other Information Non-GAAP Measures 255 Financial Record 263 Shareholder and Statutory Information 264 Glossary 266 Professional Advisers 270 Our Strategy Hunting is a constituent of the FTSE 250 Index quoted on the London Stock Exchange in the Equity Shares in Commercial Companies (“ESCC”) category. Our strategy is to manufacture products and deliver services to our customers, wherever in the world they are operating. 10 Key Performance Indicators Our primary sector of focus is the energy industry. Many of Hunting’s products are used across the life cycle of an oil and gas well in addition to geothermal and carbon capture wells. Our performance is, therefore, driven by high-value, resilient end-markets. 18 Our Stakeholders Our strategy is aimed at creating sustainable value for our shareholders and other stakeholders, including employees, customers, suppliers, governments, and communities. 24 Our Product Groups Our ﬁve key product groups are: Perforating Systems, OCTG, Advanced Manufacturing, Subsea, and Other Manufacturing. Non-oil and gas revenue is derived across all of these key product groups. 44 Our Operating Segments The Group is managed through ﬁve operating segments: Hunting Titan; North America; Subsea Technologies; Europe, Middle East and Africa (“EMEA”); and Asia Paciﬁc. 55 Corporate Governance Our Board’s experience extends from energy to aviation and other non-oil and gas sectors. Hunting expects to accelerate the Group’s non-oil and gas offering in the coming years to diversify our revenue and proﬁt streams, thereby reducing the cyclicality of our earnings. 113 Contents Hunting PLC Annual Report and Accounts 2024 1 Corporate Governance Financial Statements Other Information Strategic Report At a Glance Product groups 2024 has been a year of strong delivery against several important milestones, which were announced as part of the Hunting 2030 Strategy. Progress has been made in growing our OCTG, Advanced Manufacturing, and Subsea product groups, while our Perforating Systems product group reported trading headwinds. Hunting reports good improvement in both revenue and EBITDA as international and offshore markets have continued to increase drilling activity across the energy sector. Progress has also been made within our Energy Transition and non-oil and gas strategies, which have contributed to our strong results. Perforating Systems Hunting’s Perforating Systems product offering includes integrated gun systems, energetics and instruments for the energy sector. The Group’s H-2™, H-3™, and H-4™ perforating systems offer an integrated well completion solution to clients, which increases safety and efﬁciency. Hunting’s energetics products include the EQUAFrac™ suite of charges, which improve ﬁring accuracy and efﬁciency. Complementing these products, Hunting’s instruments, detonation cord, and other important components, enable the Group to offer the broadest range of onshore completion solutions to clients. OCTG Hunting’s Oil Country Tubular Goods (“OCTG”) product offering includes premium connections, accessories, and tubing. The Group’s proprietary connection technologies include SEAL-LOCK™, WEDGE-LOCK™, and TEC-LOCK™, which address most oil and gas resource developments. Hunting’s connection technology is also applicable to the energy transition sector, serving geothermal energy and carbon capture and storage developments. The Group provides an independent OCTG supply chain to clients, sourcing through either distributors in North America or steel mills in Asia Paciﬁc. Reported through: Hunting Titan EMEA Reported through: Hunting Titan North America EMEA Asia Paciﬁc READ MORE ON PAGE 44 READ MORE ON PAGE 46 Hunting PLC Annual Report and Accounts 2024 2 Strategic Report Corporate Governance Financial Statements Other Information Revenue $m EBITDA $m At a Glance continued Advanced Manufacturing Hunting’s Advanced Manufacturing product offering leads the Group’s non-oil and gas revenue diversiﬁcation initiatives and includes high performance electronics and precision engineered products, which are utilised in both energy related and non-oil and gas applications. Our electronics business manufactures high temperature/high pressure printed circuit boards used in downhole measurement tools as well as other sectors such as the medical sector. Our precision engineering business, Dearborn, manufactures MWD/LWD well tool housings, periscope tubes, aerospace engine shafts, power generation turbine shafts and products used in commercial space applications. Subsea Hunting’s Subsea product offering comprises three sub-groups: hydraulic couplings and valves, used within subsea tree systems; titanium stress joints, which are applied to ﬂoating production, storage and ofﬂoading facilities; and ﬂow access modules and ﬂow intervention systems used in modular offshore ﬁeld developments. A key theme of all these products is to enable the safer and quicker delivery of oil and gas for our customers and, therefore, cash ﬂow from offshore developments. Other Manufacturing Hunting’s Other Manufacturing products include well intervention and testing equipment, which is either sold to, or rented by, clients. The Group’s trenchless technologies business sells into the global telecommunications industry and forms part of this product group given its size and proﬁle. Other Manufacturing also includes our licensed organic oil recovery (“OOR”) product, which is an enhanced oil recovery technology that increases oil production in a well, and reduces H 2 S levels in the reservoir. Reported through: Hunting Titan North America Reported through: Subsea Technologies Reported through: North America EMEA Asia Paciﬁc READ MORE ON PAGE 48 READ MORE ON PAGE 50 READ MORE ON PAGE 52 222.7 126.9 463.7 147.1 88.5 Product groups Perforating Systems OCTG Advanced Manufacturing Subsea Other Manufacturing Non-GAAP measure see NGM C on pages 256 and 257. 1.4 80.2 11.8 30.0 2.9 Hunting PLC Annual Report and Accounts 2024 3 Strategic Report Corporate Governance Financial Statements Other Information Operating sites Distribution centres Year-end employees Hunting Titan 3 (2023 – 4) 12 (2023 – 14) 514 (2023 – 622) North America 10 (2023 – 10) 2 (2023 – 2) 886 (2023 – 900) Subsea Technologies 2 (2023 – 3) 0 (2023 – 0) 223 (2023 – 196) EMEA 7 (2023 – 7) 0 (2023 – 0) 277 (2023 – 270) Asia Paciﬁc 3 (2023 – 3) 0 (2023 – 0) 378 (2023 – 346) Revenue $m EBITDA $m Operating segments Hunting’s North America, Subsea Technologies, and Asia Paciﬁc operating segments reported strong increases in revenue in the year, offsetting weaker performances from Hunting Titan and EMEA, leading to the overall growth reported in revenue, earnings and cash generation. At a Glance continued 220.5 237.4 357.3 147.1 86.6 Operating segments Hunting Titan North America Subsea Technologies EMEA Asia Paciﬁc Non-GAAP measure see NGM C on pages 256 and 257. 0.6 62.2 30.0 (7.9) 41.4 Hunting PLC Annual Report and Accounts 2024 4 Strategic Report Corporate Governance Financial Statements Other Information Our global locations Operating sites 25 Distribution centres 14 Year-end employees (including head ofﬁce) 2,367 Hunting global locations Hunting Titan North America Subsea Technologies EMEA Asia Paciﬁc Joint Ventures and Associates At a Glance continued Hunting PLC Annual Report and Accounts 2024 5 Strategic Report Corporate Governance Financial Statements Other Information Company Chair’s Statement 150 years, moving forward The past year was very successful as the Company achieved a number of strategic goals, which has given an air of optimism for future success. The progress made during 2024 on the path to reach our 2030 targets, outlined in the Capital Markets Day, demonstrates that we remain on track. On behalf of the Directors, I would like to thank the senior leadership team and our wider workforce for the progress made in the year. Revenue $ 1,048.9 m (2023 – $929.1m) Dividend per share declared 11.5 cents (2023 – 10.0 cents) Hunting PLC Annual Report and Accounts 2024 6 Strategic Report Corporate Governance Financial Statements Other Information Company Chair’s Statement continued Hunting 150th anniversary In April 2024, the Company celebrated its 150th anniversary. The special occasion allowed a look back at the remarkable accomplishments in our history as well as providing an air of optimism for the future. There was participation in the celebrations across all of our regions of operation by so many individuals who are part of the fabric and culture of the Company and who make being part of Hunting very special. Market environment During 2024, there were many changes in the geopolitical backdrop facing the Group. These events bring a positive outlook for the future of energy markets from both an energy security and regulatory environment perspective. Offshore and international markets offer multi-year growth opportunities, with the Company delivering success, particularly in South America, with our Subsea products group, but also in the Middle East with the securing of the major OCTG orders with Kuwait Oil Company (“KOC”). The onshore North American market was more challenging in 2024 as lower natural gas prices curtailed activity. We will aggressively manage the costs within our control in this area of the market, roll out new technology, and drive efﬁciencies in the year ahead to restore proﬁtability to the Hunting Titan operations. The political climate in the UK has led to a reduction in drilling over recent years, leading to losses for the EMEA operating segment. This has resulted in a major restructuring, which was announced in January 2025, with the aim of aligning our cost base with the outlook for the region. Financial performance Hunting has delivered another year of strong ﬁnancial results. Revenue grew 13% from $929.1m in 2023 to $1,048.9m in 2024. The major contributor to this increase was the successful award of the $231m KOC contracts. This award was the result of several years of tender and vendor qualiﬁcation. The planning and execution of this contract demonstrates the Company’s ability to manage large scale projects. During the project, the commercial terms meant that our working capital proﬁle was well managed, which is another achievement in the year, as our strong year-end total cash and bank/(borrowings) result makes clear. Our Subsea product group also delivered on major projects in Guyana, continuing the success with ExxonMobil. EBITDA grew 23% from $102.4m in 2023 to $126.3m, as a result of the growth in the OCTG and Subsea product groups. Our adjusted proﬁt before tax was $75.6m compared to $50.0m in 2023. Following the $109.1m impairment within the Hunting Titan operating segment, the loss before tax was $33.5m (2023 – $41.1m proﬁt). Free cash ﬂow of $139.7m increased by $140.2m from 2023. Major contributors to this strong result included working capital efﬁciency gains and earnings results. The reﬁnancing of our committed borrowing facilities, completed in October 2024, also supports the Group’s 2030 ambitions. At the year-end, our balance sheet strength gives the Company the ability to further invest in our strategic initiatives. With the year-end total cash and bank/ (borrowings) results noted above of $104.7m at 31 December 2024, we have the ﬁrepower to execute growth both organically and through M&A. The Company is very disciplined in identifying acquisition opportunities that are consistent with the Capital Markets Day commitments, and which meet our ﬁnancial targets. Dividend Based on our success in the year, and in line with our Capital Markets Day commitments, the Directors are declaring a Final Dividend of 6.0 cents per share (2023 – 5.0 cents) which takes our total dividend for the year to 11.5 cents per share (2023 – 10.0 cents) or an increase of 15%. The Final Dividend is subject to approval at the Company’s Annual General Meeting on 16 April 2025. Board succession Over the past four years, the Board’s succession plan has been executed in a manner that aligns our skill sets with future strategy. In January 2024, Margaret Amos joined the Board. Margaret brings signiﬁcant aerospace expertise to Hunting, which is an area we seek to grow in the coming years as we continue to diversify our revenue streams. In April 2024, John (“Jay”) Glick stepped down as Company Chair. Jay led the Company through challenging times and set the path for the future strategy. We thank him for his years of service to the Company and wish him well for the future. In February 2025, we announced the retirement of Annell Bay after ten years’ service to the Company. Annell’s accomplishments as Chair of the Remuneration Committee are signiﬁcant and include the process of developing and gaining shareholder approval for the 2024 Directors’ Remuneration Policy. Both Jay and Annell have been instrumental in assisting me in my transition to Company Chair. In H2 2024, the Nomination Committee began a process to appoint a new, independent, non-executive Director. On 3 March 2025, we announced the appointment of Catherine (“Cathy”) Krajicek. Cathy brings to the Board deep oil and gas industry knowledge and signiﬁcant international experience to assist in continuing our long-term growth plans in the energy sector. Cathy will automatically retire and offer herself for reappointment by shareholders at the Company’s 2025 Annual General Meeting. Since my appointment as Company Chair in April 2024, I have been extremely impressed with the quality and depth of our team. The management team is focused on executing the Capital Markets Day strategy and reaching the outlined targets. The culture of technology, safety, and employee engagement is visible across the Company. The transparency and trust with our shareholders has been evident in all my meetings. I look forward to the continued success of the Company. Stuart M. Brightman Company Chair 6 March 2025 Hunting PLC Annual Report and Accounts 2024 7 Strategic Report Corporate Governance Financial Statements Other Information Hunting 150th anniversary As we look to the next 150 years, this culture will be the basis of future growth, and like the last 150 years, it will be our workforce and communities which will drive that success. In April 2024, the Company celebrated its 150th anniversary, commemorating the milestone of the formation of the ﬁrst Hunting company, way back in 1874. The commercial vision of Charles Hunting, which started in shipping, has been underpinned by a very special culture, one which can be seen today across all our businesses, which is our focus on our employees. Hunting’s commitment to its workforce has been the main contributor to our success over the years. Keeping our employees safe, paying fair compensation, supporting development and personal success are all key themes of our businesses. Throughout 2024, each location around the world organised events, from the US to China, to mark this year of celebration in their own regional style. In London, many of our European employees were invited to an event at the National Portrait Gallery, where shareholders, advisers, members of the Hunting family, and Board members came together to share this milestone. Our facilities in Dubai and Netherlands paid homage to our maritime heritage with traditional boat trips – one circling the Jumeirah Beach area and another venturing from the Netherlands facility into Amsterdam and back. To celebrate our 150th anniversary in North America, a variety of luncheons took place. In Singapore, our employees raised their glasses in a spirited “Yam Seng” toast, symbolising wishes for ongoing prosperity in this timeless tradition. Meanwhile, in Batam, employees came together to form the iconic ﬁgures “150”, “1874” and “We are Hunting” in a meticulously organised formation — a visual homage to our enduring corporate identity. Community events were held and donations were made across the Group, to recognise the communities in which we operate and support. These celebrations, showcasing cultural diversity and a shared spirit, highlight the solid foundations of the Group. As we look to the next 150 years, this culture will be the basis of future growth, and like the last 150 years, it will be our workforce and communities which will drive that success. We are Hunting. Hunting PLC Annual Report and Accounts 2024 8 Strategic Report Corporate Governance Financial Statements Other Information 1 Throughout 2024 each location around the world organised events, from the US to China, to mark this year of celebration. 1. Our employees in Batam, Indonesia celebrated in unique style. 2. In London, our European staff attended an event at the National Portrait Gallery. 3. Members of the Hunting Family also took part in the event. 4. Current and former Directors also attended. 5. Our staff in Houston also held celebratory luncheons. 6. In Singapore, a celebratory toast was raised looking to the next 150 years. The Directors gathered in London to meet employees and members of the Hunting Family. Hunting 150th anniversary continued Hunting PLC Annual Report and Accounts 2024 9 Strategic Report Corporate Governance Financial Statements Other Information 4 6 5 3 2 Hunting Following our Capital Markets Day in September 2023, where the Directors and senior leadership team launched the Hunting 2030 Strategy, 2024 saw impressive execution on a number of strategic milestones, which will assist in the delivery of our medium-term targets. The strategy is aimed at delivering revenue and proﬁt growth to the end of the decade and beyond, supporting stronger free cash ﬂow generation and sustained returns. Our revenue diversiﬁcation strategy, which includes building a baseload of earnings from non-oil and gas end-markets, is targeted at reducing the cyclicality of the Group’s ﬁnancial performance, even though the Directors see resilient, long-term demand for our products and services, which support the global energy industry. The strategy, which is underpinned by four strategic pillars, will be delivered through Hunting’s current portfolio of businesses as well as through targeted bolt-on acquisitions. Jim Johnson Chief Executive Hunting 2030 Strategy 2030 Hunting PLC Annual Report and Accounts 2024 10 Strategic Report Corporate Governance Financial Statements Other Information Hunting 2030 Strategy continued Hunting 2030 Strategy Hunting has deﬁned four strategic pillars to deliver growth in the long term ESG and sustainability READ MORE ON PAGE 15 Strong returns READ MORE ON PAGE 13 Growth READ MORE ON PAGE 12 Operational excellence READ MORE ON PAGE 14 Hunting 2030 ﬁnancial and investment return targets We are targeting c.$2.0 billion of annual revenue by 2030 Our operational growth strategy is supported by strong market fundamentals and independent market commentary that point to sustained demand for oil and gas and committed industry capital expenditures. The Group has set a 2030 revenue goal of c.$2.0 billion p.a., comprising 75% sourced from oil and gas and 25% from non-oil and gas sectors, including the energy transition sector. Deliver ROCE of 15% or greater by 2025 The Group is focused on retaining a strong balance sheet and maximising its return on capital employed through careful management of its working capital. Management has set a target of a working capital to annualised revenue ratio of c.35% by 2025, to deliver superior returns compared to our peers. To achieve this, long-term working capital targets of 130 days for inventory, 75 days for receivables and 45 days for payables have been set. Increase dividend distributions by a minimum of 10% per annum to 2030 We are seeking to return cash to shareholders, primarily through dividend distributions, with the Board targeting a steady increase to 2030 of 10% p.a. Deliver a more efﬁcient business platform To ensure that we operate efﬁciently, the Group is focused on disposing non-core and underperforming investments and product lines, thereby reducing the global operational footprint by c.10% and reducing ﬁxed costs by c.$6 million p.a., including simplifying the management structure and back ofﬁce services. Increase our EBITDA margin to 15% or greater Our focus on delivering technology that attracts high margins, containing costs, and maximising the output from our current operating footprint are our key drivers to meet the EBITDA margin target of 14-16% by the end of 2025, and exceeding this target by 2030. Generate c.$750 million of cumulative free cash ﬂow by 2030 With increased revenue and margins, supported by stringent management of our balance sheet, we are targeting an EBITDA to free cash ﬂow conversion rate of 50% and aiming to deliver c.$750 million of cumulative free cash ﬂow through to the end of the decade. This target is on a post-capex basis. Net leverage of less than 1.5x EBITDA through the period to 2030 By maintaining a strong balance sheet, liquidity, and a prudent approach to debt, a long-term net leverage of 1.5x EBITDA is targeted. Underpinned by our diversiﬁed portfolio of businesses and targeted bolt-on acquisitions Risks to the strategic pillars of the 2030 Strategy 1 Increased competition and market consolidation 2 Geopolitical instability 3 Adverse movement in commodity prices 4 Information technology and cyber security 5 Our ability to achieve our strategic goals depends on how we react to external and internal forces 6 Legal and compliance risk 7 Loss of key executives or staff and shortage of key staff 8 Climate change and energy transition 9 Product quality and reliability 10 Work environment issues including health and safety Hunting PLC Annual Report and Accounts 2024 11 Strategic Report Corporate Governance Financial Statements Other Information Growth Our aim is to continue to develop our global presence and supply a comprehensive range of products used in the wellbore and through expansion into complementary non-oil and gas sectors. Our diversiﬁed portfolio of products, which are offered in strategic global locations, will enable us to produce high levels of proﬁtability and free cash ﬂow. Our cash generation will facilitate our growth through investment in our existing businesses and through acquisition. Retain focus on global oil and gas opportunities, speciﬁcally growing our subsea and offshore-focused businesses Crude oil and natural gas are forecast to be two critical primary energy sources for many decades to come. As developed and emerging economies seek growth and energy security, hydrocarbon resources will remain part of the energy landscape alongside other renewable and low carbon energy sources. The Group will continue to broaden its product offering and introduce critical technologies through R&D and targeted mergers and acquisitions (“M&A”). The offshore sector of the global energy industry provides predictable and sustained hydrocarbon production, which have increased in importance for project developers in recent years. Develop a global position in the energy transition sector The energy transition sector is an area of signiﬁcant opportunity for Hunting, as global efforts to decarbonise the energy supply chain accelerate. The Group sees strong growth in supplying products for geothermal as well as carbon capture and storage projects, which are increasingly demanding high-performance technology and materials that can deliver multi-decade beneﬁts to the energy industry. Progress in high-value, non-oil and gas industries Given the cyclicality of the oil and gas industry, a key part of our strategy is to build a less volatile revenue and proﬁt proﬁle. This will be delivered through organic and acquisitive growth of non-oil and gas businesses. We currently sell into several non-oil and gas end-markets, such as the aviation, commercial space, defence, medical, and power generation sectors, and will continue to leverage our world-class precision engineering and manufacturing know-how into these high-quality markets and industries. Progress in the year Related KPIs Revenue; non-oil and gas revenue; EBITDA; adjusted proﬁt before tax; adjusted diluted earnings per share; total shareholder return; and free cash ﬂow. SEE PAGES 18 AND 19 Related risks 1 2 3 5 7 8 9 SEE PAGES 104 TO 109 01 Maintained a strong sales order book driven by the OCTG, Advanced Manufacturing, and Subsea product groups. We ended the year with an order book of $508.6m (2023 – $565.2m). 02 Secured record orders with Kuwait Oil Company, with OCTG sales now 44% (2023 – 43%) of total revenue. 03 Strong results delivered from the Subsea product group as orders for Hunting’s titanium stress joints for ExxonMobil were completed through the year. 04 Delivered large-scale commercialisation of the Group’s licensed Organic Oil Recovery technology – dependent on volumes and assumed extensions could result in c.$60 million of contracts won in H2 2024. 05 Accelerated our strategy in India, with the securing of an API threading licence at Hunting’s Nashik facility – proﬁt contributed from the Jindal Hunting Energy Services joint venture totalled $2.3m (2023 – $0.2m loss) in its ﬁrst full year of operation. 06 Non-oil and gas revenue totalled $75.1m (2023 – $75.9m) in the year, with an increase in the sales order book for aviation clients. 07 Recorded $14.7m of energy transition revenue in the year, predominantly for geothermal projects in Asia Paciﬁc, Europe and North America. 08 Secured exclusive sales, manufacturing and distribution rights for CRA-Tubulars’s titanium-lined carbon ﬁbre tubing technology in North America and Europe for ﬁve years. Further investment in Cumberland Additive was also made. Hunting 2030 Strategy continued Hunting PLC Annual Report and Accounts 2024 12 Strategic Report Corporate Governance Financial Statements Other Information Strong returns In the growth phase of the oil and gas cycle, our business has the capability to produce high levels of proﬁtability, strong cash generation, and solid returns on capital, leading to increased distributions to shareholders. To reduce the impact of oil and gas cyclicality on proﬁtability, the Group is targeting opportunities in the energy transition sector in addition to growing its revenue from the commercial space, defence, medical, and power generation sectors. The Group continues to look for opportunities to reduce its ﬁxed cost base to ensure that it is more efﬁcient. Increase EBITDA The Group is targeting strong growth in its EBITDA proﬁle, with an ambition of at least $300m p.a. by the end of the decade (based on meeting the $2.0bn of revenue and 15% EBITDA margin ambition). This target will be delivered through both organic growth and material contributions from acquisitions to be secured in the coming years. Improve working capital efﬁciencies Hunting has a working capital to annualised revenue ratio target of 35% to be delivered by the end of 2025. Improvements to inventory and receivables are the key levers to delivering this ambition, supported by the use of working capital solutions and instruments, which shorten the cash cycles of some of our more capital-intensive contracts. Deliver strong cash ﬂow conversion Generating and releasing cash from our capital employed, thereby increasing EBITDA, will lead to Hunting meeting its stated long-term objective of a 50% EBITDA to free cash ﬂow conversion rate. Increase shareholder returns Capital growth and increased dividends are the primary methods of delivering returns to our shareholders. The targeted increase in our dividend, of at least 10% p.a. to the end of the decade, is a key commitment by the Directors as part of our Hunting 2030 Strategy. Progress in the year Related KPIs Revenue; non-oil and gas revenue; EBITDA; adjusted proﬁt before tax; adjusted diluted earnings per share; dividend per share declared; total shareholder return; free cash ﬂow; working capital to annualised revenue ratio; and return on average capital employed (“ROCE”). SEE PAGES 18 AND 19 Related risks 1 2 3 5 8 9 SEE PAGES 104 TO 109 01 Delivered 23% increase in EBITDA to $126.3m (2023 – $102.4m restated). 02 Delivered a 3 percentage point increase in ROCE to 9% (2023 – 6%). 03 Delivered 15% increase to total dividends declared to 11.5 cents (2023 – 10.0 cents). 04 Delivered $75.1m (2023 – $75.9m) in non-oil and gas sales, which represents 7% of external revenue. 05 Delivered year-end total cash and bank/(borrowings) of $104.7m (2023 – $(0.8)m). 06 Delivered a working capital to annualised revenue ratio of 29% (2023 – 46%). 07 Delivered a $6.5m annualised cost base reduction within Hunting Titan. 08 Delivered a 111% EBITDA to free cash ﬂow conversion rate. Hunting 2030 Strategy continued Hunting PLC Annual Report and Accounts 2024 13 Strategic Report Corporate Governance Financial Statements Other Information Operational excellence Our people are at the heart of our business, and we ensure that their health, safety and well-being are a priority. We operate in competitive and cyclical sectors, which are high proﬁle and well regulated. To be successful, we must deliver reliable products, which are quality-assured to the highest industry standards, and assist safer processes for our customers. We strive to ensure that our working capital is managed efﬁciently to enable timely delivery of our products to our customers. Maintain and improve our health and safety performance The safety of our employees remains a key management priority as it informs our clients of our approach to delivering a best-in-class service offering. Increase training and development for our workforce Training continues across the Group in many areas, including HSE, quality assurance, IT and cyber awareness, ﬁnancial, and other important operational policies covered within our Code of Conduct training programme. Continue to deliver strong quality-assured products Our products operate in some of the harshest environments, therefore delivering products that consistently perform and which protect our customers, suppliers, employees and the environment remains a key area of focus. Our facilities continue to secure key manufacturing accreditations Hunting has continued to seek important ISO accreditations including manufacturing excellence, and environmental management. We aim for zero recordable incidents and fatalities Protecting our employees and contractors who work out of our facilities is a key focus. Progress in the year Related KPIs Working capital to annualised revenue ratio; total recordable incident rate; and internal manufacturing reject rate. SEE PAGES 18 AND 19 Related risks 4 5 6 7 9 10 SEE PAGES 104 TO 109 01 Our total recordable incident rate in the year was 0.93 (2023 – 0.91), reﬂecting a broadly consistent performance for health and safety, and averaging 0.94 over the past three years. 02 Recorded training in the year totalled 68,834 hours (2023 – 48,013 hours) as broad-based efforts to develop and protect our workforce were enhanced. 03 Our internal manufacturing reject rate was 0.31% (2023 – 0.2%), demonstrating our production excellence. 04 Our joint venture facility in Nashik, India secured its API licence in May 2024, which supports our drive to expand our customer base in-country. 05 In the year, we manufactured 15.6m (2023 – 23.0m) parts, with only 0.0006% (2023 – 0.0006%) of shipped parts returned. 06 We are pleased to report that there were zero fatalities (2023 – zero) for employees and contractors in the year. 07 76% (2023 – 78%) of our facilities accredited with the ISO 9001: 2015 (quality management systems) standard. 08 Cyber and IT training also increased in the year, as new systems were deployed. Hunting 2030 Strategy continued Hunting PLC Annual Report and Accounts 2024 14 Strategic Report Corporate Governance Financial Statements Other Information ESG and sustainability We are committed to acting with high standards of integrity and creating positive, long-lasting relationships with our customers, suppliers, employees, and the wider communities in which we operate. We are also focused on managing and reducing our carbon footprint and impact on climate change. Our employees are our most important asset, and we aim to keep our voluntary turnover rate low Hunting strives to keep our employee attrition rates low as it reduces the risk of injury, it reduces costs associated with hiring and training new employees, ensures that productivity remains high, and a stronger company culture prevails. Our attention to training, as noted above, supports our drive to improve efﬁciency, which keeps our workforce safe. We continue to seek ways of reducing our carbon footprint and encourage our suppliers and customers to do the same Hunting continues to improve its carbon and climate reporting to enable our investors and other stakeholders to understand our impact on the environment. We are targeting a reduction in our scope 1 and 2 greenhouse gas emissions by 50% from our 2019 baseline year and to purchase 50% of our energy from renewable sources by the end of the decade. We will enhance our carbon and climate reporting to enable our stakeholders to understand Hunting’s impact on the environment Hunting now reports scope 1, 2 and 3 emissions and will continue to seek enhancement to our scope 3 data collection in the year ahead. Assurance of our 2023 scope 1 and 2 data was completed in the year. We are committed to ethical ways of doing business, which includes transparent business dealings and having a zero tolerance to modern slavery Hunting’s culture encourages the highest levels of ethical behaviour and to this end has strong anti-bribery and corruption, modern slavery and sanctions policies. Progress in the year Related KPIs Total recordable incident rate; internal manufacturing reject rate; total scope 1 and 2 emissions; CO 2 intensity factor; total purchased electricity; and renewable energy purchased. SEE PAGES 18 AND 19 Related risks 5 6 7 8 10 SEE PAGES 104 TO 109 01 Our total scope 1 and 2 GHG emissions of 22,233 tonnes were down year-on- year (2023 – 22,599 tonnes, restated), despite activity and revenue increasing 13% in the year. 02 Our reporting of scope 3 emissions was expanded in the year, with data collected from four out of ﬁve operating segments against 11 of the 15 scope 3 pillars. 03 Our CO 2 intensity factor was 21.2kg/$k of revenue (2023 – 24.3kg/$k of revenue, restated) demonstrating a further reduction in the year as our operating efﬁciencies increased. 04 Electricity purchased from renewable sources was 21% (2023 – 23%). 05 Zero environmental ﬁnes or incidents in the year (2023 – zero). 06 The recordable incident rate was 0.93 (2023 – 0.91) and our internal manufacturing reject rate was 0.31% (2023 – 0.2%) in the year. 07 In the year, our voluntary turnover rate was 10.3% (2023 – 13.5%), and the average tenure of our employees is nine years (2023 – nine years), which helps us mitigate HSE risk. 08 Hunting had zero (2023 – zero) bribery-related ﬁnes in the year. Hunting 2030 Strategy continued Hunting PLC Annual Report and Accounts 2024 15 Strategic Report Corporate Governance Financial Statements Other Information Investment proposition Hunting PLC’s investment case is based on technology, precision engineering core competencies, and a deep knowledge of the global energy and advanced manufacturing industries. Our strategy and expertise will drive long-term growth, providing leverage to deliver our value proposition into new sectors. Our core competencies Our strategic differentiators position us competitively Our sectors of focus are resilient Our ﬁnancial returns are gaining momentum Leadership in: • Systems, design and precision engineering; • Bespoke manufacturing; and • Metallurgy and materials. Investing in our people to provide: • Innovation and a competitive edge, protected through patents and trademarks; • Engineering and technical leadership to attract blue-chip customers from multiple end-markets; and • A premium service culture. Global operating presence in key locations and exposure to high-growth markets with proven controls over: • Quality assurance; • Health and safety; and • Carbon emissions. Strong, experienced management team to: • Pursue growth across complex and competitive sectors; • Diversify revenue to ensure long-term resilience; • Navigate through market cycles; and • Ensure M&A targets are aligned with our long-term strategy. Diversiﬁed portfolio: Hunting has a diversiﬁed portfolio of market-leading technologies, products and services that address many areas of the energy and non-oil and gas supply chain. The Group holds over 400 patents and trademarks across key technologies and geographies. Efﬁciency: Our precision-engineered products are highly reliable and assist in higher safety protocols and more efﬁcient procedures for our customers, wherever they are deployed. Commercial agility: Hunting is able to leverage its world- class engineering and manufacturing capabilities into the energy transition sector and into high-quality non-oil and gas markets and industries through its global presence. Our commercial agility within the markets we serve helps us to remain a technology leader, often with a compelling market share. Our ESG principles: Hunting has an established culture based on its highly skilled and trained workforce, resulting in strong quality-assured products and a robust HSE record. Our ESG principles help us drive growth and internal efﬁciencies, increase safety for both our workforce and that of our customers, and lower carbon emissions through operational effectiveness and technological innovation. Oil and gas: The global energy industry, particularly oil and gas, is a long-term driver of economic growth. This is likely to be the case for many years to come. Energy transition: Energy transition opportunities are complementary to our core oil and gas markets, which is a further area of long-term growth for the Group. Other non-oil and gas: Aviation, commercial space, defence, medical, and power generation sectors have long-term growth prospects. These are resilient markets that support economic prosperity and use our precision engineering expertise, which will reduce cyclicality in our earnings. Strong growth proﬁle: Hunting has increased its revenue, proﬁts and cash ﬂows as market conditions have improved across the year. Improved margins: Stronger pricing and higher facility utilisation levels have enhanced operating margins and earnings. Improved earnings: Increased earnings have led to higher shareholder and capital returns in the form of dividend distributions and capital growth. Cash generation: Consistently turning proﬁt into free cash ﬂow. Strong balance sheet: • Improving balance sheet efﬁciency; • Financial stability; and • Revolving Credit Facility and Term Loan provide liquidity. Progressive ﬁnancial returns: • Revenue and proﬁt growth; • Fixed cost reduction strategy, delivering a more efﬁcient business platform; • Increasing EBITDA to free cash ﬂow conversion; and • Dividend growth. Hunting 2030 Strategy continued Hunting PLC Annual Report and Accounts 2024 16 Strategic Report Corporate Governance Financial Statements Other Information Hunting’s proprietary premium and semi-premium connections include our SEAL-LOCK™, WEDGE-LOCK™ and TEC-LOCK™ families of connections. Our strategy, which has extended over many years, is to provide customers with a connection that will assist in the development of any resource type, whether that be conventional vertical wells, highly deviated deep-water wells or high-torque extended length wells. We pride ourselves on being able to assist in the supply of a connection, no matter how challenging the well environment is. In recent years, we have evolved our offering to better address customer needs by providing raw material OCTG feedstock at the most competitive price, while applying our best-in-class premium connections for our customers. In North America, this has meant focusing our sales of connections using the extensive OCTG distributor network across the US, where a customer relies on Hunting to source the OCTG at a competitive price, with our connection being added. This gives Hunting and the client independence from any one steel mill or OCTG producer and gives maximum cost ﬂexibility to the customer when it is planning a well design. Internationally, Hunting uses several Chinese steel mills as its strategic supply channel for OCTG, where Hunting has developed compelling relationships over many years. Combining Hunting’s connections with this competitively priced OCTG feedstock has enabled Hunting to challenge larger players in the OCTG market and has allowed Hunting to be highly competitive within much larger OCTG contracts – the success with Kuwait Oil Company (“KOC”) being a key example of our success in recent years. In May/June 2024, we announced the securing of orders totalling $231m, supplying c.90,000 tonnes of OCTG with Hunting’s SEAL-LOCK XD™ connection applied. The winning of this order was the result of ﬁve years of qualiﬁcation of both the Chinese OCTG from Henyang Valin Steel, and Hunting’s premium connections. The project was for deepwater gas developments offshore Kuwait, which is part of a wider strategy to increase domestic production in-country. Project teams from KOC, Hunting and Henyang worked hard to complete the qualiﬁcation processes, with Hunting also completing a smaller order at the start of the year for KOC to conﬁrm quality and supply logistics. The KOC orders are being completed in eight shipments, four of which were delivered in 2024, with the remainder to be completed in H1 2025 – supporting our 2025 ﬁnancial targets. Hunting would like to thank KOC for its support and conﬁdence. Growing OCTG internationally Hunting PLC Annual Report and Accounts 2024 17 Strategic Report Corporate Governance Financial Statements Other Information Key Performance Indicators Financial Revenue $m 1,048.9 2024 2023 929.1 2022 725.8 Revenue is earned from products and services sold to customers from the Group’s principal activities (see notes 2 and 3). Dividend per share declared cents 11.5 2024 2023 10.0 2022 9.0 The amount in cents returned to Ordinary shareholders in relation to the ﬁnancial year (see NGM Q). Sales order book $m 508.6 2024 2023 565.2 2022 473.0 The sales order book comprises the value of all orders booked and expected to be recognised as revenue in future periods (see NGM T). Total cash and bank/(borrowings) $m 104.7 2024 2023 (0.8) 2022 24.5 Total cash and bank/(borrowings) comprises cash at bank and in hand, ﬁxed-term funds, money market funds and short-term deposits less bank overdrafts and bank borrowings (see NGM K). Free cash ﬂow $m 139.7 2024 2023 (0.5) 2022 (60.4) All cash ﬂows before transactions with shareholders and investments by way of acquisition (see NGM P). Adjusted diluted earnings per share cents 31.4 2024 2023 20.3 2022 4.7 Adjusted earnings attributable to Ordinary shareholders, divided by the weighted average number of Ordinary shares in issue during the year adjusted for all potentially dilutive Ordinary shares (NGM B). Non-oil and gas revenue $m 75.1 2024 2023 75.9 2022 47.6 Revenue earned from products and services sold to customers in non-oil and gas sectors (see note 2). EBITDA $m 126.3 2024 2023 102.4 2022 49.3 Adjusted results before interest, tax, depreciation, impairment and amortisation (see NGM C). EBITDA has been restated to include the Group’s share of associates’ and JVs’ results for the year. Adjusted proﬁt before tax $m 75.6 2024 2023 50.0 2022 10.2 Proﬁt before tax excluding adjusting items (see NGM B). Working capital to annualised revenue ratio % 29 2024 2023 46 2022 44 Working capital as a percentage of annualised revenue (see NGM E). Total shareholder return % 0 2024 2023 (9) 2022 102 Total shareholder return is a measure of the Company’s performance over time. It factors in share price appreciation and dividends paid to show the total return to the shareholder expressed as an annualised percentage. Return on average capital employed % 9 2024 2023 6 2022 1 Adjusted proﬁt before interest and tax, for the previous 12 months, as a percentage of average gross capital employed (see NGM S). Non-GAAP measure (“NGM”) see pages 255 to 262. Hunting PLC Annual Report and Accounts 2024 18 Strategic Report Corporate Governance Financial Statements Other Information Key Performance Indicators continued Non-ﬁnancial Global onshore capital investment $bn 147.7 2024 2023 145.1 2022 135.0 The estimated onshore/land-based drilling and production expenditures of the industry as reported by Spears & Associates in their Drilling & Production Outlook – December 2024 . Global offshore capital investment $bn 66.8 2024 2023 67.5 2022 53.5 The estimated offshore drilling and production expenditures of the industry as reported by Spears & Associates in their Drilling & Production Outlook – December 2024 . Global onshore average rig count # 1,490 2024 2023 1,560 2022 1,517 The average onshore global rig count during 2024 as reported by Baker Hughes Inc. Average WTI crude oil price $ per barrel 76 2024 2023 78 2022 94 The average price recorded in the year for West Texas Intermediary crude oil. Global offshore average rig count # 201 2024 2023 205 2022 189 The average offshore global rig count during 2024 as reported by Baker Hughes Inc. Average Henry Hub natural gas price $ per mmBtu 2.41 2024 2023 2.66 2022 6.54 The average price recorded in the year for Henry Hub natural gas. Market Indicators Total recordable incident rate (OSHA method) # 0.93 2024 2023 0.91 2022 0.97 The US Occupational Safety and Health Administration (“OSHA”) incident rate is calculated by multiplying the number of recordable incidents by 200,000 and then dividing that number for the number of labour hours worked. Internal manufacturing reject rate % 0.31 2024 2023 0.20 2022 0.13 Percentage of parts rejected during the manufacturing process. CO 2 e intensity factor kg/$k of revenue 21.2 2024 2023 24.3 2022 30.9 CO 2 e intensity factor is deﬁned as kilogrammes CO 2 of scope 1 and 2 greenhouse gas emissions, divided by $’000 of revenue. Total purchased electricity GWh 50.2 2024 2023 49.4 2022 43.4 The Group’s total electricity purchased during the year. Renewable electricity purchased GWh 10.5 2024 2023 11.4 2022 8.7 The Group’s electricity purchased from renewable or sustainable sources during the year. Total scope 1 and 2 emissions tonnes CO 2 e 22,233 2024 2023 22,599 2022 22,422 Scope 1 and 2 greenhouse gas emissions in tonnes, reported in line with the Greenhouse Gas Protocol, published by the World Resources Institute. Hunting PLC Annual Report and Accounts 2024 19 Strategic Report Corporate Governance Financial Statements Other Information Business Model What we do Hunting is a global engineering group that provides precision- manufactured equipment and premium services, which create sustainable value for our customers. We are focused on high-value end-markets that recognise and value our manufacturing capabilities. Our markets Our pillars for value creation Delivering value for our stakeholders Shareholders and lenders Employees Customers and suppliers Environment and climate Government and communities Proprietary technology Strategic locations Quality assured products Training Critical supply chains Blue-chip customers and suppliers Expertise in materials and engineering Responsible and sustainable practices Energy – oil and gas Energy – transition technologies Non-oil and gas Monitoring is through KPIs (see pages 18 and 19) and achievement of Hunting 2030 Strategy objectives (see pages 10 to 16). Hunting PLC Annual Report and Accounts 2024 20 Strategic Report Corporate Governance Financial Statements Other Information 2050 1990 2000 2010 2020 2030 2040 300 500 450 400 350 250 200 150 100 50 0 60% 100% 90% 80% 70% 50% 40% 30% 20% 10% 0% Exajoules Business Model continued Our markets Energy – oil and gas Our primary market focus is the oil and gas sector of the global energy industry. Affordable and secure energy has been the foundation of economic growth for many decades, with a technology and geographic landscape that constantly changes. Global crude oil demand is currently c.100 million barrels per day and, as the chart opposite demonstrates, this is likely to remain unchanged for decades to come. Our products and services are developed to support this global need. The oil and gas industry is a complex, well-regulated, multi-faceted sector with a wide range of technological needs to address the extraction of hydrocarbons in a safe and responsible manner. Hunting’s products are, therefore, aimed at addressing the needs of our customers, whether that be integrated energy groups, international service companies, or national or independent oil and gas companies. To deliver this daily demand for oil and gas, the industry needs technology and equipment that are high-performance, engineered solutions. Hunting’s major product groups are summarised on pages 44 to 53, and range from onshore- focused well completion solutions produced by our Perforating Systems business (our Hunting Titan operating segment) to equipment used in deepwater developments produced by our Subsea businesses (our Subsea Technologies operating segment). A key market indicator for Hunting’s businesses is the annual capital expenditures allocated by the industry’s stakeholders. In 2024, the global investment in crude oil and natural gas production was c.$214.5 billion. This is likely to be stable for many years to come as the world maintains its reliance on traditional energy solutions. Energy – transition technologies As western economies increase efforts to decarbonise their energy needs, exciting market opportunities are opening to the Group. Geothermal energy is a primary energy source that is seeing strong growth potential in the short term, to deliver cleaner sources of heat and energy. These developments are presenting complex engineering challenges to the energy industry. Hunting sees high growth opportunities for its OCTG product group as our premium connections and strategic supply channels offer critical solutions to many clients. Carbon capture, usage and storage (“CCUS”) is another solution being accelerated to reduce atmospheric carbon. CCUS projects demand high-end materials and engineered solutions that will enable these projects to operate for many decades. Non-oil and gas Hunting has manufactured products and technologies for the aviation industry for many years. The Group has key defence-related accreditations within its Advanced Manufacturing businesses, which enable Hunting to participate in government contracts including the naval and air force segments, supplying engine shafts for military aircraft and periscope tubes for submarines. In recent years, the Group has also manufactured components for the commercial space sector, which demands our unique precision engineering skills and expertise. Hunting manufactures key components for the power generation sector, including turbine shafts, and is also focused on developing accessories for the medical sector. IEA projected fossil fuel demand: 1990-2050 Source: IEA – World Energy Outlook Oil Coal Natural gas Share of fossil fuels (right axis) Hunting PLC Annual Report and Accounts 2024 21 Strategic Report Corporate Governance Financial Statements Other Information 01 We develop proprietary technology The development of new technology and products is a key element of our business model and strategy. This intellectual property and know-how is introduced to our blue-chip customers as the drive for more efﬁcient and safer delivery of oil and gas continues, as well as addressing the challenging environments that the geothermal and CCUS sectors operate in. In 2024, the Group held 412 patents and trademarks. Related risks 1 3 4 5 6 7 8 9 10 02 We manufacture close to where our clients need us Hunting has a global operating presence in strategic locations to ensure that we are close to where our customers are drilling and developing any resource type. Our established operating footprint ensures that we can support our customers in the oil and gas industry and it can be leveraged to address global geothermal and CCUS projects. At 31 December 2024, we manufactured in 11 countries (2023 – 11), from 25 operating sites (2023 – 27) and supplied through 14 distribution centres (2023 – 16). Related risks 1 2 6 Risks to our pillars for value creation 1 Increased competition and market consolidation 2 Geopolitical instability 3 Adverse movement in commodity prices 4 Information technology and cyber security 5 Our ability to achieve our strategic goals depends on how we react to external and internal forces 6 Legal and compliance risk 7 Loss of key executives or staff and shortage of key staff 8 Climate change and energy transition 9 Product quality and reliability 10 Work environment issues including health and safety 03 We leverage our brand and reputation through strong quality assured products The Hunting brand is supported by our strong reputation for quality assurance and health and safety. These credentials drive customer loyalty and form the basis of most industry tenders, which support our success in increasing our market share in key product lines and multiple end-markets. During 2024, the Group manufactured 15.6m parts (2023 – 23.0m) with an internal manufacturing reject rate of 0.31% (2023 – 0.20%). The reject rate for goods shipped was 0.0006% in the year (2023 – 0.0006%). These metrics demonstrate the impressive quality and reliability of our products. This performance strengthens Hunting’s standing in its end-markets. Related risks 1 4 5 7 9 10 04 We train our employees and keep them safe Our health and safety protocols have been developed to keep our employees safe, with our safety performance measured using an industry-wide performance indicator, which is monitored closely. In 2024, the Group had 25 recordable incidents (2023 – 24) leading to a total recordable incident rate of 0.93 (2023 – 0.91) compared to the industry standard of 4.0. Related risks 4 5 7 10 Business Model continued Our pillars for value creation Hunting PLC Annual Report and Accounts 2024 22 Strategic Report Corporate Governance Financial Statements Other Information 06 We target blue-chip customers and suppliers Hunting is a trusted supplier to some of the world’s leading energy companies, including integrated energy companies, national oil companies, international services groups, independent oil and gas producers, as well as leading engineering companies who operate in the global aviation, commercial space, defence, medical, and power generation sectors. We target clients and end-markets who value strongly assured products and services, and who demand high-performance technology and products. We have developed long-standing relationships with our customers through our market-leading reputation for HSE, quality assurance and reliability, differentiated technology, availability and delivery, and customer service and support. Related risks 1 3 4 5 9 10 07 We leverage our expertise in materials and engineering Hunting’s workforce comprises highly skilled engineers and machinists who lead the development and manufacture of our high-performance technology and products. Our expertise in mechanical and materials engineering and metallurgy ensures that our products will perform in high-pressure, high-temperature environments. We can leverage this expertise into energy transition markets as well as high-value, non-oil and gas markets, such as aviation, commercial space, defence, and medical, for diversiﬁcation opportunities. Related risks 1 4 5 7 10 08 We operate in a responsible and sustainable way Hunting’s responsible and sustainable approach to its global operations includes the monitoring of waste and emissions to ensure we have a minimal impact on the environment. We have recycled for many years and, more recently, have started to monitor our carbon and climate impact, with initiatives being introduced to reduce this impact. The Group announced new carbon intensity targets in March 2025 as part of the Board’s drive to improve our carbon reduction credentials and to assist in the preparation of a Net Zero transition plan. Related risks 4 6 7 8 9 10 05 We provide critical supply channels Our products are often manufactured using critical raw materials, which enable them to perform in highly challenging environments. We work hard to provide competitive supply channels to lower our customer’s project costs without compromising on quality. Hunting is an independent provider of premium and semi-premium connections and precision engineered accessories for all energy resource types, providing cost agility for our customers. The Group has several strategic partnerships, including our joint venture partner Jindal SAW in India, which produces OCTG pipe and tubulars, to which Hunting’s premium connections are applied, for the local Indian energy market. This venture meets local content requirements. The Group also has strategic supply chain partners to support the accelerating energy transition sector, including the ten-year alliance with Jiuli and the ﬁve-year strategic partnership with CRA-Tubulars, whereby Hunting has secured exclusive sales, manufacturing and distribution rights over their TCT (titanium-lined carbon ﬁbre tubing) technology in North America and Europe. Related risks 1 2 5 7 9 Risks to our pillars for value creation 1 Increased competition and market consolidation 2 Geopolitical instability 3 Adverse movement in commodity prices 4 Information technology and cyber security 5 Our ability to achieve our strategic goals depends on how we react to external and internal forces 6 Legal and compliance risk 7 Loss of key executives or staff and shortage of key staff 8 Climate change and energy transition 9 Product quality and reliability 10 Work environment issues including health and safety Business Model continued Hunting PLC Annual Report and Accounts 2024 23 Strategic Report Corporate Governance Financial Statements Other Information Delivering value for our stakeholders The Group’s stakeholders enable the delivery of Hunting’s business model and strategy. Stakeholder engagement forms a key element of our culture and is an area that has increased over the past few years. Understanding the needs of our shareholders, customers, suppliers, and workforce is achieved through regular dialogue. Shareholders and lenders Employees Customers and suppliers Environment and climate Governments and communities Our shareholders and lenders provide equity and loan capital to the Group. The Directors regularly engage with shareholders and lenders to discuss performance, strategy, governance, and other matters. This feedback is used to reﬁne our strategic plans. Hunting’s employees deliver our strategic plans and are the Group’s most important asset. We are committed to diversity across the organisation, the training and development of our workforce, and keeping them safe through stringent health and safety policies. The Board meets regularly with management and the workforce through site visits and engagement programmes. Our customers are critical to the ﬁnancial success of the Group. Customer dialogue helps us shape our product development strategy and provides focus to our service offering. Hunting continuously strives to deliver a secure supply chain for our customers and in the year signed new strategic agreements. The Group is committed to strong environmental stewardship. Our operating principals are focused on containing and reducing our carbon footprint, maximising recycling, reducing waste streams and increasing our climate change commitments. The Group continued its engagement with local regulators, tax authorities and governments in the year. Hunting continues to assist communities through a wide range of activities, including fund-raising events and donations. Each region develops their own community initiatives to align with local cultural practices. 11.5 cents 2024 dividend per share declared 9 years Average employee tenure 412 Patents and trademarks 21% Electricity from renewable resources $70k Charitable donations Business Model continued Hunting PLC Annual Report and Accounts 2024 24 Strategic Report Corporate Governance Financial Statements Other Information Shareholders Hunting’s shareholders provide a key source of capital to enable growth for the longer term. The Group is a listed public company, with one class of Ordinary shares quoted on the London Stock Exchange in the Equity Shares Commercial Companies category. At 31 December 2024, the total number of Ordinary shares in issue was 164.9m (2023 – 164.9m), with 1,237 (2023 – 1,263) shareholders on the register. The Board is responsible for setting the Company’s dividend policy. The Group’s current practice is to declare dividends in US dollars but pay in Sterling. Returns achieved by shareholders, by holding the Company’s Ordinary shares, are measured through total shareholder return (“TSR”). A TSR performance metric forms a large portion of the longer-term remuneration paid to the executives of the Group, with demanding vesting targets measured against our industry peers. In 2024, Hunting PLC’s Ordinary shares achieved a TSR of 0% on an annualised basis. For the deﬁnition of TSR please see page 18. Total shareholder return % 0 2024 2023 (9) 2022 102 Shareholder engagement Regular shareholder engagement meetings are organised through an annual calendar of work arranged through our investor relations function. The Chief Executive and Finance Director meet with institutional investors following the publication of the Group’s half- and full-year ﬁnancial results and throughout the year; attend investor conferences in the UK, Europe and the US to meet potential and existing shareholders; hold one-to-one meetings with existing and potential shareholders; and engage with private and retail investors through channels such as Investor Meets Company. The Company holds a hybrid AGM in April each year, which enables investors to attend in-person or engage online through a webcast. During the year, the Company hosted a facility tour in the US for an institutional investor. Further, the Company Chair and Senior Independent Director meet investors annually to discuss governance, succession, remuneration and other matters. No speciﬁc agenda is set for these meetings and they are designed to offer open discussion and engagement. Topics covered at the meetings held in the year included, among others, the Company’s progress against the Hunting 2030 Strategy, the new Directors’ Remuneration Policy, and capital allocation focusing on dividends, share buybacks and M&A activity. Dividend per share declared cents 11.5 2024 2023 10.0 2022 9.0 Business Model continued Shareholders and lenders Board engagement and decision making – shareholders The Directors receive a report from the investor relations function detailing the Company’s major shareholders at each Board Meeting, with a brieﬁng by the Chief Executive, Finance Director and Company Secretary on meetings with shareholders that have occurred recently. The Audit and Risk Committee reviews dividend proposals as part of its regular programme of work and makes a recommendation to the Board following a review of the ﬁnancial performance for the relevant reporting period. Dividends are announced along with each set of Group results and are usually paid in May and October. The Directors are proposing a 2024 Final Dividend of 6.0 cents per share, which will be subject to approval by shareholders at the 2025 AGM. During Q1 2024, the Directors concluded a consultation and engagement process with the Company’s major institutional investors in respect of a new Directors’ Remuneration Policy (“Policy”) and Long-Term Incentive Plan (“Plan”). Strong shareholder support was received for the new Policy, with an 85% vote in favour and a 96% vote in favour of the new Plan at the 2024 AGM. The 2023 Annual Report on Remuneration received a 76% vote in favour, which led to a further shareholder engagement process being undertaken by the Directors in June 2024. A response statement to this engagement process was posted on the Company’s website in August 2024, in line with the requirements of the 2018 UK Corporate Governance Code. Hunting PLC Annual Report and Accounts 2024 25 Strategic Report Corporate Governance Financial Statements Other Information Business Model continued Lenders In October 2024, the Group entered into a new funding arrangement for $300m of committed borrowing facilities to ﬁnance the ongoing working capital requirements of the existing business and to support Hunting’s stated organic and inorganic growth strategy. The new funding arrangements comprise a $200m revolving credit facility (“RCF”) and a $100m term loan. These facilities replaced the $150m Asset Based Lending (“ABL”) facility and increase the Company’s access to committed liquidity, extending the maturity of bank borrowing facilities to 2028. The new facilities are provided by a four-bank syndicate including Wells Fargo, HSBC, First Abu Dhabi Bank, and Emirates NBD. A conventional earnings-based covenant regime is attached to the facilities and includes a leverage test (being the ratio of total net debt to adjusted EBITDA not exceeding 3.0:1) and an interest cover test (being the ratio of consolidated EBITDA to consolidated net ﬁnance charges not being less than 4.0:1). The $200m RCF has been arranged with an initial tenor of four years, expiring on 16 October 2028, with an option that allows the Company to extend the contracted maturity date by an additional 12-month term. The $100m term loan has been arranged with a three-year tenor and, pursuant to the conditions of the facility agreement, was fully drawn on signing of the facilities. After an initial 12-month period, the term loan amortises with eight quarterly repayments of $9.4m (the ﬁrst such payment due in September 2025) and a ﬁnal $25.0m repayment in September 2027. On signing of the new facilities, the Group’s $150m ABL facility was repaid and cancelled, with drawings under the new term loan used, in part, for this purpose. Combined with the $104.7m of total cash and bank/(borrowings) recorded at year-end, the Group now has $344.8m of liquidity available to pursue growth opportunities, including bolt-on acquisitions noted above. Board engagement and decision making – lenders The Directors are briefed at each Board meeting by the Finance Director on the Group’s ﬁnancial position and the relationship with members of the bank lending group. During H2 2024, an extensive schedule of meetings with potential lenders was organised by the Group Treasurer, where the Company’s medium-term strategy and funding needs were presented ahead of ﬁnal agreement with the new lending group for the RCF and term loan. Hunting PLC Annual Report and Accounts 2024 26 Strategic Report Corporate Governance Financial Statements Other Information Hunting’s reputation, which has been built over many years, is underpinned by its highly skilled employees, who are key to fulﬁlling the Group’s strategic objectives. At 31 December 2024, the Group had 2,367 employees (2023 – 2,420) across its global operations. The Group is committed to training and developing all employees, which includes Health and Safety training, professional development, and general career development initiatives. To retain our staff, our employees are fairly remunerated with a competitive base salary. Given the competitive landscape of our industry, our base levels of pay are well above minimum wage thresholds. Employees are offered beneﬁts on joining the Group, including healthcare cover, post-retirement beneﬁts and, in certain instances when Group outperformance in terms of operational or ﬁnancial targets has been delivered, participation in annual bonus arrangements. The Group has a strong reputation for being a responsible employer, which is reﬂected in the average tenure of nine years (2023 – nine years) and voluntary workforce turnover rate of 10.3% (2023 – 13.5%). This demonstrates Hunting’s commitment to its employees and its drive to nurture a mutually beneﬁcial relationship between the Company and its employees. Hunting takes diligent steps to achieve full compliance with all relevant regional laws covering employment and minimum wage legislation. As a responsible employer, full and fair consideration is given to applications for positions from disabled persons. The Group’s ethics policies support equal employment opportunities across all of Hunting’s operations. While the Board, through the work of the Ethics and Sustainability Committee, monitors the Group’s culture, including our procedures to comply with our published Code of Conduct, responsibility for our employees lies, for the most part, with local management to enable local matters to be addressed, with all businesses complying with the Group’s ethical employment and human rights policies as published in the Hunting PLC Code of Conduct (www.huntingplc.com). Year-end employees # 2,367 2024 2023 2,420 2022 2,258 Training The Group operates an embedded Health and Safety training programme for its employees, with an on-boarding programme for new employees. The Group also provides ethics training through a Code of Conduct course, to ensure awareness of our published policies. The programme incorporates anti-bribery and corruption, modern slavery, fraud, and tax modules to ensure our employees understand their responsibilities on joining the Group. Following feedback gathered in the 2023 employee engagement survey, additional training courses were offered to employees, including ﬁnancial training and personal development training. Extensive IT and cyber-related training courses are published for completion by all employees of the Group. Further, the Director of QAHSE implemented new data collection procedures to collate all HSE training sessions completed with our machinists and shop-ﬂoor workers, which includes daily and weekly toolbox brieﬁngs. For further information on employee attraction, retention and development, and employee engagement, see pages 78 to 80. Health and safety The Group is committed to achieving and maintaining the highest standards of safety for its employees and other stakeholders. Hunting has a culture of aiming for best practice and employs rigorous Health and Safety practices. We work very hard to ensure that there are no fatalities and the Group targets zero recordable incidents, with each local business required to develop tailored Health and Safety policies to suit their environment. These incorporate the Group’s approach to putting safety ﬁrst and, at a minimum, comply with local regulatory requirements. The Group monitors health and safety through a number of key performance metrics, which are reported to the Ethics and Sustainability Committee twice a year. Please see pages 86 and 87 for more information on compliance with the SASB reporting framework. For further reporting on Health and Safety, see page 79. Business Model continued Employees Hunting PLC Annual Report and Accounts 2024 27 Strategic Report Corporate Governance Financial Statements Other Information Business Model continued Diversity and inclusion The Company recognises the beneﬁts of having a diverse workforce, which include attracting and retaining the best people for the job, supporting and delivering high performance, and increasing the effectiveness of the Company. To this end, Hunting aims to build and maintain a working culture that is inclusive of all and values diversity. Hunting believes that promoting and developing diversity is everyone’s responsibility. The Company’s aim is to promote equality and good relations between employees of a diverse background and eliminate discrimination. Hunting is committed to providing a safe working environment where staff are treated with respect and ensuring that our employees enjoy prejudice- free decision making, taking into account all stakeholder interests. Hunting is also committed to building a working environment in which all individuals can make best use of their skills, free from discrimination, victimisation, harassment and/or bullying, and in which all appointments are based on merit. Hunting has an embedded culture of equal opportunities for all employees, regardless of gender, sexual orientation, race, colour, nationality, disability, neurodiversity, age, religion or belief, marital or civil partnership status, pregnancy or on maternity/paternity leave. Hunting’s policies promote the gender and ethnicity suggestions made in the Hampton Alexander Review and the Parker Review, and these are taken into consideration as the Board is refreshed over the coming years, along with the requirements published by the Financial Conduct Authority noted on page 122. For further reporting on diversity and inclusion, see page 80. Human rights We are committed to respecting and upholding the human rights of all our employees. As part of the Code of Conduct training, a module on human rights is included. For further reporting on our approach to human rights, see page 77. Modern slavery Our Modern Slavery statement can be found on our website (www.huntingplc.com). Whistleblowing The Board of Hunting has established procedures whereby employees can raise concerns, in conﬁdence, by contacting the Company Chair or Senior Independent Director. The Group also uses an independent whistleblowing service operated by SafeCall. Contact information for both these lines of reporting is published on staff noticeboards across the Group’s facilities and within the Group’s magazine published twice yearly, the “ Hunting Review ”, which is available to all employees. Employee engagement survey During 2023, Hunting completed its second all-employee engagement survey using the Gallup Q12 poll. The survey asked several key questions about employee engagement and satisfaction, including the question: “On a ﬁve-point scale, how satisﬁed are you with your organisation as a place to work?”. The Directors were pleased that the score for this question was 4.07 out of 5 points, which is consistent with our 2019 score of 4.06. The average score across all 12 questions was 3.88 out of 5, a 0.10 increase from 2019. This result is statistically signiﬁcant because most companies experienced a downward trend between pre- and post-pandemic surveys, and we are delighted that we saw a slight improvement instead. Other feedback was received through the survey, including areas of improvement, which management are currently working to address. The survey is to be repeated in 2025. In April 2024, the Company celebrated its 150th anniversary with employee engagement events organised at most of the Group’s facilities. For further information on this important milestone, please see the case study on pages 8 and 9. Gallup Q12 employee engagement results – average score out of 5 3.88 2023 2019 3.78 2022 0.00 Board engagement and decision making – employees Through the Ethics and Sustainability Committee, the Board has formalised the reporting of Human Resources and HSE matters, with the Group’s Chief HR Ofﬁcer and Director of QAHSE providing reports at each meeting. These senior managers are also members of the Executive Committee. The Directors organised an employee engagement event at the Group’s OCTG facility in AmeriPort in December 2024, where employees were able to ask questions to the Board. All reports to the Group’s SafeCall service are taken seriously, with care being taken to retain conﬁdentiality and anonymity of all callers. Each report is investigated thoroughly, with the Board receiving brieﬁngs from Keith Lough, the Company’s Senior Independent Director. During the year, the Group received three reports to the SafeCall service (2023 – six). One additional report was received outside of the SafeCall service. For further reporting on our approach to business ethics, see pages 76 and 77. Hunting PLC Annual Report and Accounts 2024 28 Strategic Report Corporate Governance Financial Statements Other Information Business Model continued Customers and suppliers Our customers As a key participant in the equipment supply chain, Hunting’s broad portfolio of products and services enables the Group to cover a large proportion of the needs of the global energy industry, including onshore and offshore drilling projects and conventional and unconventional resource development, supported by selected high-value services to help our customers achieve their strategic objectives. A common theme across all our businesses is our ability to add value for our customers, which is achieved by providing high-technology products that lower the cost of operation, resolve technical problems, or simply enable a job to be completed more quickly or safely, without compromising on quality. Hunting continues to engage its customer base proactively to assist its customers in meeting their strategic objectives and we continue to liaise with customers regarding technology developments that will lower their production costs or increase in-ﬁeld safety. Customer engagement Customer engagement is key to the Group’s understanding of the short- to medium-term needs of our various clients. This dialogue helps us shape our strategy and focus our product research and development programmes. In the year, the Group continued to launch new products that directly addressed customer needs, some of which resulted from close customer collaboration in response to in-ﬁeld technical challenges. During the year, the Company was awarded two orders from KOC totalling $231m as a result of over ﬁve years of engagement with KOC to get our suppliers’ steel pipe and our connections certiﬁed to enable us to participate in relevant tenders. As part of our active dialogue and engagement with our customer base, key clients are usually invited to our facilities to review our production capabilities and processes, review new technology and brainstorm on future projects. Customer contact reports are a regular feature of our sales function, which often include issues or concerns, in-ﬁeld performance feedback and overall customer satisfaction. Customer perception and satisfaction surveys undertaken by an independent third party are also employed to provide customer feedback to the Company. Hunting’s customer-facing sales teams are directly supported by the Group’s engineering, quality assurance and health, safety and environment teams, who all assist in the provision of key operational performance information that supports global tenders and the overall sales function. During the year, the Group’s sales teams attended several international trade shows, including ADIPEC in Abu Dhabi and the Geothermal Rising Conference in Hawaii, which enables engagement with existing, as well as potential, customers to take place. Anti-bribery and corruption (“ABC”) The Group has processes and procedures in place to monitor and assess the risk of bribery and corruption occurring. Hunting’s Code of Conduct training course includes detailed modules on ABC compliance and risk assessment procedures. Twice a year, each major business unit completes a risk assessment process, detailing management’s views on its risk proﬁle against 16 key ABC considerations, and the mitigating controls in place for each of these risks. As part of the Group’s Internal Audit function’s work programme, a review of these risk registers is undertaken where the bribery and corruption risk proﬁle is challenged. Customer-related ethics and governance Hunting’s close relationship with its customers is also enhanced by our ethical policies and transparent ways of doing business. All our major customers receive our Code of Conduct, which includes a commitment to be transparent in our business dealings. Due diligence on new customers is also completed to ensure the Group complies with international trading and sanctions legislation. Where relevant, we ask our clients to complete “end-user” declarations to conﬁrm that Hunting’s products do not conﬂict or breach trading restrictions or sanctions legislation. The Group also has strong entertainment and hospitality approval policies, which support our commitment to conduct business with the highest ethical standards. Our suppliers Hunting’s supplier base facilitates the Group in achieving its purpose of providing highly trusted and innovative products for our customers. The Group ensures that critical materials are not sourced from a single supplier, which provides assurance to our customers that Hunting will always be able to deliver. Long lead-time material supplies are regularly reviewed to ensure market pricing remains competitive. Hunting’s management of its supply chain includes working with a wide range of suppliers with regular two-way dialogue on quality expectations. Hunting PLC Annual Report and Accounts 2024 29 Strategic Report Corporate Governance Financial Statements Other Information Often, supply chain managers visit the facilities of our suppliers to review procedures, including quality assurance, HSE performance and employment practices. In the case of new suppliers, including those who provide key components, ﬁrst article inspection procedures are in place prior to issuing the order, to ensure quality and delivery expectations are met. During the year, Hunting’s premium threading facility in Nashik, India, received its API licence, which has enabled the joint venture with Jindal SAW to tender for additional opportunities in-country as drilling accelerates across the sub-continent. In August, Hunting expanded its strategic partnership with CRA-Tubulars B.V., who are developing and testing their titanium composite pipe technology to support commercialisation and to accelerate opportunities within the CCUS sub-sector of the market. The Company was a signatory to the UK’s Prompt Payment Code and will begin reporting on our payment practices in 2025 under the new The Reporting on Payment Practices and Performance (Amendment) Regulations 2024. The Company remains committed to paying at least 95% of its suppliers within the agreed payment terms and to promptly advise them if there is a dispute to ensure that disruptions to the supply chain are kept to a minimum. Supplier-related ethics and governance As with the Group’s customer base, Hunting completes due diligence on its supplier base and communicates its ethics policies to its major suppliers. The Group’s Supplier Code of Conduct was rolled out to major suppliers during 2023 and 2024, and is issued to suppliers together with our Modern Slavery policy, which highlights the Group’s ethical trading and fair labour policies. Board engagement and decision making – customers and suppliers In parallel with the commercial dialogue and engagement undertaken by our leadership teams with our customers, the Board of Hunting, in support of its statutory stakeholder duty, has approved the development of the Group’s strategy by reviewing and approving capital investment projects that directly support future customer needs. The Board approved these capital investments, either as part of the approval of the Strategic Plan or Annual Budget process. Board approvals are also required for contracts over a certain monetary value, such as with the two KOC orders. In each case, the Board was satisﬁed that there was good alignment between the ﬁnal capital allocation and the Board’s consideration of customer matters. The Board, through the work of the Ethics and Sustainability Committee, reviews the Group’s supply chain risk proﬁle and reviews engagement reports on the Group’s dialogue with suppliers. This leads to discussion and challenge by the Directors. For further reporting on our approach to business ethics, see pages 76 and 77. Business Model continued Hunting PLC Annual Report and Accounts 2024 30 Strategic Report Corporate Governance Financial Statements Other Information Business Model continued Carbon and climate matters have become an area of close scrutiny in recent years, with the Board overseeing the development and introduction of strong governance and reporting initiatives that will support Hunting’s commitment to these issues for the long term. As part of this commitment to manage and reduce its carbon footprint, the Board announced a new carbon intensity reduction ambition in March 2025, whereby Hunting will now target a factor of 20kg/$k of revenue or less by 2030. The Directors are mindful that all commitments made by the Group should remain proportionate to the size and proﬁle of our operations, but also to protect our earnings and shareholder returns, which form the basis of our investment case. In 2024, the Group expanded its work to collect scope 3 emissions data, with the Hunting Titan, Subsea Technologies, EMEA and Asia Paciﬁc operating segments now in-scope. This work will be expanded during 2025 to cover the North America operating segment. The Group continues to migrate its primary and secondary energy sources to lower carbon sources, with the Group targeting the purchase of 50% of our electricity requirements from renewable sources by 2030. Total scope 1 and 2 emissions tonnes CO 2 e 22,233 2024 2023 22,599 2022 22,422 Group climate policy and commitment to the Paris Accords The Board of Hunting has committed to the principles published in the 2015 Paris Agreement, which aims to limit the increase in global temperatures. The Group’s Climate Policy can be found at www.huntingplc.com. Annual greenhouse gas emissions To monitor the impact of Hunting’s operations on the environment, and in compliance with UK Company Law, the Group collates greenhouse gas (“GHG”) data in accordance with the principles of the Kyoto Protocol and the methodologies published by the World Resources Institute. Hunting is committed to addressing environmental issues and embedding a low carbon culture within our Company. New facilities, such as the facility currently under construction in Dubai, take into account environmental impact considerations, including protection from extreme weather events, such as windstorms and ﬂooding. The Company discloses the breakdown of its GHG emissions, to enable stakeholders to understand the overall mix of emissions and the likely areas of emissions reduction, as the Group continues to evolve its initiatives to contain and reduce its carbon footprint. The Company has a process to independently assure its scope 1 and 2 data, with a view to assuring its scope 3 data ahead of setting science-based targets in the near future. The Group submits its greenhouse gas data to the Carbon Disclosure Project, which is available at www.cdp.net. The data reported and the carbon dioxide conversion factors used to report the Group’s carbon footprint are based on those published by the UK government and the International Energy Agency. CO 2 e intensity factor kg/$k of revenue 21.2 2024 2023 24.3 2022 30.9 For further information on Hunting’s climate, ESG and wider sustainability efforts, please see pages 68 to 101. Board engagement and decision making – environment The Board has continued to oversee the development of carbon and climate initiatives in the year. Through the work of the Ethics and Sustainability Committee, the Group monitors all emissions and climate-related disclosures, including compliance with the Company’s TCFD reporting and agreed a roadmap to enhance the Group’s external reporting of this area. Tonnes CO 2 e 2024 2023 2019 (baseline year) Scope 1 Fuel consumption, including natural gas 2,046 2,037 4,128 Vehicle fuel consumption 1,584 2,132 2,972 Total scope 1 3,630 4,169 7,100 Scope 2 Electricity consumption 18,603 18,430 28,774 Total scope 1 and 2 22,233 22,599 35,874 Scope 3 Scope 3 (extrapolated) 534,835 353,346 n/a Total scope 1, 2 and 3 557,068 375,945 n/a * The 2023 scope 1 value have been restated to reﬂect lower fuel usage recorded. ** The scope 3 emissions have been extrapolated using data from four of Hunting’s ﬁve operating segments. Environment and climate Hunting PLC Annual Report and Accounts 2024 31 Strategic Report Corporate Governance Financial Statements Other Information Governments and communities Governments Hunting’s global operating footprint extends across 11 countries. As a consequence of this, the Group interacts with a number of local regulators, governments and tax authorities to ensure that Hunting retains a good reputation and business standing within each region of operation and also seeks to comply with all applicable and relevant local laws and regulations. As a UK listed public company, the Financial Conduct Authority (“FCA”) is the Group’s primary regulator. With the assistance of the Group’s brokers and legal advisers, the relationship with the FCA is closely managed as and when relevant matters arise. Each business unit retains a close relationship with the relevant local tax and legal authorities. Given the sensitivity of interacting with government ofﬁcials, with respect to the risk of bribery, the Group’s internal procedures include analysis of which customers and suppliers are government-owned, with all external-facing employees trained in the Group’s anti-bribery and corruption policies. Tax strategy Hunting is committed to acting with integrity and transparency and to paying the right amount of tax at the right time. Hunting’s tax strategy is to fully comply with the tax laws, regulations, and disclosure requirements of the countries in which we operate. Hunting may engage with reputable professional ﬁrms on areas of signiﬁcant complexity, uncertainty, or materiality to support it in complying with its tax strategy. Hunting seeks to engage with tax authorities with professionalism, honesty and respect. It works with all tax authorities in a timely and constructive manner to resolve disputes when they arise. Hunting does not tolerate tax evasion or the facilitation of tax evasion. Hunting’s Code of Conduct training course includes training modules on this area to help employees understand the risks and procedures in this regard. Board engagement and decision making – governments The Group’s tax governance is managed as follows: • The Board reviews Hunting’s tax strategy and policies on an ongoing basis, with regular updates on the tax position provided at each Board meeting by either the Finance Director or Group Head of Tax; • As part of the work of the Audit and Risk Committee, tax matters are also monitored. Further details can be found in the Audit and Risk Committee Report on pages 161 to 166; • Day-to-day matters are delegated to Hunting’s Group Head of Tax and a small team of in-house tax professionals who hold a combination of accounting and tax qualiﬁcations; • The local ﬁnancial controllers, supported by their ﬁnance and operational teams, are responsible for managing their operational taxes in line with local laws and regulations alongside the Group’s tax governance and tax policies. They are supported by the Group’s central tax team and local advisers, as required; • An annual review of our tax policies form part of our internal Group Manual review procedures; and • Ongoing monitoring of tax legislation that will impact us, including engaging specialist advisers when appropriate. Communities The Board encourages community-focused initiatives, with the Executive Committee responsible for identifying local activities and projects to support. This delegation allows regional cultural practices to be considered. A number of the Group’s businesses undertake intern programmes whereby students at local colleges and universities work within the Company. Please see the case study on page 33 for further information. Local community sponsorships or charitable donations are encouraged, following approval by a member of the Board or Executive Committee. Most businesses within the Group host “Open House” days at facilities to allow customers, suppliers, employees’ families, and other members of the local community to see our operations. Community initiatives are regularly reported in the Group’s magazine, the “ Hunting Review ”, which proﬁles the Group’s operations, employees, and community work. For further reporting on community engagement, see page 80. Board engagement and decision making – communities The Board has a policy whereby unclaimed dividends returned to the Company from its registrar are donated to UK charities, with a small committee, led by the Finance Director, agreeing the beneﬁciaries of the charitable donations. Business Model continued Hunting PLC Annual Report and Accounts 2024 32 Strategic Report Corporate Governance Financial Statements Other Information Shaping tomorrow’s workforce – Subsea Technologies The offshore sector of the global energy market continues to accelerate, with Hunting focused on broadening its product offering in the subsea sector through R&D and targeted mergers and acquisitions, as part of our Hunting 2030 Strategy. The Company recognises that there is strong competition for skilled labour and, to address this, Hunting is proactively fostering new pipelines of skilled labour for our manufacturing facilities. To support our commitment to promoting our local communities and workforce development, a formal internship programme was formulated for roll out across the Subsea Technologies operating segment. Management formed a strategic partnership with Houston Community College (“HCC”) to launch a paid internship programme, with our ﬁrst recruitment event held in July 2024. The internship involved hosting ﬁve HCC students from various manufacturing programmes, such as welding, logistics, and smart manufacturing, for 16 weeks at our Stafford facility, for 20 hours a week. For the Fall 2024 internship, the selected students began in August and completed the programme in December 2024. During their time with Hunting, the interns were able to develop and hone their skills in a supportive environment. Going forward, we anticipate hosting interns for each long semester (Fall and Spring). Our objective is to cultivate interns who, upon completing their degree courses at HCC, will transition seamlessly into permanent positions at Hunting. We look forward to working with HCC in shaping the manufacturing professionals of the future. Hunting PLC Annual Report and Accounts 2024 33 Strategic Report Corporate Governance Financial Statements Other Information A year of growth Chief Executive’s Report 2024 has seen the delivery of several key growth objectives, which were presented to our stakeholders at the Company’s Capital Markets Day (“CMD”) in September 2023. Hunting’s long-term strategy involves our continued participation in the global energy market, as well as growing our presence in non-oil and gas markets, as a trusted innovator and key precision manufacturer of critical technology and products. EBITDA $ 126.3 m (2023 – $102.4m restated) EBITDA margin 12 % (2023 – 11%) Hunting PLC Annual Report and Accounts 2024 34 Strategic Report Corporate Governance Financial Statements Other Information Chief Executive’s Report continued On behalf of the Board I would like to thank our workforce for their commitment in the year and delivering an excellent set of results, Their efforts have, collectively, enabled the Group to deliver another year of growth and allows us to look to the future with continued conﬁdence. A reﬂection of the Group’s success in 2024 can be seen in the sales order book, which reached record levels of c.$700m during H1 2024 following the award of two contracts from the Kuwait Oil Company (“KOC”) totalling $231m. The growth seen within our OCTG, Subsea, Advanced Manufacturing, and Other Manufacturing product groups has contributed to a robust year-end order book of $508.6m (2023 – $565.2m). Although this is slightly down on the prior year, it provides a solid underpin to the year ahead. The Company made excellent progress by increasing its revenue and proﬁts in the international and offshore segments of the energy market, highlighted by the record orders from KOC for the provision of OCTG with Hunting’s proprietary premium connections, as well as solid execution of key orders for ExxonMobil and TPAO for our titanium stress joints through our Subsea product group. In addition to the progress seen within the OCTG and Subsea product groups, Hunting has delivered growth within other product groups in the year. Our Advanced Manufacturing product group has seen a further increase in its ﬁnancial results, supported by increases in non-oil and gas markets, with our Dearborn precision engineering business unit reporting a sales order book mostly comprised of aviation and commercial space contracts. This provides a good indication of the Group’s ability to enhance, over time, its non-oil and gas revenue and proﬁt base, which is another pillar of our long-term strategy. In the year, Hunting secured material orders for its licensed Organic Oil Recovery (“OOR”) technology, to supply the technology to major exploration and production companies who operate in the North Sea. The announcement in August is another milestone and example of Hunting’s commercial leverage and innovation, given the years of pilot testing completed with many blue-chip clients. The production uplift delivered by the technology creates value for our customers at a relatively low cost and has great potential for most brown ﬁeld production assets. We look forward with conﬁdence, recognising that this technology will be a major proﬁt driver of the Group in the medium term. Hunting has started to deliver on its Energy Transition strategic ambition. In the year, the Group secured a number of OCTG orders for geothermal projects in North America, Europe, and Asia Paciﬁc, as the drive for lower carbon energy accelerated. The global Energy Transition market has seen a slowing of carbon capture projects, but the Directors note that the long-term storage capacity ambition for global projects remains unchanged, with Hunting well placed to gain market share, beneﬁt from an uptick in activity as bottlenecks clear, and deliver more qualiﬁed connections to the market. The Group has also seen success with its joint venture in India, where the business, in partnership with Jindal SAW, delivered a proﬁt contribution of $2.3m in its ﬁrst full year of operations. Along with our joint venture partners we are looking at further opportunities in the fast-growing Indian market. The global oil and gas industry is a dynamic, and often volatile, industry to operate in and in the year, this volatility was evident within the US onshore completions market. With the average WTI crude oil price and the average Henry Hub natural gas price being lower than 2023, activity within the US shale basins has been subdued as the US onshore rig count declined year-on-year. Our Perforating Systems product group, mostly delivered through our Hunting Titan operating segment, was adversely impacted by this market decline and reduction in activity. Hunting Titan reported lower revenue in the year than in 2023, as volumes reduced leading to lower average margins and a lower EBITDA result compared to the prior year. The EMEA operating segment also reported an extremely challenging year, as activity in the North Sea continued to decline as the UK government’s tax regime drove clients to reduce activity and even fully exit the region. The long-term outlook for EMEA has led to the decision to restructure Hunting’s operations in the region, as announced in January 2025. This will likely see a smaller number of operating sites across this operating segment. Despite some headwinds faced by the Group, Hunting’s strategic initiatives have contributed to a year-on-year improvement in revenue and EBITDA, which have supported an increase in our dividend distributions, a commitment made to our shareholders at the CMD. Hunting’s achievements in the year taken together have led to improved results, which are summarised below. But the strength of our differentiated technology and diversiﬁed product portfolio has again been proven, as we have captured major opportunities with customers across many global regions. Market overview The Group’s key market metrics, as noted on page 19, are predominantly driven by prevailing commodity prices, which reﬂect the supply/ demand dynamics of the global oil and gas industry as well as other factors, including geopolitics. In our Market Summary section on pages 40 to 42, we note that the average WTI crude oil price was $76 per barrel in the year, or 3% lower than 2023. This was driven by weakening sentiment due to lower economic growth in countries like China, being offset by conﬂicts in Ukraine and the Middle East, which has supported prices in the year. In September 2024, a notable step-down in sentiment and pricing was observed as OPEC indicated that it would start to unwind its production cuts. This led to a more negative outlook in the second half of 2024. The Henry Hub natural gas price has also reported highly volatile pricing, but for different reasons. The strong production levels seen in the US onshore in the year led to excess gas production, which drove pricing lower, which in turn led to a lower average rig count, particularly in the gas-focused basins such as the Haynesville and Marcellus shale basins. With the absence of appropriate levels of offtake to LNG terminals, gas drilling declined in the year, which, as noted above, reduced the demand for our Perforating Systems products. In the round, the global price of crude oil has been at levels which has supported continued activity within international markets. Activity in South America and the Middle East has continued to grow, providing opportunities for many of our product groups. Hunting PLC Annual Report and Accounts 2024 35 Strategic Report Corporate Governance Financial Statements Other Information Chief Executive’s Report continued Operational review The Group’s North America operating segment, which comprises OCTG and Advanced Manufacturing product groups, delivered a solid year of growth, as both energy-related and non-oil and gas sales initiatives continued to be rolled out. The Group’s onshore-focused premium and semi-premium connections businesses reported good progress as market share gains were captured, while our Electronics and Dearborn business units also increased revenue and proﬁts. Hunting’s Canadian OCTG business, which uses third-party licensed threading partners, also delivered another strong year. Hunting’s Asia Paciﬁc operating segment has been the stand-out performer for the Group during the year and will provide good support to the Group’s results for 2025, as the KOC orders are concluded in the ﬁrst half of the year. By leveraging the segment’s strategic supply chain, Hunting has applied its proprietary premium connections to Chinese steel mills’ pipe, leading to record revenue, proﬁts, and margins being delivered by the operating segment. Hunting’s Subsea Technologies operating segment, which comprises our Stafford, Spring and Enpro business units, delivered an exceptional year of growth as offshore markets grew considerably. The Spring business unit executed on a number of orders for titanium stress joints for ExxonMobil (“Exxon”), which helped drive revenue and EBITDA margin growth in the year. The Hunting Titan operating segment reported lower revenue and proﬁts due to subdued onshore drilling across North America in the year. The US industry therefore has been highly competitive due to the lower activity reported. However, Hunting Titan’s international sales, into countries such as Argentina and Saudi Arabia, were robust and have grown year-on-year. Due to the lower results and margins, coupled with a more subdued short-term outlook in the US, the carrying value of the goodwill relating to the Hunting Titan operating segment was impaired, as noted in the Finance Report. As noted above, the EMEA operating segment reported a challenging year, with the downturn in EMEA’s performance impacting both the OCTG and Other Manufacturing product groups, leading to operating losses for the segment. Partially offsetting this, the Group’s Netherlands OCTG business reported good success in capturing geothermal orders for in the Netherlands, with end-users from the agriculture and utility sectors, demonstrating the multi-sector interest in low carbon energy. Delivering the Hunting 2030 Strategy The Hunting 2030 strategic pillars are summarised on pages 10 to 16. During 2024, the Group delivered on several key objectives, which align with our 2030 ambitions. As noted above, Hunting has made notable progress in growing its OCTG product group. Hunting has delivered good growth in the US domestic market, despite difﬁcult trading conditions across the North American shale basins. Demand for our TEC-LOCK Wedge™ connection in the US continued to grow during the year, with the length of laterals steadily increasing as drilling efﬁciencies continued to be captured. In Canada, our performance was ahead of 2023, as the rig count and well count were supported by sustained levels of activity. Hunting’s Asia Paciﬁc operating segment secured the $231m orders from KOC in May/June 2024, which transformed the ﬁnancial performance of the product group and the Asia Paciﬁc operating segment. The product group also saw increased sales of accessories and well completion packages to South America in support of the intense activity levels in Brazil and Guyana. In summary, our 2030 ambitions remain on track, given the progress within the OCTG product group in the year. Hunting’s Subsea product group also reported an impressive year of growth, as key orders from Exxon were delivered. The Subsea Spring business unit delivered its titanium stress joints to the Yellowtail project in the year, which contributed to the increase in revenue and proﬁtability of the product group. The Subsea Stafford business unit reported a decent year, as demand for hydraulic valves and couplings remained robust, while the Enpro business unit also delivered a further year of growth as projects in West Africa and South America were developed. A notable success in the year has been the cross selling of our products to Exxon, with Enpro’s Flow Intervention System being utilised on the Liza project, following the development of Hunting’s relationship with Exxon through its Spring business. Late 2025 should see further orders coming from Exxon for the Group’s titanium stress joints, reﬂecting the lumpier nature of Subsea Spring’s order book and results proﬁle. However, given the long-term development plan for Guyana and other deepwater plays, the outlook for the product line remains extremely robust. With the depressed results from the Perforating Systems product group and EMEA operations, Hunting’s drive to deliver a stronger EBITDA margin has been partially held back, although the year-on-year increase in the reported EBITDA margin to 12% reﬂects another step towards our goal of 15%. The Directors note that both the OCTG and Subsea product groups have delivered EBITDA margins well in excess of our stated goal of 15%, and with the cost cutting and efﬁciency measures announced for the Hunting Titan and EMEA operating segments, 2025 should see a year of further progress towards our medium-term goal of EBITDA margins greater than 15%. With working capital totalling $355.5m in the year (2023 – $415.9m), the Group’s working capital to revenue ratio was 29% (2023 – 46%), which is ahead of our CMD target of 40%. Our EBITDA to free cash ﬂow conversion rate was 111% in the year (2023 – (0.5)%), which meets our ambition of delivering c.50% conversion. In the year, our cash ﬂows have improved thanks to the continued focus by management on containing and substantially improving our working capital proﬁle, partly achieved through the use of ﬁnancial instruments to accelerate the collections of cash, leading to total cash and bank/(borrowings) of $104.7m at 31 December 2024 (2023 – $(0.8)m). With the improved performance of the Group in the year, coupled with the substantial increase in the year-end cash position, the Directors have increased the Final Dividend proposed by 20% to 6.0 cents per share (2023 – 5.0 cents per share), which gives the total dividend paid for the year of 11.5 cents per share (2023 – 10.0 cents per share), an increase of 15% year-over-year. The Directors are, therefore, conﬁdent that our 2030 ambitions remain on track, with further progress to be delivered in the coming years. Hunting PLC Annual Report and Accounts 2024 36 Strategic Report Corporate Governance Financial Statements Other Information Chief Executive’s Report continued 2024 Operational Highlights Retain focus on global oil and gas opportunities, speciﬁcally growing international, subsea and offshore business $231m of contracts secured with Kuwait Oil Company Product group: OCTG In H1 2024, the Group announced the securing of record orders with KOC for OCTG threaded with Hunting’s proprietary SEAL-LOCK XD™ premium connection. The orders are a result of over ﬁve years of collaboration between Hunting, KOC and Hengyang Valin Steel in China to qualify the Group’s connections and OCTG raw material. The order commenced in July 2024 and will continue into 2025. Continuation of major orders from ExxonMobil and TPAO for Hunting’s titanium and steel stress joints Product group: Subsea Throughout 2024, the Group continued to execute on major orders for its titanium and steel stress joints (“TSJs”). The large orders for TSJs received in 2023 were worked on through the year for Guyana and the Black Sea. Orders were completed for the Yellowtail project in Guyana in the year, with work on the Uaru and Whiptail projects continuing into 2025. API threading licence at Nashik, India, facility secured Product group: OCTG The Group’s joint venture facility in Nashik, India, received its API threading licence in May 2024, which will support new tender activity across India. Management anticipates that the addressable market in India is c.$300-$400m per year for OCTG and accessories manufacturing, with the Jindal Hunting Energy Services joint venture being an early mover in-country, as local content requirements increase to meet India’s growing energy requirements. Five-year manufacturing agreement with Chevron Product group: OCTG Hunting’s US OCTG business entered into a new ﬁve-year manufacturing agreement with Chevron in the Gulf of Mexico, which will support the OCTG product group to the end of the decade. Deliver sales order book and revenue progress in non-oil and gas, energy transition and low carbon solutions Orders with an expected total value of $60m for licensed Organic Oil Recovery technology Product group: Other Manufacturing In August 2024, the Group received orders which, dependent on volumes and assumed extensions, could result in up to $60m of revenue for the deployment of its licensed OOR technology into the North Sea. The orders were secured with two major operators on the UK Continental Shelf and will be delivered over the next ﬁve years. $14.7m of energy transition sales completed in the year Product group: OCTG Hunting continued to win OCTG orders for geothermal and carbon capture projects in North America, Europe and Asia Paciﬁc in the year. Orders for projects in the utility and agriculture sectors were won in the Netherlands, supporting Hunting’s long-term strategy of revenue diversiﬁcation. Strategic partnership expansion with CRA-Tubulars B.V. Product group: OCTG In August 2024, Hunting secured the exclusive sales, manufacturing, and distribution rights for $0.3m for CRA-Tubular’s novel titanium-lined carbon ﬁbre tubing, which has strong long-term market growth opportunities in carbon capture projects in North America and Europe, for ﬁve years. The collaboration will enable the Company to accelerate further testing of tubulars and connections against key connection standards. $0.9m investment in Cumberland Additive Product group: Advanced Manufacturing In September 2024, Hunting invested a further $0.9m in Cumberland Additive, taking our interest to 30.7%, which will enable us to access 3D manufacturing opportunities across multiple sectors and applications. Strong focus on long-term proﬁtability of the Group Restructuring of the Hunting Titan operating segment Product group: Perforating Systems Over the last 12 months Hunting has delivered cost savings in the segment to align with the long-term outlook for the US onshore completions market. The Wichita Falls operating site and a number of distribution centres were closed in the year. In March 2025 as part of wider cost savings initiatives, further restructuring was announced which included a 5% reduction in headcount to deliver additional SG&A savings. Restructuring of the EMEA operating segment Product group: OCTG With the further decline in North Sea oil and gas activity, primarily driven by UK political ambitions to decarbonise its energy supply chain, a restructuring of the Group’s EMEA operations was announced in January 2025. Annual cost savings are expected to be c.$8-$9m. Expansion of manufacturing in Dubai Product group: OCTG/Other Manufacturing During the year, the well testing product line continued its move from the Netherlands facility to Dubai together with Singapore’s well intervention product line to increase efﬁciencies and to be closer to our customers and pipeline of opportunities. Expansion of collection of greenhouse gas data Product group: All product groups The Group expanded its scope 3 greenhouse gas data collection to include the Subsea Technologies, EMEA and Asia Paciﬁc operating segments following on from the collection of Hunting Titan’s scope 3 data for the ﬁrst time in 2023. Hunting PLC Annual Report and Accounts 2024 37 Strategic Report Corporate Governance Financial Statements Other Information During 2024, the Group focused on increasing the collection of its scope 3 greenhouse gas emissions data, with four of the Group’s ﬁve operating segments now reporting scope 1, 2 and 3 data, with the ﬁfth reporting scope 1 and 2 data. Hunting also increased its external QAHSE data reporting in the year. Further details can be found on pages 68 to 87. The Group reported a number of lost trading days during Q3 2024 due to Hurricanes Beryl and Francine. Extra shifts were added to maintain the trading performance of the affected businesses. While these outages did not impact the Group’s trading results, it highlights the impact that adverse weather events can have on Hunting’s operational proﬁle. In the year, the Group completed a further assessment of its long-term physical risks, with the analysis concluding that it is unlikely that a change to the risk proﬁle will be observed for a number of decades. For further details, refer to the TCFD reporting on page 88 to 101. Our workforce continues to be our most important asset, and they continue to deliver our strategy and long-term growth ambitions to our various stakeholders. In the year, an average base salary increase of 5% was delivered across the Group, as cost of living and inﬂationary pressures continue to be felt by our employees. Post-balance sheet event On 3 March 2025, we announced the disposal of our 23% interest in the Rival Downhole Tools business, which was an associate company, for $13.1m. Chief Executive’s Report continued Group ﬁnancial summary Hunting reports a 13% increase in revenue in the year as international market activity, in particular, continued to grow strongly. Revenue in 2024 was $1,048.9m compared to $929.1m in 2023. H1 2024 revenue was $493.8m (2023 – $477.8m), while H2 revenue was $555.1m (2023 – $451.3m), this result being predominantly supported by the contribution from the KOC orders, which were recognised from September onwards. Non-oil and gas revenue was broadly ﬂat in the year at $75.1m (2023 – $75.9m). Group EBITDA increased 23% to $126.3m in the year (2023 – $102.4m restated) as strong increases in the OCTG and Subsea product groups were delivered; however, this was tempered by the lower contribution from the Perforating Systems product group. Group EBITDA margin increased to 12% (2023 – 11%) as the higher margin product groups progressed the result. The Hunting Titan operating segment delivered revenue of $230.3m in the year (2023 – $259.2m), being 11% lower than the prior year. With lower volumes and some pricing declines in gun system product lines, the segment recorded an EBITDA result of $0.6m in the year (2023 – $21.9m). This led to a decline in the EBITDA margin for the segment to 0% (2023 – 8%). The North America operating segment reported a 4% increase in revenue to $388.4m in the year (2023 – $374.7m), as robust sales from the Group’s OCTG and Advanced Manufacturing product groups were delivered. EBITDA increased to $62.2m (2023 – $53.8m restated) or by 16% in the year. EBITDA margin for the segment, therefore, increased to 16% (2023 – 14%). The Subsea Technologies operating segment reported an impressive year of growth as key orders were executed in the year, leading to revenue of $147.1m (2023 – $98.6m) or an increase of 49%. Given the increased utilisation of facilities and improved contractual terms for key orders, EBITDA was $30.0m (2023 – $13.7m) and margins advanced to 20% (2023 – 14%). The EMEA operating segment reported more subdued results in the year, as previously discussed, with revenue slightly lower at $87.7m (2023 – $88.2m). EBITDA declined to a loss of $7.9m (2023 – $1.7m proﬁt) following a charge for inventory impairment within the Netherlands OCTG business, leading to an EBITDA margin of (9)% (2023 – 2%). The Asia Paciﬁc operating segment delivered a record result in the year, with revenue increasing 53% to $240.6m (2023 – $157.6m) as the KOC and Cairn Oil and Gas (Vedanta) Limited orders were executed. EBITDA margins for the segment were 17% (2023 – 7%) reﬂecting improved facility utilisation and production efﬁciencies. Gross proﬁt in the year was $271.9m compared to $227.7m in the prior year, leading to an increase in gross margin to 26% (2023 – 25%) or 1 percentage point higher than the 2023 result. This reﬂects generally robust pricing, improved volumes and facility utilisation in certain businesses, being offset by the lower results from the Hunting Titan and EMEA operating segments. Operating loss was $21.1m (2023 – $51.5m proﬁt restated), and includes the Hunting Titan goodwill impairment charge of $109.1m. Adjusted operating proﬁt was $88.0m compared to $60.4m (restated) in 2023 leading to an increase in operating margin to 8% (2023 – 7%). In 2024, the Group changed the presentation of its consolidated income statement, with operating proﬁt now including the contribution from joint ventures and associates, which was a loss of $0.1m in the year (2023 – $0.6m). Net ﬁnance costs totalled $12.4m (2023 – $10.4m), leading to a loss before tax of $33.5m (2023 – $41.1m proﬁt restated) and an adjusted proﬁt before tax of $75.6m (2023 – $50.0m). Diluted loss per share was 17.6 cents (2023 – 65.9 cents earnings per share restated), with 2023 including the beneﬁt of the recognition of previously unrecognised US deferred tax assets. Adjusted diluted earnings per share was 31.4 cents (2023 – 20.3 cents) or an increase of 55% year-over-year. Working capital decreased to $355.5m, as inventory balances in Hunting Titan and Electronics were the focus of management which, along with other operational cash ﬂows, led to a free cash inﬂow of $139.7m (2023 – $0.5m outﬂow). At the year-end, the Group’s net assets were $902.3m, which compares to $950.1m (restated) in 2023. The movement reﬂects the Group’s loss after tax result of $25.5m (2023 – $112.2m proﬁt restated), which includes the goodwill impairment of $109.1m in the year, offset by a deferred tax credit of $27.8m. ESG and sustainability Hunting continued to progress and build out its ESG and Sustainability initiatives in line with its 2030 ambitions. Hunting PLC Annual Report and Accounts 2024 38 Strategic Report Corporate Governance Financial Statements Other Information Chief Executive’s Report continued Outlook The Group has delivered excellent growth in adjusted earnings in 2024. 2025 should see steady growth in revenue and adjusted earnings as all market indicators point to further progress due to prevailing energy demand. The Directors anticipate an acceleration in activity in the second half of the year and into 2026, as market and geopolitical tail winds increase with robust commodity supply and demand dynamics supporting activity in the year ahead. In the US, the new administration is indicating robust support for oil and gas, with energy security and appropriate pricing to drive economic growth. This will likely lead to continued activity across North America, but also new opportunities offshore as Gulf of Mexico licensing and LNG capacity permitting should increase to support broad-based upstream and downstream growth. While the political narrative is strong, company-level narrative indicates that the industry will likely retain capital discipline. Balancing this growth drive, OPEC+ countries will likely unwind their production cuts during 2025, but at a rate which maintains stability across the market. The ongoing conﬂict in Ukraine and fragile peace across the Middle East will also be key factors in commodity pricing. Drilling discipline across North America will likely be balanced by pricing discipline. A further factor is the introduction of international tariffs. This area is highly dynamic at the time of writing. While the Directors do not see an impact on our businesses given how our segments and supply channels are structured, the disruption across international markets in general may lead to unforeseen challenges. For Hunting, the senior leadership team and Directors will continue to focus on those areas which are within our control. As demonstrated in 2024, we have made solid progress on our 2030 journey, but there is still much to do in the coming year to continue this momentum. The Company is committed to capitalising on its proven precision engineering capabilities in energy services to drive growth and earnings, while further diversifying its revenue streams. As previously outlined, we have a disciplined capital allocation policy and our strong balance sheet gives us ﬁrepower to pursue value accretive M&A in the year ahead to grow and diversify our portfolio and revenue and earnings in line with the strategic goals outlined at Hunting’s Capital Markets Day in September 2023. The Group has evaluated numerous acquisition opportunities and continues to adopt a disciplined approach to M&A. The Board continues to look at subsea, intelligent well completions, and complementary non-oil and gas opportunities to drive increased EBITDA and capital returns in line with our 2030 targets. We are excited about our position within global OCTG markets and see new Subsea opportunities opening up around the middle of the year. The Middle East and South America remain key areas of growth, given the tender activity across these regions. Management is focused on optimising the performance of our Perforating Systems business. Hunting Titan continues to deliver strong technology and services to our clients, and with a higher natural gas price, coupled with the completion of targeted cost cutting measures, a good increase in proﬁtability within this important product group should be delivered. Steady progress within the Advanced Manufacturing group is also anticipated as more non-oil and gas opportunities are captured. Return on average capital employed 9 % (2023 – 6%) Net assets $ 902.3 m (2023 – $950.1m restated) The Directors are also excited about the prospects of the Organic Oil Recovery technology. Our progress with clients in the North Sea in 2024 should lead to more orders in the region and internationally as customer acceptance accelerates. In the year ahead we also hope to make further progress in our chosen Energy Transition markets as the number of geothermal projects continues to increase and carbon capture projects are further progressed. The Company continues to make progress towards the medium-term EBITDA margin target of 15% and is pleased to announce a 15% increase in the total dividend declared, ahead of our 2030 target of c.10% per annum. We have been pleased with the Group’s strong improvement in ROCE and we continue to target at least 15% as a short range target. Finally, the management team remains focused on cost reduction and efﬁciency gains across our asset base. With the restructuring of our EMEA operating segment, which will remove a drag on the Group’s earnings and returns, coupled with the cost reduction initiatives within Hunting Titan and our Head Ofﬁce functions, further gains in proﬁtability should be captured in the year ahead. In summary, the Directors see good progress in the year ahead to deliver our growth objectives. We look to the future with conﬁdence. Jim Johnson Chief Executive 6 March 2025 Strategic Report Corporate Governance Financial Statements Other Information Hunting PLC Annual Report and Accounts 2024 39 Market Summary 2024 has seen another year of volatility within global energy markets given ongoing geopolitical instability in Europe, through the continued conﬂict in Ukraine, as well as the Middle East with conﬂicts in Gaza, Lebanon and towards the end of the year, instability in Syria. This has given support to the global pricing of crude oil throughout the year. During the year, the global energy market has remained focused on the supply/demand dynamic of crude oil as global demand remained in excess of 100m barrels of oil per day, with positive demand sentiment being offset by economic growth concerns in China and Europe. New production from South America, as well as from Libya, has led to a persistent theme of perceived oversupply in the global energy market, which led to the price of WTI crude oil declining in the second half of the year. In September, Saudi Arabia indicated that it would commence the unwinding of production cuts agreed by the OPEC+ group, which led to a lower average price for oil in the second half of the year as the market anticipated new output from major suppliers from the cartel. In North America, daily production was over 13m barrels of oil per day, due to further gains in production efﬁciencies being captured by onshore operators. While the price for WTI crude oil remained within a range which enabled activity to continue, the pricing of natural gas became more volatile, leading to a lower average price for Henry Hub natural gas. Activity was therefore adversely impacted, which led to a reduced US onshore rig count. Key basins impacted by this lower activity were the Haynesville and Marcellus shale basins, which reported large decreases in drilling activity due to excess gas being produced, with localised pricing for gas turning negative for short periods of time in the year. A key issue has been the lack of offtake channels for natural gas, which includes the associated gas offtake from oil basins such as the Permian. This led to a small decline in oil development activity. The operational delays and pause in new LNG permitting in the US also slowed the development of offtake channels for natural gas, which had a negative impact on sentiment. In the UK, sentiment towards oil and gas has been extremely negative, particularly following the election of the new Labour government, which is pursuing a rapid energy transition. This has decimated activity on the UK Continental Shelf, with large operators consolidating or selling assets and exiting the North Sea given the punitive tax regime and lack of incentives to drill. The net impact of these geopolitical forces has been the decline in performance of the Group’s Perforating Systems business which, for the most part, generates revenue from the US shale basins. This decline has been offset by resilient levels of activity within International markets, with key growth areas being Guyana, India, and Kuwait. Hunting’s OCTG and Subsea product groups have made excellent progress within International markets particularly in South America and the Middle East. Despite the trading challenges in the US onshore market, the Group’s North America OCTG business has made market share gains, supporting its medium-term growth strategy, while the Advanced Manufacturing product group also grew in the year, due to global activity increases. Commodity prices In 2024, the average price for WTI crude oil was $76 per barrel compared to $78 per barrel in 2023. The average price in H1 2024 was $79 per barrel, which compares to $73 per barrel in H2 2024, following the announcements by OPEC+, as noted above. In general, this pricing range remains well above the thresholds for operators to continue activity. The average price for Henry Hub natural gas was $2.41 per mmBtu in the year, which compares with $2.66 per mmBtu in 2023. This pricing is closer to the baseline thresholds for activity to continue in the US and, given the lack of offtake channels noted above, led to declines in drilling across key shale basins in the year. Hunting PLC Annual Report and Accounts 2024 40 Strategic Report Corporate Governance Financial Statements Other Information 100 80 60 40 20 0 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 147.7 2024 2023 145.1 2022 135.0 76 2024 2023 78 2022 94 1,490 2024 2023 1,560 2022 1,517 66.8 2024 2023 67.5 2022 53.5 2.41 2024 2023 2.66 2022 6.54 201 2024 2023 205 2022 189 5.0 4.0 3.0 2.0 1.0 0 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Market Summary continued Commodity prices WTI crude oil price 2024 $ per barrel Henry Hub natural gas price 2024 $ per mmBtu Drilling capital investment Commodity prices Global onshore capital investment $bn Average WTI crude oil price $ per barrel Global onshore average rig count # Global offshore capital investment $bn Average Henry Hub natural gas price $ per mmBtu Global offshore average rig count # Source: FT.com Source: FT.com Source: Spears & Associates Drilling & Production Outlook – December 2024 Source: Spears & Associates Drilling & Production Outlook – December 2024 Source: Spears & Associates Drilling & Production Outlook – December 2024 Source: Spears & Associates Drilling & Production Outlook – December 2024 Rig counts Source: FT.com Source: FT.com Hunting PLC Annual Report and Accounts 2024 41 Strategic Report Corporate Governance Financial Statements Other Information 2024 2025 2026 2027 2028 2029 2030 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 0 0.5 1.0 1.5 2.0 2.5 3.0 2024 2034 2049 2044 2039 2029 CCS delayed transition CCS base case Market Summary continued Energy transition Hunting remains focused on developing major businesses in geothermal and carbon capture and storage end-markets, due to the applicability of its products to these markets, particularly its OCTG product group. In the year, as noted in the Chief Executive’s Report, Hunting made progress in securing contracts for geothermal projects in North America, Europe and Asia Paciﬁc. Growth is anticipated in 2025 as the number of projects increases. The Directors of Hunting note that energy, utility, and agriculture companies are progressing these projects, therefore the customer base is likely to be more fragmented than the Group’s traditional oil and gas businesses. Carbon capture and storage end-markets have seen a slowing in the pace of development in the year, due in part to permitting, pipeline capacity, and the pricing of this product stream. The Directors of Hunting still believe that this market presents a material revenue opportunity for the Group; however, they now estimate this to be a major contributor towards the end of the decade given the market data available. Other non-oil and gas A key development in the year, as noted in our Hunting 2030 Strategy, has been the evolution of the Group’s non-oil and gas sales order book, particularly within the Dearborn business unit, which forms part of our Advanced Manufacturing product group. Defence and commercial space opportunities have accelerated in the year, partly due to the increased defence spending seen in the past two years, which has been a consequence of the increase in geopolitical instability noted above. Projected global geothermal capacity MW Carbon capture and storage capacity buildout (base case and delayed transition scenarios) billion tonnes Source: Wood Mackenzie Source: Wood Mackenzie Hunting PLC Annual Report and Accounts 2024 42 Strategic Report Corporate Governance Financial Statements Other Information South America – international growth delivered through multiple product groups Brazil With a sales presence and a legal entity established we will be able to participate in large tenders in-country. Suriname Following the success in Guyana, we see strong growth opportunities for our Subsea product group as exploration continues. Guyana The exploration success offshore 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. South America has increasingly become an area of focus for Hunting, with opportunities to materially increase revenue across all of our major product groups. In the year, we established a sales ofﬁce in Brazil and in 2025 we will be setting up a legal entity to enable Hunting to participate in large tenders. Our OCTG product group delivered sales in Guyana as large discoveries are brought on stream by ExxonMobil (“Exxon”). Our US business supplied well completion packages to a number of Exxon’s projects. In Brazil, our EMEA business has completed threading work over the past few years for Tubacex, a relationship which we anticipate accelerating in 2025. Hunting’s Subsea product group deployed its titanium stress joints to FPSOs commissioned for the Yellowtail discovery, while in 2025 and 2026 deliveries to the Uaru and Whiptail discoveries will be completed. These contracts have supported the record results reported by the product group in 2024. As a consequence of our strong relationship with Exxon, there have been cross-selling opportunities, with Enpro’s Flow Intervention System being utilised in the Liza discovery offshore Guyana during the year. Our Perforating Systems product group has supplied perforating systems, inclusive of shaped charges, into Argentina’s unconventional onshore developments over the past few years via Weatherford. Our Advanced Manufacturing product group, through the Dearborn business unit, supplied MWD/LWD tools to Suriname. In summary, the region has been a key growth driver for the Group and, given the developments in Suriname, Brazil and Guyana which are under way, Hunting will continue to drive international sales growth through to 2030. Hunting PLC Annual Report and Accounts 2024 43 Strategic Report Corporate Governance Financial Statements Other Information Product Review Perforating Systems Technology to drive drilling efﬁciency The Group’s Perforating Systems product group, predominantly delivering through the Hunting Titan operating segment, continues to be a leading player in the global well completions market. Introduction and market overview The Perforating Systems product offering has remained broadly unchanged in the year, as new technologies introduced in 2023 continued to be rolled out. The average US onshore rig count was 579 units in the year (2023 – 669 units), while in Canada the rig count averaged 188 units (2023 – 177 units). The trading environment for the product group has, therefore, been challenging, with lower average commodity prices, and client consolidation disrupting purchasing channels, coupled with the slowing of LNG permitting, leading to the lower results in the year. Due to this generally weak market environment in North America and the need to right-size the business, cost cutting initiatives across the product group commenced in Q2 2024, where one operating site and two distribution centres were closed, and the headcount reduced in line with this smaller footprint. The market outlook continued to decline throughout the year, resulting in lower EBITDA guidance being issued in October, predominantly driven by the subdued US market environment. Partially offsetting this performance, the segment’s international sales have been steady in the year as activity in South America and the Middle East continued to be robust. Group ﬁnancial performance Due to these market conditions, revenue from the Perforating Systems product group decreased by 9% to $222.7m in 2024, compared to $243.8m in 2023. Within this, US revenue decreased from $219.8m in 2023 to $193.2m, while Canada revenue increased from $16.3m in 2023 to $17.9m. International revenue grew to $45.7m in the year (2023 – $45.0m) as efforts to globalise the Group’s technologies continued. EBITDA for the product group was $1.4m compared to $25.1m in the prior year, giving an EBITDA margin of 1% in 2024 compared to 10% in 2023. EBITDA in H1 was $3.2m with an EBITDA margin of 3% and in H2 was a loss of $1.8m with an EBITDA margin of (2)%, reﬂecting the further slowdown in H2, with the full impact of the cost saving initiatives being fully realised in late Q4. The Perforating Systems sales order book at the year-end was $16.5m, compared to $12.7m at the 2023 year-end. Due to its “manufacture to stock” business model, Perforating Systems does not carry a large order book and is, therefore, a short cycle business overall. Intellectual property Intellectual property based on the Group’s Perforating Systems product group totalled 183 patents. Technology The product group’s research and development efforts in the year focused on the further development of self-orienting perforating technology, given the shift of US operators to adopting these completion techniques. Hunting Titan continued to develop high temperature detonation cord and also introduced a new variant of the H-3 Perforating System™, which has partially reusable components to alleviate cost to customers. Hunting PLC Annual Report and Accounts 2024 44 Strategic Report Corporate Governance Financial Statements Other Information Product Review continued The business commenced ﬁeld testing of a new ControlFire™ switch, which assists in the veriﬁcation of the position of the gun string. The business also developed a new ballistic release tool, which will be targeted as a rental tool offering to clients. A number of initiatives were commenced in the year to reduce component input costs for its H-3 and H-4 Perforating Systems™ to improve long-term proﬁtability. North America As noted above, the Wichita Falls operating site was shuttered in Q2 2024 and two distribution centres were closed in the year. Additional distribution centres in North America are earmarked for closure in 2025, dependent on the gas price, coupled with the further 5% headcount reduction noted in the Chief Executive’s report to align the Group’s cost base to the medium-term activity proﬁle anticipated. International Hunting Titan continued to roll out its international growth strategy in the year. In the Middle East, Hunting’s E-SUB Perforating System™ was utilised in Saudi Arabia, and Abu Dhabi continued its adoption of the Group’s detonators and power charges, which contributed to the increase in international sales in the year. In 2024, Hunting Titan successfully introduced the H-3 Perforating System™ in Argentina through Weatherford. In Asia Paciﬁc, Hunting Titan sold various components to China and Indonesia. Perforating Systems – revenue $m 222.7 2024 2023 243.8 2022 251.9 Source: Company Perforating Systems – EBITDA $m 1.4 2024 2023 25.1 2022 27.2 Source: Company Non-GAAP Measure see NGM C Perforating Systems – sales order book $m 16.5 2024 2023 12.7 2022 18.7 Source: Company Non-GAAP Measure see NGM T North America onshore average rig count # 767 2024 2023 846 2022 879 Source: Spears & Associates Drilling & Production Outlook – December 2024 North America footage drilled mft 330.2 2024 2023 334.2 2022 318.8 Source: Spears & Associates Drilling & Production Outlook – December 2024 US frac jobs # 11,339 2024 2023 13,179 2022 13,156 Source: Spears & Associates Drilling & Production Outlook – December 2024 Hunting 2030 Strategy Due to the challenging market conditions within the North American well completions market, the Perforating Systems product group is behind on its medium-range ﬁnancial targets announced at the CMD, but remains generally on track with its strategy to internationalise its product offering. Several initiatives were progressed in the year to introduce Hunting’s well completion products to energy transition and lithium extraction markets. A key initiative in 2025 will be to maximise proﬁtability from its smaller operating footprint and cost base. Hunting PLC Annual Report and Accounts 2024 45 Strategic Report Corporate Governance Financial Statements Other Information OCTG Global growth driven by leading premium connection technology Hunting’s OCTG product group comprises sales from the Group’s three major premium and semi-premium connection families: SEAL-LOCK™, WEDGE-LOCK™ and TEC-LOCK™ and associated accessories. These connections are applied to many oil and gas wells and are directly applicable to geothermal and carbon capture projects. Introduction and market overview The material success of the OCTG product group in Kuwait during 2024 has been testament to the strength of Hunting’s proprietary connections offering and agile supply channels to compete on the world stage against its much larger competitors. The Directors would like to thank KOC for its commitment to the Group in the year. Given the success with KOC, the product group is now the largest generator of revenue in 2024 for Hunting with a good balance between North American and International sales – all in line with the Hunting 2030 strategic objectives. Hunting’s OCTG offering has delivered exceptional growth in Asia Paciﬁc and a steady performance in North America, despite the challenging market conditions reported within the US onshore market. During the year, global drilling capital investment increased by 1% from $212.6bn in 2023 to $214.5bn as international and offshore projects continued to be sanctioned. Group ﬁnancial performance Revenue from the Group’s OCTG product group totalled $463.7m in 2024, compared to $395.8m in 2023. This has been primarily driven by the OCTG contract wins within Asia Paciﬁc for KOC, while contracts for CNOOC and Cairn Oil and Gas (Vedanta) Limited, which were announced in 2023, were also completed in the year. The Group’s US business also undertook well completion work for ExxonMobil and SLB in South America and saw increased re-frac work in the US onshore market in the year. EBITDA for the product group was $80.2m compared to $46.3m in the prior year, giving an EBITDA margin of 17% in 2024 compared to 12% in 2023. The OCTG sales order book at the year-end was $249.7m compared to $222.0m at the 2023 year-end, which represents an increase of 12% in the year. North America Hunting’s North America OCTG businesses reported steady activity throughout the US and Canada in the year, with revenue increasing by 2%, from $198.5m in 2023 to $202.5m in 2024. Continued sales of the TEC-LOCK™ semi-premium connection family were reported in the US and robust sales of the TKC4040™ connection continued in Canada. In the year, the TEC-LOCK Wedge™ connection saw increased interest in Canada, which contributed to a further year of growth. The product group continued to work with Chevron Gulf of Mexico in the year, utilising Hunting’s SEAL-LOCK™ premium connection. During the year, the US OCTG business entered into a new ﬁve-year manufacturing agreement with Chevron, which will support the OCTG accessories product group to the end of the decade. This contract is an excellent result and testament to the strong client relationship Hunting has with Chevron and the reliability of our products, which enable our customers to create sustainable value. The product group also continued to supply OCTG well completion products into Guyana in the year, in line with the general drilling activity in the country. Of note has been the increase in OCTG supply for re-frac activity with clients such as Devon utilising the TEC-LOCK Wedge™ semi-premium connection in projects across the US in the year. Product Review continued Hunting PLC Annual Report and Accounts 2024 46 Strategic Report Corporate Governance Financial Statements Other Information International: Asia Paciﬁc and EMEA The Group’s Asia Paciﬁc and EMEA OCTG product groups reported an increase in total revenue from $197.3m in 2023 to $261.2m in 2024, an increase of 32%. This has been due to the phenomenal progress within the Asia Paciﬁc region as noted above. Activity in the North Sea continued to decline, predominantly due to the impact of the tax regime on oil and gas explorers on the UK Continental Shelf. Customers continue to withdraw from the region leading the Directors to make the difﬁcult decision to restructure the EMEA operating segment which was announced in January 2025. In the Netherlands, while oil and gas activity has also been challenging, the business has been met with success in the geothermal market, securing a number of orders in Germany and the Netherlands. India Hunting’s JV in India had a remarkable ﬁrst full year of operation, which saw a proﬁt contribution to the Group of $2.3m recorded, as activity in-country continued to accelerate. As noted elsewhere, the venture partners are now planning a second facility on the India East coast. New technology Hunting continues to develop and qualify new premium and semi-premium connections for both the oil and gas and energy transition sectors. Our alliance with Jiuli in China will support the acceleration of new geothermal and carbon capture connections in the coming years, utilising the Group’s test facility in Ameriport, US. OCTG – revenue $m 463.7 2024 2023 395.8 2022 258.8 Source: Company OCTG – EBITDA $m 80.2 2024 2023 46.3 2022 14.8 Source: Company Non-GAAP Measure see NGM C OCTG – sales order book $m 249.7 2024 2023 222.0 2022 196.5 Source: Company Non-GAAP Measure see NGM T Global drilling capital investment $bn 214.5 2024 2023 212.6 2022 188.5 Source: Spears & Associates Drilling & Production Outlook – December 2024 Global average rig count # 1,691 2024 2023 1,765 2022 1,706 Source: Spears & Associates Drilling & Production Outlook – December 2024 Global offshore capital investment $bn 66.8 2024 2023 67.5 2022 53.5 Source: Spears & Associates Drilling & Production Outlook – December 2024 Product Review continued Hunting 2030 Strategy The Group’s OCTG 2030 strategy is well ahead of plan given the success of the KOC orders in the year. New tender activity in North America and Internationally will support the strong growth of the product group in the coming year, with the Middle East and Central Asia markets being particularly strong. Orders for projects in the utility and agriculture sectors were won in the Netherlands and Germany, in support of Hunting’s long-term strategy of revenue diversiﬁcation. Hunting PLC Annual Report and Accounts 2024 47 Strategic Report Corporate Governance Financial Statements Other Information Advanced Manufacturing Precision engineering capabilities underpin diversiﬁcation strategy Hunting’s Advanced Manufacturing product group serves oil and gas, aviation, commercial space, defence, medical, and power generation markets. Hunting’s expertise is driven by its manufacturing know-how and precision engineering skills for high-value, critical applications as well as high temperature and high-pressure electronics applications. Introduction and market overview The Electronics and Dearborn business units, which comprise the majority of Hunting’s Advanced Manufacturing offering, form the foundation of the Group’s non-oil and gas sales strategy, which is one of the core pillars of the Hunting 2030 Strategy. Hunting’s offering of complex, high-precision engineered products provides clients with components that are used in mission-critical applications. The businesses attract blue-chip clients, based on these skill sets and know-how, and this forms the basis of our sales diversiﬁcation strategy. Hunting’s Advanced Manufacturing offering has again reported good progress within its core energy markets as well as non-oil and gas markets, including aviation, medical devices, naval, and power generation end-markets. The Electronics business continued to report a strong oil and gas revenue proﬁle, driven by its expertise in MWD/LWD downhole tools and printed circuit board (“PCB”) assemblies as well as manufacturing switches for Hunting Titan throughout the year, although this activity was impacted by the downturn in Hunting Titan’s sales. Non-oil and gas sales have increased as more defence-related work was captured with clients, including Cubic and Textron in the US. The Dearborn business unit has also been successful in developing its non-oil and gas sales, in the sectors noted above, and has increased its non-oil and gas sales order book in the year. Advanced Manufacturing’s markets are largely based on oil and gas capital investment, which continues to be the foundation of both the Electronics and Dearborn business units. In addition, a further market indicator is the overall level of defence spend by North America and European governments. Both these end-markets are likely to see robust growth to the end of the decade. During the year, global industry capital investment was ﬂat at $214.5bn in 2024 compared to $212.6bn in 2023. This stable industry investment has supported the Group’s Advanced Manufacturing sales growth in the year, coupled with strong defence and medical markets. Group ﬁnancial performance Revenue from the Group’s Advanced Manufacturing product group totalled $126.9m in 2024, compared to $112.1m in 2023. $47.9m of Electronics revenue related to the oil and gas sector, which includes revenue from work for Hunting Titan, and $9.2m related to non-oil and gas markets, predominantly medical and defence-related sales. $20.6m of Dearborn’s revenue of related to the oil and gas sector, while 65% or $37.8m related to non-oil and gas sectors. Further detail on the performance of the business units is noted below. EBITDA for the product group was $11.8m compared to $10.6m in the prior year, giving an EBITDA margin of 9% in 2024 compared to 9% in 2023. The Advanced Manufacturing sales order book at the year-end was $130.0m compared to $161.5m at the 2023 year-end, which represents a reduction of 20% in the year. Product Review continued Hunting PLC Annual Report and Accounts 2024 48 Strategic Report Corporate Governance Financial Statements Other Information Advanced Manufacturing – Electronics During 2024, the Electronics business unit reported a stable revenue proﬁle as activity levels across the oil and gas sector were maintained. Sales to Halliburton, SLB and Baker Hughes have generally been good in the year; however, a slowdown in forward activity was noted in the second half of the year as commodity prices reduced. The business installed a new printed circuit board manufacturing line in Q2 to increase efﬁciencies. The Electronics business continues to build its medical-related sales and has worked hard to increase military-related revenue in the year. Management anticipates that this effort will be rewarded in 2025. The Electronics business continues to complete inter-group switch production for the Perforating Systems product group and are also examining new opportunities to build other components for the Hunting Titan operating segment to support the recovery of the business in what has been highly challenging markets. Advanced Manufacturing – Dearborn The Dearborn business unit continues to be a major driver of the Group’s efforts to build more non-oil and gas sales, particularly in high-value end-markets, such as the power generation and aviation markets. At the year-end, the order book of the business unit was c.$93m, with 69% of this order book to be delivered in 2025 and the rest in 2026 and beyond. The business continued to complete work for Solar Turbines, Pratt & Whitney, Blue Origin, and SpaceX, as well as the major oil ﬁeld service groups for MWD/LWD tool housings. Advanced Manufacturing – revenue $m 126.9 2024 2023 112.1 2022 75.1 Source: Company Advanced Manufacturing – EBITDA $m 11.8 2024 2023 10.6 2022 0.1 Source: Company Non-GAAP Measure see NGM C Advanced Manufacturing – sales order book $m 130.0 2024 2023 161.5 2022 137.6 Source: Company Non-GAAP Measure see NGM T Non-oil and gas revenue $m 75.1 2024 2023 75.9 2022 47.6 Source: Company Global drilling capital investment $bn 214.5 2024 2023 212.6 2022 188.5 Source: Spears & Associates Drilling & Production Outlook – December 2024 Global average rig count # 1,691 2024 2023 1,765 2022 1,706 Source: Spears & Associates Drilling & Production Outlook – December 2024 Product Review continued Hunting 2030 Strategy The Group’s non-oil and gas sales of $75.1m, including the Advanced Manufacturing product group, has remained in line with 2023 at $75.9m. Hunting’s strategy remains targeted at delivering a meaningful diversiﬁcation by 2030. Hunting PLC Annual Report and Accounts 2024 49 Strategic Report Corporate Governance Financial Statements Other Information Subsea Unique technologies to accelerate the offshore cash cycle The Group’s Subsea product offering comprises three sub-groups: (i) hydraulic valves and couplings, manufactured by the Stafford business unit; (ii) titanium and steel stress joints, manufactured by the Spring business unit; and (iii) ﬂow access modules and ﬂow intervention systems, manufactured by the Enpro business unit. Introduction and market overview Offshore drilling and production capital investment continued to be robust in the year, with the outlook strong for offshore drilling and project development to the end of the decade. The product group reported a strong increase in its revenue and EBITDA in the year as orders for ExxonMobil (“Exxon”) have been fulﬁlled in the year. Major projects were completed for Guyana with titanium stress joint orders being completed for the Yellowtail discovery. Momentum within the Stafford business was driven by the demand for subsea trees, which is a critical component of deepwater ﬁeld developments and is a useful market indicator of the ongoing demand for the Group’s hydraulic valves and couplings. The Stafford business reported another set of good results, although trading slowed during Q4 2024 as some clients reduced the pace of ordering. The Enpro business started the year slowly, but from mid-year won several large orders as offshore-focused clients accelerated developments globally. Global offshore capital investment was broadly ﬂat at $66.8m in 2024, with revenue growth driven from South America and the Middle East. Group ﬁnancial performance Revenue in the year totalled $147.1m in 2024, compared to $98.6m in 2023, as strong momentum was reported within the Spring business unit continuing to progress its larger orders for South America, and also in the Stafford business unit. The Enpro business unit also reported a strong increase in revenue and EBITDA in the year, as interest in the unit’s Flow Access Modules and Flow Intervention Systems increased, particularly in South America and West Africa. EBITDA for the product group was $30.0m compared to $13.7m in the prior year, giving an EBITDA margin of 20% in 2024 compared to 14% in 2023. The order book closed 2024 lower than 2023 as major orders for ExxonMobil were completed. The year-end position was $72.5m compared to $152.2m in the prior year. Management notes the lumpiness in the order book proﬁle of the Subsea product group, which is driven in the most part by the large orders received by the Spring business unit. However, management is conﬁdent that this will continue to build in the second half of 2025 as new discoveries, particularly in Guyana, move from the exploration to the development phase. In addition, given the long-term development plan for Guyana, the outlook remains extremely robust. Intellectual property Intellectual property, patents and trademarks totalled 138 in the year. Product Review continued Hunting PLC Annual Report and Accounts 2024 50 Strategic Report Corporate Governance Financial Statements Other Information North America The Stafford and Spring businesses are both located in Houston, Texas, but service international offshore markets and customers, ranging from South America to West Africa as well as the Gulf of Mexico. The Stafford business saw solid demand for its hydraulic coupling and valves in the year from a range of international clients, including Baker Hughes, TechnipFMC and Exxon. The Spring business has also seen the development of a strong relationship with Exxon in recent years, as the business’s titanium stress joints have become the trusted technology for application to Floating Production, Storage and Ofﬂoading vessels (“FPSOs”) in Guyana. In the year, the Spring business continued its work on stress joints for TPAO in the Black Sea. Europe, Middle East, and Africa Enpro Subsea’s business has continued to grow in the year, as projects in South America and West Africa continue to be sanctioned. Of note was the order win with Exxon in the year, following collaboration with the Spring business unit. Exxon rented a Flow Intervention System for the Liza project in Guyana, demonstrating the cross-selling opportunities being presented by Hunting’s wider product offering. Hunting 2030 Strategy Subsea is a key area for growth for the Group to the end of the decade, with the industry moving to more modular development plans, along with more standardisation of ﬁeld designs. This is to ensure total project costs for our customers are contained. The approach of operators to engage with a wider number of suppliers within the offshore supply chain provides opportunities for the Group to leverage its technology and service offering into large, turnkey projects as demonstrated by the success with ExxonMobil since 2021. As part of the Hunting 2030 Strategy, the Group will invest in new technologies to build the scale of Hunting’s subsea product offering, and to capitalise on the renewed interest in offshore projects. Hunting sees acquisition opportunities in this sub-segment of the market contributing to an increase in the scale and products offered by the Group. Subsea – revenue $m 147.1 2024 2023 98.6 2022 69.0 Source: Company Subsea – EBITDA $m 30.0 2024 2023 13.7 2022 3.4 Source: Company Non-GAAP Measure see NGM C Subsea – sales order book $m 72.5 2024 2023 152.2 2022 105.1 Source: Company Non-GAAP Measure see NGM T Global offshore capital investment $bn 66.8 2024 2023 67.5 2022 53.5 Source: Spears & Associates Drilling & Production Outlook – December 2024 Global offshore average rig count # 201 2024 2023 205 2022 189 Source: Spears & Associates Drilling & Production Outlook – December 2024 Global subsea tree demand # 216 2024 2023 240 2022 237 Source: Rystad Energy Product Review continued Hunting PLC Annual Report and Accounts 2024 51 Strategic Report Corporate Governance Financial Statements Other Information Other Manufacturing Capabilities to support a changing industry Hunting’s Other Manufacturing product group includes the Group’s well intervention and well testing offerings, along with the trenchless and organic oil recovery businesses. Introduction and market overview Hunting’s Other Manufacturing revenue is predominantly based on oil and gas capital investment. Sales of well testing and well intervention equipment have increased in the year, as broad-based investment across the industry increased. During the year, global industry capital investment increased by 1% from $212.6bn in 2023 to $214.5bn. The well intervention business is serviced from the Group’s North America, Europe, and Asia Paciﬁc operations. The Group’s European well testing business is incorporated into this product group, given its differing business model and proﬁle to the other product groups. This business is more focused on European and Middle East markets. Hunting’s trenchless business unit, which sells drill stems, connections and drill pipe, forms part of the Group’s non-oil and gas sales. The organic oil recovery (“OOR”) business is based in EMEA, commercialising a licensed technology to optimise reservoir performance and recovery rates and extend the life of the well. In 2024, the organic oil recovery business secured major contract wins with two clients in the North Sea, who wish to roll out the technology in brownﬁeld projects on the UK Continental Shelf. In August 2024, orders with a value of up to $60m were announced, which will be completed over the next ﬁve years. Group ﬁnancial performance Revenue from the Group’s Other Manufacturing product lines totalled $88.5m in 2024, compared to $78.8m in 2023. Business units in EMEA have contributed to the step up in revenue in the year, with a 46% increase year-on-year. Revenue from businesses in Asia Paciﬁc was ﬂat compared to 2023 and in North America reduced by 13% due to reduced US onshore activity. EBITDA for the product group was $2.9m compared to $6.7m in the prior year, giving an EBITDA margin of 3% in 2024 compared to 9% in 2023. EBITDA in 2023 included a contribution from the legacy E&P assets, with EBITDA in 2024 impacted by additional overheads in the year. The Other Manufacturing sales order book at the year-end was $39.9m, which compares to $16.8m at the 2023 year-end, and represents an increase of 138% in the year. The increase is wholly due to the $60m of contracts relating to the Group’s OOR technology, which will be completed over the next ﬁve years. Organic oil recovery (“OOR”) The commercial traction of the Group’s licensed OOR technology is noted in the Chief Executive’s Report and above. The securing of up to $60m of contracts for clients in the North Sea is testament to the strong drive of the management team to demonstrate the beneﬁts of the technology to many blue-chip clients. Many other blue-chip customers have been trialling the technology with laboratory and ﬁeld tests likely to accelerate strongly in the coming years. As well as delivering production enhancements, the technology reduces hydrogen sulphide concentrations, which is another attractive beneﬁt. Product Review continued Hunting PLC Annual Report and Accounts 2024 52 Strategic Report Corporate Governance Financial Statements Other Information Well intervention 2024 has seen steady activity within the well intervention product line. The Group transferred its Singapore manufacturing capabilities to the new facility in Dubai during the year. Going forward, this will enable commercial efﬁciencies to be captured, given this is where most of the Group’s clients are located. Well testing In the year, the well testing business delivered another year of revenue growth in line with the increase in capital investment across the industry. The business continued to transfer to Dubai in 2024, with headcounts in the Netherlands slowly reducing as production and assembly functions were transferred to the UAE. Trenchless The trenchless business reported another solid year, supported by the ongoing roll out of 5G across North America. Sales of connections, drill stems and drill pipe have grown compared to 2023, with the outlook for 2025 also strong as investment in IT infrastructure continues across the US. Other Manufacturing – revenue $m 88.5 2024 2023 78.8 2022 71.0 Source: Company Other Manufacturing – EBITDA $m 2.9 2024 2023 6.7 2022 3.8 Source: Company Non-GAAP Measure see NGM C Other Manufacturing – sales order book $m 39.9 2024 2023 16.8 2022 15.1 Source: Company Non-GAAP Measure see NGM T Non-oil and gas revenue $m 75.1 2024 2023 75.9 2022 47.6 Source: Company Global drilling capital investment $bn 214.5 2024 2023 212.6 2022 188.5 Source: Spears & Associates Drilling & Production Outlook – December 2024 Global average count # 1,691 2024 2023 1,765 2022 1,706 Source: Spears & Associates Drilling & Production Outlook – December 2024 Product Review continued Hunting 2030 Strategy The commercialisation of the Organic Oil Recovery technology in the year supports the Group’s revenue diversiﬁcation and continues the theme of our products enabling our blue-chip customers to improve cash ﬂow. Hunting PLC Annual Report and Accounts 2024 53 Strategic Report Corporate Governance Financial Statements Other Information Hunting’s precision manufacturing business, Dearborn, which is located at a c.215,000 square foot facility in Maine, US, is equipped with advanced manufacturing systems that deliver mission-critical components for the energy, defence, aerospace, and commercial space industries. Dearborn has cultivated a spirit of partnership with several key aerospace customers and turbine engine manufacturers, including Pratt & Whitney, Solar Turbines, and Sikorsky. This forward-looking model for long-term business relationships has accelerated the business’s diversiﬁcation into manufacturing aerospace components and turbine engine shafts, with complex engine shaft and rocket component manufacturing demanding Dearborn’s uncompromising attention to detail and process control. Dearborn has also seen growth in demand for rocket components for space craft since 2016. The need for high-precision tubular products made of exotic alloys has led the top two independent space exploration companies, SpaceX and Blue Origin, to Dearborn, with its expertise in metallurgy, robust quality management system, exceptional sub-vendor management, and its ability to deliver precision-engineered turn-key parts. The rocket component sector has matured into a regular revenue stream for the business, with 515% growth over the last four years. These efforts have resulted in meaningful non-oil and gas revenue growth over recent years for Dearborn. The business is positioned for steady growth as there is an increasing demand for high-precision specialty tubing, with an aerospace order book extending out to 2028 and production capacity for several more programmes in development. Accelerating into aerospace, supplying into space Hunting PLC Annual Report and Accounts 2024 54 Strategic Report Corporate Governance Financial Statements Other Information Operating Segment Review Hunting Titan 2024 2023 Market indicators US onshore – average rig count # 579 669 Canada onshore – average rig count # 188 177 Revenue Perforating $m 92.0 93.6 Energetics $m 66.3 70.0 Instruments $m 52.8 72.5 Perforating Systems $m 211.1 236.1 OCTG $m 2.7 6.1 Advanced Manufacturing $m 6.7 8.0 External revenue $m 220.5 250.2 Inter-segment revenue $m 9.8 9.0 Segment revenue $m 230.3 259.2 Proﬁtability EBITDA $m 0.6 21.9 EBITDA margin % 0 8 Operating (loss) proﬁt $m (117.4) 12.7 Adjusting items $m 109.1 – Adjusted operating (loss) proﬁt $m (8.3) 12.7 Adjusted operating margin % (4) 5 Other ﬁnancial measures Inventory $m 107.8 140.5 Capital investment $m 3.3 3.1 * Source: Spears & Associates Drilling & Production Outlook – December 2024 ** Non-GAAP Measure (see pages 255 to 262) Introduction The Hunting Titan operating segment focuses predominantly on the US and Canadian onshore drilling and completion markets, but also services international markets from its operating sites in the US. Hunting Titan has a network of distribution centres throughout the US and Canada from which the majority of the segment’s sales are derived. Hunting Titan also utilises the global manufacturing footprint of the wider Group to assist in meeting customer demand and, during the year, the Electronics business unit, which is part of the North America operating segment, continued to manufacture ﬁring switches on behalf of Hunting Titan. Operating loss for the year was $117.4m (2023 – $12.7m proﬁt). Adding back the charges for impairment noted above, the adjusted operating loss for the year was $8.3m (2023 – $12.7m proﬁt). Hunting Titan focused on reducing inventories in the year given the slower market conditions, with inventory decreasing from $140.5m in 2023 to $107.8m at 31 December 2024 despite the highly challenging market conditions. Hunting Titan recorded capital investment of $3.3m (2023 – $3.1m) mainly relating to new equipment purchases for the Milford and Pampa facilities, including new lathes and robotics installed at Pampa for Tandem production. The segment capitalised $2.2m (2023 – $2.2m) research and development costs in the year. This predominantly related to the development of the H-4 Perforating System™ and new energetics charges launched in the year. Operating footprint and headcount During the year, the Wichita Falls operating site was closed, following the restructuring announced in Q2 2024. The segment has also closed two distribution centres in the year to further reduce costs. Following these closures, at the year-end, Hunting Titan operated from 3 (2023 – 4) operating sites and 12 (2023 – 14) distribution centres, located in Canada, Mexico, and the US. Headcount within the segment decreased from 622 in 2023 to 514 in 2024, predominantly due to the facility consolidation and cost reduction programmes noted above. Segment performance Hunting Titan’s revenue streams are divided into four sub-groups: (i) perforating; (ii) energetics; (iii) instruments; and (iv) advanced manufacturing and OCTG. Perforating gun sales decreased marginally in the year to $92.0m, with energetics sales also declining in the year to $66.3m, reﬂecting the continued reduction in activity reported across the US onshore well completions market. Instrument sales were also adversely impacted in the year given the prevailing market conditions. Segment revenue was down 11% in 2024 at $230.3m (2023 – $259.2m), as the low price for natural gas and lower average US rig count continued to reduce across North America. Partially offsetting the decline in US onshore revenue, Hunting Titan’s international sales of $45.7m in 2024 were comparable with $45.0m in 2023 as demand for perforating products was sustained within Asia Paciﬁc, the Middle East, and South America. EBITDA for the year was $0.6m (2023 – $21.9m), leading to an EBITDA margin of 0% compared to 8% in 2023. Given the continued reduction in activity levels, the in-year trading performance of the segment and the medium-term outlook for the US onshore market, an impairment review was undertaken, resulting in a charge of $109.1m being recorded (2023 – $nil) in respect of goodwill attached to the Hunting Titan cash generating unit. The impairment has been recorded as an adjusting item in the Group’s consolidated income statement. Hunting PLC Annual Report and Accounts 2024 55 Strategic Report Corporate Governance Financial Statements Other Information Operating Segment Review continued North America 2024 2023 Market indicators US onshore – average rig count # 579 669 US offshore – average rig count # 19 19 US – total drilling spend $bn 102.0 103.4 Canada onshore – average rig count # 188 177 Canada – total drilling spend $bn 20.2 16.9 Revenue OCTG $m 199.8 192.4 Advanced Manufacturing $m 120.2 104.1 Other Manufacturing $m 37.3 42.8 External revenue $m 357.3 339.3 Inter-segment revenue $m 31.1 35.4 Segment revenue $m 388.4 374.7 Proﬁtability EBITDA/ $m 62.2 53.8 EBITDA margin % 16 14 Operating proﬁt $m 45.5 33.7 Adjusting items $m – – Adjusted operating proﬁt $m 45.5 33.7 Adjusted operating margin % 12 9 Other ﬁnancial measures Inventory $m 98.7 107.8 Capital investment $m 10.3 14.5 * Source: Spears & Associates Drilling & Production Outlook – December 2024 ** Non-GAAP Measure (see pages 255 to 262) *** Restated to include the Group’s share of associates’ and joint venture’s results Segment performance Revenue within the North America operating segment is derived from three primary product groups being: (i) OCTG, which incorporates premium connection and accessories manufacturing; (ii) Advanced Manufacturing, which incorporates the Electronics and Dearborn business units; and (iii) Other Manufacturing, which incorporates well intervention and trenchless sales. The segment’s OCTG revenue beneﬁted from steady sales from its premium connections business as well as continued well completion and accessories sales into Guyana and Brazil during the year, as offshore developments have progressed throughout the year. Sales of the Group’s TEC-LOCK™; SEAL-LOCK™ and TKC4040™ connections have been solid despite the challenging North America onshore drilling market. Revenue from OCTG for North and South America has increased to $199.8m in 2024 compared to $192.4m in 2023. The Electronics business reported another year of growth, as traditional oil and gas sales, medical device sales, other non-oil and gas sales, and inter-company sales to Titan, continued in the year. The Dearborn business reported further improvement in performance during 2024 as non-oil and gas work increased. Overall, Advanced Manufacturing revenue increased to $120.2m in the year compared to $104.1m in 2023. Other Manufacturing revenue decreased to $37.3m (2023 – $42.8m), predominantly due to the sale of the Group’s oil and gas production assets in 2023. Overall, segment revenue was up by 4% from $374.7m in 2023 to $388.4m in 2024. EBITDA for the segment was $62.2m (2023 – $53.8m restated) as activity increased across most product groups. This led to an EBITDA margin of 16% compared to 14% in 2023. Operating proﬁt and adjusted operating proﬁt for the year were $45.5m (2023 – $33.7m restated), as there were no adjusting items in the year. Inventory levels within the segment decreased from $107.8m in 2023 to $98.7m, following particular focus on reducing Electronics, well intervention and trenchless inventories in the year. The North America operating segment recorded capital investment of $10.3m (2023 – $14.5m) mainly relating to new equipment purchases and upgrades at the segment’s Electronics and US Manufacturing businesses. The segment spent $6.2m (2023 – $4.1m) on research and development in the year, including spend to support the development and qualiﬁcation of premium connections for application to geothermal and carbon capture projects and a new printed circuit board manufacturing line in Electronics. Operating footprint and headcount During the year, the operating footprint of the segment remained unchanged, with 10 operating sites and two distribution centres at year-end. Despite the continued increase in activity reported across most product groups, the headcount within the segment decreased from 900 in 2023 to 886 in 2024, predominantly within the Electronics and US Manufacturing (OCTG) sites. Introduction Hunting’s North America operating segment incorporates the US and Canada OCTG businesses and the Dearborn and Electronics businesses, which form the majority of the Group’s Advanced Manufacturing product group. The segment generates a large proportion of the Group’s non-oil and gas sales, which includes the Advanced Manufacturing product group and the trenchless business unit that services the telecommunications sector, which is reported under “Other Manufacturing”. Hunting PLC Annual Report and Accounts 2024 56 Strategic Report Corporate Governance Financial Statements Other Information Operating Segment Review continued Subsea Technologies 2024 2023 Market indicators Global offshore – average rig count # 201 205 Global offshore – total drilling spend $bn 66.8 67.5 Revenue Stafford – Couplings & valves $m 47.4 42.1 Spring – Stress joints $m 81.7 49.1 Enpro – Flow intervention systems & Flow access modules $m 18.0 7.4 External revenue $m 147.1 98.6 Inter-segment revenue $m – – Segment revenue $m 147.1 98.6 Proﬁtability EBITDA $m 30.0 13.7 EBITDA margin % 20 14 Operating proﬁt $m 25.6 8.0 Adjusting items $m – – Adjusted operating proﬁt $m 25.6 8.0 Adjusted operating margin % 17 8 Other ﬁnancial measures Inventory $m 15.3 25.4 Capital investment $m 4.3 1.2 * Source: Spears & Associates Drilling & Production Outlook – December 2024 ** Non-GAAP Measure (see pages 255 to 262) Segment performance The segment has completed large orders for ExxonMobil in the year, with revenue within the Subsea Technologies operating segment increasing 49% in the year, from $98.6m in 2023 to $147.1m in 2024. The Stafford business unit has reported a $5.3m increase in revenue in the year to $47.4m, supported by the general momentum in deepwater activity. The unit had a strong ﬁrst half to the year as contracts with major clients continued, but noted a slowing in the ﬁnal quarter of the year as the reduced oil price started to move project commissioning to the right. The Spring business unit reports an exceptionally strong ﬁnancial performance in 2024, which supported the performance of the segment as a whole and was driven by the order completions for ExxonMobil for its titanium stress joints. Please see page 43 for more information. The Enpro business unit reported a stronger 2024 compared to the prior year as orders were completed for South America and West Africa. EBITDA for the segment was $30.0m (2023 – $13.7m) as key contracts were progressed and operating efﬁciencies were improved through good facility utilisation. This led to an EBITDA margin of 20% compared to 14% in 2023. Operating proﬁt for the year was $25.6m (2023 – $8.0m) and operating proﬁt margin was 17% compared to 8% in 2023. There were no adjusting items in the year. Inventory levels within the segment decreased from $25.4m in 2023 to $15.3m, as orders were executed, particularly within the Spring business unit. During the year, the Subsea Technologies operating segment recorded capital investment of $4.3m (2023 – $1.2m) mainly relating to new equipment purchases at the Spring facility, including the installation of a new long bed lathe. Operating footprint and headcount During the year, the operating footprint of the segment remained unchanged, following the merging of Enpro’s operating site into the Group’s Badentoy, Aberdeen facility in early January 2024. Headcount within the segment increased from 196 in 2023 to 223 in 2024, reﬂecting the higher activity levels reported across the operating segment. Introduction The Subsea Technologies operating segment comprises three business units: (i) Stafford, which manufactures hydraulic valves and couplings; (ii) Spring, which manufactures titanium and steel stress joints; and (iii) Enpro, which manufactures ﬂow intervention systems and ﬂow access modules. These businesses occupy different parts of the offshore/subsea equipment supply chain, with customers ranging from tier one OEMs to exploration and production companies. The segment has two dedicated facilities, both in the US, with the Enpro business operating from the Group’s shared Badentoy, Aberdeen facility. Hunting PLC Annual Report and Accounts 2024 57 Strategic Report Corporate Governance Financial Statements Other Information Operating Segment Review continued EMEA 2024 2023 Market indicators Europe – average rig count # 95 96 Europe – spend $bn 13.0 15.6 North Sea – average rig count # 24 30 North Sea – spend $bn 11.6 14.4 Middle East – spend $bn 22.8 21.8 Revenue OCTG $m 27.5 46.5 Perforating Systems $m 11.6 7.7 Other Manufacturing $m 47.5 32.5 External revenue $m 86.6 86.7 Inter-segment revenue $m 1.1 1.5 Segment revenue $m 87.7 88.2 Proﬁtability EBITDA $m (7.9) 1.7 EBITDA margin % (9) 2 Operating loss – restated $m (12.4) (11.2) Adjusting items – restated $m – 8.9 Adjusted operating loss – restated $m (12.4) (2.3) Adjusted operating margin % (14) (3) Other ﬁnancial measures Inventory $m 19.7 28.1 Capital investment $m 2.0 2.4 * Source: Spears & Associates Drilling & Production Outlook – December 2024 ** Non-GAAP Measure (see pages 255 to 262) Segment performance Revenue within the EMEA operating segment is derived from three primary product groups being: (i) OCTG, incorporating premium connection and accessories manufacturing; (ii) Perforating Systems, supporting the sales of products on behalf of Hunting Titan; and (iii) Other Manufacturing, which incorporates well intervention, well testing and organic oil recovery sales. OCTG revenue has been lower in the year, given the declining activity in the North Sea. Revenue for the product group was $27.5m in the year (2023 – $46.5m) reﬂecting this reduced activity. Within this sales ﬁgure, however, is $7.1m of geothermal revenue, which the Group’s Netherlands business captured in the year. Sales of Perforating Systems have increased in the year, as demand for Hunting Titan’s components improved across the Middle East and in Norway. Revenue from this product group increased by $3.9m in the year to $11.6m. Revenue from the Other Manufacturing product group, which includes well intervention sales and rental in addition to well testing, trenchless and organic oil recovery sales, increased by $15.0m during the year to $47.5m. EBITDA for the segment was a loss of $7.9m (2023 – $1.7m proﬁt), driven by lower trading results and an impairment of inventory within the segment’s Netherlands business unit, which was treated as an unadjusted item. This led to an EBITDA margin of (9)% compared to 2% in 2023. The operating loss and adjusted operating loss were $12.4m in the year. In 2023, the adjusted operating loss was $2.3m. As discussed further in the Group Financial Review, the prior year operating loss has been restated to include an import tax provision of $8.9m relating to not having followed the tax authority’s interpretation of the correct processes for importing goods into their jurisdiction and thus not paying amounts which would have been due based on the tax authority’s guidance in place at the time. The restated operating loss for 2023, including the provision, was $11.2m. Inventory levels within the segment decreased from $28.1m in 2023 to $19.7m, as activity slowed, and also includes the inventory write down in the Netherlands. During the year, the EMEA operating segment recorded capital investment of $2.0m (2023 – $2.4m) mainly relating to equipment purchases at the segment’s new Dubai facility. Operating footprint and headcount During the year, the operating footprint of the segment remained unchanged, with seven operating sites at the year-end. The headcount within the segment increased marginally from 270 in 2023 to 277 in 2024. Introduction Hunting’s EMEA operating segment comprises businesses in the Netherlands, Norway, Saudi Arabia, UAE and UK. The segment provides OCTG (including threading, storage and accessories manufacturing) in the Netherlands, Saudi Arabia and the UK. In the UAE, the Group operates an equipment assembly function for well testing and intervention products as well as a global sales ofﬁce for all of the Group’s product lines and operates a service and distribution function in Norway. The Group’s operations in Saudi Arabia are through a 65% joint venture arrangement with Saja Energy. Hunting PLC Annual Report and Accounts 2024 58 Strategic Report Corporate Governance Financial Statements Other Information Operating Segment Review continued Asia Paciﬁc 2024 2023 Market indicators Far East – spend $bn 27.3 24.7 Middle East – spend $bn 22.8 21.8 Revenue OCTG $m 233.7 150.8 Other Manufacturing $m 3.7 3.5 External revenue $m 237.4 154.3 Inter-segment revenue $m 3.2 3.3 Segment revenue $m 240.6 157.6 Proﬁtability EBITDA**/ $m 41.4 11.3 EBITDA margin % 17 7 Operating proﬁt $m 37.6 8.3 Adjusting items $m – – Adjusted operating proﬁt $m 37.6 8.3 Adjusted operating margin % 16 5 Other ﬁnancial measures Inventory $m 64.4 29.2 Capital investment $m 4.7 2.2 * Source: Spears & Associates Drilling & Production Outlook – December 2024 ** Non-GAAP Measure (see pages 255 to 262) *** Restated to include the Group’s share of associates’ and joint venture’s results Segment performance Revenue within the Asia Paciﬁc operating segment is derived from two primary product groups being: (i) OCTG, which incorporates premium connection and accessories manufacturing; and (ii) Other Manufacturing, which incorporates well intervention equipment manufacturing. Due to the successful award of the $231m KOC orders in H1 2024, followed by the commencement of delivery in September 2024, revenue increased signiﬁcantly for the operating segment in 2024, growing by 53% to $240.6m from $157.6m in 2023. The segment continued to complete orders for other major clients, including Cairn Oil and Gas (Vedanta) Limited, which is a three-year contract announced in 2023. EBITDA for the segment was $41.4m (2023 – $11.3m restated) as higher margin contracts were delivered, with production efﬁciencies and higher facility utilisation reported in the year. This led to an EBITDA margin of 17% compared to 7% in 2023. Operating proﬁt and adjusted operating proﬁt for the year were $37.6m (2023 – $8.3m restated), as there were no adjusting items in either year, and operating margin was 16% compared to 5%. Inventory levels within the segment increased from $29.2m in 2023 to $64.4m, predominantly due to the large raw material requirements attached to the KOC orders. During the year, the Asia Paciﬁc operating segment recorded capital investment of $4.7m (2023 – $2.2m) as new production lines were commissioned in China. Operating footprint and headcount During the year, the operating footprint of the segment remained unchanged, with three operating sites at year-end. The headcount within the segment increased from 346 in 2023 to 378 in 2024, in support of the large OCTG orders secured during the year. India joint venture The segment has Group oversight of the Jindal Hunting Energy Services joint venture in India, in which Hunting holds a 49% interest. In 2023, the venture commissioned its premium connection threading facility with plans in 2025 to open a new facility on the east coast of India. The India joint venture contributed $2.3m (2023 – $0.2m loss) to the operating segment’s EBITDA result noted above. Introduction Hunting’s Asia Paciﬁc operating segment covers three operating sites across China, Indonesia and Singapore and services customers predominantly in Africa, Asia Paciﬁc, India, and the Middle East. In Singapore, Hunting manufactures OCTG premium connections and accessories. The Group’s Indonesia facility also completes threading and accessories work. In China, the Group operates from a facility in Wuxi, which has OCTG threading and perforating gun manufacturing capabilities. Hunting PLC Annual Report and Accounts 2024 59 Strategic Report Corporate Governance Financial Statements Other Information Group Financial Review Revenue $ 1,048.9 m (2023 – $929.1m) Adjusted operating proﬁt $ 88.0 m (2023 – $60.4m restated) The Group delivered strong operational performance in 2024 and reported year-on-year growth in revenue, adjusted operating proﬁt and adjusted earnings. This was driven by heightened industry activity, especially in the offshore and international markets, and was achieved despite the more subdued North America onshore market during the year, demonstrating the robust demand for the Group’s diverse portfolio of products. Solid balance sheet to drive growth Hunting PLC Annual Report and Accounts 2024 60 Strategic Report Corporate Governance Financial Statements Other Information Group Financial Review continued Financial performance measures The following are ﬁnancial key performance indicators as identiﬁed on page 18. 2024 $m 2023 $m Revenue 1,048.9 929.1 EBITDA i (NGM C) 126.3 102.4 EBITDA margin ii 12% 11% Adjusted proﬁt before tax iii (NGM B) 75.6 50.0 Adjusted diluted earnings per share – cents iii (NGM B) 31.4c 20.3c Free cash ﬂow (NGM P) 139.7 (0.5) Working capital to annualised revenue ratio (NGM E) 29% 46% Total cash and bank/(borrowings) (NGM K) 104.7 (0.8) Dividend per share declared – cents (NGM Q) 11.5c 10.0c Sales order book (NGM T) 508.6 565.2 Financial performance measures derived from IFRS 2024 $m 2023 $m Operating (loss) proﬁt iv (21.1) 51.5 (Loss) proﬁt before tax (33.5) 41.1 Diluted (loss) earnings per share – cents (17.6)c 65.9c Net cash inﬂow from operating activities 188.5 49.3 i. EBITDA has been restated in 2023 to include the Group’s share of associates’ and joint venture’s results, see NGM C. ii. EBITDA as a percentage of revenue. iii. Results are presented on a statutory basis as reported under UK adopted International Financial Reporting Standards. Adjusted results reﬂect adjusting items determined by management, which are described in Non-GAAP Measures (“NGM”) on pages 255 to 262. iv. Operating proﬁt has been restated in 2023 to include the Group’s share of associates’ and joint venture’s results and the import tax provision, see note 41 for further details. Three of the Group’s operating segments delivered increases to revenue during the year. The Subsea Technologies and Asia Paciﬁc operating segments saw compelling growth in the year as demand for the Group’s products accelerated in response to increased activity in the offshore and international markets. The Subsea Technologies operating segment delivered on contracts for its titanium and steel stress joints, and Asia Paciﬁc began delivery of the $231m KOC orders in September, as the operating segment reported its highest revenue and margins. The North America operating segment beneﬁted from revenue growth in the Advanced Manufacturing businesses, supported by the expansion of non-oil and gas sales in 2024. Hunting Titan’s revenue reduced in 2024, as demand for its Perforating Systems was impacted by a reduction in the North American rig count due to low natural gas prices, and EMEA’s revenue was ﬂat compared to 2023. Following the annual impairment review of non-current assets, impairment charges totalling $109.1m were recognised in relation to the Hunting Titan cash-generating unit (“CGU”). These charges have been recorded against the backdrop of a subdued North American market with reduced rig counts and sluggish gas prices, and reduced oil focused drilling due to limitations on ﬂaring in certain US onshore basins, such as the Permian, leading to projections declining for the business. For further information on the impairment review, please see note 15. Basis of preparation The Board continues to monitor the Group’s progress using adjusted proﬁtability measures and reviews and approves the adjusting items proposed by management, as the Group believes these adjusted measures aid the comparison of the Group’s operating performance from one period to the next. The Group’s adjusted trading results have been highlighted in the management narrative below, with reconciliations between the statutory and adjusted results detailed in NGM A. The deﬁnition and calculation of a range of NGMs including EBITDA, working capital, total cash and bank/(borrowings), and free cash ﬂow can be found on pages 255 to 262. Prior year restatements (a) Import tax provision In July 2024, as part of an internal review, an EMEA business unit was identiﬁed as not following the tax authority’s interpretation of the correct process for importing goods, under speciﬁc contracts, in their jurisdiction and thus had not paid amounts which would have been due based on the tax authority’s guidance in place at the time. The business is working with the tax authority to regularise the position. While no incremental proﬁt or cash ﬂow was recognised, resolution is dependent upon discretion by the authority, and therefore an exposure exists. A provision of $9.5m was recognised at 30 June 2024, which represented the Group’s best estimate of the potential liability. The carrying value of the provision at 31 December 2024 reduced to $8.6m following ongoing dialogue with the tax authority and a review of the assumptions. Of the total provision of $9.5m recognised at 30 June 2024, $9.1m related to the year ended 31 December 2023, and $0.4m to the six months ended 30 June 2024. The prior period ﬁnancial statements were restated to reﬂect the recognition of the provision, together with the corresponding deferred tax impact, which have been disclosed as adjusting items (see NGM A). The impact on the 2023 balance sheet has been an increase in provisions by $9.1m to $16.6m and net tax assets have increased by $2.1m to $84.8m at 31 December 2023, with net assets decreasing by $7.0m to $950.1m. The impact on the income statement is a reduction in operating proﬁt by $8.9m and a reduction in the tax charge of $2.1m, therefore the net reduction to proﬁt for the year was $6.8m. All periods that could potentially be impacted by this import tax matter have been reviewed and there is no further exposure. For further details, please see notes 1 and 41. (b) Presentation of associates’ and joint venture’s results During the year, the Company changed its accounting policy to present its share of associates’ and joint venture’s results as part of operating proﬁt and has represented the 2023 results on this basis to aid comparability, with operating proﬁt and EBITDA decreasing by $0.6m, see note 41 and NGM C. Hunting PLC Annual Report and Accounts 2024 61 Strategic Report Corporate Governance Financial Statements Other Information Group Financial Review continued Operating results Summary Group operating results 2024 $m 2023 $m Revenue 1,048.9 929.1 Cost of sales (777.0) (701.4) Gross proﬁt 271.9 227.7 Selling and distribution costs (53.5) (49.3) Administrative expenses i (127.9) (128.7) Impairment of goodwill (note 15) (109.1) – Net operating income and other expenses (2.4) 2.4 Share of associates’ and joint venture’s results (0.1) (0.6) Operating (loss) proﬁt ii (21.1) 51.5 Adjusting items iii (NGM A) 109.1 8.9 Adjusted operating proﬁt iii/iv (NGM B) 88.0 60.4 EBITDA iv (NGM C) 126.3 102.4 Diluted (loss) earnings per share – cents v (note 10) (17.6)c 65.9c Adjusted diluted earnings per share – cents i (NGM B) 31.4c 20.3c i. Administrative expenses were restated in 2023 to include the import tax provision, as shown in note 41. ii. Operating proﬁt was restated in 2023 to include the import tax provision and the Group’s share of associates’ and joint venture’s results, see note 41. iii. Results are presented on a statutory basis as reported under UK adopted International Financial Reporting Standards. Adjusted results reﬂect adjusting items determined by management, which are described in Non-GAAP Measures (“NGM”) on pages 255 to 262. iv. Restated in 2023 to include the Group’s share of associates’ and joint venture’s results. v. Restated in 2023 to include the import tax provision. 2023 administrative expenses were restated to include the $8.9m import tax provision, as noted above. Excluding this item, the 10% increase in administrative expenses reﬂects further investment in support functions and infrastructure to underpin the growth agenda. As the Hunting Titan operating segment had recorded deteriorating results in the year due to reduced activity levels in the US onshore, and the reduction in the medium-term trading outlook for the business, the carrying value of the CGU’s goodwill was assessed for impairment as part of the annual goodwill impairment review. This resulted in a goodwill impairment charge totalling $109.1m being recognised. Further details are provided in note 15. As noted above, the Group’s share of associates’ and joint venture’s results has been included within operating proﬁt from 1 January 2024, with the 2023 comparative restated. In 2024, the Group’s share of associates’ and joint venture’s results was a $0.1m loss (2023 – $0.6m loss), with a proﬁt contribution from the India joint venture in 2024 of $2.3m, in its ﬁrst full year of trading, offset by losses attributed to the Group’s investments in Cumberland Additive of $1.4m and Rival Downhole Tools of $1.0m, which was impacted by the subdued US onshore market. Net ﬁnance expense Net ﬁnance expense was $12.4m (2023 – $10.4m), with the higher expense reﬂecting the increase in the costs associated with working capital programmes utilised during the year and derivative fair value losses. (Loss) proﬁt before tax Following the charges for the net interest expense, the Group’s loss before tax for the year was $33.5m (2023 – $41.1m proﬁt restated). Taxation The tax credit for the year was $8.0m (2023 – $71.1m credit restated) and includes a deferred tax credit of $27.8m in relation to the Hunting Titan goodwill impairment charge. The resulting effective tax rate (“ETR”) for the year is 24% compared to the weighted average tax rate of 29%, with the main difference in the rates relating to deferred tax not recognised in the year. The 2023 ETR was (173)% (restated) and was impacted by the recognition of previously unrecognised deferred tax assets in the US totalling $83.1m. The Group’s ETR in 2023 was signiﬁcantly different to that which might be expected when applying the weighted average tax rate of 23% to the proﬁts made by the Group as a result of this. (Loss) proﬁt for the year Following the tax charge noted above, the loss for the year was $25.5m (2023 – $112.2m proﬁt restated), with a loss of $28.0m (2023 – $110.3m proﬁt restated) attributable to Hunting’s shareholders. (Loss) earnings per share The attributable loss of $28.0m resulted in a diluted loss per share of 17.6 cents, compared to diluted earnings per share of 65.9 cents (restated) in 2023, with 2023 including the beneﬁt of the recognition of the previously unrecognised US deferred tax assets. The weighted average number of Ordinary shares in issue, inclusive of all dilutive potential Ordinary shares, was 169.5m (2023 – 167.3m). Revenue Trading in 2024 was ahead of 2023, with revenue for 2024 increasing by 13% to $1,048.9m (2023 – $929.1m) reﬂecting the positive performance in the Group’s OCTG, Subsea and Advanced Manufacturing product groups as international and offshore demand for oil and gas products continued to grow. However, the Perforating Systems product group reported headwinds in the year driven by industry capital discipline and the lower average natural gas price recorded across the period, leading to restricted drilling activity, and a reduction in the North American rig count compared to the prior year. Non-oil and gas revenue of $75.1m in the year was broadly ﬂat compared to $75.9m in 2023. Gross proﬁt Gross proﬁt for the year increased to $271.9m compared to $227.7m in 2023 and gross margin was 26% in the year (2023 – 25%), the increase being driven by higher revenue, product mix, the impact of previous price increases and increased facility utilisation, leading to a better proﬁt drop-through. Operating (loss) proﬁt The operating loss in 2024 was $21.1m compared to a proﬁt of $51.5m (restated) in 2023. The charges for selling and distribution, administration, and other net operating income and other expenses totalling $183.8m (2023 – $175.6m restated) increased in the year, reﬂecting the increase in activity across the Group. Hunting PLC Annual Report and Accounts 2024 62 Strategic Report Corporate Governance Financial Statements Other Information Group Financial Review continued Adjusting items The Board continues to monitor the Group’s progress using adjusted proﬁtability measures and reviews and approves the adjusting items proposed by management. The Group’s adjusted trading results have also been discussed throughout as the Group believes these adjusted measures aid the comparison of the Group’s operating performance from one period to the next. Reconciliations between the statutory and adjusted results have been presented in NGM B. The deﬁnition and calculation of a range of other NGMs including EBITDA, working capital, total cash and bank/(borrowings), free cash ﬂow and ROCE can be found on pages 255 to 262. Given the quantum of Hunting Titan’s goodwill impairment charge of $109.1m, together with the associated deferred tax credit of $27.8m, these items have been treated as adjusting items in the 2024 income statement. As discussed above, a provision of $8.9m was recognised in the income statement in 2023 as a prior year adjustment in relation to an import duty matter, together with the corresponding deferred and corporation tax impact of a $2.1m credit. The tax credit of $83.1m in relation to the recognition of US deferred tax assets in 2023 was also treated as an adjusting item (see NGM A). Adjusted operating proﬁt for 2024 was, therefore, $88.0m (2023 – $60.4m restated), adjusted proﬁt before tax was $75.6m (2023 – $50.0m), and with the adjusted tax charge (NGM D) of $19.8m (2023 – $14.1m) and adjusted ETR of 26% (2023 – 28%), adjusted proﬁt for the year attributable to owners of the parent was $53.3m (2023 – $34.0m), as shown in NGM B. Non-GAAP proﬁt measures In 2024, the Group generated EBITDA of $126.3m compared to an EBITDA of $102.4m (restated) in 2023, a year-on-year increase of 23%. EBITDA was driven by strong trading results within the Group’s OCTG, Subsea and Advanced Manufacturing product groups, offset by the lower performance of the Perforating Systems product group. The EBITDA margin of the Group has improved in the year and in 2024 was 12% compared to 11% in 2023. The increase in EBITDA generated in the year was driven by an increase in the overall demand for the Group’s diverse product portfolio, improved facility utilisation, higher margin orders increasing their weighting in revenue and the impact of select product price increases put through last year. Free cash ﬂow $ 139.7 m (2023 – $(0.5)m) Total cash and bank/(borrowings) $ 104.7 m (2023 – $(0.8)m) Strategic Report Corporate Governance Financial Statements Other Information Hunting PLC Annual Report and Accounts 2024 63 Group Financial Review continued The sales order book comprises orders from customers yet to be completed, which are expected to be recognised as revenue in future periods. The sales order book is determined as the opening sales order book, plus new orders booked, less amounts recognised as revenue, adjusted for any order modiﬁcations/variations and foreign exchange impacts (NGM T). The Group sales order book peaked during the year, following the award of the $231m of KOC orders followed by the OOR orders of $60m. The Group has been working through these KOC orders, as well as the Yellowtail order for ExxonMobil, ﬁnishing the year with an order book of $508.6m at 31 December 2024 compared to $565.2m at 31 December 2023. The sales order book at the year-end comprises 3% Perforating Systems (2023 – 2%); 49% OCTG (2023 – 39%); 26% Advanced Manufacturing (2023 – 29%); 14% Subsea (2023 – 27%), and 8% Other Manufacturing (2023 – 3%). Of this order book, approximately 86% is expected to be recognised as revenue in 2025, 11% during 2026 and 3% from 2027 onwards, underpinning Hunting’s revenue visibility. Detailed commentary on the ﬁnancial performance of Hunting’s product groups can be found on pages 44 to 53. Detailed commentary on the ﬁnancial performance of each operating segment can be found on pages 55 to 59. Group funding In October 2024, the Group entered into $300m of new committed borrowing facilities to ﬁnance the ongoing working capital requirements of the existing business and to support Hunting’s stated organic and inorganic growth strategy. The new funding arrangements comprise a $200m revolving credit facility (“RCF”) and a $100m term loan. These facilities have replaced our $150m Asset Based Lending (“ABL”) facility. The new facilities are provided by a four-bank syndicate, expanding the number of banks participating in our core funding arrangements. Wells Fargo and HSBC (who participated in our prior facilities and have acted as joint coordinators in these new facilities) were joined by First Abu Dhabi Bank and Emirates NBD. The Company is pleased to welcome these new banks into our lending group. The new, upsized facilities and expanded bank group provides Hunting with committed liquidity and headroom that will enable us to pursue Hunting’s stated growth ambition, as outlined in the Hunting 2030 Strategy at the Capital Markets Day in September 2023. A conventional earnings-based covenant regime is attached to the facilities and includes a leverage test (being the ratio of total net debt to adjusted EBITDA not exceeding 3.0:1) and an interest cover test (being the ratio of consolidated EBITDA to consolidated net ﬁnance charges not being less than 4.0:1). The RCF has been arranged with an initial tenor of four years, expiring on 16 October 2028, with an option that allows the Company to extend the contracted maturity date by an additional 12-month term. Operating segment, product line ﬁnancial data and sales order book The Hunting business is organised and managed by segment but has a consistent product structure that runs across the organisation. In order to provide better insight and visibility, management has provided additional information for revenue and EBITDA by product group, which clariﬁes the relationship between Hunting’s operating segments and key product groups. Segmental operating results 2024 2023 Revenue $m EBITDA i $m Adjusted operating result ii $m Sales order book $m Revenue $m EBITDA i $m Adjusted operating result ii $m Sales order book $m Hunting Titan 230.3 0.6 (8.3) 16.7 259.2 21.9 12.7 17.6 North America 388.4 62.2 45.5 207.3 374.7 53.8 33.7 288.7 Subsea Technologies 147.1 30.0 25.6 72.5 98.6 13.7 8.0 152.2 EMEA 87.7 (7.9) (12.4) 50.2 88.2 1.7 (2.3) 29.9 Asia Paciﬁc 240.6 41.4 37.6 186.9 157.6 11.3 8.3 115.8 Inter-segment elimination (45.2) – – (25.0) (49.2) – – (39.0) 1,048.9 126.3 88.0 508.6 929.1 102.4 60.4 565.2 i. EBITDA is a non-GAAP measure, see NGM C. EBITDA has been restated in 2023 to include the Group’s share of associates’ and joint venture’s results. ii. Results are presented on a statutory basis as reported under UK adopted International Financial Reporting Standards. Adjusted results reﬂect adjusting items determined by management, which are described in NGM A. Results by product group 2024 2023 Revenue $m EBITDA i $m Sales order book $m Revenue $m EBITDA i $m Sales order book $m Perforating Systems 222.7 1.4 16.5 243.8 25.1 12.7 OCTG 463.7 80.2 249.7 395.8 46.3 222.0 Advanced Manufacturing 126.9 11.8 130.0 112.1 10.6 161.5 Subsea 147.1 30.0 72.5 98.6 13.7 152.2 Other Manufacturing 88.5 2.9 39.9 78.8 6.7 16.8 1,048.9 126.3 508.6 929.1 102.4 565.2 i. EBITDA is a non-GAAP measure, see NGM C. EBITDA has been restated in 2023 to include the Group’s share of associates’ and joint venture’s results. Hunting PLC Annual Report and Accounts 2024 64 Strategic Report Corporate Governance Financial Statements Other Information Group Financial Review continued EBITDA Hunting reported EBITDA of $126.3m during 2024 (2023 – $102.4m restated), as discussed above. When adjusted for non-cash share-based payment charges, the inﬂow for the year was $140.4m (2023 – $115.9m restated). Working capital During 2024, cash generation improved as management focused on working capital efﬁciency, especially receivables collections, leading to a working capital inﬂow of $53.3m compared to the outﬂow of $55.0m in 2023. In the year, a number of working capital instruments were utilised to shorten the cash cycle of the KOC contract, including discounting letters of credit to accelerate payments and bank acceptance drafts to defer OCTG supplier payments. In addition, and following the good progress in receivables collections, working capital as a percentage of annualised revenue decreased to 29%, down from the position at the end of 2023 of 46% (NGM E). The $100m term loan has been arranged with a three-year tenor and, pursuant to the conditions of the facility agreement, was fully drawn on signing of the facilities. After an initial 12-month period, the term loan amortises with eight quarterly repayments of $9.4m (the ﬁrst such payment due on 30 September 2025) and a ﬁnal $25m repayment on 30 September 2027. On signing of the new facilities, the Group’s $150m ABL facility was repaid and cancelled, with drawings under the new term loan used in part for this purpose. It is management’s view that the new facilities are resilient and will provide a strong foundation on which the strategic growth aspirations of the Group may be established. Further details relating to all the Group’s facilities, as well as information on the Group’s ﬁnancial risk management are disclosed in note 30. Consideration of the likelihood that the Group will require access to the facilities, or any other sources of external funding, to support our existing operations in the next 12 months are covered in the going concern assessment on page 111. Cash ﬂow Summary Group cash ﬂow statement 2024 $m 2023 $m EBITDA i (NGM C) 126.3 102.4 Add: share-based payment expense 14.1 13.5 140.4 115.9 Working capital movements (NGM M) 53.3 (55.0) Lease payments (8.9) (10.4) Net interest and bank fees paid (12.9) (7.3) Net tax paid (3.5) (9.1) Capital investment (NGM N) (25.3) (23.7) Intangible asset investment (4.8) (10.9) Proceeds from asset disposals 1.7 1.9 Net gains on asset disposals (0.9) (1.7) Other operating and non-cash movements (NGM O) 0.6 (0.2) Free cash ﬂow (NGM P) 139.7 (0.5) Investment in associates and joint ventures (0.9) (1.6) Dividends received from associates – 0.6 Dividends paid to equity shareholders (16.7) (15.0) Net purchase of treasury shares (13.9) (8.7) Net cash ﬂow 108.2 (25.2) Foreign exchange (2.7) (0.1) Movement in total cash and bank/(borrowings) (note 26) 105.5 (25.3) Opening total cash and bank/(borrowings) (0.8) 24.5 Closing total cash and bank/(borrowings) (NGM K) 104.7 (0.8) i. EBITDA is a non-GAAP measure. EBITDA has been restated in 2023 to include the Group’s share of associates’ and joint venture’s results, with the reversal included in non-cash movements. Inventory days moved from 175 days at 31 December 2023 to 123 days at 31 December 2024 (NGM F), reﬂecting the changing product mix and the decline in inventory in the Hunting Titan and Electronics businesses. Receivables days have decreased to 67 days compared to 89 days at 31 December 2023 (NGM G) reﬂecting the shortening of the cash receipt cycle through the use of accelerated receivables programmes and discounted letters of credit. Trade payables days have also increased, moving from 49 days to 81 days (NGM H), due to the beneﬁt of the bank acceptance drafts. Payments made on account to suppliers have increased from $12.4m in 2023 to $16.8m at the end of 2024 in support of the KOC orders. Advances from customers have reduced from $31.0m in 2023 to $12.4m at the end of 2024, as longer lead time orders are worked through. Lease payments During the year, the Group’s leasing arrangements gave rise to cash payments of $8.9m compared to $10.4m in 2023, which included a one-off payment made to exit a lease for a surplus property in Canada. Net ﬁnance costs Net interest and bank fees paid in the year were higher at $12.9m (2023 – $7.3m), mainly due to the arrangement fees and legal fees of $4.3m paid in relation to the new $200m RCF and $100m term loan, discussed above. These fees were capitalised on the balance sheet and will amortise over the expected life of these borrowing facilities. Hunting PLC Annual Report and Accounts 2024 65 Strategic Report Corporate Governance Financial Statements Other Information Group Financial Review continued Balance sheet Summary Group balance sheet 2024 $m 2023 i $m Property, plant and equipment 252.8 254.5 Right-of-use assets 28.3 26.2 Goodwill 45.1 154.4 Other intangible assets 39.4 40.8 Investments in associates and joint ventures 9.2 20.5 Asset held for sale 12.1 – Working capital (NGM E) 355.5 415.9 Taxation (current and deferred) 98.0 84.8 Provisions (14.3) (16.6) Other net assets (NGM I) 5.5 3.0 Capital employed (NGM J) 831.6 983.5 Total cash and bank/(borrowings) (NGM K) 104.7 (0.8) Lease liabilities (30.1) (28.7) Shareholder loan from non-controlling interest (3.9) (3.9) Net cash (debt) (note 26) 70.7 (33.4) Net assets 902.3 950.1 i. 2023 has been restated to reﬂect the import tax provision of $9.1m and the corresponding increase in deferred tax of $2.1m (see note 41). Taxation Net tax payments of $3.5m in 2024 were notably lower than the prior year of $9.1m, reﬂecting the change in jurisdictions where proﬁts have arisen and the utilisation of historic tax losses offsetting taxable proﬁts. Purchases of property, plant and equipment Purchases of property, plant and equipment in the year totalled $25.3m in 2024 and were in line with 2023 totalling $23.7m. Hunting Titan spent $3.3m, with $1.9m in relation to four new lathes and robots installed at the Pampa facility for Tandem production; $10.3m was in North America, with $2.6m spent by Electronics on a new printed circuit board manufacturing line and $4.2m spent by US Manufacturing on new machines and upgrades; $4.3m was in Subsea Technologies, with $2.2m on a long bed lathe; $2.0m was in EMEA; $4.7m by Asia Paciﬁc, to support the KOC orders in Wuxi, China; and $0.7m centrally. Purchases of intangible assets Intangible asset investments in the year were $4.8m (2023 – $10.9m), with $1.9m on software and global data centres, $0.3m on the sales, manufacturing and distribution rights for CRA-Tubulars’ titanium-lined carbon ﬁbre tubing, and $2.6m by Hunting Titan on internally generated technology. Asset disposals Proceeds from the disposal of assets totalled $1.7m (2023 – $1.9m), and gains on asset disposals of $0.9m (2023 – $1.7m) relate to gains on the disposal of property, plant and equipment. Free cash ﬂow The resulting free cash inﬂow was $139.7m in the year, compared to a free cash outﬂow in 2023 of $0.5m. Investments in associates and joint ventures In 2024, the Group made a further investment in Cumberland Additive of $0.9m (2023 – $1.6m), thereby increasing Hunting’s investment to 30.7% (2023 – 30.4%). Dividends There were increased returns to shareholders in 2024, with dividends paid to Hunting PLC shareholders amounting to $16.7m (2023 – $15.0m), representing an increase of 11% in the year. Purchases of treasury shares During the year, 2.9m Ordinary shares (2023 – 2.9m) were purchased as treasury shares through Hunting’s Employee Beneﬁt Trust for a total consideration of $14.2m (2023 – $9.0m). These shares will be used to satisfy future awards under the Group’s share award programme. The purchase of treasury shares was offset by proceeds received on the disposal of treasury shares of $0.3m (2023 – $0.3m). Net cash ﬂow Overall, in the year, the Group recorded a net cash inﬂow of $108.2m (2023 – $25.2m outﬂow), which was predominantly driven by the release of cash from working capital, as noted above. As a result of the above cash inﬂows and $2.7m of adverse foreign exchange movements (2023 – $0.1m), total cash and bank/(borrowings) increased from the borrowing position of $0.8m (NGM K) at 31 December 2023 to a net cash position of $104.7m at the year-end. Property, plant and equipment Property, plant and equipment was $252.8m at 31 December 2024 (2023 – $254.5m) following additions of $25.2m and other items of $1.1m, offset by depreciation of $25.2m, and disposals of $2.8m. Capital investment during the year was made to support the growth agenda. Right-of-use assets Right-of-use assets have slightly increased and totalled $28.3m at 31 December 2024 compared to $26.2m at 31 December 2023. Additions in the year of $2.7m and lease modiﬁcations of $7.0m were offset by depreciation of $7.2m and adverse foreign exchange movements of $0.4m. Goodwill Following the annual carrying value review of goodwill, given the prevailing trading conditions and future expectations for the Hunting Titan CGU, an impairment charge of $109.1m was recognised. The goodwill balance at the year-end was $45.1m compared to $154.4m in 2023 following the impairment charge and adverse foreign exchange movements of $0.2m. See note 15 for further details. Other intangible assets Other intangible assets were $39.4m at 31 December 2024 compared to $40.8m at the 2023 year-end. Amortisation charges of $5.9m and adverse foreign exchange movements of $0.3m were offset by additions of $4.8m, primarily related to the capitalisation of technology and IT data centres. Hunting PLC Annual Report and Accounts 2024 66 Strategic Report Corporate Governance Financial Statements Other Information Group Financial Review continued Trade, contract and other payables have increased signiﬁcantly to $210.2m from $164.0m, as payments for the purchases of the Chinese pipe in relation to the large KOC orders were deferred through the use of bank acceptance drafts, which are due to be settled six months after receipt of the materials beginning in Q1 2025. Taxation Net tax assets on the balance sheet were $98.0m at 31 December 2024 compared to $84.8m (restated) in the prior year, and reﬂect the deferred tax credit of $27.8m arising on the goodwill impairment charge and the US deferred tax assets recognised in 2023 as proﬁt expectations in the region improved. Provisions As noted above, provisions for the year ended 31 December 2023 have been restated to include a provision for import tax of $9.1m that was identiﬁed in July 2024. The restated amount for provisions at the 2023 year-end was $16.6m. Provisions have reduced by $2.3m in the year to $14.3m at 31 December 2024. Capital employed As a result of the above changes, capital employed in the Group decreased by $151.9m to $831.6m. The return on average capital employed was 9% in 2024 compared to 6% in 2023 (NGM S). Net cash (debt) The Company has moved from a net debt position (note 26) at 31 December 2023 of $33.4m, to a net cash position of $70.7m at 31 December 2024, a signiﬁcant improvement due to strong cash generation in the second half of the year and net working capital inﬂows, reﬂecting strong cash collections and good management of the working capital cycle through the use of accelerated receivables programmes and discounted letters of credit in relation to the KOC order. Net cash includes $30.1m (2023 – $28.7m) of lease liabilities, which have increased by $1.4m during the year due to new leases of $2.6m, lease modiﬁcations of $7.0m, and an interest charge of $1.4m offset by lease payments of $8.9m and foreign exchange movements of $0.7m. Net assets Net assets have, therefore, decreased by $47.8m to $902.3m at 31 December 2024, compared to $950.1m (restated) at the 2023 year-end. This has been driven by the loss in the year of $25.5m, dividends paid in the year of $16.7m to equity shareholders of Hunting PLC, and the net purchase of treasury shares of $13.9m offset by foreign exchange and other items totalling $8.3m. Dividends A Final Dividend of 6.0 cents per share (2023 – 5.0 cents) has been proposed by the Board, making the total dividends declared for the year ending 31 December 2024 11.5 cents per share (2023 – 10.0 cents per share), an increase of 15% over 2023. Subject to shareholder approval at the 2025 Annual General Meeting, the Final Dividend will be paid on 9 May 2025. This distribution will amount to an estimated cash return of $9.5m (2023 – $8.0m). The dividend will be paid in Sterling with the Sterling value of the dividend payable per share ﬁxed and announced approximately two weeks prior to the payment date, based on the average spot exchange rate over the three business days preceding the announcement date. The dividend will be paid to those shareholders on the register at the close of business on 11 April 2025, with an ex-dividend date of 10 April 2025. Bruce Ferguson Finance Director 6 March 2025 Investments in associates and joint ventures Investments in associates and joint ventures have decreased by $11.3m, reﬂecting the reclassiﬁcation of the investment in Rival Downhole Tools (“Rival”) as an asset held for sale and the Group’s share of associates’ and joint venture’s net losses for the year of $0.1m (2023 – $0.6m), offset by the additional investment of $0.9m in Cumberland Additive. The net loss for the year is attributable to the loss of $1.0m by Rival and $1.4m by Cumberland Additive, offset by the share of proﬁts in the Indian JV of $2.3m. Asset held for sale The Group’s 23% investment in Rival Downhole Tools of $12.1m was classiﬁed as an asset held for sale at the year-end due to the active marketing and sales process that was underway. The investment was sold for $13.1m on 3 March 2025. Working capital Working capital (NGM E) decreased by $60.4m to $355.5m, despite the growth in activity in the business. Inventory levels decreased by $25.1m to $303.3m as the sales order book was worked through; however, inventory provision levels have increased by $4.6m reﬂecting some additional provisions in Hunting Titan and EMEA. Trade, contract and other receivables have increased in 2024 to $262.4m from $251.5m in line with the increase in revenue; however, the Company has discounted some receivables in relation to the KOC orders to manage the extended working capital cycle for these large orders. Hunting PLC Annual Report and Accounts 2024 67 Strategic Report Corporate Governance Financial Statements Other Information ESG and Sustainability Hunting is committed to operating responsibly, ethically and sustainably to create long-term value. Our management team embed these principles into our strategy and culture. We are committed to relevant and transparent disclosures and continue to improve our ESG-related reporting procedures, aligning these with current and new disclosure regulations and standards as well as the needs of our stakeholders. In 2024, we have expanded our scope 3 reporting, which provides further insight to our stakeholders on our supply chain emissions. This enables management to focus on long-term reduction initiatives where our most concentrated emission sources are derived, for example, from our raw material feedstocks. While our focus on carbon emissions and climate impact are fairly new areas for us, other strategic areas of focus such as HSE and Quality Assurance have been embedded in our culture for many decades. Keeping our people safe, while providing strongly assured products have contributed to our success in the past, and will do so for many years to come. Jim Johnson Chief Executive Hunting PLC Annual Report and Accounts 2024 68 Strategic Report Corporate Governance Financial Statements Other Information ESG and Sustainability continued ESG and sustainability at a glance Governance People and society Responsible products The environment Continued focus on Board accountability for ESG Ethics and Sustainability Committee met twice in 2024 (2023 – twice) Safety remains a priority Zero fatalities (2023 – zero) 25 recordable incidents (2023 – 24) 3.15 near-miss frequency rate (employees) (2023 – 2.69) Improved levels of employee engagement 76% of our facilities are compliant with ISO 9001:2015, a globally recognised standard for quality management Scope 1 and 2 GHG data assurance being completed for a second year. To review our assurance report please see www.huntingplc.com The 2023 employee engagement survey recorded an engagement score of 42%, compared to 36% recorded in 2019. Board diversity 50% of the Board are women (29 February 2024 – 44%) At 6 March 2025 Workforce diversity 25% of workforce are women (2023 – 25%) ISO 14001:2015 Our Quality Management System is aligned with ISO 14001:2015 (Environmental management system) with 68% of facilities accredited Waste and environmental impact: Zero environmental ﬁnes or non- compliance environmental incidents (2023 – zero) Senior management diversity 32% of senior management are women (2023 – 32%) Voluntary turnover rate 10.3% down from 13.5% in 2023 We also align our Quality Management System with ISO 50001:2018 the international standard for designing, implementing, and maintaining an energy management system Hunting PLC Annual Report and Accounts 2024 69 Strategic Report Corporate Governance Financial Statements Other Information ESG and Sustainability continued Our contribution to the SDGs The United Nations’ 2030 Agenda for Sustainable Development provides a shared blueprint for peace and prosperity for people and the planet, now and into the future. At its heart are the 17 Sustainability Development Goals (“SDGs”), which are an urgent call for action by all countries – developed and developing – in a global partnership. These goals recognise that ending poverty and other deprivations must go hand-in-hand with strategies that improve health and education, reduce inequality, and spur economic growth – while tackling climate change and working to preserve our oceans and forests. At Hunting, we believe that, no matter how small, every contribution can have a positive impact on society and the environment. We believe we can contribute to achieving these goals. We have identiﬁed nine SDGs to which we can make a positive contribution. Good health and well-being Affordable and clean energy Responsible consumption and production We are responsible for the health and safety of those who use or are affected by our services and equipment. Through the systems we have in place, the training, support and access to healthcare we provide, we believe we can address employee and community health and build on and implement safety-enhancing features in the work we do. The health and safety of our employees is of the utmost importance to us. Through the technology, products and services we provide to the energy sector, we assist in the safe and reliable extraction of resources, while minimising environmental impacts. To this end, we have a number of readily available technologies and products to supply to the tangential geothermal and carbon capture and storage markets in the emerging energy transition sector. As a provider of products and services to the energy sector we aim to limit the consumption of resources, by responsibly sourcing the materials we use and increase recycling and integration into the circular economy. We recycle where possible and ensure all other waste is removed in a safe and responsible manner so that it does the least environmental damage possible. Gender equality Decent work and economic growth Climate action While operating in 11 countries, we strive to ensure that all workplaces and decision-making processes are free from discrimination and that all hiring and promotions are based on merit. We are focused on improving gender representation in our business, as well as seeking to promote diversity on our Board and within the senior leadership team. We have a diverse and skilled workforce. We place great emphasis on attracting and retaining talented employees, ensuring that they are engaged and able to develop to their full potential. Protocols are in place to identify and guard against modern slavery and human trafﬁcking. Climate change is a global challenge and a risk to our business, and we can make the most positive contribution towards climate change mitigation by improving our energy efﬁciency mix and reducing our greenhouse gas emissions. We also recognise the need to understand and plan for climate change opportunities, impacts and transition. Clean water and sanitation Industry, innovation and infrastructure Partnership for the goals We understand that water is a valuable and restricted resource especially in some of the regions in which we operate. We oversee and manage our water usage by protecting water resources, and guarding against potentially hazardous and polluting emissions entering water bodies. We support inclusive and sustainable industrialisation. We produce and work with innovative technology that is safe and efﬁcient. We recognise that the achievement of the SDGs requires partnership and collaboration. Through Hunting’s TEK-HUB™, we seek to attract innovative individuals and companies to develop technology partnerships. By working in true collaboration, we will bring innovations to market under licence. An example of this is the Organic Oil Recovery technology that has achieved commercialisation in the year. Hunting PLC Annual Report and Accounts 2024 70 Strategic Report Corporate Governance Financial Statements Other Information ESG and Sustainability continued Focus on material issues In 2023, Hunting completed a materiality assessment on its ESG framework and disclosures. We adopt a “double materiality” approach, which considers: • Impact materiality, that is the actual or potential, positive or negative impacts of the business on people or our environments over the short, medium or long term; and • Financial materiality, that is whether an issue may be material from a ﬁnancial perspective, and could potentially trigger ﬁnancial effects on Hunting, either as a risk or opportunity, in the short, medium or long term. Our process involves: • An assessment of new and impending reporting disclosure regulations and standards; a review of peer reporting; and an analysis of feedback from ratings agencies; • Interviews undertaken with senior executives across the Group in core disciplines: compliance; investor relations; human resources; health, safety, environment and quality; IT; and customer engagement and marketing; • We undertook an online survey of key executives to determine their assessment of the issues through the lenses of impact and ﬁnancial materiality; and • The survey resulted in the identiﬁcation and ranking of issues. We have focused on the top 14 issues, which were reviewed by the Executive Committee prior to their being submitted to the Board for consideration and approval. These issues are illustrated on the right, in alignment with our sustainability framework. The materiality assessment will be repeated in 2025. The environment • Ensuring environmental compliance and good practice • Pursuing the responsible transition, and growth in, less carbon-intensive sectors Responsible products • Ensuring the quality and consistency of our products • Ensuring customer and market responsiveness • Delivering innovation People and society • Protecting the health and safety of our customers • Protecting the health, safety and well-being of employees • Promoting and ensuring employee engagement Governance and our ethical behaviour • Safeguarding cyber security • Protecting and enhancing our reputation • Complying with regulations • Promoting business ethics and anti-bribery and corruption • Assuring due diligence in our supply chain • Promoting Board leadership and accountability for ESG Material issues – adopting a “double materiality” approach Our ESG disclosures • We make an annual submission to the Carbon Disclosure Project, which can be reviewed at www.cdp.net. • We have adopted and report against the Task Force on Climate-related Financial Disclosures (“TCFD”) standard. See pages 88 to 101. • We report in line with the SASB standards most relevant to our business: SASB Oil & Gas – Services and Industrial Machinery & Goods standards. Our SASB content index can be found on pages 86 and 87. • Our annual Modern Slavery Act Statement, which is approved by the Board, is available on our website at www.huntingplc.com. • As a publicly-listed company providing products and services primarily to the oil and gas sector, up to 2024 we disclosed a Payments made to Governments statement on a country-by-country and project-by-project basis under the Payments to Government Regulation 2015. This is available at www.huntingplc.com. Our ESG assurance The Group assures a number of ESG-related data points, including QAHSE audits and also scope 1 and 2 data audits, with our 2023 scope 1 and 2 carbon emissions data assured during the year against the ISO 14064-3 standard, with no material issues identiﬁed. Our ESG materiality assessment We have identiﬁed four important areas of focus to ensure our environmental, social and governance initiatives remain relevant. The Group’s senior leadership team contributes to the development and enhancement of these areas, with the executive Directors incentivised to deliver continuous improvement over the medium term. Hunting PLC Annual Report and Accounts 2024 71 Strategic Report Corporate Governance Financial Statements Other Information Our ambition Responsibly creating long-term, sustainable value G O V E R N A N C E A N D O U R P E O P L E A N D S O C I E T Y R E S P O N S I B L E P R O D U C T S T H E E N V I R O N M E N T Our commitment Strong governance along with ethical and transparent conduct in our business and our supply chain Our commitment Delivering innovative, high-quality and reliable products Our commitment Ensuring the safety and health of employees and customers, engaging with and supporting our people and the communities around us Our commitment Sound environmental stewardship and a responsible transition to a lower carbon economy E T H I C A L BE H A V I O U R ESG and Sustainability continued Our sustainability framework We continue to reﬁne and simplify our ESG framework, aligning this with the outcomes of our materiality process. Our prevailing ESG ambition is to create long-term, sustainable value and this is applied in four areas of focus: • Governance and our ethical behaviour; • People and society; • Responsible products; and • The environment. Our commitments remain unchanged and are aligned with each of these focus areas, which form the basis of our ongoing disclosure. For each focus area, we indicate the relevant SDG. Hunting PLC Annual Report and Accounts 2024 72 Strategic Report Corporate Governance Financial Statements Other Information Expanding our emissions data collection 1% 1% 4% 2% 2% 90% Scope 3 inventories – 534,835 tonnes CO 2 e Scope 3 pillars Pillar 1a: Purchased goods and services (products) Pillar 1b: Purchased goods and services (non-product) Pillar 3: Fuel and energy-related activities Pillar 4: Upstream transportation and distribution Pillar 6: Business travel Other: Pillars 2, 5, 7, 9, 12, 13 and 15 In 2023, the Ethics and Sustainability Committee approved the appointment of the Carbon Trust as an independent specialist adviser to assist in determining our carbon inventories, with a focus on scope 3 emissions. A ﬁve-year phased project began with the initial aim of establishing an emissions baseline by the end of 2025, attaining assurance against ISO 14064-3 in 2026, and publishing a Net Zero plan by 2027. The scope 3 emissions data collection project initially comprised the Hunting Titan operating segment as a proxy for the Group’s scope 3 inventories for 2023, with the Carbon Trust calculating Hunting Titan’s scope 3 footprint based on its 2022 data. The methodology used was based on the GHG Protocol Corporate Value Chain (scope 3) Standard. Hunting Titan reported on eight of the 15 category emission levels for scope 3, with the scope 3 emissions calculated to be c.95,000 tonnes CO 2 e. This ﬁgure was extrapolated by Hunting using Hunting Titan’s cost of sales as a proportion of the rest of the Group’s cost of sales resulting in an estimated total scope 3 footprint of c.353,000 tonnes CO 2 e for 2023. In 2024, this approach was extended to include scope 3 emissions data from the Subsea Technologies, EMEA, and Asia Paciﬁc operating segments in addition to Hunting Titan. This aimed to build on the work done in the previous year with Hunting Titan and also to improve the accuracy of the footprint data. In 2024, the Group gathered data on 11 out of the 15 category emission levels for scope 3. The data reviewed covered the nine months to 30 September 2024 and were scaled up to a full year to 31 December 2024. The initial challenges for our scope 3 project focused on what we should measure, how to identify and source relevant data from existing records, training employees to recognise and extract this data, and accurately reporting it in a format that assisted the Carbon Trust to identify products, materials, quantities, weights and measures. Where detailed data was not available, ﬁnancial (spend) data was used as an alternative. The results identiﬁed that category 1a emissions (purchased goods and services – products) accounted for c.90% of total scope 3 emissions. Management are now assessing the potential to assure this category as part of the drive to fully assure the Group’s scope 1, 2 and 3 emissions inventories. The total scaled scope 3 emissions for 2024 were assessed at 351,446 tonnes CO 2 e. This result was then extrapolated by Hunting using relative cost of sales for the four operating segments compared to the Group total, and the total scope 3 footprint for 2024 was determined to be 534,835 tonnes CO 2 e. Next steps • In 2025, data collection will include the North America operating segment to complete scope 3 reporting for the whole of the Group and set a scope 3 emissions baseline. • Plan new data collection procedures for information held within our ERP system. • Produce standard emissions data reports from our business intelligence platforms. • Allocate additional resources to include further scope 3 training for staff from various departments including procurement, ﬁnance, transport, human resources, sales, IT, HSE, and governance. • Collaborate closely with our external suppliers, customers and business partners across our value chain. • In 2026, we will follow the science-based target setting methodology subject to the release of the Science Based Targets initiative’s oil and gas sector guidance. Hunting PLC Annual Report and Accounts 2024 73 Strategic Report Corporate Governance Financial Statements Other Information ESG and Sustainability continued AREA OUR COMMITMENTS MATERIAL ISSUES ADDRESSED WHAT WE MEASURE PERFORMANCE IN 2024 Governance and our ethical behaviour To demonstrate Board-level ownership and accountability for sustainability issues To set and deliver long-term sustainability goals To link key ESG metrics to the remuneration of the senior leadership team To foster mutually beneﬁcial partnerships • Safeguarding cyber security • Protecting and enhancing our reputation • Promoting business ethics and anti-bribery and corruption • Promoting Board leadership and accountability for ESG • Number of employees that completed cyber security training • SafeCall whistleblowing reports • Number of employees that completed Code of Conduct training • Total number of bribery-related ﬁnes • Total value of bribery-related ﬁnes • ESG metrics linked to remuneration and included in short- and long-term incentive plans • 1,370 employees (2023 – 1,119 employees) • Three reports (2023 – six reports) • 2,091 employees (2023 – 285 employees, launched in Q4 2023) • Zero (2023 – zero) • $nil (2023 – $nil) • See the Remuneration Committee Report on page 154 People and society Operating safely • Protecting the health and safety of our customers • Protecting the health, safety and well-being of our employees • Employee fatalities • Contractor fatalities • Total fatalities • Total recordable incidents – employees • Total recordable incident rate – employees • Near-miss incidents – employees • Near-miss incidents – contractors • Near-miss incidents – total • Near-miss frequency rate – employees • Near-miss frequency rate – contractors • Near-miss frequency rate – total • Lost-time incidents – employees • Lost-time incidents – contractors • Lost-time incidents – total • Lost-time days – employees • Lost-time incident rate – employees • Vehicle incidents – employees • Vehicle incidents – contractors • Vehicle incidents – total • Total number of HSE ﬁnes • Total value of HSE ﬁnes • Zero (2023 – zero) • Zero (2023 – zero) • Zero (2023 – zero) • 25 (2023 – 24) • 0.93 (2023 – 0.91) • 85 (2023 – 71) • 3 (2023 – 15) • 88 (2023 – 86) • 3.15 (2023 – 2.69) • 0.11 (2023 – 0.57) • 3.26 (2023 – 3.26) • 7 (2023 – 6) • 0 (2023 – 0) • 7 (2023 – 6) • 214 days (2023 – 267 days) • 0.26 (2023 – 0.23) • 4 (2023 – 0) • 0 (2023 – 0) • 4 (2023 – 0) • 1 (2023 – 0) • $9k (2023 – $nil) Progress against our commitments Hunting PLC Annual Report and Accounts 2024 74 Strategic Report Corporate Governance Financial Statements Other Information ESG and Sustainability continued AREA OUR COMMITMENTS MATERIAL ISSUES ADDRESSED WHAT WE MEASURE PERFORMANCE IN 2024 People and society continued Supporting and developing our people Supporting communities around us • Protecting the health and safety of our customers • Protecting the health, safety and well-being of our employees • Promoting and ensuring employee engagement • Total HSE training hours • HSE training hours per employee • Voluntary turnover • Representation of women on the Board, in senior management, and in the workforce • Engagement level • Charitable donations • 68,834 hours (2023 – 48,013 hours) • 28 hours (2023 – 20 hours) • 10.3% (2023 – 13.5%) • 50% women on the Board at 6 March 2025 (2024 – 44%) ; 32% women in senior management (2023 – 32%); 25% women in workforce (2023 – 25%) • 42% engagement score in 2023 (2019 – 36%) • $70k paid in charitable donations (2023 – $81k) Responsible products Delivering high-quality products and services • Ensuring the quality and consistency of our products • Ensuring customer and market responsiveness • Delivering innovation • Internal manufacturing reject rate • % of shipped goods returned • % of facilities accredited to ISO 9001:2015 (Quality management systems) • % of facilities accredited to ISO 14001:2015 (Environmental management systems) • Non-oil and gas revenue • Research and development expenditure • 0.31% (2023 – 0.20%) • 0.0006% (2023 – 0.0006%) • 76% (2023 – 78%) • 68% (2023 – 40%) • $75.1m (2023 – $75.9m) • $8.8m (2023 – $6.9m) The environment Managing our environmental performance and mitigating our impacts • Ensuring environmental compliance and good practice • Pursuing the responsible transition to and growth of our business in less carbon-intensive sectors • Environmental non-compliance incidents • Signiﬁcant environmental non-compliance incidents • Number of environmental ﬁnes • Value of signiﬁcant environmental ﬁnes • Total value of all environmental ﬁnes • Total scope 1, 2 and 3 GHG emissions • CO 2 e intensity factor • Water consumption • Metal recycling • Wood recycling • Plastic recycling • Zero (2023 – zero) • Zero (2023 – zero) • Zero (2023 – zero) • $nil (2023 – $nil) • $nil (2023 – $nil) • 557,068 tonnes CO 2 e (2023 – 375,945 tonnes CO 2 e) • 21.2kg/$k revenue (2023 – 24.3kg/$k revenue) • 90,411m 3 (2023 – 91,746m 3 ) • 2,967 tonnes (2023 – 2,827 tonnes) • 85 tonnes (2023 – 75 tonnes) • 30 tonnes (2023 – 23 tonnes) Hunting PLC Annual Report and Accounts 2024 75 Strategic Report Corporate Governance Financial Statements Other Information ESG and Sustainability continued Our commitments To demonstrate Board-level ownership and accountability for sustainability issues All the Directors attend the Ethics and Sustainability Committee meetings and challenge management on the scope and progress of ESG issues. To set and deliver long-term sustainability goals In 2023, the Group exceeded its long-range carbon intensity goal and in March 2025 the Directors announced a new long-term target of achieving an intensity factor of 20 or less, which equates to 33% lower than our 2023 target. To link key ESG metrics to the remuneration of the senior leadership team The 2024 Hunting Performance Share Plan incorporates medium-term Safety and Quality goals to ensure management remains focused on delivering safe products and a safe workplace. The 2024 Annual Bonus to the executive Directors included carbon emission and intensity targets, which were partially met. To foster mutually beneﬁcial partnerships We foster sound and positive partnerships with our customers and suppliers, industry bodies, and regulators in the regions in which we operate. We respect human rights and believe we create an open, fair and safe environment for all. SDGs Material issues Safeguarding cyber security Protecting and enhancing our reputation Complying with regulations Promoting business ethics and anti-bribery and corruption Assuring due diligence in our supply chain Promoting Board leadership and accountability for ESG Ethical behaviour We promote honest, ethical and transparent conduct in our business and our supply chain. We foster sound and positive partnerships with our customers, suppliers, industry bodies, and regulators in the regions in which we operate. Governance and our ethical behaviour Fostering mutually beneﬁcial partnerships Hunting PLC Annual Report and Accounts 2024 76 Strategic Report Corporate Governance Financial Statements Other Information ESG and Sustainability continued Governance The Directors have delegated key ESG and Sustainability matters to the Ethics and Sustainability Committee. Meetings of the Committee are attended by the Group’s Director for QAHSE, Hunting’s Chief HR Ofﬁcer, General Counsel and members of the central compliance function who oversee carbon and climate reporting. The Committee has stewardship of the Group’s strategic approach to ESG matters. The Committee monitors and guides those matters that are both ﬁnancially material to the value of the Group’s businesses over time, and those that are important to our markets, our employees, other stakeholders and the environment. The Committee met on two occasions in 2024. For more details see pages 133 to 135. The management of ESG matters is led by the Chief Executive and the Executive Committee, supported by an ESG Steering Committee and TCFD Working Group. Business ethics Hunting’s Code of Conduct (the “Code”) contains policies and procedures covering how the Group conducts business, internally and externally, and maintains its relationships with business partners. The Code of Conduct includes operating guidelines and details of key ethics policies in place across the Group, including anti-bribery and corruption and modern slavery procedures, with a parallel training course in place to ensure education and awareness of and compliance with the Hunting Code of Conduct. All employees and business partners are provided with a copy of the Code and are expected to adhere to it. In September 2024, we rolled out a new Code of Conduct training course, which all employees are required to complete, with 285 employees completing the training in 2023 and 2,091 of our employees completing the course in 2024. Module two of the new course is due to be rolled out in 2025. Human rights We are committed to upholding the human rights of all our stakeholders, we achieve this by providing a safe and positive working environment for all employees and contractors; respecting the rights of each individual, with a zero tolerance approach to any form of discrimination, harassment or bullying; providing training and development programmes to our global workforce; respecting and upholding the rights of employees to engage in collective bargaining where relevant; and acting with honesty, transparency and integrity in all of our dealings with our workforce, and anyone else who is in contact with and reliant on our business. We have a zero tolerance stance on slavery and trafﬁcking, and we expect the same from our business and trading partners. We demonstrate our compliance with corporate regulations through our Ethical Employment and Trading Policy; our Modern Slavery, Human Trafﬁcking Transparency Statement; and our Ethics Reporting Procedures. Cyber security As we become more reliant on globally-connected IT infrastructure, our business is more vulnerable to cyber threats and our cyber risk proﬁle increases. We safeguard against these threats by training employees and by having in place the necessary processes and procedures to protect our systems and data from cyber attacks. We also recognise that we are custodians of data, on behalf of our employees, customers and suppliers, and that we must protect their information in order to secure and maintain trust. During the year, we engaged a third party to assist in the development of a cyber attack response plan and enhanced employee cyber security training, with 1,370 employees with access to computers completing cyber security training, compared to 1,119 in 2023. The Group’s IT policies, systems and training are managed by the Chief IT Ofﬁcer, who reports annually to the Directors on progress made in the year, as well as quarterly reporting to the Executive Committee. Our approach is proactive and precautionary and we engage only with Tier 1 suppliers. Export and sanctions compliance With the increasing complexity of international trade, the Group has enhanced its due diligence of customers and suppliers, which includes end-user declarations and export checks. Given the geopolitical volatility seen in recent years, the risk of the diversion of goods to higher risk countries or companies, or dual-use of products such as Hunting’s perforating product lines, the Group has increased its review and internal checking, improved training and awareness of these risks and continued to adopt adequate procedures to mitigate the risks in this area. Hunting avoids any form of sanctions risk and constantly reviews current laws and regulations applied by the EU, UK and US to ensure we remain compliant. The Group uses the services of third-party legal experts to ensure key contracts and tenders are reviewed from the perspective of sanctions risk. Whistleblowing The Group received three reports from the SafeCall system in the year (2023 – six reports) and an additional report outside of the SafeCall service. All SafeCall reports related to HR matters, which were investigated and resolved by Hunting’s Chief HR Ofﬁcer. All reports are reviewed by the Senior Independent Director, with a summary also reported to the Board, via the Ethics and Sustainability Committee. Hunting PLC Annual Report and Accounts 2024 77 Strategic Report Corporate Governance Financial Statements Other Information ESG and Sustainability continued Our commitments Operating safely We seek to achieve and maintain the highest standards of safety for our employees, contractors, customers, suppliers and the public. We constantly monitor the quality assurance and health and safety procedures across the Group. Supporting and developing our people We want to attract and retain a highly skilled workforce. We provide training and development to our employees to help them sustain and grow their careers. We promote diversity and workplaces that are free from prejudice. HR reports provide the information the Board needs to review key metrics relating to our people. Supporting communities around us We make a positive contribution to the communities in which we operate. Material issues Protecting the health and safety of our customers Protecting the health, safety and well-being of our employees Promoting and ensuring employee engagement SDGs Anti-bribery and corruption We endeavour to transact business in a transparent and fair manner, and to this end we have strong anti-bribery policies and training across the Group. The Directors have made clear that there is a zero tolerance to bribery, including not paying facilitation payments in any form, while working with public ofﬁcials in a transparent manner. During the year, the Group did not incur any bribery-related ﬁnes. It is also the Group’s policy not to make political or lobbying donations. Modern slavery Protecting our people from modern slavery and trafﬁcking is another area of focus for our human resources functions. We review all employment documentation to ensure we avoid trafﬁcking or forced labour and ensure pay is provided directly to the individual. Hunting’s Code of Conduct training includes a module on identifying those at risk of modern slavery and the procedures to follow. The Group’s central compliance function, overseen by Hunting’s Company Secretary manages anti-bribery and modern slavery compliance. Our people At 31 December 2024, the Group employed 2,367 people across our global operations (2023 – 2,420 people). Of these, 37% are employed in our North America operations, 22% at Hunting Titan, 16% in Asia Paciﬁc, 12% in EMEA, 9% at Subsea Technologies, and 4% in regional headquarters. Our people are at the heart of our business, and ensuring the safety, health and well-being of every person employed by the Company, or associated with our business, is a priority. We understand that people are essential to the development of our business and success as a company. People and society Looking after our people Hunting PLC Annual Report and Accounts 2024 78 Strategic Report Corporate Governance Financial Statements Other Information ESG and Sustainability continued Health and safety Our health, safety and environment (“HSE”) goals of “No Accidents, No Harm to People”, and “No Damage to the Environment” continues to drive our HSE agenda and support our pursuit of high standards of performance. Our HSE policy guides the way we work, putting safety ﬁrst. We place great emphasis on ingraining HSE best practice in our culture and employ rigorous health and safety practices. Our approach includes: • Regular audit and maintenance reviews of facilities; • Appropriate training and education of all staff; • Accreditation and alignment of long-standing internal programmes with internationally recognised standards; and • Regular reporting to the Board and Ethics and Sustainability Committee. Our Group Health, Safety and Environmental Global Manual is accredited to ISO 14001: Environmental Management System, and was compiled in accordance with the ISO 45001: Occupational Health and Safety Management System. This manual speciﬁes requirements for HSE training, the need for protective equipment, and procedures and practices associated with high-risk operations. As a minimum, we comply with local regulatory requirements, but we strive for more with each local business having a tailored health and safety policy to suit their particular working environment. To ensure both regulatory compliance and achievement of our own high internal standards, climate, noise and air quality testing is regularly completed at our operations. We are pleased to report that there were no fatalities in the Group during 2024 or 2023. Our target is also to achieve zero recordable incidents. While this was not achieved in 2024, our overall safety performance, as measured by the total recordable incident rate, was comparable to last year. Total recordable incident rate # 0.93 2024 2023 0.91 2022 0.97 Recordable incidents in 2024 rose to 25 (2023 – 24), while the total recordable incident rate increased slightly to 0.93 (2023 – 0.91). The number of hours worked increased from 5.3m hours in 2023 to 5.4m hours during the year. The average number of employees increased by 3% in the year, while the number of parts manufactured decreased from 23.0m to 15.6m, as volumes declined within our Perforating Systems business, partially offset by the increase in production of OCTG and Subsea orders, which require fewer parts, being completed in the year. Although the total recordable incident rate increased in the year, the Company is signiﬁcantly below the industry average of 4.0 (2023 – 4.0) as published by the US Bureau of Labor Statistics, and well below the Group’s long-range goal of 2.0 or less. There was a rise in employee near-miss incidents in 2024 from 71 in 2023 to 85, with a higher number of vehicle near-misses recorded, which translates into a total near-miss frequency rate of 3.15 (2023 – 2.69). Total near-miss frequency rate # 3.15 2024 2023 2.69 2022 2.79 All the incidents are investigated, rectiﬁcation processes are implemented where required, and learnings are utilised in safety training sessions, including in the weekly “Tool Box” sessions that each shop-ﬂoor member of staff attends where HSE messaging is reinforced. We place a great deal of emphasis on training and learning from incidents. We have a rigorous safety training curriculum in place, including an embedded Health and Safety training programme for all employees. In 2024, Hunting conducted a total of 68,834 hours (2023 – 48,013 hours) of HSE training, with each employee receiving, on average, 28 hours (2023 – 20 hours) of HSE training in the year. The Group’s SASB reporting includes vehicle incident data, with four vehicle incidents (2023 – nil) reported in the year. Through our internal HSE Management System, OnBase, processes, communication, training and reporting are now captured seamlessly within one application across the Group, helping to ensure that all operations are in compliance with local regulatory agencies. Using the OnBase system, we have been able to enhance the number of HSE measures that we report on, as shown on page 74. The Group also has an emergency response plan in place which is overseen by the Director of QAHSE. The plan incorporates disaster recovery, employee safety and quality assurance matters, in addition to IT plans. The Group’s ERP system is managed by the Chief IT Ofﬁcer, with input from the central ﬁnance function, with risks and controls overseen by the Head of Risk and separate Internal Control Manager. Regular training is arranged for IT matters. Attracting, retaining, and developing employees Our ability to successfully deliver on our objectives, and the reputation that we have built over many years, rests on the values and behaviours of our highly skilled and committed employees. We take diligent steps to comply with all relevant regional laws covering employment and minimum wage legislation. Recruiting, retention, training and development have been important areas of focus during the year. Competition for talent remains strong globally. Nonetheless, while ﬁnding talent may currently take longer than it has previously, Hunting continues to ﬁnd and place good candidates. We use voluntary turnover as a measure to understand the Company’s retention proﬁle. Immediately following the pandemic, the voluntary turnover increased but has reduced to more normal levels during 2024. Our voluntary turnover in the year was at 10.3%, (2023 – 13.5%). Hunting has a reputation for long service of its employees and the tenure of our employees is another good indicator of our positive work culture. The average tenure of an employee is currently nine years (2023 – nine years). We maintain this success through competitive compensation, excellent beneﬁts, and a commitment to a safe environment. Hunting PLC Annual Report and Accounts 2024 79 Strategic Report Corporate Governance Financial Statements Other Information ESG and Sustainability continued To retain our staff, we ensure that our employees are fairly remunerated. Given the competitive landscape of our industry, our base levels of pay are well above minimum wage thresholds. Employees are offered beneﬁts upon joining the Group, including healthcare cover, post-retirement beneﬁts and, in certain instances, participation in annual bonus arrangements. We are continuing to enhance the beneﬁts we offer, such as maternity and paternity leave. Our remuneration practices are highly consistent throughout the organisation, with short- and long-term incentives offered, the quantum of which depends on the employees’ level within the Group. During the year, some of our employees were selected from different business units across the globe, to participate in the Energy Workforce and Technology Council Executive Leadership programmes, which are designed to develop and enhance leadership skills as well as engagement in networking opportunities within the industry. Following the outcome of the 2023 engagement survey it was highlighted that there is a need for more recognition of employees, which is being achieved by focusing on leadership training and assisting managers on how to give good feedback and daily recognition. Additionally, we are placing our senior managers in a programme for executive leadership and our mid-level managers in an operations leadership programme. Code of Conduct, anti-harassment and discrimination, and unconscious bias training are also continuing to support our diversity and inclusion efforts. We are further committed to supporting all our employees, with training and development covering Health and Safety training, professional development, and general career development initiatives. Employee engagement Hunting places a great deal of emphasis on employee engagement, recognising that high levels of engagement are related to bottom line outcomes such as job performance, client satisfaction and ﬁnancial returns, while also improving employees’ own quality of life. During the year, the Board visited the Ameriport site, which enabled them to meet face-to-face with employees, and also learn about some of the R&D projects that are underway. In 2023, Hunting undertook an all-employee Gallup Q12 survey following the survey completed in 2019. A total of 1,866 employees responded to the survey, resulting in a participation rate of 83% (2019 – 80%). Both the engagement score and engagement index ratio (which deﬁnes engaged workers to actively disengaged workers) improved. Since 2019, we have increased our engagement activities through perception surveys and town hall meetings. In addition, engagement processes have been embedded within all business units to enhance transparent two-way dialogue between the Board and the Group’s employees. Another important result from the survey is the employee engagement ratio of engaged workers versus actively disengaged workers. Hunting’s Engagement Index Ratio was 3.5:1, which means there are 3.5 engaged employees for each actively disengaged employee. This is again an improvement from our 2019 result of 2.25:1. An optimal ratio and our goal for future surveys is a ratio of 4:1. We encourage our employees to engage in dialogue with management to raise issues of concern. These procedures are supported by an independent reporting service operated by SafeCall, where conﬁdential matters can be raised with the Board. Diversity and inclusion Hunting prides itself on being a fair and responsible employer. We are committed to creating a positive workplace environment for all our employees, one that is safe, respectful, fair and inclusive, and free from any form of harassment, bullying, or discrimination. Furthermore, we actively seek to increase the diversity of our workforce through recruitment, training and development, and conditions of work. The Group’s ethics policies support equal employment opportunities across all of Hunting’s operations. As a responsible employer, Hunting gives full and fair consideration to applications from disabled persons. Hunting’s Gender Diversity Policy commits us to: • An embedded culture of equal opportunities for all employees, regardless of gender; • Require external recruitment consultants to submit their diversity policies to the Group prior to appointment; • Ensure that external consultants appointed by Hunting provide the Board with shortlists comprising an appropriate gender balance; and • A periodic review by the Nomination Committee of its progress in complying with best practice recommendations. Community engagement and support Hunting continues to engage with and support the communities located around our operations through a wide range of activities, including fund-raising events or community donations. Each region is encouraged to develop their own community engagement initiatives to align with local cultural practices as well as Hunting’s corporate values. Examples of this approach include: • Our long-standing relationship with three orphanages in Batam, the largest city in the province of Riau Islands in Indonesia. • Teams from Singapore, China, and Indonesia organised various events to celebrate International Women’s Day, including team building exercises, speakers, activities, and workshops, which addressed several topics including diversity and equality in the workplace. • Hunting’s World Heart Day campaign focused on raising heart health awareness across our locations in Singapore, Indonesia, and Wuxi, China. The campaign featured various engaging activities, including health-focused workshops and knowledge-sharing sessions. These efforts enable employees to take proactive steps towards improving their cardiovascular health and foster a collective commitment to well-being. • In the US, during Breast Cancer Awareness month, through the generosity of our employees, $8,000 was raised to support individuals with breast cancer. With these funds, we delivered 100 Chemo Care Baskets, and also donated to the Cancer Resource Center to support their vital programmes. We hosted a lunch for the dedicated staff who work tirelessly. • A new internship programme was introduced by Subsea in the US, which we anticipate rolling out to other businesses. Further details on this initiative can be found on page 33. Hunting PLC Annual Report and Accounts 2024 80 Strategic Report Corporate Governance Financial Statements Other Information ESG and Sustainability continued Responsible products Delivering high-quality products and services Our commitment Delivering high-quality products and services We meet with customers and pre-empt their needs as well as the environments in which we both operate, through innovation, customisation and the highest levels of quality control. We monitor the Group’s interaction with customers, with a risk analysis being completed in the year. Material issues Ensuring the quality consistency of our products Transition to and growth of business in less carbon-intensive sectors Promoting innovation to develop new products and applications Being responsive to the needs of our customers and market SDGs Reliable and sustainable products Our purpose is to be a highly trusted innovator and manufacturer of technology and products that create sustainable value for our stakeholders. Our customers rely on us to meet and even pre-empt their needs, consistently, reliably and sustainably. We recognise that achieving this requires both innovation and trust, which, in turn, is delivered through consistent quality delivery. A critical part of the customer engagement strategy is to use our core competencies in systems manufacture, precision engineering and print-part manufacturing to deliver innovative solutions in existing and new markets. Focus on quality Our Quality Management System (“QMS”) underpins every aspect of our business. Certain minimum requirements are mandated at a Group level, with site and product-speciﬁc quality measures in place across all of our manufacturing facilities. Our QMS encompasses procedure speciﬁcation, job descriptions, and work processes. It states how we control every aspect of a product, from risk assessment to engineering changes and design to new product delivery. Every product is logged and tracked, and its journey can be audited. The Group’s internal manufacturing reject rate was 0.31% (2023 – 0.20%) and the percentage of goods shipped that were returned by customers was 0.0006% (2023 – 0.0006%). Technology development While Hunting has access to a very wide range of technologies and products, whose applications continue to expand, we know that technology development is an important foundation of our business. Hunting’s TEK-HUB™ is an innovative company-customer partnership that seeks to attract individuals and companies in co-developing and accelerating the commercialisation of new technologies. Hunting also has a number of strategic partnerships, with companies such as Jiuli and CRA-Tubulars, which support bringing products for the energy transition sector to market. By collaborating with technology developers, we are able to deliver a range of beneﬁts, including reducing the time frames required to deliver technologies to market and into the ﬁeld; and avoiding duplication of effort, resulting in signiﬁcant ﬁnancial, time and opportunity cost and energy/CO 2 savings, which frees up resources to solve new problems. For developers, the beneﬁts of partnering with Hunting are signiﬁcant, including access to capital, an international presence and an established and extensive customer base. Hunting PLC Annual Report and Accounts 2024 81 Strategic Report Corporate Governance Financial Statements Other Information ESG and Sustainability continued The environment Expanding our data collection to drive down emissions Our commitment Managing our environmental performance and mitigating our impacts We aim to protect and minimise our impact on the environment in which we operate, and where our products are used. We support the responsible transition to a low carbon economy by setting and achieving emissions reduction targets, mitigating climate-related risks, and transitioning our business to less carbon intensive sectors. These targets are amended and updated where necessary. Material issues Ensuring environmental compliance and good practice (emissions, water, waste) Pursuing the responsible transition to and growth of our business in less carbon-intensive sectors SDGs Our comprehensive and integrated approach to quality, safety, health and environmental management and compliance is underpinned by our sound enterprise risk management framework. This supports our aim to ensure compliance with all environmental regulation in the regions in which we operate. We are committed to the efﬁcient use of natural resources, such as energy, water and raw materials, and to reducing our overall environmental footprint. The Group’s Quality Management System is aligned with the globally recognised ISO 14001 (Environmental management systems) standard and the ISO 50001:2018 (Energy management systems) standard. In 2024, 76% (2023 – 78%) of facilities complied with ISO 9001:2015 (Quality management systems) and 68% (2023 – 40%) of facilities complied with ISO 14001:2015. Climate change At Hunting, we support a science-based approach to climate change and recognise that responsible companies have a role to play in mitigating our contribution to climate change and its impact on business and society. The Hunting Board has committed to the principles published in the 2015 Paris Agreement, which aims to limit the increase in global warming to below 2°C and to pursue efforts to limit the increase to 1.5°C. Our Climate Policy was updated in January 2023, and is available at www.huntingplc.com. Having adopted and progressed our TCFD reporting, additional strong governance and reporting initiatives have been put in place to further support our commitment to addressing and mitigating our impact on climate change, as well as the impact of climate change on our business in the short, medium and long term. Our TCFD reporting is available on pages 88 to 101. These disclosures also comply with the UK’s climate-related ﬁnancial disclosures (UKCFD). We seek to manage our climate-related impact by setting and achieving emissions reductions, and mitigating climate-related risks. While Hunting’s businesses have historically operated in the oil and gas sector, the Group is deliberately seeking to transition to lower carbon products and services. We are committed to pursuing energy transition opportunities as well as diversifying revenue sources to include further non-oil and gas sales. Hunting PLC Annual Report and Accounts 2024 82 Strategic Report Corporate Governance Financial Statements Other Information ESG and Sustainability continued Measuring our greenhouse gas emissions and setting targets Hunting has disclosed its scope 1 and 2 GHG emissions since 2013, in accordance with the principles of the Kyoto Protocol. We report our emissions, based on operational control, in line with the recommendations published by the World Resources Institute. The process for the reporting of these emissions is integrated into our non-ﬁnancial reporting framework. As our scope 1 and 2 emissions are within our control, our aim is to reduce them as a priority. Our progress to date is as follows: • In 2022, the Board approved a target to reduce our GHG emissions by 50% by 2030, from levels reported in 2019, the baseline year. This equates to a target of 17,937 tonnes in total scope 1 and 2 emissions by the end of the decade; • The Group continues to drive an intensity factor of less than 20 (calculated as total scope 1 and 2 emissions divided by revenue); • In 2023, we assured our 2022 scope 1 and 2 GHG emissions data using S&P Global; • In 2024, we appointed the Carbon Trust to assure our scope 1 and scope 2 GHG emissions data. This assurance has been completed against ISO 14064-3; and • Following completion of the reporting of Hunting Titan’s scope 3 GHG emission inventories in 2023, scope 3 reporting for 2024 was extended to the Group’s Subsea Technologies, EMEA and Asia Paciﬁc operating segments. This will enable the Group to develop and publish a credible Net Zero plan by 2027. Our scope 1 and 2 carbon footprint To reduce our scope 1 and 2 emissions footprint, we aim to improve our energy efﬁciency and, at the same time, increase the contribution of renewables to our energy mix. Importantly, we aim to introduce a “low carbon” culture within our operating facilities and among our employees. Our energy efﬁciency is mainly improved by (1) making production more efﬁcient, such as through new equipment and zero emissions vehicles; (2) building new facilities incorporating energy efﬁciency measures or enhancing existing facilities, such as by adding solar panels; and (3) closing facilities that are no longer considered viable, such as in Hunting Titan during the year. The construction of the new facility in Dubai has taken into account environmental considerations to meet the Group’s ambitions for a sustainable operating site, which aims to be a highly efﬁcient facility. In the US, where most of the Group’s facilities are located, wind generation capacity is substantial, giving the Board conﬁdence that a large proportion of our carbon footprint (predominantly scope 2 electricity usage) can be substantially eliminated by moving to renewable energy. In the UK, the Group’s Aberdeen and London operations have secured renewable energy supplies. The Group also participates in several initiatives, including the Energy Saving Opportunity Scheme, which requires Hunting’s UK facilities to be audited for energy efﬁciency, with recommendations provided to reduce energy usage. Total purchased electricity GWh 50.2 2024 2023 49.4 2022 43.4 In 2024, our total electricity usage was 50.2GWh (2023 – 49.4GWh). The 2% increase in electricity usage was lower than the Group’s 13% increase in revenue in the year. Of the total ﬁgure, total renewable electricity purchased was 10.5GWh, (2023 – 11.4GWh), or 21% of electricity purchased (2023 – 23%), a slight reduction over 2023. Renewable electricity purchased GWh 10.5 2024 2023 11.4 2022 8.7 The data reported and the carbon dioxide conversion factors used to report the Group’s carbon footprint, are based on those published by the International Energy Agency, and BEIS and DESNZ in the UK (www.gov.uk). Total scope 1 and 2 emissions tonnes CO 2 e 22,233 2024 2023 22,599 2022 22,422 The Group’s total scope 1 and 2 emissions in 2024 were 22,233 tonnes CO 2 e (2023 – 22,599 tonnes CO 2 e, restated), representing a 2% decrease, despite the increase in revenue, as the number of parts manufactured reduced from 23.0m to 15.6m. We continue to submit yearly to the Carbon Disclosure Project and our latest submission is available at www.cdp. net. The Group’s CO 2 e intensity factor decreased from 24.3kg/$k of revenue (restated) to 21.2kg/$k of revenue in the year, see below. In the UK, total scope 1 and 2 emissions were 733 tonnes CO 2 e (2023 – 787 tonnes CO 2 e). 2013 2019 2021 2022 2023 2024 2025 2026 2027 Began scope 1 and 2 GHG emissions reporting. Publication of maiden carbon reduction and intensity targets. Initial TCFD disclosures published. Publication of enhanced TCFD disclosures. Commenced carbon assurance against AA1000 standard with S&P Global. Maiden scope 3 GHG reporting, based on Hunting Titan operating segment data. Completed 2022 scope 1 and scope 2 assurance. Expansion of scope 3 reporting and full compliance with TCFD. Completed 2023 scope 1 and 2 assurance against ISO-14064-3. Complete roll out of scope 3 GHG data collection. Full scope 1, 2 and 3 reporting. Development of Net Zero plan. Proposed publication of Net Zero Plan. Hunting PLC Annual Report and Accounts 2024 83 Strategic Report Corporate Governance Financial Statements Other Information ESG and Sustainability continued Our scope 3 carbon footprint In 2024, the Group collected scope 3 data from four of our ﬁve operating segments, which include the Hunting Titan, Subsea Technologies, EMEA and Asia Paciﬁc operating segments. Working with a third-party expert, the Group has been able to gather data on 11 of the 15 pillars of scope 3 inventories including: purchased goods and services, product and non-product; fuel and energy-related activities; upstream transportation and distribution; and business travel. Four pillars were determined not to be relevant to the business proﬁle: upstream leased assets; downstream transportation and distribution; processing of sold products; and franchises. Emissions from the investments pillar have been included within our scope 1 and 2 emissions and have, therefore, been excluded from the scope 3 reporting. Based on these ten reported pillars, scope 3 inventories were calculated to be 351,446 tonnes CO 2 e, for the in-scope operating segments, with our process detailed in the case study on page 73. As the scope 3 emissions are derived from materials purchased, the result above has been extrapolated by Hunting to obtain a Group scope 3 inventory based on the relative proportions of cost of sales of the four in-scope operating segments to the Group total, as this is considered to be a reasonable proxy for materials purchased. The Group’s total scope 3 inventory has been calculated to be 534,835 tonnes CO 2 e on this basis. This compares with the estimated emissions of 353,346 tonnes CO 2 e in 2023. The estimated total Group scope 1, 2 and 3 emissions for 2024 were, therefore, 557,068 tonnes CO 2 e (2023 – 375,945 tonnes CO 2 e), with the increase largely due to the rise in raw material steel purchases in Asia Paciﬁc for its large orders. Management will be extending this assessment exercise to include the North America operating segment in 2025, which will complete the Group’s scope 3 footprint. As part of this project, further work is planned to broaden the number of reporting pillars of scope 3 emissions being assessed. Carbon intensity factor Hunting’s CO 2 e intensity factor is based on total carbon dioxide equivalent emissions divided by Group revenue. In 2024, this was 21.2kg/$k of revenue (2023 – 24.3kg/$k of revenue). Despite the increase in activity in the year, our scope 1 and 2 GHG emissions reduced by 2%, with the carbon intensity factor reducing by 13%, demonstrating that the Group is more energy efﬁcient. This is based on our scope 1 and 2 CO 2 e tonnage only. In March 2025, the Group announced a revised carbon intensity factor target for 2030 of 20kg/$k of revenue to further encourage a reduction in our emissions. CO 2 e intensity factor kg/$k of revenue 21.2 2024 2023 24.3 2022 30.9 Climate change impact and transition Hunting is currently transforming its business model to pursue opportunities in a lower carbon economy in response to, and to mitigate, climate change. Currently, around $75.1m or 7% (2023 – $75.9m or 8%) of our revenue contribution is from non-oil and gas sectors, and this is set to steadily increase in the years to come. Our efforts to align our business model to take into account and pre-empt this transition and the opportunities that this potential for diversiﬁcation has for the business, are described in our Climate Change statement on page 82. An integral part of our risk management approach ensures that all new facilities take into account environmental impact considerations. Water management Hunting has a number of water supplies, some provided by utility networks and some from boreholes drilled at certain locations. We recognise that water is a valuable and sometimes scarce resource in some areas in which we operate. While Hunting is not considered to be a signiﬁcant water user, we are mindful of the need to actively reduce our freshwater consumption, to reuse/recycle water as far as possible, and to ensure that no contaminated water is discharged into any water source. Any water contaminated during industrial activities is collected and treated or contained as special waste. Our intention is to recycle as much as we are able to internally or facilitate treatment and recycling off site. We are mindful of the potential impact on our facilities of extreme weather events, and ensure that any run-off from our facilities is captured and contained, prior to treatment, through secondary containment measures. A feature of all new and planned facilities is the likely impact of severe storms. In 2024, freshwater consumption was 90,411m 3 (2023 – 91,746m 3 ), a decrease of 1% as overall activity levels in EMEA reduced in the year. Water consumption thousand m 3 90 2024 2023 92 2022 58 Water consumption for 2022 and 2023 has been restated following a correction for the conversion to cubic metres within one business unit. Waste management and recycling We are conscious of the need to responsibly source and consume materials, to increase and optimise reuse and recycle, and to responsibly dispose of waste. All our operations have recycling programmes in place and recycling data is collated for metal, wood and plastics. Our industrial waste is largely in the form of liquid waste streams. We continue to explore ways of reusing chemicals and materials. For example, we have introduced a mechanism to capture and reuse cutting ﬂuids in the year, that not only limits this waste stream, but is also cost-effective. Where a waste stream is unavoidable, we dispose of this responsibly using appropriately vetted suppliers. We take the view that we are responsible for materials throughout their life cycles. Hunting’s joint venture manufacturing facility in Nashik, India, is aiming to be entirely waste free. The JV facility produces and supplies pipes, tubes and premium connections. Metal recycling tonnes 2,967 2024 2023 2,827 2022 2,032 Wood recycling tonnes 85 2024 2023 75 2022 41 Plastic recycling tonnes 30 2024 2023 23 2022 10 Hunting PLC Annual Report and Accounts 2024 84 Strategic Report Corporate Governance Financial Statements Other Information ESG and Sustainability continued Annual energy summary Units 2024 2023 2022 2021 2020 2019 baseline year Energy type Natural gas – Group GWh 7.3 7.2 7.9 8.5 13.7 17.8 Natural gas – UK GWh 0.9 0.8 0.8 0.9 2.6 4.2 Vehicle consumption and process emissions – Group tonnes CO 2 e 1,584 2,132 3,367 2,491 3,338 2,972 Vehicle consumption and process emissions – UK tonnes CO 2 e 95 76 76 28 34 60 Electricity purchased – Group GWh 50.2 49.4 43.4 40.5 48.6 55.7 Electricity purchased – UK GWh 1.1 1.7 0.5 1.4 1.4 1.6 Renewable electricity purchased – Group GWh 10.5 11.4 8.7 6.5 5.8 2.1 Renewable electricity purchased – UK GWh 1.1 1.7 0.5 0.3 0.4 0.5 Greenhouse gas emissions Scope 1 ** tonnes CO 2 e 3,630 4,169 5,778 4,171 6,605 7,100 Scope 2 *** tonnes CO 2 e 18,603 18,430 16,644 14,688 18,811 28,774 Total scope 1 and 2 tonnes CO 2 e 22,233 22,599 22,422 18,859 25,416 35,874 Scope 3 tonnes CO 2 e 534,835 353,346 277,143 n/a n/a n/a Total scope 1, 2 and 3 tonnes CO 2 e 557,068 375,945 299,565 n/a n/a n/a CO 2 e intensity factor (based on scope 1 and 2 emissions only) kilograms per $k revenue 21.2 24.3 30.9 36.2 40.6 37.4 Water consumption thousand cubic metres 90 92 58 69 257 319 * Following an internal review of our carbon data collection methods, double counting was found in two business units and therefore the 2023 ﬁgure has been restated to reﬂect this. ** Total scope 1 greenhouse gas emissions include UK scope 1 emissions of 498 tonnes CO 2 e (2023 – 441 tonnes CO 2 e). *** Total scope 2 greenhouse gas emissions include UK scope 2 emissions of 235 tonnes CO 2 e (2023 – 346 tonnes CO 2 e). Hunting PLC Annual Report and Accounts 2024 85 Strategic Report Corporate Governance Financial Statements Other Information ESG and Sustainability continued Sustainability Accounting Standards Board information Oil & Gas – Services Topic Accounting metric SASB code Reported by Hunting Section Page navigation Emissions Reduction Services & Fuel Management Total fuel consumed, percentage renewable, percentage used in: (1) on-road equipment and vehicles; and (2) off-road equipment. EM-SV-110a.1 Yes Environment 85 Discussion of strategy or plans to address air emissions-related risks, opportunities, and impacts. EM-SV-110a.1 Yes Task Force on Climate-related Financial Disclosures 88 to 101 Percentage of engines in service that meet Tier 4 compliance for non-road diesel engine emissions. EM-SV-110a.3 n/a n/a n/a Water Management Services (1) Total volume of fresh water handled in operations; and (2) percentage recycled. EM-SV-140a.1 Yes Water management 84 Discussion of strategy or plans to address water consumption and disposal-related risks, opportunities and impacts. EM-SV-140a.2 Yes Water management 84 Chemicals Management Volume of hydraulic fracturing ﬂuid used, percentage hazardous. EM-SV-150a.1 n/a n/a n/a Discussion of strategy or plans to address chemical-related risks, opportunities and impacts. EM-SV-150a.2 Yes Waste management and recycling 84 Ecological Impact Management Average disturbed acreage per: (1) oil; and (2) gas well site. EM-SV-160a.1 n/a n/a n/a Discussion of strategy or plan to address risks and opportunities related to ecological impacts from core activities. EM-SV-160a.2 n/a n/a n/a Workforce Health & Safety (1) Total recordable incident rate; (2) fatality rate; (3) near-miss frequency rate; (4) total vehicle incident rate; and (5) average hours of health, safety and emergency response training for: (a) full-time employees; (b) contract employees; and (c) short-service employees. EM-SV-320a.1 Yes Yes Yes n/a Yes Health and safety Health and safety Health and safety n/a Health and safety 79 79 79 n/a 79 Description of management systems used to integrate a culture of safety throughout the value chain and project life cycle. EM-SV-320a.2 Yes Training Health and safety 27 and 79 27 and 79 Business Ethics & Payments Transparency Amount of net revenue in countries that have the 20 lowest rankings in Transparency International’s Corruption Perception Index. EM-SV-510a.1 n/a n/a n/a Description of the management system for prevention of corruption and bribery throughout the value chain. EM-SV-510a.2 Yes Anti-bribery and corruption (“ABC”) 29 and 78 No political or lobbying donations were made. EM-SV-510a.2 Yes Anti-bribery and corruption (“ABC”) 78 and 169 Management of the Legal & Regulatory Environment Discussion of corporate positions related to government regulations and/or policy proposals that address environmental and social factors affecting the industry. EM-SV-530a.1 Yes Business model 20 to 32 Critical Incident Risk Management Description of management systems used to identify and mitigate catastrophic and tail-end risks. EM-SV-540a.1 n/a n/a n/a Hunting PLC Annual Report and Accounts 2024 86 Strategic Report Corporate Governance Financial Statements Other Information ESG and Sustainability continued Oil & Gas – Services: metrics Activity metric SASB code Reported by Hunting Section Page navigation Number of active rig sites EM-SV-000.A n/a n/a n/a Number of active well sites EM-SV-000.B n/a n/a n/a Total amount of drilling performed EM-SV-000.C n/a n/a n/a Total number of hours worked by all employees EM-SV-000.D Yes Health and safety 79 Industrial Machinery & Equipment Topic Accounting metric SASB code Reported by Hunting Section Page navigation Energy Management (1) Total energy consumed; (2) percentage grid electricity; and (3) percentage renewable. RT-IG-130a.1 Yes Yes Yes Annual energy summary Annual energy summary Annual energy summary 85 Employee Health & Safety (1) Total recordable incident rate; (2) fatality rate; and (3) near-miss frequency rate. RT-IG-320a.1 Yes Yes Yes Health and safety Health and safety Health and safety 79 79 79 Fuel Economy & Emissions in Use-phase Sales-weighted ﬂeet fuel efﬁciency for medium- and heavy-duty vehicles. RT-IG-410a.1 n/a n/a n/a Sales-weighted fuel efﬁciency for non-road equipment. RT-IG-410a.2 n/a n/a n/a Sales-weighted fuel efﬁciency for stationary generators. RT-IG-410a.3 n/a n/a n/a Sales-weighted emissions of: (1) nitrogen oxides (NOx); and (2) particulate matter (PM) for: (a) marine diesel engines; (b) locomotive diesel engines; (c) on-road medium- and heavy-duty engines; and (d) other non-road diesel engines. RT-IG-410a.4 n/a n/a n/a Industrial Machinery & Equipment: metrics Activity metric SASB code Reported by Hunting Section Page navigation Number of units produced by product category RT-IG-000.A n/a n/a n/a Number of employees RT-IG-000.B Yes Employees Our people 27 78 Hunting PLC Annual Report and Accounts 2024 87 Strategic Report Corporate Governance Financial Statements Other Information Task Force on Climate-related Financial Disclosures (“TCFD”) 2024 has seen further expansion of carbon emissions data collection, with four of the Group’s ﬁve operating segments reporting scope 3 emissions inventories. We have updated our physical risk analysis with the assistance of a third-party expert and increased our ﬁnancial impact analysis. Based on these reporting enhancements, Hunting is now fully compliant with all TCFD reporting requirements. Compliance Under the FCA’s UK Listing Rule 6.6.6R(8) for companies with the listing of equity shares in the Equity Shares Commercial Companies category, Hunting is required to report on a “comply or explain” basis against the TCFD Recommendations and Recommended Disclosures in respect of the ﬁnancial year ended 31 December 2024. The climate-related ﬁnancial disclosures, which follow, are consistent with the four reporting pillars contained within the TCFD Recommended Disclosures, being: (i) Governance (page 90); (ii) Strategy (pages 91 to 99); (iii) Risk Management (pages 99 and 100); and (iv) Metrics and Targets (pages 100 and 101). The Directors consider Hunting to be fully compliant with UK Listing Rule 6.6.6R(8), following enhancements to its reporting procedures completed during 2024, as well as the climate-related ﬁnancial disclosures required by sections 414CA and 414CB(2A)-(2H) of the Companies Act 2006. Climate policy In 2020, the Directors approved a Climate Policy (located at www.huntingplc.com), which commits the Board to Group-level monitoring of climate related opportunities and risks. This Policy acknowledges the goal to limit global warming to 1.5°C above pre-industrial levels in line with the 2015 Paris Accord and commits the Group to assisting in the delivery of this ambition through a reduction in its global carbon footprint. Progress in Hunting 2030 Strategy In 2023, the Board of Hunting announced the Hunting 2030 Strategy, which commits to the development of revenue from the energy transition sector, including low carbon geothermal and carbon capture projects, and non-oil and gas end-markets. In 2024, the Group announced the commercialisation of its licensed Organic Oil Recovery technology, with c.$60m of contracts announced with clients in the North Sea. This technology enhances production of brownﬁeld sites of oil and gas and has the potential to curtail the number of greenﬁeld developments. To increase the Group’s long-term sustainability investment proﬁle, Hunting is now targeting 25% of total revenue to be derived from non-oil and gas sources by 2030 as announced at our Capital Markets Day in September 2023. This is targeted at reducing the cyclicality of the Group’s revenue and proﬁt proﬁle, to ensure Hunting remains an investable business through the energy cycle. For more information on the Hunting 2030 Strategy please see pages 10 to 16. Risk management To capture potential climate change risks, the Group rolls out an annual climate change risk management survey to all businesses. The survey explores the impact of climate change on the long-term outlook of each business unit, using the “business as usual” and “1.5°C” global warming scenarios. The survey captures the risk proﬁle of the proposed pivot to lower oil and gas-related sales, in addition to the physical risks associated with Hunting’s asset base. The risk assessment presented on pages 92 to 96 incorporates these disclosures and also reﬂects the ﬁnancial impact of these risks in the short, medium and long term. The Group has further developed its ﬁnancial model, which analyses the carrying values of the assets held by each business and provides a perspective on the ﬁnancial impact of each business unit based on these climate scenarios. Metrics and targets The Directors of Hunting announced new greenhouse gas (“GHG”) emissions reduction targets in 2023, which include a reduction of scope 1 and 2 emissions to 50% of the baseline year of 2019 by 2030. In March 2025, the Company set a new long-term emissions intensity target of 20kg/$k of revenue or less, based on the Group’s scope 1 and 2 emissions to revenue ratio. Our intensity factor is calculated using our total scope 1 and 2 greenhouse gas emissions in kilogrammes divided by our total revenue in $’000. Carbon data collection and assurance The Group assured its 2023 scope 1 and 2 carbon emissions data in 2024, aligning with the ISO 14064-3 standard, a more stringent standard to report against, demonstrating the commitment by the Directors to enhance its procedures. The Group elected to use a different third-party expert from last year to provide this assurance, with no material issues identiﬁed. Hunting PLC Annual Report and Accounts 2024 88 Strategic Report Corporate Governance Financial Statements Other Information Task Force on Climate-related Financial Disclosures (“TCFD”) continued Scope 3 emissions reporting Hunting appointed the Carbon Trust to assist in determining scope 3 emissions inventories for its Hunting Titan, Subsea Technologies, EMEA, and Asia Paciﬁc operating segments in 2024. This data was used by Hunting to extrapolate a total 2024 scope 3 emissions data point for the Group. Please refer to the case study on page 73 for further details. These four operating segments account for c.53% of the Group’s scope 1 and 2 GHG emissions, providing a signiﬁcant level of coverage for the extrapolation of the Group’s scope 3 footprint. Management has taken the scope 3 data for the nine months to 30 September 2024 for these four operating segments and scaled this to a 12-month period to arrive at a total for these operating segments. The total was then extrapolated using the relative cost of sales amount for 2024 for all ﬁve operating segments to determine the Group’s total scope 3 footprint. The Carbon Trust was appointed to assist in the data collection work and provide support to the conversion of the data into scope 3 emissions for each of the pillars reported. In 2025, all of the Group’s operating segments will be included in the data collection process. New physical risk assessment In 2021, the Group appointed WillisTowersWatson (“WTW”) to assess the physical risk proﬁle of Hunting’s global asset base. This process was repeated in 2024, as climate models were evolved, coupled with the changing proﬁle of Hunting’s asset base, as new facilities were opened and others consolidated or divested. The report from WTW was reviewed by the Ethics and Sustainability Committee in December 2024, which summarised the updated risk proﬁle for the Group, reported under three climate scenarios: (i) RCP2.6 or a 1.5°C scenario; (ii) RCP4.5 or a 2.0 – 3.0°C scenario; and (iii) RCP8.5 or a 4.0°C scenario. The timescales applied were 2030, 2050 and 2100 in the completed analysis. Fourteen climate/ natural hazards were assessed, including: river ﬂood, sea level rise, heavy precipitation, heat stress, drought stress, ﬁre weather stress, tropical cyclone, extratropical cyclone, hailstorm, lightning, coastal ﬂood, tornado, wildﬁre, and ﬂash ﬂoods. The analysis has concluded the following risk proﬁle for the Group based on the current climate: • 79% of Hunting’s total insured asset base is exposed to material heat stress (2021 – 74%); • 47% of our asset base is exposed to drought stress (2021 – 10%); • 29% is exposed to ﬁre stress (2021 – 22%); • 71% is exposed to material precipitation risk (2021 – 70%); and • 33% of our asset base is exposed to material tropical storms (2021 – 9%). In the 2050 RCP8.5 scenario, the above values change to: • 80% of Hunting’s total insured asset base is exposed to material heat stress; • 67% of our asset base is exposed to drought stress; • 62% is exposed to ﬁre stress; • 84% is exposed to material precipitation risk; and • 33% of our asset base is exposed to material tropical storms. The Directors, therefore, noted that for Hunting the key climate/natural hazards are drought stress, ﬁre stress, and tropical cyclones under the more aggressive climate change scenario, as analysed by WTW. The geographic split of our asset base is shown in the chart on the right, which highlights that approximately 81% of the Group’s assets are located in North America, with the balance mostly located in Europe and Asia Paciﬁc. Geographic split of asset base % Climate exposure of asset base by weather event – under RCP8.5 (4.0°C) climate scenario Extratropical Cyclone River Flood Sea Level Rise Heat Fire Tropical Cyclone Drought Precipitation 60% 100% 90% 80% 70% 50% 40% 30% 20% 10% 0% Percentage Source: WillisTowersWatson 81 8 11 North America EMEA Asia Paciﬁc 2024 2030 2050 2100 Hunting PLC Annual Report and Accounts 2024 89 Strategic Report Corporate Governance Financial Statements Other Information Ethics and Sustainability Committee Hunting Executive Committee Remuneration Committee TCFD Working Group Audit and Risk Committee ESG Steering Group Nomination Committee Hunting PLC Board Climate governance framework Task Force on Climate-related Financial Disclosures (“TCFD”) continued Governance The Board of Hunting has put in place a robust climate-related governance framework to oversee and deliver on its objectives going forward. This governance framework is summarised below. Disclosure (a) – Board oversight The Chief Executive has been charged with oversight and responsibility for all TCFD matters. Since 2020, the Board has been briefed by the Group’s central compliance and ﬁnance functions on TCFD reporting requirements and the workstreams underway across the Group to assess compliance. This includes evaluation of the transition and physical risks facing the Group and the opportunities climate change presents to the Company. Climate change perspectives and strategic initiatives, including the pursuit of energy transition opportunities as well as the pivot of revenue to more non-oil and gas sales, are therefore included in the Board’s strategic planning discussions, which include merger and acquisition opportunities being considered. In 2024, the Company appointed WTW to assist in the reassessment of the Group’s physical risk proﬁle, based on the location of its current and non-current assets. This exercise will be repeated in 2027. The Board maintains an Ethics and Sustainability Committee to monitor Hunting’s overall governance and reporting framework in the area of climate change and wider ESG issues. The Ethics and Sustainability Committee comprises the non-executive Directors of the Company, excluding the Company Chair, (pages 116 and 117) and is chaired by Dr Margaret Amos. The Committee meets twice a year, with carbon, climate and TCFD matters being regular agenda items. This Committee also monitors, on behalf of the Board, Hunting’s progress against its current emissions reduction targets. All members of the Board attend each meeting of this Committee, with its activities and actions completed during the year detailed on pages 133 to 135. While the Ethics and Sustainability Committee reviews these important non-ﬁnancial matters, the Audit and Risk Committee retains key oversight of Hunting’s public disclosures in these areas, including the information contained in its Annual Report and other Stock Exchange announcements and the evaluation of the risk proﬁle of the Group in respect of climate change. Further, the Audit and Risk Committee reviews the TCFD reporting, which includes the climate- related risk assessment prepared by the Group’s central ﬁnance function. Disclosure (b) – Management’s role in assessing climate risks and opportunities Members of the Group’s senior leadership team including the Group Company Secretary, Chief HR Ofﬁcer, General Counsel and Director of QAHSE are invited to meetings of the Ethics and Sustainability Committee. These managers, in turn, are supported by the Hunting Executive Committee; a formal ESG internal steering group comprising operational and ﬁnance staff; and a TCFD steering group, the latter being charged with developing formal reporting and new strategies to curtail the Group’s carbon footprint, to reduce its impact on the environment and to provide direction on Hunting’s sustainability ambitions. The responsibility of managing climate risks is vested in the Executive Committee, which comprises the senior operational leaders of the Company. The Group’s central compliance function oversees TCFD external reporting and compliance matters and works with the Executive Committee to develop the Company’s climate-related objectives. Management completed a Group-level and business unit-level climate risk register, which is detailed on pages 92 to 96. As part of this process, strategic opportunities were considered by each business unit, which formed part of the Group’s wider plan to pivot revenue to more non-oil and gas revenue and the new market opportunities that underpin this strategy. For more information on the Group’s wider governance framework, please refer to the Corporate Governance Report on pages 119 to 130. Hunting PLC Annual Report and Accounts 2024 90 Strategic Report Corporate Governance Financial Statements Other Information Base Case Scenario Pledges Scenario Net Zero Scenario 2000 2010 2020 2030 2040 2050 120 100 80 60 20 40 0 millions of bopd Task Force on Climate-related Financial Disclosures (“TCFD”) continued Strategy Disclosure (a) – Description of risks and opportunities over the short, medium and long term Disclosure (b) – The impact of climate-related risks and opportunities Hunting has not presented risks and opportunities based on the geographic split of its global operations or by the various industry sectors where it sells products and services, as recommended by part (a) of Strategy. Hunting is a global energy services group focused largely on the oil and gas industry and, therefore, each of its global operating segments are faced with the same climate change risks and opportunities. The physical and chronic risk assessment highlights the proﬁle of the Group’s asset base by region and presents a detailed risk assessment of the Group’s total asset base. Non-oil and gas revenue was c.7% of the Group’s total sales in 2024 and therefore remains at a level which is not sufﬁciently material to analyse as a separate sector or geography. The opportunity to transition to non-oil and gas-related sales exists in all operating segments across the Group, but notably in the North America, EMEA and Asia Paciﬁc operating segments, which currently represent all of the Group’s non-oil and gas revenue, and in the segments with high proportions of OCTG-related revenue. As such, the non-oil and gas segment of Hunting’s revenue proﬁle is not a separate business unit. Therefore, the Board believes that the geographical/sectoral split approach to climate change analysis is not relevant to Hunting. Climate scenarios for evaluating transition risks and opportunities The Group uses three scenarios to evaluate transition risks and opportunities: • Business as usual scenario (aligned to 2.5°C warming) – evolution of current policies and a steady advancement of current and nascent technologies; • Middle case scenario (aligned to 2.0°C warming) – global Net Zero achieved by 2060, which incorporates policy response to the current energy crisis as well as decarbonisation commitments, but not as swift as under the rapid transition scenario; and • Rapid transition scenario (aligned to 1.5°C warming) – global Net Zero achieved by 2050 as prescribed by the Paris Agreement. This reﬂects immediate peak energy, rapid hydrogen and carbon removal deployment and a consumer shift. In selecting these scenarios, the Group used energy demand analysis from Wood Mackenzie (see graph on the right), which analyses a range of climate change scenarios, as well as the latest energy transition projections and oil and gas demand scenarios from the International Energy Agency (“IEA”), see graph on page 97, which is assumed to be in a Stated Policies Scenario. The IEA research included three scenarios: the Stated Policies Scenario, the Announced Pledges Scenario, and the Net Zero Emissions by 2050 Scenario. Climate scenarios for evaluating physical risks and opportunities WTW has evaluated the longer-range climate risk to the Group’s operating locations, applying various climate scenarios up to 2100, as noted earlier. Other known risks are evaluated by the Board under the Group’s current operational risk programme, with estimates being made as to the likely quantitative impact. The scenarios have been used to evaluate climate-related risks and opportunities over the short (0 – 5 years), medium (5 – 10 years) and long term (10+ years). The short-term period aligns with the Group’s usual business and ﬁnancial planning time frame, the medium term aligns with the business outlook beyond the short term, and the long-term period represents the time frame by which the wide range of uncertainties surrounding the energy transition are expected to materialise. Risks have been categorised as follows: • Low – small to no impact on the Group’s proﬁtability ($0–$10m EBITDA) and/or ability to achieve strategic objectives; • Medium – some impact felt to the Group’s proﬁtability ($10–$20m EBITDA) and/or ability to achieve strategic objectives, requiring some mitigation plans and action; and • High – signiﬁcant impact to the Group’s proﬁtability (>$20m EBITDA) and/or ability to achieve strategic objectives, therefore requiring critical and urgent mitigation plans and action. Where risks have no impact on proﬁtability, they have been categorised based on the impact on the Group’s ability to achieve its strategic objectives. Scenarios for oil demand: 2020 to 2050 Source: Wood Mackenzie Hunting PLC Annual Report and Accounts 2024 91 Strategic Report Corporate Governance Financial Statements Other Information Task Force on Climate-related Financial Disclosures (“TCFD”) continued Climate change risk analysis Transitional risks Category Description of risk Management actions Impact 1. Market Risk rating: Medium Time frame: Long term Financial impact: Revenue Hunting’s primary revenue streams are derived from the oil and gas industry, which can be highly cyclical and is driven by commodity prices. Oil and gas demand is also driven by geopolitical events and economic growth, which inﬂuence energy supply/demand dynamics. The drive by many global governments and economies to reduce emissions may impact long-term oil and gas demand, which in turn will impact Hunting’s long-term revenue proﬁle. The Board reviews a number of primary energy demand scenarios developed by Wood Mackenzie and the IEA, which include energy transition projections and oil and gas demand scenarios to 2050. The former is presented on page 91 and the latter on page 97. The Directors also regularly receive reports from the Chief Executive on the short- to medium-term outlook for oil and gas demand, given that this is a key revenue driver for the Group. From this analysis, the Directors believe that in the Business as Usual scenario there is a robust outlook for oil and gas in the long term i.e. to 2050 and beyond, which will drive strong demand for Hunting’s energy-focused products through this time frame. The Directors will continue to monitor these projections and government legislation and will also track its customers and suppliers who are also tracking energy transition developments. As noted on pages 10 to 16, the Board is putting initiatives in place to diversify its revenue streams, which do not rely on the global oil and gas market, to minimise earnings volatility over time. As noted in the Market Summary on pages 40 to 42, market data, including rig count and drilling and production spend, published by Spears & Associates, support the Group’s wider ﬁnancial reporting needs in the short term, including impairment reviews. In October 2024, the IEA issued its annual energy outlook which provides a perspective on the long-term changes to energy demand and its primary energy inputs. This shows that the outlook for oil and gas, in a Stated Policies Scenario as deﬁned by the IEA, remains robust to 2050 with oil demand remaining ﬂat for this timescale, with a small decline in natural gas demand. The analysis from Wood Mackenzie provides a high-level view of the possible changes to global oil and gas demand and therefore to Hunting’s revenue proﬁle to 2050, which indicates possible reductions in oil and gas revenue of c.50–60% from 2023 in the Middle Case and Rapid Transition scenarios. These energy demand scenarios have implications for Hunting’s long-term strategy, as the Group’s products and services, and overall revenue proﬁle, are currently largely driven by oil and gas demand and investment in the exploration and production of hydrocarbons, notwithstanding the opportunities in non-oil and gas markets as described below. The Board believes that the primary energy mix to 2050 supports Hunting’s long-term focus on energy, underpinned by the pivot to non-oil and gas sales in this timescale (see opportunities below). The split of revenue between oil and gas and non-oil and gas sectors, the relevant metric for managing the risk, is disclosed in note 2 on page 18. 2. Technology Risk rating: Medium Time frame: Long term Financial impact: Revenue Hunting’s products and services are primarily targeted at the oil and gas industry, given its expertise and know-how of this sector. Should the pace of the energy transition be more rapid than what is currently projected, certain of the Group’s product lines and technologies will be less adaptable to a lower carbon energy world or could become obsolete. The Directors believe that Hunting’s engineering excellence, particularly within the Advanced Manufacturing product group, has the ability to diversify the long-term revenue streams of the Group. As part of the business unit level risk assessment, the adaptability to non-oil and gas markets was explored. Most businesses across the Group believe that revenues from new markets, using Hunting’s core competencies, will enable a level of transition to occur and are, therefore, well placed to develop non-oil and gas sales. In 2022, a global Energy Transition sales group was formed to pursue carbon capture and geothermal revenue. International commentators believe that climate reduction commitments are very challenging, given (a) the pace of global warming and (b) the absence of technologies to assist in material carbon mitigation and reduction. The Directors of Hunting believe that its strategic ambition to assist its clients in making drilling operations safer and more efﬁcient will place Hunting in a valuable part of the energy transition, as brownﬁeld developments extract oil and gas more efﬁciently, reducing the need for greenﬁeld project developments. Hunting’s current technology offering enables the efﬁcient and safe delivery of hydrocarbons. While there is a risk that certain products could become obsolete in the long term, the Directors believe that a number of its product lines are directly applicable to the energy transition and non-oil and gas markets which provides a level of resilience to its long-range revenue proﬁle. Hunting PLC Annual Report and Accounts 2024 92 Strategic Report Corporate Governance Financial Statements Other Information Task Force on Climate-related Financial Disclosures (“TCFD”) continued Climate change risk analysis continued Transitional risks continued Category Description of risk Management actions Impact 3. Labour and expenses Risk rating: Medium Time frame: Short to medium term Financial impact: Expenditure Historically, the oil and gas sector has provided highly competitive rates of pay and beneﬁts and, therefore, has always been an attractive sector to work in. However, with recent volatility across the industry, along with the global climate agenda, there has been a change in perception of the global oil and gas sector, which may present a continuing risk of attracting and retaining skilled talent. The consequence of this risk is that employee costs may rise in the short to medium term to ensure Hunting can achieve its strategic objectives. The Directors have monitored labour risk during 2024, through the Remuneration and Ethics and Sustainability Committees, to ensure possible labour market issues in Hunting’s various regions of operation are minimised. Labour costs – Hunting’s products and services are delivered by a highly skilled workforce comprising engineers, machinists and professional services staff. The competition for talent remains a principal risk to the Company as noted on page 108, with employment costs likely to increase in the long term, to attract and retain employees to the oil and gas industry. Hunting’s employee costs are disclosed in note 7 on pages 196 and 197. Energy costs – in 2024 total utilities costs amounted to c.$5.9m. It is possible that as the energy transition progresses, the cost of electricity will increase as more expensive primary energy sources are adopted. It is expected that the energy cost impact will increase in each scenario, with the largest impact expected in the rapid transition scenario. 4. Insurance and tax Risk rating: Low Time frame: Short to medium term Financial impact: Expenditure Hunting is faced with the likelihood of increased operating costs, including insurance and tax costs. It is possible that Hunting’s insurance costs could rise in the future, given its presence in the global energy supply chain in addition to the location of certain facilities in the Gulf of Mexico. Further, it is possible that western governments will introduce taxation on companies based on carbon footprint. The Board has announced a 2030 Strategy, which will target a material increase in non-oil and gas revenue by the end of the decade. This initiative, in part, is to support a less volatile earnings proﬁle, but also to minimise sector-related cost increases such as Directors’ & Ofﬁcers’ liability insurance seen across the energy sector. Further, given that the Group has a relatively low carbon footprint, compared to other energy companies such as exploration and production businesses, any carbon-related taxation is likely to be modest, given Hunting’s drive to reduce scope 1 and 2 emissions. Given the modest level of emissions produced by the Group, the Directors believe that the potential tax cost to the Group is low. The Group maintains a broad-based insurance programme covering many risk areas. Property damage and business interruption policies are in place, which cover potential losses due to severe weather events. Given the location of certain of the Group’s facilities in Texas and Louisiana, which are subject to wind storms, it is possible that the cost of this insurance cover will increase over time as the long-term risk proﬁle of these operations increases. However, the Directors believe that given Hunting’s diversiﬁed operational footprint, the risk of loss of operations is low. Hunting PLC Annual Report and Accounts 2024 93 Strategic Report Corporate Governance Financial Statements Other Information Task Force on Climate-related Financial Disclosures (“TCFD”) continued Climate change risk analysis continued Transitional risks continued Category Description of risk Management actions Impact 5. Financial markets Risk rating: High Time frame: Short to long term Financial impact: Capital and ﬁnancing With the increased attention climate change is being given by ﬁnancial markets, the standing of energy related companies has come under increased scrutiny in recent years. Many investors who wish to invest in the oil and gas sector look for evidence of a Net Zero plan as part of their investment screening. Energy transition risk imputed by shareholders, lenders and market commentators has the potential to impact equity/debt funding support from ﬁnancial institutions. The Directors believe that investors and lenders will be more demanding in respect of the provision of ﬁnancing in the future. However, this risk is partially mitigated by the Board’s Hunting 2030 Strategy and its ongoing access to equity capital markets. The Group relies on equity and debt capital markets to fund its businesses. The Group currently has access to a $300m committed lending facility, comprising a $200m RCF and $100m term loan, which provides a strong funding base into the medium term. The Hunting 2030 Strategy, climate policy, and the ability to diversify revenue streams to non-oil and gas markets are considered to partially mitigate the impact. Capital investment – it is likely that new investment in facilities will occur over time to align with the physical risk to the Group’s facilities noted on page 89. However, the Directors believe that Hunting’s diverse operational footprint will, in the short to medium term, mitigate the majority of operational risks as many sites are conﬁgured in similar ways, minimising the requirement for access to capital for this purpose. Acquisitions – Hunting has a strategy to develop its non-oil and gas revenue which, in part, will be funded by internally generated cash ﬂows. 6. Regulatory, legal and compliance Risk rating: Medium Time frame: Short to medium term Financial impact: Expenditure, capital and ﬁnancing Regulatory and compliance risk with respect to climate has increased, including the introduction of TCFD reporting requirements and the demand for long-term planning disclosures to address climate change. The Directors of Hunting believe that regulatory and compliance costs are likely to increase over time as companies address carbon and climate issues, which will likely require additional human capital to meet stakeholder expectations as well as to develop and implement Net Zero strategies. As noted in the Risk Management section on pages 99 and 100, the Directors believe that regulatory compliance with climate change legislation could differ substantially given the various government and political agendas where Hunting’s stakeholders are located. Management are continuously monitoring regulatory and compliance changes across its various jurisdictions. International policies and legislation in respect of climate change and climate action have increased at pace, examples of which include new reporting procedures introduced into the UK for publicly-listed companies along with the encouragement for all businesses to commit to a Net Zero ambition. Further to this, initiatives such as the UK’s Energy Savings Opportunities Scheme, which requires energy audits of businesses to identify carbon-reduction measures, provide an indication of western governments’ ambitions to achieve carbon containment. It is likely that climate-related legislation will increase over time, which will lead to higher compliance, legal, operational, and administrative costs to keep pace with these new regulations. Climate-related litigation is a further potential cost pressure, which may materialise over time, as activism increases. Hunting PLC Annual Report and Accounts 2024 94 Strategic Report Corporate Governance Financial Statements Other Information Task Force on Climate-related Financial Disclosures (“TCFD”) continued Climate change risk analysis continued Transitional risks continued Category Description of risk Management actions Impact 7. Reputation Risk rating: High Time frame: Short to long term Financial impact: Capital and ﬁnancing Many stakeholders have become more aware of climate change, linking a Company’s response to the climate debate to its reputation. Further, with the continued focus on oil and gas, investors in certain geographies will not invest in a traditional energy company, which may lead to a lower market capitalisation. The Directors believe that a proportionate response to climate change planning is being implemented, which protects shareholders’ interests, including earnings and capital returns. Over time, the Directors will increase the disclosures in this area as longer-term plans are agreed. The Directors and the Board monitor the Company’s market capitalisation against the value of its net assets, which provides an indication of how various investors view Hunting’s response to climate change. Management are focused on close investor relationships and more regular interactions, and further transparency on strategy. Reputation risk is not easily quantiﬁed. Hunting’s association with the oil and gas industry is believed to be high risk in the long term with respect to investor and shareholder perceptions, given the negative media attention of traditional primary energy sources. Recent global shifts in positive sentiment around the oil and gas industry support Hunting’s ongoing development and innovation in its core products and markets, while continuing to diversify into products and technology relevant to the energy transition. The Directors believe that Hunting’s strong relationships with customers and suppliers will support its ambition to play a key role in the energy transition, which will contribute to the Board’s strategy of pivoting revenue to more non-oil and gas sources. Further, the Directors believe that secure energy sources from regions such as North America continue to play a key role in global economic stability. Hunting PLC Annual Report and Accounts 2024 95 Strategic Report Corporate Governance Financial Statements Other Information Task Force on Climate-related Financial Disclosures (“TCFD”) continued Climate change risk analysis continued Physical risks Category Description of risk Management actions Impact 8. Assets Risk rating: Medium Time frame: Long term Financial impact: Revenue Assets and liabilities The global operating footprint of the Group is potentially exposed to the acute and chronic physical risks of more volatile and severe weather events due to climate change. These events have the ability to damage the Group’s operating facilities and property, plant and equipment, thus impairing Hunting’s ability to generate revenue. Additionally, in terms of chronic physical risks, higher temperatures are likely to increase the requirement for operational and ofﬁce cooling, but there will likely be a minor reduction in requirement for space heating in winter. In December 2024, the Board and the Ethics and Sustainability Committee reviewed an independent report from WillisTowersWatson (“WTW”) that presented the Group’s physical risk proﬁle with respect to climate change and which presented analysis of Hunting’s operating locations and their respective risk proﬁles against a variety of weather events. The report also detailed a longer-range risk analysis incorporating a number of climate scenarios and how this could potentially impact the Group’s operations. The graph on page 89 presents the Group’s facilities’ exposure to various severe weather events based on the physical risk climate scenarios. Given the concentration of facilities in Texas and Louisiana, c.80% of the Group’s operating locations are considered to be in higher-risk areas. In 2024, a number of facilities closed due to Hurricanes Beryl and Francine; however, these closures were for only a few days. All facilities are built to withstand these weather events, which minimises production downtimes when these events occur. The Directors believe that Hunting’s long-term presence in Louisiana and Texas has given the Group considerable experience in managing this risk. Considered as part of the Group’s strategic planning, it is expected that the majority of products and services offered by Hunting can be manufactured in multiple facilities, which mitigates the risk of loss of revenue. The Group has completed a new physical risk assessment, the results of which are summarised on page 89. The analysis shows that a large percentage of Hunting’s facilities are exposed to heat stress, drought, ﬂood, and precipitation risks, which can mean that in any one year, certain facilities may be ofﬂine for a short period of time if a severe weather event occurs. The Directors note the Group’s international footprint, and believe that this does not have a material impact on the Group’s ability to generate revenue. Longer range physical and chronic risks, as summarised in the risk assessment, show increases in the risk proﬁle of certain weather events, including drought and ﬁre stress, and ﬂooding. Further, the Group has a number of specialist manufacturing facilities, including our Electronics, Energetics, Subsea and Perforating Systems products, which if a weather event was to hit one of these facilities, it would take a number of months to restore production. However, given that these separate product lines or operating facilities do not contribute to a signiﬁcant level of proﬁt before tax, the overall impact on the Group’s ﬁnancial statements is believed to be low risk. The Directors, therefore, believe that given the diverse product groups, different geographic locations, both in North America and internationally, the physical risk proﬁle of the Group is sufﬁciently mitigated. Hunting PLC Annual Report and Accounts 2024 96 Strategic Report Corporate Governance Financial Statements Other Information 2050 1990 2000 2010 2020 2030 2040 300 500 450 400 350 250 200 150 100 50 0 60% 100% 90% 80% 70% 50% 40% 30% 20% 10% 0% Exajoules P o w e r G e n e r a t i o n N a v a l A v i a t i o n S p a c e M e d i c a l G e o t h e r m a l a n d C a r bo n C a p t u r e C a r b o n C a p t u r e D a t a A n a l y t i c s M a c h i n e L e a r n i n g G e o t h e r m a l a n d C a r b o n C a p t u r e G e o t h e r m a l a n d C a r b o n C a p t u r e E n e r g y E n e r g y E n e r g y E n e r g y E n e r g y A d v a n c e d M a n u f a c t u r i n g S u b s e a O C T G S y s t e m s P e r f o r a t i n g Core Competencies Systems Engineering Bespoke Manufacturing Metallurgy & materials expertise Innovation Premium service culture Task Force on Climate-related Financial Disclosures (“TCFD”) continued IEA projected fossil fuel demand: 1990–2050 Source: IEA – World Energy Outlook Climate opportunities Resource efﬁciency The Group retains an ongoing lean manufacturing programme that is aimed at increasing productivity and reducing costs of operation. In 2024, the cost saving estimated by this programme was $0.5m (2023 – $1.4m). Key resource inputs for the Group include the availability of power and water. Energy source The Group’s carbon emissions footprint is noted on pages 100 and 101. The Board believes that simple, but meaningful, carbon reduction strategies will drive down the Group’s emissions and include: i. Moving electricity contracts for Group facilities to renewable-based energy arrangements; ii. Building a zero emission vehicle ﬂeet over time, including heavy and light duty vehicles and the provision of all-electric cars to relevant staff; iii. Installation of solar panels on relevant facilities, for a zero emission base load energy feed; and iv. A tree and grass planting strategy at Group facilities to offset residual carbon emissions. ii. Participation in carbon capture and storage projects As noted in the Market Summary, on page 42, a number of carbon capture and storage projects are to be completed within the 2030 time frame, to offset carbon dioxide build-up in the atmosphere. These projects, which require carbon dioxide re-injection into known oil and gas ﬁelds, or greenﬁeld developments, present a long-term opportunity for the Company to provide OCTG, premium and semi-premium connections and accessories to operators. The Group’s Energy Transition sales group is exploring increased participation in this market. Products and services The Directors of Hunting have assessed the opportunities that climate change presents to the Group. These opportunities are considered to exist in each scenario but would be expected to accelerate and happen more swiftly in the Rapid Transition and Middle Case scenarios. i. Participation in non-oil and gas primary energy development An area of focus within the global energy industry is geothermal energy development. These projects present a long-term opportunity for the Company to provide OCTG premium and semi-premium connections and accessories to operators. Hunting has industry-leading products and expertise in this area and, therefore, accessing these markets is believed to be relatively low risk. The Group has analysed the global market for geothermal energy and believes that the Asia Paciﬁc and North America regions hold good opportunities to develop revenue in this sector given the number of projects announced over the past two years. The Directors also note that a number of the Group’s major customers are also commencing their climate journey, with energy transition plans being announced. Hunting’s relationship with key exploration and production companies and international energy service groups has been established over many years, with Hunting being a trusted member of the global energy supply chain. The Board, therefore, believes that Hunting can successfully leverage its brand and reputation to remain a key participant in the energy transition. Hunting’s core competencies – current and target markets Oil Coal Natural gas Share of fossil fuels in Total Energy Supply (right axis) Hunting PLC Annual Report and Accounts 2024 97 Strategic Report Corporate Governance Financial Statements Other Information High Low Low/Moderate Moderate Moderate/High 6 5 4 3 2 1 0 Level of Adaptability Number of business units Task Force on Climate-related Financial Disclosures (“TCFD”) continued Business unit resilience and adaptability Source: Company Traditionally, these materials constitute a very low risk in terms of availability and price changes. Over the past few years, due to geopolitical and market factors, we have seen signiﬁcant supply chain disruptions, including supply chain inﬂation and the extension of lead times of critical components. This has resulted in a surge in demand, price increases, and uncertain availability. Measuring and reducing carbon emissions across the Company’s supply chain is intricate and challenging, but Hunting’s role in this effort is driven by products that deliver more efﬁcient drilling procedures. The Company is increasing its efforts to communicate its carbon reduction ambitions to its supplier base, through a Supplier Code of Conduct, which was introduced in 2022. A small number of our products contain electronic components that may contain critical materials as deﬁned by the National Research Council. These are a very small proportion of our purchased materials and constitute a low risk to the Company. However, for critical materials such as tungsten, required for Hunting Titan’s charge production, we carry out regular risk assessments to identify potential supply chain risks. In addition, all other identiﬁed critical raw materials and/or components are regularly reviewed, forecasted for sales, availability, and projected market pricing, to create a purchase plan. At all times, Hunting has existing mitigation plans in place should there be a supply chain interruption. For example, we maintain, and in some circumstances have increased, a safe stock, or buffer stock, for critical materials and components. We also have a highly diverse range of approved suppliers in place as part of our supply chain, for example sourcing from Chinese to domestic US steel mills. In some areas, we have expanded our approved supplier list. Adaption and mitigation As noted above, the Group is pivoting revenue to more non-oil and gas sources, including the development of Energy Transition revenue from geothermal and carbon capture opportunities. Investment in research and development for new products and technologies is a strategic objective to maintain market leadership in the Group’s core markets. In 2024, research and development expenditure totalled $8.8m (2023 – $6.9m). Acquisitions and divestments As noted elsewhere, the Group’s ambition to develop more non-oil and gas sales will be achieved through targeted acquisitions and an overall strategic expansion of the Group’s portfolio. The Group continues to review and monitor opportunities in this area. Access to capital The Group currently has access to $300m of committed lending facilities. The Directors believe that Hunting continues to have access to both equity and debt markets, given the strength of its position in the oil and gas sector, and wider energy industry. Disclosure (c) – climate resilience based on a 1.5°C scenario As part of the TCFD risk assessment process, disclosures from each of the Group’s business units were requested, which included details of the resilience of its operations and business model in a 1.5°C climate scenario by 2050. While Hunting is currently focused on the oil and gas sector, the Group retains diverse manufacturing capabilities and participates in sectors as diverse as aerospace, medical and space. iii. Diversiﬁcation into other non-oil and gas sectors The chart on the previous page illustrates the Group’s key product groups and core competencies and demonstrates that the majority of Hunting’s businesses have expertise to diversify into other growth sectors, such as medical, space, aviation and naval. Hunting has launched a medium-term strategy to materially increase non-oil and gas sales by 2030, which is supported by this analysis and has taken steps to drive new sales, particularly within the Group’s Advanced Manufacturing group. These opportunities are explained further as part of the Hunting 2030 Strategy on pages 10 to 16. Supply chain Our commitment to the delivery of innovative, high-quality, and reliable products is of material importance to the achievement of our “total customer satisfaction” goal, and this is reﬂected in our Quality Policy and our Sustainability Framework. Hunting’s total commitment to quality is shown through operational excellence, and a comprehensive Quality Management System (“QMS”) supported by strong management oversight, which includes supply chain risk management. The Group’s supply chain is predominantly related to raw material supplies, including the responsible resourcing of readily available materials such as carbon steel, nickel, and chrome-based specialist steel alloys, which are used in the manufacture of Hunting’s various products. Hunting PLC Annual Report and Accounts 2024 98 Strategic Report Corporate Governance Financial Statements Other Information TCFD risk assessment chart Policy and legal Resource efﬁciency Technology Energy source Market Products/services Reputation Markets Acute Revenues Resilience Assets and liabilities Balance Sheet Opportunities Income Statement Risks Strategic planning Risk management Financial impact Statement of Cash Flows Chronic Expenditures Capital and ﬁnancing Source: TCFD – Recommendations of the Task Force on Climate-related Financial Disclosures – 2017 Transition risks Physical risks Opportunities Task Force on Climate-related Financial Disclosures (“TCFD”) continued A key factor that determines the impact on the Group is the adaptability of our businesses to transition to different sectors. Until our plans are further developed, we have taken a conservative approach and have considered how adaptable our businesses are with minimal capital investment. Furthermore, for some of our businesses, the opportunities to adapt will depend on the potential development of new markets such as carbon capture and storage, the use of hydrogen as an energy source together with the expansion of the geothermal market and our ability to compete in these areas. The majority of the Group’s businesses report that they have a moderate or high level of adaptability if energy markets change materially. We have progressed scenario analysis in 2024 to allow us to further test the resilience of our strategy against the three climate scenarios identiﬁed above with reference to evaluating transition risks and opportunities, one being a 1.5°C scenario. The scenario analysis leverages the Group’s extended forecast out to 2029 and is extrapolated to the long term using growth rates and assumptions that are consistent with other forward-looking ﬁnancial statement elements. In the analysis modelled, the Group is considered resilient to climate-related scenarios. Risk management Hunting’s climate-related Risk Management disclosures are detailed on page 90. As part of Hunting’s TCFD reporting, Hunting’s central compliance function prepares an annual business unit climate risk assessment, which assesses the short-, medium-, and long-term risks and opportunities of climate change. The assessment also gives a deeper consideration to Hunting’s longer-range risks, including revenue and expenditure risks in addition to analysis of major cash generating units within the Group with respect to the impact of climate change. Given the Group’s focus on the changing oil and gas industry and the scrutiny of climate change by investors and lenders, the Directors’ view is that climate change risk is a principal risk to the Group and has been embedded into our Risk Management processes to which the Group’s senior leadership team can respond in an appropriate manner. Further information on climate change and energy transition risk can be found on page 108 within Risk Management. The Group’s central compliance function rolls out a speciﬁc climate-change risk assessment process to be completed by each business unit within the Group to enable an integrated risk register to be assembled. Disclosure (a) – climate risk identiﬁcation Each business unit within the Group completes a broad-based risk assessment twice a year. The results of the process are consolidated into a Group-level risk register, which includes details of the risk and the associated mitigating controls. This includes ﬁnancial, reputational, strategic, legal and insurance risk as well as other operational risks faced by the Company. The Group’s Audit and Risk Committee reviews the Group-level risk register twice a year as part of its annual schedule of work with input from the Group Finance Director, Group Financial Controller, Group Risk Manager and the Internal Auditor. In 2022, the Group’s central compliance function introduced a climate-speciﬁc risk questionnaire to all businesses within the Group, which asked for key information on transition and physical risks related to climate change, as well as strategic opportunities as the energy transition accelerates. In 2023, a bi-annual Group-level broad-risk assessment was also introduced, bringing together responses from global heads of functions. The risk assessment framework was based on the TCFD guidance as illustrated below. Hunting PLC Annual Report and Accounts 2024 99 Strategic Report Corporate Governance Financial Statements Other Information Task Force on Climate-related Financial Disclosures (“TCFD”) continued The results of this process are reviewed and consolidated by the Group’s central compliance and ﬁnance functions and fed into the scenario analysis presented on pages 98 and 99. This analysis was reviewed by the Directors at its meeting in June 2024 and was debated at the meeting of the Ethics and Sustainability Committee in December 2024. The analysis will continue to be completed annually as part of the Group’s wider risk management procedures. To prioritise climate risk, in consideration of the principal risks, climate questionnaires feed into the Group-level risk matrix. As a result, climate change and energy transition risk is included in the principal annual risk list, with further Group-level discussion around inter-dependencies to understand how this risk impacts other principal risks. Disclosure (b) – climate risk management Following the risk identiﬁcation process, management has been challenged to develop processes and procedures to mitigate and reduce its climate-related risks and impact. This includes the reduction of the carbon footprint of each business unit; management of the physical risk proﬁle of each business or facility, includes dialogue with the Group’s insurers and other business units to develop production synergies for Hunting’s product portfolio; and the broader efforts to decarbonise the Group’s supply chain, whether that be to develop non-oil and gas sales such as geothermal or carbon capture or to make our activities more efﬁcient or less carbon intensive. The central compliance function oversees the Group’s annual insurance renewal for all of Hunting’s businesses, working with specialists from WTW and, in 2024, completed a second physical climate risk assessment for Hunting’s climate exposures which extends to 2100. Disclosure (c) – integration of climate risk identiﬁcation and management The climate-related governance processes highlighted on page 90 have been introduced to allow the Board to have direct oversight of the risks, opportunities, and climate-related strategies being considered by the Group’s management. There is also direct access between the Directors, Chief Executive and senior management team to enable climate matters to be challenged. Further, the senior management team has empowered each business unit leader to address climate matters on a decentralised basis, to enable regional considerations to be integrated into the Group’s overall processes. In addition, the Board has ensured that ﬁnancially-orientated risks are reviewed by the Audit and Risk Committee, with the broader strategic and operational risks being reviewed by the Ethics and Sustainability Committee to ensure broad-based challenge is given to management and all levels of the workforce in this important area. Metrics and targets Disclosure (a) – metrics To monitor Hunting’s climate-related risks and opportunities, the Group has elected to adopt a broad set of metrics to enable climate-related risks and opportunities to be monitored. These are presented in the accompanying table on page 101. Disclosure (b) – scope 1, 2 and 3 emissions The Group currently collects scope 1 and 2 GHG emissions data based on the Greenhouse Gas Protocol, published by the World Resources Institute. The data is consolidated on an operational control basis, through the Group’s central ﬁnancial consolidation system. Carbon dioxide equivalent emissions are calculated using factors published by DESNZ in the UK to derive its total scope 1 and 2 emissions. Scope 1 emissions in 2024 were 3,630 tonnes CO 2 e (2023 – 4,169 tonnes CO 2 e) and scope 2 emissions were 18,603 tonnes CO 2 e (2023 – 18,430 tonnes CO 2 e). Hunting’s total scope 1 and 2 emissions have been assessed to be 22,233 tonnes CO 2 e (2023 – 22,599 tonnes CO 2 e, restated). Scope 1 and 2 emissions, when comparing 2024 outcomes to the prior year, have decreased by 2% despite activity increasing in the year. The Group also reported its scope 3 emissions based on extrapolated data collected from its Hunting Titan, Subsea Technologies, EMEA and Asia Paciﬁc operating segments. Based on this analysis, scope 3 emissions for the Group are estimated to be 534,835 tonnes CO 2 e (2023 – 353,346 tonnes CO 2 e). In 2025 all businesses within the Group will submit scope 3 emissions data. Disclosure (c) – targets In 2023, the Company announced new GHG emissions targets, with the Group’s scope 1 and 2 emissions reduction now targeted at 50% below the 2019 baseline year by 2030. This equates to absolute scope 1 and 2 emissions of 17,937 tonnes CO 2 e by 2030. With 2024 scope 1 and 2 emissions of 22,233 tonnes CO 2 e, Hunting has reduced its emissions by 38% since 2019 and needs to reduce its emissions by a further 19% to meet its medium-term target. In March 2025, the Group published a new long-term Intensity Factor target of less than 20 by 2030. The Group has also set a non-oil and gas revenue target of 25% by 2030. Due to the growth in Hunting’s oil and gas revenue in 2024, the Group’s non-oil and gas sales were 7% of total revenue or $75.1m (2023 – $75.9m/8%). The Directors remain committed to the medium-term goal of 25%. Hunting PLC Annual Report and Accounts 2024 100 Strategic Report Corporate Governance Financial Statements Other Information Task Force on Climate-related Financial Disclosures (“TCFD”) continued Sector speciﬁc and cross-sector metrics and targets Metric Description of metrics/reason for adoption 2024 2023 Revenue – oil and gas: $m Hunting’s core markets are oil and gas related, therefore the long-term monitoring of this measure assists in the understanding of the Group’s resilience. 973.8 853.2 Revenue – non-oil and gas: $m Hunting’s longer-term resilience can, in part, be monitored by the development of non-oil and gas sales as the Group seeks to diversify its revenue streams. 75.1 75.9 Expenditure – total cost of electricity: $m The long-term cost of energy, including the purchasing of renewable energy, is a key metric to understanding the ﬁnancial impact of the energy transition. 5.9 5.6 Expenditure – insurance premiums: £m The cost of insurance, including product liability and property damage/business interruption cover, is a key metric in understanding the Group’s ﬁnancial and asset risk proﬁle. 4.0 4.4 Expenditure – research and development: $m The long-term diversiﬁcation to non-oil and gas revenue will require investment in new technology and will form part of the Group’s research and development activities. 8.8 6.9 Assets and liabilities – capital expenditures: $m The investment in non-current assets provides an indication of the long-term viability of the Company’s investment case. 30.1 34.6 Scope 1 GHG emissions: tonnes CO 2 e Hunting’s scope 1 carbon footprint provides investors with data on the Group’s contribution to climate change. 3,630 4,169 Scope 2 GHG emissions: tonnes CO 2 e Hunting’s scope 2 carbon footprint provides investors with data on the Group’s contribution to climate change. 18,603 18,430 Scope 3 GHG emissions: tonnes CO 2 e Hunting’s scope 3 carbon footprint provides investors with data on the Group’s contribution to climate change. 534,835 353,346 Water consumption: ’000s cubic metres Hunting’s water consumption provides investors with data on this impact on the planet. 90 92 Lean manufacturing savings: $m The Group’s drive for higher efﬁciencies in its operations provides an indication of its efforts to lower its environmental impact. 0.5 1.4 Carbon emissions offset cost: €m The cost of purchasing carbon credits (scope 1 and 2 emissions only) to become a Net Zero business. 1.7 1.4 Market capitalisation: $m The value of the Group’s equity provides an indication of the future value of the Group’s cash generating assets. 597.6 620.5 Net asset value: $m The book value of the Group’s assets, compared to the Company’s market capitalisation, provides an indication of the future value investors place on the Group’s assets. 902.3 950.1 Renewable electricity purchased: GWh The level of renewable energy purchased provides an indication of the Group’s drive to lower emissions. 10.6 11.4 Assets exposed to heat stress risk: % The proportion of assets exposed to heat stress risk provides an indication of the physical risk exposure of the Group. 79 74 Assets exposed to precipitation risk: % The proportion of assets exposed to precipitation risk provides an indication of the physical risk exposure of the Group. 71 70 Hunting PLC Annual Report and Accounts 2024 101 Strategic Report Corporate Governance Financial Statements Other Information Risk Management Managing risks and opportunities from subsea to space We operate in a complex global environment which is highly regulated and demands high speciﬁcation products across a wide product portfolio that meet stringent quality criteria. Hunting’s risk management and internal control processes are designed to appropriately mitigate risks inherent in this sector, while allowing the Group to achieve its strategic objectives and deliver value to shareholders. Identifying our risks Effective risk identiﬁcation aims to enable Hunting to make meaningful and informed strategic decisions and deliver long-term success. Under Hunting’s decentralised philosophy, risk management acts as a “challenger” to pressure test business risks and mitigation, while local management is empowered to manage the risks in their respective markets. Effective risk management further helps us comply with the UK Corporate Governance Code requirements, implement relevant controls and pursue new opportunities, while mitigating risks in a changing industry and external environment. We take both a bottom-up and a top-down approach to risk management and we continue to improve alignment and communication between them. Twice a year, local management formally reviews risks faced by their business, based on current trading, prospects and the local market environment. The review is a qualitative and quantitative assessment of the likelihood of a risk materialising and the probable ﬁnancial, operational, strategic and reputational impact. All assessments are performed on a pre- and post-controls basis and consider the effectiveness of current control mitigation. These principal local risks are reported to Group management, where a Group-level workshop is performed to pressure test the risks and their controls as well as ﬁll in any gaps. In addition, to heighten Group monitoring of the potential for fraud, local management reports on local fraud risk irrespective of its perceived potential low impact on the local business. To further understand Group-level risks and the interdependencies between them, a Group-level risk assessment was introduced in 2023 and is now fully embedded in the ongoing risk process. The Group-level risk assessment includes input from heads of functions to include a top-down and strategic input into the risk register. In 2024, a Board-level risk assessment workshop was undertaken to gain insight into the top risks and opportunities from non-executive Directors. The input was included in the risk register and helped prioritise top strategic risks and mitigation practices. Reporting on our risks Principal and business risks identiﬁed are reported into the overall Group Risk Register, which is reviewed and challenged by the Audit and Risk Committee twice a year. Additionally, top business risks are reported bi-annually into the Executive Committee to ensure alignment between top-down and bottom-up risk reporting practices. An appropriate executive Director, together with local management, is allocated responsibility for managing each separate risk identiﬁed in the Group Risk Register. Managing our risks The management of each business unit has responsibility for establishing an effective system of controls and processes for its business, which, at a minimum, meets the requirements set out in the Group Manual and complies with any additional local requirements. Strategic plans, annual budgets and long-term viability ﬁnancial projections are formally presented to the Board for adoption and approval and form the basis for monitoring performance. The Board’s robust assessment of principal and emerging risks ensures adequate review of the risk management framework and allows the Board to put in place safeguards to manage the risks, if necessary, and to make informed decisions to mitigate potential damage. Hunting’s internal control system, which has been in place throughout 2024 and up to the date of approval of these accounts, is designed to identify, evaluate, and manage the principal risks to which the Group is exposed, as well as identify and consider emerging risks to which the Group may be exposed to in the future. Internal controls are regularly assessed to ensure they remain appropriate and effective. Business unit management completes an annual self-assessment of the ﬁnancial controls in place at their business unit. The assessment is qualitative and is undertaken in the context of the recommended controls identiﬁed within the Group Manual. Gaps between the recommended controls and those in place are assessed and improvements are actioned within a targeted time frame when these are identiﬁed as a necessary requirement. Hunting PLC Annual Report and Accounts 2024 102 Strategic Report Corporate Governance Financial Statements Other Information Risk Management continued Emerging risks Alongside the process of identifying the Group’s current risks in the bi-annual risk assessments, business- and Group-level risk identiﬁcation questionnaires identify emerging risks that may impact the Company. Management also monitors emerging risks through observing press comments, including industry speciﬁc journals; discussions with shareholders, advisers, customers and suppliers; attendance at structured forums; review of comments published by other companies; review of insurance company risk assessments; and internal debate by senior executives. Several emerging risks are monitored, including the progress of Artiﬁcial Intelligence (“AI”) and its capabilities. AI presents privacy and cyber concerns, but also opportunities to enhance operational efﬁciency. Due to the current unsettled regulatory environment, including changing political and global power dynamics, the emerging risk of unsettled regulatory and legal environments, alongside an increase in compliance and legal costs is key. Lastly, with the ongoing focus on acquisitions and current global joint ventures, change management and associated regulatory and legal emerging risks are monitored for both risks and opportunities. Results of the assessments are summarised and presented to the Audit and Risk Committee annually. A number of control gaps were identiﬁed as part of the year-end audit procedures in the Netherlands, as discussed on page 163 in the Audit and Risk Committee Report. This system of internal control is designed to manage rather than eliminate risks, therefore it can only provide reasonable but not absolute assurance against material misstatement or loss in the consolidated ﬁnancial statements and meeting internal control objectives. The Board recognises that a number of risks are not within the direct control of management, including energy market factors such as commodity pricing and daily supply/demand dynamics driven by economic or geopolitical movements and climate change. These factors are regularly assessed by the Board and are considered alongside the risk management framework operated by the Group. We also use insurance as a risk mitigation tool. The Group monitors and reviews new UK Listing Rules, the Disclosure Guidance and Transparency Rules sourcebook, accounting standards, interpretations and amendments, legislation and other statutory requirements. Strengthening our risk management framework in 2024 We continue to enhance and develop our risk management programme with a focus on continuous process improvements, dynamic data collection, and improved communication channels to make our risk processes more valuable to both the business and long-term strategy. Over the course of the year, we have: • Signed-off a Board-approved risk appetite process, to be deployed and operationalised in 2025; • Selected Governance, Risk and Compliance software to support the dynamic identiﬁcation of risks and better alignment with mitigation and controls; • Fully deployed and integrated a Group-level risk assessment, which serves to understand strategic and operational principal and emerging risks from the Group level; • Held a Board workshop to understand top risks and opportunities and their alignment to the strategic vision of the Company; • Reworded our risk scoring system, to provide more context to the classiﬁcation of the risks, and enable for better risk rating and comparison; and • Run a ﬁrst of its kind risk workshop with a business segment to pressure-test business risks and understand risks and opportunities from both a bottom-up and top-down approach. Hunting PLC Annual Report and Accounts 2024 103 Strategic Report Corporate Governance Financial Statements Other Information Low Movement in risks (post-control) during the year Risk Management continued Principal risks The extent of Hunting’s exposure to any one risk may increase or decrease over a period of time. This movement is due either to a shift in the proﬁle of the risk arising from external inﬂuences or is due to a change in the effectiveness of the Group’s internal control processes in mitigating the risk. A detailed description of each principal risk, the controls and actions in place and the movement in the year are given in the following section. Key changes to our principal risks Due to the ongoing Risk Management maturity and evolving alignment of the risk function to the Hunting 2030 Strategy and goals, several risks have changed in rating and importance. Due to continuous improvement of risk management and ongoing development of the risk management framework, principal risks reported have declined from twelve risks in the prior year to ten key risks. The change does not come from a lower risk exposure, but rather from developed deﬁnitions and an ongoing breakdown of principal risks and supporting sub risks. This includes the inclusion of “acquisition risk” and “third-party risk” under the “Our ability to achieve our strategic goals”. The following risks have either evolved, been escalated, or de-escalated due to the evolving strategic initiatives, internal and external pressures, and enhancements to risk identiﬁcation processes, with the following changes being observed: • Information technology and cyber security has been slightly escalated due to growing importance and impact. Components of this risk include the potential of high-impact cyber security attacks, AI, data leakage, and server outages; • Our ability to achieve our strategic goals depends on how we react to external and internal forces has been an area of focus, and the deﬁnition of supporting sub-risks has been expanded to include acquisition and third-party related risks; • Legal and compliance risk is the new wording of the previous annual risk of “Increased quantity and complexity of changing global rules and regulations” to include a more inclusive risk portfolio. Due to internal and external factors, this risk is escalated; • Loss of key executives or staff and shortage of key staff has marginally gone down in rating, due to ongoing mitigation; and • Climate change and energy transition has been marginally de-escalated, due to ongoing mitigations, strategy, and escalation of other risks. All other principal risks remain broadly unchanged from last year. The Group’s principal risks are identiﬁed on the pages following. While we have presented these as separately identiﬁed risks, internal and external events will often affect multiple risks and the risk relationship is considered by the Board when assessing the impact on the Group. Likelihood Impact Low Low High High Current status Prior year status 1 Increased competition and market consolidation 2 Geopolitical instability 3 Adverse movement in commodity prices 4 Information technology and cyber security 5 Our ability to achieve our strategic goals depends on how we react to external and internal forces 6 Legal and compliance 7 Loss of key executives or staff and shortage of key staff 8 Climate change and energy transition 9 Product quality and reliability 10 Work environment issues including health and safety Post-control status Pre-control status Effectiveness of internal controls 9 9 10 10 1 2 2 Likelihood Impact 3 3 10 6 4 7 9 High Low High 1 5 2 3 8 4 4 4 8 8 8 7 6 6 6 5 5 5 7 7 1 Hunting PLC Annual Report and Accounts 2024 104 Strategic Report Corporate Governance Financial Statements Other Information Risk Management continued Risk description The provision of goods and services to oil and gas drilling companies is highly competitive. Aggressive competitor pricing continues, competition remains high, and market consolidations threaten certain products and segments. Competitors may also be customers and/or suppliers, which can increase the risk of any potential impact. Competition to secure raw materials and components for the oil and gas services industry was strong throughout 2024. Sourcing of supplies such as raw materials and labour is highly competitive when markets are tight, and supply chains are constrained. Technological advancements including operational efﬁciency and use of AI in the oil and gas industry continue at pace and failure to remain ahead will result in lost revenue and market share. Additionally, the oil and gas industry is undergoing continuing consolidation that could impact our operations and ﬁnancial results. Key mitigations Management has been working to ensure that the Group has a robust supply chain, and has introduced structured training programmes to develop the proﬁciency of new machinists to improve operational efﬁciencies. The Group continually invests in research and development that enables it to provide technological advancement and a strong, evolving, product offering. Hunting continues to maintain its standards of delivering high-quality products, which has gone some way in protecting against the impact of pricing pressure on margins. Key changes during 2024 Hunting’s operations are established close to their end-markets, which traditionally enables the Group to offer reduced lead-times and a focused product range appropriate to each region. With supply chain issues, including a tight labour market, Hunting management continues to work closely with customers to place orders with the Group earlier than usual and to be more ﬂexible in agreeing to longer lead-times in the short term. Senior management maintains close dialogue with key customers and seeks to maintain the highest level of service to preserve Hunting’s reputation for quality. The Group continues to widen its product offering beyond the oil and gas market, with a focus on strategic partnerships, as detailed within the Chief Executive’s Report on pages 34 to 39. 1 Increased competition and market consolidation Risk category Strategic Change from last year Link to strategy Growth Strong returns Risk description The past year continued to bring uncertainty to the global stage. Key worldwide elections, political division and government dysfunction in many countries led to changing global power dynamics and geopolitical and ongoing military conﬂicts. In the industry, this risk further impacts the appetite for oil and gas investment, aggressive competitor pricing continues, and competition remains high. Hunting’s products must go where drilling companies choose to operate. To compete effectively, Hunting often establishes a local operation in those regions; however, signiﬁcantly volatile environments are avoided. The Board has a strategy to develop its global presence and diversify geographically. Operations have been established in key geographic regions around the world, including expansion into India, recognising the high growth potential these territories offer. The Group carefully selects which countries to operate from, considering the differing economic and geopolitical risks associated with each geographic territory. Key mitigations Areas exposed to high political risk are noted by the Board and are strategically avoided. Global sanctions and international disputes are also closely monitored with compliance procedures in place to ensure Hunting avoids high risk countries or partners. The Board and management closely monitor projected economic trends in order to match capacity to regional demand. In the medium term, the Group’s investment in Jindal Hunting Energy Services Limited, a joint venture in India, is reducing reliance on Chinese mills for export business, and new market entry is ongoing. Recent EMEA restructuring is driven by a focus on growth markets as well as strategic cost-cutting. The Group’s exposure to different geographic regions is described on pages 44 to 59. Key changes during 2024 Geopolitical issues remain a feature of the modern world in which Hunting operates. Continuous Middle East conﬂicts contributed to oil price volatility, supply chain security, and political alignment. Recent UK government policy in the North Sea is impacting future oil and gas extraction, leading to a signiﬁcant decline in investment and activity in the industry and is a driving force in the EMEA restructuring. Political pressures and shifting power dynamics continuously contributed to increased threats of global sanctions, tax pressures, and ongoing technology wars, most notably between China and the US. Continued volatility is expected to continue into the next year, and global dynamics are closely monitored. 2 Geopolitical instability Risk category Operational Change from last year Link to strategy Growth Strong returns Hunting PLC Annual Report and Accounts 2024 105 Strategic Report Corporate Governance Financial Statements Other Information Risk Management continued Risk description Hunting is exposed to the movement in oil and gas prices, as the supply and demand for energy is a key driver of demand for Hunting’s products. The continued volatility of commodity prices, inclusive of both oil and gas and raw materials, cause a number of ongoing risks for the business. Oil and gas exploration companies may reduce or curtail operations if prices become, or are expected to become, uneconomical and, therefore, continuation of prices above these levels is critical to the industry and the ﬁnancial stability of the Hunting Group. Adverse movements in commodity prices may also heighten the Group’s exposure to the risks associated with shale drilling. Decreasing oil prices, due to moderating demand growth and higher production from non-OPEC+ countries, are also contributing to pricing pressures and changes. Key mitigations The Group’s products are used throughout the life cycle of the wellbore and each phase within the life cycle generates demand for a different range of products and services. The Board and management closely monitor market reports on current and forecast activity levels associated with the various phases of the life cycle of the wellbore to plan for and predict improvements or declines in activity levels. The Group is undertaking a measured diversiﬁcation into non-oil and gas markets, including geothermal and carbon capture, which helps mitigate this risk. In addition, management continues to reduce production costs and develop new technologies, including automation and robotics that help mitigate the impact of any further adverse movement in commodity prices in the future. Key changes during 2024 Hunting’s exposure to this risk was relatively high at the start of the year and has remained as such during the year. Oil price forecasts and geopolitical uncertainty have a high impact on Hunting’s operations, share price, and the industry and, as such, this is a top risk and is closely monitored. 3 Adverse movement in commodity prices Risk category Strategic Change from last year Link to strategy Growth Strong returns Risk description Our continued dependence on Information Technology systems for our operations mean we rely heavily on secure and resilient IT systems. Risks range from high-impact cyber security attacks, data leakage, network and server outage to the emerging risk and opportunity of Artiﬁcial Intelligence. Due to the ever-present risk of cyber attacks, ampliﬁed by Hunting’s international presence, acquisitions and growth, and the increasing sophistication of attacks, this risk is escalated. Through increased disaster recovery procedures, ongoing business analysis, cyber awareness training, regular monitoring, content ﬁltering, domain name system (“DNS”) security solutions, and improvements in communication, risk mitigation has grown signiﬁcantly over the past several years and most components of the risk have lowered net risk likelihoods although cyber attack risk remains high. Key mitigations Risks associated with cyber security range from loss of control of ﬁnancial data, reputational damage and lost client and supplier trust, and ﬁnancial loss. Key mitigating actions include regular monitoring, back-ups and offsite servers and disaster recovery procedures including security awareness training, secure mail gateway, content ﬁltering, and DNS security solutions. The ongoing efforts have led Hunting to alignment with industry benchmarks through working partnerships with top-tier industry specialists. Key changes during 2024 Hunting’s exposure to this risk was relatively high due partly to the external factors impacting cyber risk and increased threat and sophistication of AI cyber attacks. Mitigation was stepped up, with a focus on human behaviour, targeting negligence and human error which are leading causes of phishing occurrences. Additionally, a leadership cyber workshop was performed in 2024, and we engaged a third party to assist with the development of a cyber attack response plan. Cyber security training, alongside a phishing campaign, continues to evolve and includes AI training introduced in 2024. With the stronger focus by leadership and a clearer tone-from-the- top on IT risk and ongoing mitigation, cyber risk culture and Company-wide awareness is steadily improving. 4 Information technology and cyber security Risk category Operational Change from last year Link to strategy Operational excellence Hunting PLC Annual Report and Accounts 2024 106 Strategic Report Corporate Governance Financial Statements Other Information Risk Management continued Risk description Hunting’s ability to achieve its strategic goals depends on how we react to external and internal forces. This presents itself both as a risk as well as an opportunity. Hunting has set out a clear strategy with long-term growth objectives to investors during its Capital Markets Day and those plans need to be executed on, including the delivery of ﬁnancial targets for proﬁtability and cash generation. With public targets, strategy execution is closely linked with share price and not meeting ﬁnancial targets communicated to shareholders could impact investor conﬁdence. The escalation of this risk is based on both the importance to the Company as well as the inclusion of key sub-risks, including merger and acquisition goals, R&D and innovation goals, ﬁnancial risk, and execution risk. Internal and external risks could cause Hunting to miss ﬁnancial and acquisition targets previously communicated to shareholders. This could impact investor conﬁdence and, therefore, impact the Hunting share price. Additionally, Hunting has a range of external stakeholders and shareholders, whose interests and deﬁnitions of success are different. There is a risk that our deﬁnition of success is not aligned to the changing external perspective. Key mitigations Hunting’s ﬁrst Capital Markets Day hosted in 2023 enabled the sharing of strategy and long-term goals to inform the market. Increased focus on continuously developing investor and analyst relations further inﬂuenced the ongoing collection of market intelligence to enable Hunting to address any change in shareholder expectations more quickly. Key changes during 2024 Strong operational performance across most of the product groups, including OCTG and Subsea, has delivered several strategic milestones. Strong cash generation in the year has led to improvements in free cash ﬂow and a positive total cash and bank/(borrowings) position, which contribute to considerable balance sheet strength. Additionally, the restructuring of the EMEA operating segment is focusing on reorganising Hunting’s global O&G footprint. A stronger focus on monitoring both internal and external environments and stakeholder expectations has been a priority for 2024. 5 Our ability to achieve our strategic goals depends on how we react to external and internal forces Risk category Strategic Change from last year Link to strategy Growth Strong returns Operational excellence ESG and sustainability Risk description Hunting operates globally in complex regulatory environments, and there is an ongoing risk that we are not compliant with global rules and regulations. Acquisition targets, new and extended market entries, and changing external compliance laws and new regulations keep this risk high. External factors range from increased tax regulations, labour regulatory risks and their long-term impacts, and increased climate regulatory requirements and changing international rules and regulations such as TCFD. Fragmentation of data governance regulations globally and cyber security disclosures and governance requirements are additional emerging risks. The development of climate change regulations also differs globally, inﬂuencing varied shareholder expectations, especially between the US and the UK. Key mitigations Ongoing monitoring and increased resource allocation for internal monitoring has helped in efforts to continuously track any evolving regulatory requirements and associated controls. Additional employee conduct training is also in development. Key changes during 2024 Sub-components of legal and compliance risk have been escalated due to internal and external factors. Ongoing mitigation improvements are a Group focus, including: management of tax and compliance issues in a changing global environment; contract standardisation and contractual due diligence, especially when entering new markets; and acquisitions, joint venture and business-not-as-usual scenarios. Additional training to relevant parties has also been introduced and is ongoing. 6 Legal and compliance risk Risk category Legal and compliance Change from last year Link to strategy Operational excellence ESG and sustainability Hunting PLC Annual Report and Accounts 2024 107 Strategic Report Corporate Governance Financial Statements Other Information Risk description The Group is highly reliant on the continued service of its key executives and senior management who possess commercial, engineering, technical and ﬁnancial skills that are critical to the success of the Group. Ensuring that the critical roles in the Company have candidates chosen and prepared to step into roles to ensure continuation of good management is key. Similarly, skilled labourers, especially machinists, are critical to operations and their shortage has the potential to compromise product quality in the near term. Competition for skilled labour including mechanists remains high globally in the industry, although Hunting has an above-average retention rate and tenure. Key mitigations Remuneration packages are regularly reviewed to ensure that key executives are remunerated in line with market rates including healthcare and pension arrangements. External consultants are engaged to provide guidance on best practice. Hunting provides a competitive compensation and beneﬁts package, employee engagement initiatives, and merit increases. A new Directors’ Remuneration Policy has been introduced in 2024, and closer work with recruitment agents is ongoing. Senior management regularly reviews the availability of the necessary skills within the Group and seeks to engage suitable staff where they feel there is vulnerability. Details of executive Director remuneration are provided in the Remuneration Committee Report on pages 136 to 160. Key changes during 2024 Succession planning and senior management retention and growth are key areas of focus across the Group. Recruitment of new machinists and operators, together with evolving machine and industry requirements, are business priorities and a shortage of skilled labour is a continuously increasing risk. Succession planning and leadership development programmes are in place and are continuously developed. An increased focus on these development programmes is partly due to ensuring we can meet our growth targets and also as a result of restructuring initiatives. 7 Loss of key executives or staff and shortage of key staff Risk category Strategic Change from last year Link to strategy Growth Operational excellence ESG and sustainability Risk description Failure to adapt to climate change and energy transition or to mitigate the Company’s impact on the environment has the potential to damage the Company’s reputation and cause ﬁnancial and strategic issues. Exposure to climate risk for Hunting is primarily driven by non-revenue matters, such as regulation and reputation, and includes an assortment of sub-risks and opportunities. A key sub-risk this year has been the physical risk to assets from more volatile weather conditions, causing both IT network outages and affecting operations. Financial and reputation aspects lead to more focus on investor relations as fund managers and other stakeholders challenge the Group’s approach to mitigating its impact on climate-related issues. Funding risk is escalating as the oil and gas industry is under increased scrutiny with decreasing access to borrowing facilities. Legal and compliance risk has also increased, as more regulations and targets are directed by governments. Key mitigations The Group takes seriously its commitment to environmental compliance and stewardship. We have continued to increase and reﬁne our climate-related disclosures. Since 2023, the Company announced new GHG emissions targets, and in 2024, we have widened the collection of data for our scope 3 emissions reporting to four out of ﬁve operating segments. In addition, workgroups, including the Ethics and Sustainability Committee, are monitoring climate-based matters. Reﬁnancing to diversify borrowing facilities has also been performed in 2024. The Group’s environmental, climate and TCFD disclosures are described in detail on page 31 and pages 82 to 101. Key changes during 2024 Climate and energy risk continues to be a strategic and operational concern. The Hunting 2030 Strategy outlined key targets for ongoing energy transition, including long-term investment in geothermal and carbon capture opportunities. Further alignment between risk management and climate risk is being implemented, with improvements in climate risk assessment, questionnaire quality, and more aligned inclusion of climate risks in Group risk registers. The Group has also performed a physical climate risk assessment, to better understand the value at risk and key climate risk adaptation considerations. In October 2024, the Group entered into $300m of new committed borrowing facilities to replace our existing $150m Asset Based Lending (“ABL”) facility, which reduces the funding risk. 8 Climate change and energy transition Risk category Strategic Change from last year Link to strategy Growth Strong returns ESG and sustainability Risk Management continued Hunting PLC Annual Report and Accounts 2024 108 Strategic Report Corporate Governance Financial Statements Other Information Risk Management continued Risk description Due to the broad nature of the Group’s activities and the industry in which we operate, Hunting is subject to a range of HSE risks and the laws and regulations issued by each of the jurisdictions in which the Group operates. The Group’s exposure to risk, therefore, includes the potential for the occurrence of a reportable incident, the ﬁnancial risk of a breach of HSE regulations, and the risk of unexpected compliance expenditure whenever a law or regulation is renewed or enhanced. Key mitigations The Board targets achieving a record of nil incidents and full compliance with the laws and regulations in each jurisdiction in which the Group operates. Every Group facility is overseen by a Health and Safety Ofﬁcer with the responsibility for ensuring compliance with current and newly issued HSE standards. Local management is focused on the training of new employees in Hunting’s stringent safety procedures. The Board receives a Group HSE compliance report at every Board meeting. The Group’s HSE performance is detailed on pages 27 and 79. Key changes during 2024 The Group recorded an HSE total recordable incident rate of 0.93 in the year, which is signiﬁcantly below the industry average and is broadly similar to the prior year. This particular risk pertaining to HSE incidents, therefore, continues to be relatively low, post-controls. Ongoing audits and Group reporting have highlighted no material weakness or signiﬁcant deﬁciencies. 10 Work environment issues including health and safety Risk category Operational Change from last year Link to strategy Operational excellence ESG and sustainability Risk description The Group has an established reputation for producing high-quality products across many specialist and niche environments. A failure of any one of these products could adversely impact the Group’s reputation and demand for the Group’s entire range of products and services. Risk of developing or innovating products or differentiating existing products could have an adverse effect on responding to customers’ needs and could result in a loss of customers, as well as adversely affecting future success and proﬁtability. Key mitigations Quality assurance standards are monitored, measured and regulated within the Group under the authority of the Quality Assurance Director who reports directly to the Chief Executive. Key mitigation includes Quality Management System adherence, competency training, and continued personnel training for ensuring quality product manufacture. Where appropriate, a formal programme of machine maintenance and asset replacement is established in order to mitigate the risk of machine breakdowns affecting product quality including raising the appropriate capital expenditure for replacing machines. Key changes during 2024 The risk of product quality or reliability has remained unchanged during the year, with no signiﬁcant issues raised by the Group’s customers or during the Board’s internal monitoring process. The Group’s commitment to product quality is detailed on page 81. 9 Product quality and reliability Risk category Operational Change from last year Link to strategy Growth Strong returns Operational excellence Hunting PLC Annual Report and Accounts 2024 109 Strategic Report Corporate Governance Financial Statements Other Information Viability Statement and Going Concern Viability Statement Introduction Hunting has a diverse global customer base underpinned by strong, long-term relationships. The Group provides a large range of products and services through its manufacturing and distribution facilities, which are located in a number of countries across the globe. In considering the Group’s viability, the Board regularly assesses the risks to its business model, strategy, future performance, solvency and liquidity. These assessments are supported by the risk management processes described on pages 102 and 103 and include a review of the Group’s exposure to the oil and gas industry, competitor action, customer plans, geopolitics, the robustness of the supply chain, the impact of climate change, the Group’s quality of information technology systems and security, and key executives and staff. Assessment period The Group’s customers are principally involved in the exploration for, and production of, oil and gas. Given the nature of the industry and the planning cycles involved, these activities can cover periods of no more than several weeks up to several years from start to end. Hunting’s management works closely with its customers, discussing their operational plans and related capital expenditure programmes, with a natural focus on the earlier years in which projects will be in progress, or committed, and for which requirements for goods or services from Hunting will be more certain. The outlook for the Group beyond this period is generated from management’s assessment of industrial data and projections published by industry commentators and analysts, including statistics on exploration and production expenditure, footage drilled and rig activity. These macro, longer-term forecasts are subject to signiﬁcant volatility. Due to the uncertainty in projecting forward any meaningful outlook beyond three years, the Group’s bank funding facilities are generally limited to a similar period. This enables the Group to reduce the risk of either being underfunded or overfunded, thereby mitigating non-utilisation fees, beyond the foreseeable future by being able to negotiate new facilities to accommodate revised operational and strategic changes expected during that additional period. During the year, the Group completed a process to reﬁnance its borrowing facilities. The new earnings-based facility which commenced in October 2024 comprises a revolving credit facility (“RCF”) with an initial tenor of four years and a three-year term loan. Financial projections beyond this period are too uncertain for the Group to commit to a longer facility. The Group’s Treasury department generally aims to initiate negotiations for a facility renewal approximately 12 months before the maturity date and the most recent outlook would contribute to those discussions. Taking these factors into consideration, the Board believes that a three-year forward-looking period, commencing on the date the ﬁnancial statements are approved, is the appropriate length of time to reasonably assess the Group’s viability. Assessment The nature of the Group’s operations exposes the business to a variety of risks which are noted on pages 104 to 109. The Board regularly reviews the principal risks and assesses the appropriate controls and further actions as described on pages 104 to 109 given the Board’s appetite for risk as described on pages 102 and 103. The Board has further considered their potential impact within the context of the Group’s viability assessment. In assessing the viability of the Group, the Board consider internal ﬁnancial projections to the end of 2028 which made the following assumptions: • Global exploration and production spend, excluding Russia, China and Central Asia, is expected to rise by 24% from 2024 to 2028; • Demand for energy service products improves in the medium term, given the global outlook for oil and gas demand, which is driven by growth within emerging markets and sustained demand from developed markets. These are the fundamental drivers of Hunting’s core business of manufacturing, supplying and distributing products and services which enable the extraction of oil and gas; • The Group continues to widen its customer base beyond the oil and gas industry, including into non-oil and gas, aerospace, military and medical markets; • The Group’s cost base is expected to beneﬁt from improved efﬁciency resulting from reductions in ﬁxed costs, simpliﬁed management structures and back-ofﬁce services, which together with the improved operating leverage, is expected to drive EBITDA margins up; and • The Group will continue to have a low to medium exposure to higher risk countries given the proportion of its current revenues and proﬁts derived from politically stable regions such as North America, Europe, the Middle East and South East Asia. A downside case of the ﬁnancial projections was also produced to model a severe but plausible deterioration in market conditions relevant to the Group’s principal risks. The downside case models a reduction in revenue of between 10% and 15% per year in 2027 and 2028 and the resulting impact on EBITDA and total cash and bank/(borrowings) assuming a modest reduction in discretionary corporate cash outﬂows such as dividends and treasury share purchases. If conditions were worse than anticipated in the downside case, corporate cash outﬂows, capital expenditure and operating costs would be reassessed resulting in additional ﬁnancial ﬂexibility. In the downside scenario, the Group continued to generate cash and had signiﬁcant headroom under its committed facilities and ﬁnancial covenants. A downside case has not been modelled for 2025 or 2026 as the near-term is more certain, underpinned by the sales order book, and such a scenario would result in a cash inﬂow from working capital. Hunting PLC Annual Report and Accounts 2024 110 Strategic Report Corporate Governance Financial Statements Other Information Viability Statement and Going Concern continued Going concern Introduction The Group’s principal cash outﬂows include capital investment, labour costs, inventory purchases and dividends. The Group’s principal cash inﬂows are generated from the sale of its products and services, the level of which is dependent on overall market conditions, the variety of its products and its ability to retain strong customer relationships. Cash inﬂows are further supported by the Group’s credit insurance cover against customer default that, at 31 December 2024, covered the majority of its trade receivables, subject to certain limits. Current and forecast cash balances are reported on a weekly basis by each of the business units to a centralised treasury function that uses the information to manage the Group’s day-to-day liquidity and longer-term funding needs. The Group has access to sufﬁcient ﬁnancial resources, including a $200m revolving credit facility and a $100m term loan, the latter being fully drawn during 2024. At 31 December 2024, the Group had total cash and bank/(borrowings) of $104.7m (NGM K). The Group’s internal ﬁnancial projections indicate that the Group is expected to continue to deliver a cash positive position and consequently has sufﬁcient resources to meet its liabilities as they fall due over the 12 months following the date of approval of the ﬁnancial statements. Review In conducting its review of the Group’s ability to remain as a going concern, the Board assessed the Group’s recent trading performance and its latest forecasts and took account of reasonably predictable changes in future trading performance. The Board also considered the principal risks faced by the Group and the potential ﬁnancial impact of the estimates, judgements and assumptions that were used to prepare these ﬁnancial statements and concluded that, given the signiﬁcant ﬁnancial headroom, the Group is able to maintain sufﬁcient cash resources to meet its liabilities as they fall due over the 12 months following the date of approval of the ﬁnancial statements. The Board is also satisﬁed that no material uncertainties have been identiﬁed. Conclusion The Board is satisﬁed that it has conducted a robust review of the Group’s going concern and has a high level of conﬁdence that the Group has the necessary liquid resources to meet its liabilities as they fall due. Consequently, the Board has considered it appropriate to adopt the going concern basis of accounting in preparing the ﬁnancial statements. Liquidity and solvency The new earnings-based facility is a bank borrowing facility which commenced in October 2024 and comprises a $200m RCF with an initial tenor of four years, with an option that allows the Group to extend the contracted maturity date by an additional 12 months, and a $100m term loan with a three-year tenor. The previous ABL facility has been retired. Like the ABL facility, the new RCF contains an accordion feature. This allows the Company to increase the facility quantum by an additional $100m (subject to further credit approval from the relevant lenders) enabling the Group to increase the total RCF to $300m. The term loan was fully drawn on signing of the facilities. On signing of the new facilities, the Group’s ABL facility was repaid and cancelled, with drawings under the new term loan used in part for this purpose. At 31 December 2024, the Group had total cash and bank/(borrowings) of $104.7m (NGM K). The Group’s internal ﬁnancial projections indicate that the Group is expected to continue to deliver a cash positive position. Conclusion The Board believes that the Group’s strategy for growth, its positive approach towards mitigating its impact on climate change, the diverse customer, supplier and product base, the resilience of its business model against the principal risks, the availability of borrowing facilities and the positive outlook for the oil and gas industry, in the medium term provide Hunting with a strong platform on which to continue its business. The Directors, therefore, have a reasonable expectation that Hunting will be able to continue in operation and meet its liabilities as they fall due over the three-year period of their assessment. Hunting PLC Annual Report and Accounts 2024 111 Strategic Report Corporate Governance Financial Statements Other Information Section 172(1) Statement This statement has been prepared in compliance with the Companies (Miscellaneous Reporting) Regulations 2018. The Board of Hunting PLC considers that, in complying with its statutory duty during 2024 and under section 172 of the Companies Act 2006 (the “Act”), the Directors have acted fairly and in good faith and in a manner which they believe will promote the continued success of the Company, for the beneﬁt of its members and stakeholders as a whole. The Board engages with its stakeholders when considering major strategic decisions, in the following ways: • Each year the Board reviews its short- and long-term strategy. In recent years these have remained consistent, with a focus on maintaining a ﬁrm ﬁnancial foundation, improving facilities, and investing in the development of new technology and in our workforce; • The Board aims to ensure that our employees work in a safe environment, that they receive appropriate training and are rewarded for their efforts; • Over the years, we have fostered long-standing relationships with our customers, suppliers and our external advisers. We base our philosophy on sharing our core values with our key stakeholders throughout the supply chain and by keeping in regular contact with suppliers and customers, advising them of our market strategy and product innovation; • As a Company operating in the oil and gas industry, we regularly monitor the impact of our activities on the environment and on the communities in which we operate, in particular where we maintain active manufacturing facilities; and • As a Board, we endeavour to operate responsibly and to make carefully considered decisions. We encourage high standards of business conduct from our employees and ensure we lead by example. Following engagement with a wide range of stakeholders, the following actions were taken: • Each year the Company Secretary provides the Board with a stakeholder engagement report which is completed by all the Group entities. This enables the Board to monitor senior management engagement with customers, suppliers, investors and other stakeholders; • Our global Human Resources function continues to monitor workforce remuneration, hiring and retention policies to ensure our employees are paid fairly when compared to similar companies in our sector; • Charitable donations were made in line with the policy to distribute unclaimed dividends to UK-based charities; • The Group continued to expand its carbon data and climate reporting. In March 2025, the Company announced its new carbon intensity target; • Following the completion of the Group’s ﬁrst carbon data assurance project in 2023, Hunting engaged a third party in the latter half of 2024 to complete assurance of the Group’s 2023 data; • Following the analysis of the Hunting Titan operating segment scope 3 emissions in 2023, senior management extended this project for 2024 to also include the Group’s EMEA, Asia Paciﬁc, and Subsea Technologies operating segments; • Hunting’s TEK-HUB™ continues to build relationships with innovative individuals and organisations that are developing technologies that align with our customers’ and wider stakeholders’ requirements; • Outlined during the previous year’s Capital Markets Day, the Hunting 2030 Strategy presented a robust growth strategy designed for long-term resilience. The Company has actively engaged in several projects, demonstrating its technological prowess and commitment to unlocking the full potential of geothermal and carbon capture, usage, and storage; • Teams from Singapore, China and Indonesia organised various events to celebrate International Women’s Day, which included team building exercises, speakers and activities. The workshops addressed several topics including diversity and equality in regard to the workplace; • To commemorate the founding of the ﬁrst Hunting company in 1874, the Company organised an event at the National Portrait Gallery in London which was attended by current and former employees and other stakeholders. In addition, our global companies engaged in numerous local and community events and initiatives as part of the 150th anniversary celebrations (see pages 8 and 9); • In Dubai, sustainability was at the heart of the design of the new facility, with a number of carbon reducing features incorporated to meet the Group’s ambitions for a sustainable operating site. It ensures a safe and comfortable working environment for employees as well as building a facility that focuses on reducing water and electricity consumption; and • During December, the Board visited the Group’s Ameriport facility, which provided an opportunity to meet and engage with employees. The following sections and cross references provide a summary of where details of key stakeholder and associated engagement and decision making is located within the 2024 Annual Report and Accounts, and also some of the considerations taken by the Board in fulﬁlling their duty under section 172(1) of the Act: • Shareholders (page 25); • Lenders (page 26); • Employees (pages 27, 28 and 78 to 80); • Customers (pages 29 and 81); • Suppliers (pages 29 and 30); • Environment and climate change (pages 31 and 82 to 87); • Governments (page 32); and • Communities (pages 32 and 80). On behalf of the Board Jim Johnson Chief Executive Bruce Ferguson Finance Director 6 March 2025 Hunting PLC Annual Report and Accounts 2024 112 Strategic Report Corporate Governance Financial Statements Other Information Corporate Governance Introduction to Corporate Governance 114 Board of Directors 116 Executive Committee 118 Corporate Governance Report 119 Nomination Committee Report 131 Ethics and Sustainability Committee Report 133 Remuneration Committee Report 136 – Remuneration at a Glance 140 – Directors’ Remuneration Policy 142 – Annual Report on Remuneration 151 Audit and Risk Committee Report 161 Directors’ Report 167 Hunting PLC Annual Report and Accounts 2024 113 Strategic Report Corporate Governance Financial Statements Other Information Introduction to Corporate Governance Introduction In my ﬁrst year as Company Chair of Hunting PLC, it is my great privilege to introduce you to the Company’s Corporate Governance Report. Over the past 150 years, Hunting companies have continued to evolve and adapt in the face of economic, political, and social changes and recent extraordinary technological advances. This year your Company has delivered further revenue and earnings growth, increased free cash ﬂow generation, and improved its return on capital employed, demonstrating both the strength and critical nature of, and our commitment to, our current end-markets. During his term as Chair, my predecessor Jay Glick continued in a long-standing tradition of encouraging a positive corporate culture in Hunting’s conduct towards its shareholders, employees, customers, suppliers, and other stakeholders. With my fellow Directors, I hope to continue with this tradition and help Hunting PLC to further develop and progress as a proﬁtable and socially responsible enterprise well into the future. To this end, the Board has progressed a number of operational and governance related initiatives in the year, in support of the Hunting 2030 Strategy, which has seen positive responses from our shareholders. Delivering on the Hunting 2030 Strategy The past year has seen strong delivery against a number of critical milestones in our Hunting 2030 strategic ambitions. In May, we announced a record order from Kuwait Oil Company, which was followed by a further material order, in total being $231m for OCTG and premium connections for deepwater gas projects offshore Kuwait. 2024 has been a year of strong delivery of a number of milestones which were presented as part of our Hunting 2030 Strategy at our Capital Markets Day in 2023. Strong execution on our OCTG and Subsea ambitions has helped Hunting deliver another year of revenue and earnings growth, along with increased returns. Offsetting this performance has been lower trading results from our Hunting Titan (Perforating Systems) and EMEA operating segments. The Board governance structure and its activities have supported our long-term strategy, with a new Directors’ Remuneration Policy and long-term incentive plan being approved by shareholders. Further, the Board continued its refreshing in the year, as our strategy increasingly looks to markets outside of the energy industry. This success was a result of over ﬁve years of dialogue and collaboration between the customer and Hunting’s technical and production teams in Singapore, China and Houston. Our Subsea businesses have also reported excellent progress in the year as they build their international presence. We have spent much of the year completing orders for ExxonMobil in Guyana, which has supported the strong results from the segment. In addition, we have demonstrated commercialisation of our licensed Organic Oil Recovery technology in the year through the receipt of some signiﬁcant orders. This new revenue stream is material to the Group and is testament to the efforts of our team in Europe. As we look forward, we anticipate completing other milestones on our 2030 journey, with the Directors focused on delivering strongly on all the objectives outlined at the Capital Markets Day. Board succession and refreshing On 10 January 2024, Margaret Amos was appointed as a new independent, non-executive Director of the Company. Margaret brings signiﬁcant aviation, corporate planning and emerging market experience to the Board. In line with the Company’s Articles of Association, Margaret automatically retired as a Director and was reappointed by shareholders at the 2024 Annual General Meeting (“AGM”). At the AGM in April 2024, we saw the retirement of Jay Glick as Company Chair. Jay joined the Company in 2015 and became Company Chair in 2017, overseeing some of the most challenging trading backdrops in the Company’s history. The Directors would like to thank Jay for his hard work, wise counsel, and industry insight and we wish him a happy retirement. Stuart M. Brightman Company Chair Dividends declared in the year 11.5 cents (2023 – 10.0 cents) Total distributions payable to shareholders in respect of the ﬁnancial year $ 18.2 m (2023 – $15.8m) Hunting PLC Annual Report and Accounts 2024 114 Strategic Report Corporate Governance Financial Statements Other Information Introduction to Corporate Governance continued The Directors would like to thank our shareholders for their support and engagement through this time. The Board is committed to strong stewardship of the new Policy, given the new incentive structure in place. Dividends With the continued improvement in the Company’s ﬁnancial performance in the year, and in line with the dividend ambition announced as part of the Hunting 2030 Strategy, the Directors are proposing a Final Dividend with respect to 2024 of 6.0 cents per share. This distribution is being submitted to shareholders for approval at the 2025 AGM. An Interim Dividend of 5.5 cents per share was paid on 25 October 2024, equating to a cash distribution of $8.7m. The total distribution for the year to shareholders is, therefore, 11.5 cents per share, which is a 15% increase over 2023, equating to total distributions payable of approximately $18.2m (2023 – $15.8m). ESG and sustainability As noted in the ESG and Sustainability Report on pages 68 to 87, the Directors have overseen the wider implementation of the collection of our scope 3 carbon data. Our management team is fully engaged with this important initiative and as we progress our reporting in the coming years, our commitment to carbon and climate change initiatives are likely to be enhanced. Board and Committee effectiveness review In line with the recommendations of the UK Corporate Governance Code, an externally facilitated Board and Committee Effectiveness review was completed in H2 2024 by Clare Chalmers Limited. The review included interviews with the Directors and key members of the senior leadership team to gain perspectives on the governance and operating procedures of the Group. Board and management succession remains a key area of development in the short term given the tenure of members of the leadership team. Employee engagement The Directors visited the Group’s AmeriPort manufacturing facility in Houston, Texas in December 2024, which provided an opportunity for the Board to meet and talk to the workforce. As part of the feedback from our 2023 employee survey, new engagement opportunities, including more employee town halls were introduced in the year. New UK Corporate Governance Code In January 2024, the Financial Reporting Council issued the 2024 UK Corporate Governance Code. Management has spent a good deal of time reviewing the new Code provisions, particularly around risk management and internal control and in August and December 2024 received presentations on the approach and strategy of the Company to be compliant over time. The Company is investing in people and technology to enhance our control environment, with new governance procedures being reviewed, which will enhance the work of the Audit and Risk, and Ethics and Sustainability Committees as well as new workstreams for the main Board. As part of our Corporate Governance Report on pages 119 to 130, we have published a “Roadmap to Compliance” with the Code focusing on the new internal control requirements. In summary, the governance framework, along with the Board and Committee processes and procedures, have remained robust during 2024 with progress being made on many fronts. We look to the future with conﬁdence. On behalf of the Board Stuart M. Brightman Company Chair 6 March 2025 I am honoured to take on the role of Company Chair on behalf of shareholders and the Company’s stakeholders and look forward to assisting in delivery of the Hunting 2030 Strategy. On 1 February 2025, Annell Bay also retired as a Director. I would like to thank Annell for her sterling work with the Remuneration Committee since 2018, and particularly over the past two years as the Directors prepared a new Directors’ Remuneration Policy and Long-term Incentive Plan, which were both approved by shareholders at the 2024 AGM with strong levels of support. During H2 2024, the Nomination Committee commenced a new search process to appoint an additional, independent, non-executive Director. On 3 March 2025, the Company announced the appointment of Cathy Krajicek with immediate effect. Cathy has joined all of the Board’s Committees and brings signiﬁcant international, oil and gas and public company experience to the Company. New Directors’ Remuneration Policy The Directors began their consultation with shareholders in July 2023, with closing dialogue occurring up to April 2024. Feedback from all our investors and proxy voting agencies was received and considered through this time, with major amendments being made to align with the views of stakeholders. Hunting PLC Annual Report and Accounts 2024 115 Strategic Report Corporate Governance Financial Statements Other Information Board of Directors Key to committees: N Nomination Committee E Ethics and Sustainability Committee R Remuneration Committee A Audit and Risk Committee I By invitation Chair Arthur James (Jim) Johnson Chief Executive Nationality American Length of service 33 years; appointed to the Board as a Director and Chief Executive in 2017. Age 64. Skills and experience Jim held senior management positions within Hunting from 1992 up to his appointment as Chief Operating Ofﬁcer of the Group in 2011. In this role, he was responsible for all day-to-day operational activities of the Company. Jim is a member of and chairs the Executive Committee. External appointments None. Bruce Ferguson Finance Director Nationality British Length of service 31 years; appointed to the Board as a Director and Finance Director in 2020. Age 53. Skills and experience Bruce is a Chartered Management Accountant and has held senior ﬁnancial and operational positions within the Group since 1994. From 2003 to 2011, Bruce was the ﬁnancial controller of the Group’s European operations. From 2011, Bruce held the position of managing director of Hunting’s EMEA operating segment and has been a member of the Executive Committee since its formation in 2018. External appointments None. Margaret Amos Non-executive Director Nationality British Length of service 1 year; appointed to the Board as a non-executive Director in January 2024 and is viewed as independent. Margaret is Chair of the Ethics and Sustainability Committee. Age 55. Skills and experience Margaret spent the majority of her career at Rolls-Royce plc, where she held a number of senior positions including Finance Director – Engineering, IT and Corporate as well as Director of Business Planning. External appointments Margaret is currently a non-executive director of Pod Point Group Holdings PLC. Stuart M. Brightman Non-executive Company Chair Nationality American Length of service 2 years; appointed to the Board as a non-executive Director in 2023 and appointed Company Chair in April 2024, and is viewed as independent. Age 68. Skills and experience Stuart has spent the majority of his career at TETRA Technologies Inc. (“TETRA”), Dresser Inc. and Cameron Iron Works. During his time at TETRA, Stuart held the position of chief operating ofﬁcer between 2005 and 2009, when he was appointed chief executive ofﬁcer, a position he held to 2019, before his retirement from the business. External appointments None. N I I I N R A E Hunting PLC Annual Report and Accounts 2024 116 Strategic Report Corporate Governance Financial Statements Other Information Board of Directors continued Key to committees: N Nomination Committee E Ethics and Sustainability Committee R Remuneration Committee A Audit and Risk Committee I By invitation Chair Carol Chesney Non-executive Director Nationality American and British Length of service 7 years; appointed to the Board as a non-executive Director in 2018 and is viewed as independent. Carol is Chair of the Audit and Risk Committee. In April 2024, Carol was reappointed for a ﬁnal three-year term. Age 62. Skills and experience Carol is a Fellow of the Institute of Chartered Accountants in England and Wales. Carol was formerly the Group Financial Controller and, latterly Company Secretary of Halma plc. External appointments Carol is currently a non-executive director of IQE plc and Hill & Smith plc. Paula Harris Non-executive Director Nationality American Length of service 3 years; appointed to the Board as a non-executive Director in April 2022 and is viewed as independent. Paula was appointed Chair of the Remuneration Committee in February 2025 and is also the Company’s designated non-executive Director for employee engagement. In March 2025, Paula was reappointed for a second three-year term. Age 61. Skills and experience Paula has extensive oilﬁeld services experience following a 33-year career at SLB, the international energy services group, where latterly she was Director of Stewardship. External appointments Paula is currently a non-executive director of Chart Industries, Inc and Helix Energy Solutions Group, Inc. Keith Lough Senior Independent non-executive Director Nationality British Length of service 7 years; appointed to the Board as a non-executive Director in April 2018 and appointed Senior Independent Director in August 2018. In April 2024, Keith was reappointed for a ﬁnal three-year term. Age 66. Skills and experience Keith was formerly the non-executive Chairman of Gulf Keystone Petroleum Limited and Rockhopper Exploration plc as well as a non-executive director of Capricorn Energy PLC. He has previously held a number of executive positions within other energy-related companies, including British Energy plc and LASMO plc. External appointments Keith is currently the non-executive chair of Southern Water. Catherine (Cathy) Krajicek Non-executive Director Nationality American Length of service <1 year; appointed to the Board as a non-executive Director on 3 March 2025 and is viewed as independent. Age 63. Skills and experience Cathy has deep experience of the exploration and production segment of the oil and gas industry, spending 22 years at ConocoPhillips and 11 years at Marathon Oil Company. During this time, Cathy held technical, major project, and asset management roles in the US and Indonesia. As well as asset manager roles at Marathon, Cathy held roles within HSE & Security and Technology & Innovation functions. Cathy was formerly a non-executive director at Capricorn Energy PLC. External appointments Cathy is currently a non-executive Director of Gulf Keystone Petroleum Limited. N N N N E E E E R R R A A A A R Hunting PLC Annual Report and Accounts 2024 117 Strategic Report Corporate Governance Financial Statements Other Information Executive Committee Adam Dyess Managing Director – Hunting Titan Nationality American Length of service 14 years; joined Hunting in 2011 Age 40. Ryan Elliott Chief IT Ofﬁcer Nationality American Length of service 12 years; joined Hunting in 2013. Age 47. Daniel Tan Managing Director – Asia Paciﬁc Nationality Singaporean Length of service 17 years; joined Hunting in 2008. Age 62. Scott George Managing Director – North America Nationality American Length of service 15 years; joined Hunting in 2010. Age 51. Gregory T. Farmer Global Director – QAHSE/Compliance/ESG Nationality American Length of service 37 years; joined Hunting in 1993. Age 58. Liese Borden Chief HR Ofﬁcer Nationality American Length of service 7 years; joined Hunting in 2018. Age 63. Dane Tipton Managing Director – Subsea Technologies Nationality American Length of service 15 years; joined Hunting in 2010. Age 53. Jim Johnson and Bruce Ferguson are also members of the Hunting Executive Committee. Ben Willey Company Secretary Nationality British Length of service 15 years; joined Hunting in 2010 and was appointed Company Secretary in 2013. Age 51. N E R A Hunting PLC Annual Report and Accounts 2024 118 Strategic Report Corporate Governance Financial Statements Other Information Our purpose Stakeholder engagement Non-executive Directors Executive Directors 1 Strategic intent 2 Challenge and decision making 3 Short/long-term plans Remuneration Committee Execution and value creation (Business Model) Risk management Strategic and ﬁnancial performance Business strategy Audit and Risk Committee Nomination Committee Ethics and Sustainability Committee Market environment and other external factors KPIs Corporate Governance Report Compliance The Board of Hunting PLC has adopted governance principles aligned with the 2018 UK Corporate Governance Code (“the Code”), which can be found at www.frc.org.uk. Hunting PLC is reporting its corporate governance compliance against this Code. The Board notes that it has complied with all provisions within the Code except for the following from which there has been a departure as at 6 March 2025: • The pension contribution rate of the Chief Executive (who is resident in the US) currently does not align with the workforce as required by provision 38 of the Code. Mr Johnson was appointed prior to the implementation of the 2018 Code. It should be noted that since his appointment to the Board in 2017, the pension contribution Jim Johnson received from the Company averaged 12% of base salary, which is the same as the contribution rate of the Finance Director. The Board has agreed that the pension contribution rates for all new executive Director appointments will be capped at 12% of base salary, in line with the UK workforce. In 2023, a new deferred savings plan was implemented in the US, which fully aligns the workforce and management across the region. The Remuneration Committee notes that this plan will be offered to future US-based executive Directors, which will make the Company fully compliant with the Code. Governance framework Introduction Subject to the Company’s Articles of Association, UK legislation and any directions prescribed by resolution at a general meeting, the business of the Company is managed by the Hunting PLC Board (“the Board”). The Board is responsible for the management and strategic direction of the Company, to ensure long-term success by generating value for its shareholders, while giving due consideration to other stakeholders, as prescribed by UK law. The Board discusses strategic planning and long-term growth objectives. Once the Board has agreed on these strategic plans, they are rolled out across the Group’s operations and relayed to key stakeholders more generally. Embedded within strategic planning is the Group’s appetite for risk. The Group’s Risk Management framework (see pages 102 and 103), and supporting procedures, help the Board reﬁne its decision making, as the opportunities and risks for long-term success and growth are evaluated against the risk appetite and culture of the Group. Following this, the Group’s Business Strategy and Model are put into action. The Board has four sub-committees to which it delegates governance and compliance procedures: • The Nomination Committee, whose report can be found on pages 131 and 132; • The Ethics and Sustainability Committee, whose report can be found on pages 133 to 135; • The Remuneration Committee, whose report can be found on pages 136 to 160; and • The Audit and Risk Committee, whose report can be found on pages 161 to 166. These Board Committees support the Directors in their decision making. Hunting governance framework Hunting PLC Annual Report and Accounts 2024 119 Strategic Report Corporate Governance Financial Statements Other Information The work of the Nomination Committee supports the Board’s responsibility for ensuring that a framework for the recruitment and retention of talent is in place to run the Company and that succession is well planned and executed in a timely manner. The Ethics and Sustainability Committee supports the Group’s environmental, social and governance (“ESG”) decision making. The Committee also monitors the Group’s long-term strategies to reduce our impact on the environment and improve our sustainability. The Committee monitors stakeholder engagement procedures and the Company’s culture, and oversees our ethics policies. The Remuneration Committee ensures that executive pay remains aligned with Company performance, workforce remuneration and the broader shareholder experience. The Remuneration Committee ensures the executive Directors remain motivated and incentivised, as the senior leadership team executes the Board approved strategy on a day-to-day basis. The Audit and Risk Committee’s responsibilities include reviewing the Group’s ﬁnancial results, risk management and internal control procedures, challenging management and overseeing the internal audit and external audit functions. The Board and its Committees are further supported by an Executive Committee, comprising senior leaders across the Group. The Executive Committee oversees the implementation of the Group’s strategy and growth objectives and ensures that the risks and also opportunities presented are actively managed. Board leadership and Company purpose (Section 1 of the Code) Responsibilities of the Board The Board of Hunting PLC has clearly deﬁned areas of responsibility, which are separate to those of the Company Chair, executive Directors and the Committees of the Board. The non- executive Directors approve the strategic goals and objectives of the Company, as proposed by the executive Directors. The Board approves all major acquisitions, divestments, dividends, capital investments, annual budgets and strategic plans. The Board exercises overall leadership of the Company, setting the values of the Hunting Group, providing a strong tone from the top which all businesses within the Group, and their employees, are encouraged to adopt. Governance principles of the Company are set by the Board and key Group-level policies are reviewed and approved by the Directors. The Directors monitor Hunting’s trading performance, including progress against the annual budget, reviewing regular management accounts and forecasts, comparing these forecasts to market expectations, and assessing other ﬁnancial matters. They review and approve all public announcements, including ﬁnancial results and trading statements, and set the dividend policy of the Group. The internal control and risk management framework and associated procedures are reviewed by the Board. However, key monitoring procedures are delegated to the Audit and Risk Committee. Compensation of the executive Directors is set by the Remuneration Committee, who also review and monitor the remuneration of the Executive Committee, as well as monitoring the remuneration structure of the workforce. The Board approves all key recommendations from the Nomination, Ethics and Sustainability, Remuneration, and Audit and Risk Committees and approves all appointments to these Committees. Board activities Board and Committee materials are circulated in a timely manner ahead of each meeting. At each meeting, the Chief Executive updates the Board on key operational developments, provides an overview of the global markets, reports on health and safety, and highlights milestones reached towards the delivery of Hunting’s strategic objectives. The Finance Director provides an update on the Group’s ﬁnancial performance, position, trading outlook, banking arrangements, legal issues, analyst discussions, tax matters, and statutory reporting developments relevant to Hunting. These topics lead to discussion, debate and challenge among the Directors. The Group’s governance framework includes the Board and the Executive Committee. Medium-term planning initiatives are formalised within the Executive Committee, which are then reviewed regularly by the Board and are supported by periodic presentations by members of the Executive Committee. The Board met nine times in 2024 (2023 – nine times), with the attendance record noted below: Number of meetings held 9 Number of meetings attended (actual/possible): Margaret Amos (from 10 January 2024) 8/8 Annell Bay (to 1 February 2025) 8/9 Stuart Brightman 9/9 Carol Chesney 8/9 Bruce Ferguson 9/9 Jay Glick (to 17 April 2024) 4/4 Paula Harris 9/9 Jim Johnson 9/9 Cathy Krajicek (from 3 March 2025) 0/0 Keith Lough 8/9 Tenure The average tenure of the Board, at 6 March 2025, is four years (29 February 2024 – ﬁve years). Within the non-executive Directors, the average tenure is three years (29 February 2024 – ﬁve years). For the appointment of executive Directors, the Company enters into a service contract with the Director, which reﬂects the terms of employment, remuneration and termination, taking into account the country of residence and local employment laws applicable at the time of the appointment. For more information on the service contracts of the current executive Directors, please see the Remuneration Committee Report on page 149. For the appointment of non-executive Directors, a letter of appointment is agreed with the Director, which sets out the time commitment, fees, and term of appointment. Corporate Governance Report continued Hunting PLC Annual Report and Accounts 2024 120 Strategic Report Corporate Governance Financial Statements Other Information 2024 Board meetings and agenda items 8 Jan 22 Jan 28 Feb 17 Apr 4 Jun 28 Jun 28 Aug 21 Oct 4 Dec Standing items Chief Executive’s Report • • • • • • • • Finance Director’s Report • • • • • • • • Operational Reports • • • • Quality Assurance, Health, Safety & Environmental Reports • • • • Shareholder Report and Investor Relations Update • • • • • • • Other items Board rotation and succession • Annual/Interim Report and Accounts • • Board Evaluation • • Risk Review • AGM Preparation • Trading Statement • • Strategy • • • • • • • • Organisation and Personnel Review and Succession • Annual Budget • Company Chair/Senior Independent Director Investor Feedback • As at 6 March 2025, the gender balance of the Board comprises four female Directors (50%) and four male Directors (50%). For further information on the biographical details of the Board of Directors, please see pages 116 and 117. Board tenure at 6 March 2025 Less than 3 years 3-5 years 6-9 years 50% 12% 38% Corporate Governance Report continued Average tenure of the Board 4 years at 6 March 2025 (29 February 2024 – 5 years) Average tenure of the non-executive Directors 3 years at 6 March 2025 (29 February 2024 – 5 years) Composition and diversity Margaret Amos was appointed as a Director on 10 January 2024. Following the Company’s Articles of Association, Dr Amos automatically retired at the 2024 AGM and offered herself for reappointment by shareholders. Jay Glick retired as a Director on 17 April 2024 and Annell Bay retired on 1 February 2025. Cathy Krajicek was appointed as a Director on 3 March 2025. Following the Company’s Articles of Association, Ms Krajicek will automatically retire at the 2025 AGM and will offer herself for reappointment by shareholders. Heidrick & Struggles supported the Board in these search processes. Heidrick & Struggles does not have any other connection to the Group or the individual Directors, other than in executive search processes completed in the year. Board gender diversity at 6 March 2025 % Male Female 50% 50 % Hunting PLC Annual Report and Accounts 2024 121 Strategic Report Corporate Governance Financial Statements Other Information Corporate Governance Report continued Board of Directors and Executive Committee In accordance with the UK Listing Rules, the Company is required to provide the information below, with the applicable reference date for this data being 31 December 2024. To collect this data, the Company asked members of the Board and Executive Committee to respond, in conﬁdence, to a questionnaire. Gender Number of Board members % of Board Number of senior positions on the Board (CEO, CFO, SID and Chair) Number in executive management % of executive management Men 4 50 4 9 90 Women 4 50 0 1 10 Other categories – – – – – Not speciﬁed/prefer not to say – – – – – Ethnicity Number of Board members % of Board Number of senior positions on the Board (CEO, CFO, SID and Chair) Number in executive management % of executive management White British or other White (including minority-white groups) 7 89 4 9 90 Mixed/Multiple Ethnic Groups – – – – – Asian/Asian British – – – 1 10 Black/African/Caribbean/Black British 1 11 – – – Other ethnic group – – – – – Not speciﬁed/prefer not to say – – – – – * ‘Executive management’ refers to members of the Executive Committee, excluding the Executive Directors. The number of members reduced by one on 1 January 2025, following a retirement. With this gender balance and current allocation of roles within the composition of the Board, Hunting is compliant with two of the three targets speciﬁed within the UK Listing Rule 6.6.6R(9)(a), with the target of at least one senior Board position being held by a woman not being met. The current Board proﬁle of senior positions has been in place for a number of years, with the Directors anticipate that this non-compliance being resolved by no later than 2027 as further refreshing of the Board continues. The Board continues to review the Group-wide ethnicity proﬁle and will likely target a diversity proﬁle for the senior management team similar to the whole workforce. Hunting PLC Annual Report and Accounts 2024 122 Strategic Report Corporate Governance Financial Statements Other Information Creation of sustainable value for our stakeholders Purpose At the heart of Hunting’s long-term strategy and success is a reputation based on trust and reliability. Hunting’s products are designed to operate in a safe and reliable way, to ensure our customers meet their strategic objectives, while protecting people and the environment. Our strategy aims to offer technically differentiated products that meet these customer demands. We choose to operate in the oil and gas industry, which supports the energy demands of today’s global community. We also supply mission critical parts to other sectors, such as defence, medical and aerospace. Our customers are constantly pursuing higher levels of safety and reliability and better efﬁciencies, leading to a lower cost of operation for themselves, while aiming to be good stewards of the environment, through a safe and responsible approach to oil and gas ﬁeld development. This drives our ambition to deliver innovative technologies and products to enable us to lead the market and be the supplier of choice. Our products and services include precision engineered components that are quality-assured to exceed the highest levels of industry regulation. Our employees are highly trained to ensure our operations are safe and deliver total customer satisfaction. The Directors have approved Hunting’s continued focus on energy-related markets, while using the earnings generated from that sector to diversify into other non-oil and gas sectors that utilise our core competencies and offer an attractive return. Corporate Governance Report continued Our purpose – to be a highly trusted innovator and manufacturer of technology and products that create sustainable value for our stakeholders. Purpose Our purpose shapes our strategic decisions and drives our business model Our culture and values are aligned with our purpose Business strategy (page 10) Business model (page 20) Risk management (page 102) Our culture and values underpin our business model Culture and values (page 124) Hunting PLC Annual Report and Accounts 2024 123 Strategic Report Corporate Governance Financial Statements Other Information Corporate Governance Report continued Culture and values Our culture is the shared way that we do things in the Company and is underpinned by our core values of respect, honesty, integrity, innovation and reliability. The Company has been operating since 1874 and has a long history with a strong culture of excellence. At the heart of Hunting’s culture is our people. Our culture is shaped and determined by the way we: Attract and retain people Training and development To ensure we deliver for our customers, we train and develop our people to make sure we maintain a highly skilled workforce ready to deliver quality-assured products and services. Fair remuneration To retain our staff, our employees are fairly remunerated, which, in addition to a competitive base salary, can comprise a range of beneﬁts. Given the competitive landscape of our industry, our base levels of pay are well above minimum wage thresholds. Safety Zero harm to our employees. Key metrics • HSE hours of training per employee; • Voluntary turnover rate; • Average employee tenure; • Salary and beneﬁts; • Talent development; • Succession planning; • Total recordable incident rate; and • Total near-miss frequency rate. Work together Speak up Our culture encourages a “speak up” environment to enable our processes to be improved, but also to address possible concerns from all levels of staff. Equity and inclusion Hunting prides itself on being a fair and responsible employer. We are committed to creating a positive workplace environment for all of our employees; one that is safe, respectful, fair and inclusive, and free from any form of harassment, bullying or discrimination. Diversity and inclusion The Company recognises the business beneﬁts of having a diverse workforce, including a diverse Board, as this supports the delivery of high performance and increases the effectiveness of the Company. Key metrics • Diversity of employees; • Diversity at management level; • SafeCall reports; and • Employee engagement survey. Do business in a responsible and sustainable way Strong HSE and quality assurance ethic We seek to achieve and maintain the highest standards of safety for our employees, customers, suppliers, and the public. Looking after local communities The Board encourages community focused initiatives, with the Executive Committee responsible for identifying local activities and projects to support. This delegation allows regional cultural practices to be taken into account. Commitment to minimising our impact on the environment We protect and minimise our impact on the environment in which we operate, and where our products are used. We focus on setting targets for, and achieving, emissions reductions and mitigating climate-related risks. Key metrics • Total recordable incident rate; • Total near-miss frequency rate; • Internal manufacturing reject rate; • Charitable donations; • Scope 1, 2 and 3 emissions; and • ISO accreditation of facilities. Make decisions Flat management structure The Group’s ﬂat management structure has short chains of command, which allows for rapid, considered decision making that empowers and enables our employees to be part of the process to take the Company forward. Ongoing engagement with our shareholders, customers, suppliers, and employees Stakeholder engagement is a key element for our culture as our stakeholders enable Hunting to deliver its strategy. Incorporating environmental concerns into our business decisions Our operating principles are focused on containing and reducing our carbon footprint. Key metrics • Employee engagement survey; • Town hall meetings; • NED engagement meetings; • Hunting 2030 Strategy targets; and • Customer satisfaction surveys. Maintain high business standards Code of Conduct and Supplier Code of Conduct Hunting’s Code of Conduct underpins all our engagements, internally and externally. Internal and external audit & assurance, risk assessment Hunting is committed to carrying out its business in a responsible way and holds itself to high standards of honesty and integrity. Long-term relationships with core stakeholders Creating positive, long-term relationships with our key stakeholders ensures that we are sustainable. Key metrics • Code of Conduct training; • Rolling out Supplier Code of Conduct; • Cyber security training; • Prompt payment of suppliers; • Total recordable incident rate; • Total near-miss frequency rate; and • ESG metrics linked to remuneration and included in short- and long-term incentive plans. Hunting PLC Annual Report and Accounts 2024 124 Strategic Report Corporate Governance Financial Statements Other Information Corporate Governance Report continued Board engagement The Directors have oversight of all stakeholder engagement activities and receive reports on regional activities throughout the year. The Board meets shareholders as part of an investor relations programme of work which includes the Company Chair, Senior Independent Director, Chief Executive, Finance Director, Company Secretary, and Deputy Company Secretary. All the Directors participate in employee engagement initiatives. Engagement with Customers and Suppliers is primarily delegated to the Chief Executive and Executive Committee members. The Board has considered its engagement mechanisms with its various stakeholders and conﬁrm that they remain effective. Stakeholder engagement Details of engagement activities between all our key stakeholders and the Board can be found within the Strategic Report, on pages 25 to 32. Engagement processes have been embedded within all business units to enhance transparent two-way dialogue between the Board and the Group’s employees. During the year, the Board met with employees at our AmeriPort, Texas facility, as part of ongoing engagement programmes. Annell Bay in her role as designated Director for employee engagement (up to 1 February 2025) met members of the workforce on a number of occasions throughout the year. Our employees are also encouraged to engage in dialogue with management to raise issues of concern. Keith Lough, the Senior Independent Director, is the primary point of contact for staff or other key stakeholders to raise, in conﬁdence, any concerns they may have over any possible improprieties. These procedures are supported by an independent reporting service operated by SafeCall, where conﬁdential matters can be raised with the Board. In the year, the Directors reviewed the organisational structure of the Group, noting its simplicity, with short chains of command to allow for rapid business decision making. It was noted that this also allowed all levels of the workforce to communicate with the senior management team directly. As part of its regular Board meeting schedule, the Directors review HSE and Quality Assurance reports from the Group’s global operations. In line with the recommendations of the Code, the Board has established procedures to monitor culture and to ensure the views of the workforce are understood by the Directors. In 2023, the Group completed a second, all-employee engagement survey. The results of the survey were reviewed by the Directors, with improvements in engagement being noted since the last survey in 2019. This process will be repeated in 2025. Shareholder views The Company Chair and Senior Independent Director met with shareholders in January 2024 and January 2025 to discuss governance, remuneration strategy, and other matters. Between July 2023 and April 2024, Annell Bay, as Chair of the Remuneration Committee, met with shareholders to discuss the new Directors’ Remuneration Policy and Long-term Incentive Plan. During the year, the Chief Executive, Finance Director, Company Secretary, and Deputy Company Secretary also regularly met shareholders to discuss performance and strategy. Following these meetings, investor feedback reports are prepared by the Group’s advisers and are circulated to the Directors. Annual General Meeting The Annual General Meeting (“AGM”) of the Company is the normal forum for all shareholders to meet the Directors and to ask questions about the strategy and performance of the Group. The formal business of the AGM includes receiving the Annual Report and Accounts, approving remuneration policies and outcomes, re-electing Directors, appointing the auditor and providing the Directors with powers to transact Company business on behalf of its members. The Chief Executive normally provides a presentation on the Group’s performance and answers questions from shareholders. At the Company’s AGM in April 2024, an open meeting was held where shareholders had the opportunity to meet the Directors and to ask questions. All resolutions were passed at the AGM with good majorities. Resolution 4 of the AGM, to approve the annual report on remuneration, received 76% votes in favour. As required by the UK Corporate Governance Code when shareholder support is less than 80%, an engagement process was initiated in April 2024 to understand the views of shareholders and the reasons for this lower level of support. In June 2024, Stuart Brightman, Hunting’s Company Chair, met with shareholders, where one shareholder noted that the level of annual bonus deferral ought to be increased; however, following discussion it was agreed that this would be kept under review. Please see page 139 for further detail. The process concluded in August 2024, with a statement being published on the Company’s website at www.huntingplc.com. Details of the resolutions put to shareholders at the meeting can be found within the Notice of Meeting located within the “General Meetings” section of the Company’s website www.huntingplc.com. The Company’s 2025 AGM is again being planned as an open meeting. In addition to going to the AGM venue, shareholders are also able to access the AGM via a webcast, where questions can be submitted, ahead of and during the meeting, to be answered by the Board. Speak up/whistleblowing service An independent and anonymous whistleblowing reporting service has been in place for many years, allowing any employee access to the Board to raise matters of concern. During the year, there were three reports received through the SafeCall service (2023 – six reports). Reports received are reviewed by Keith Lough, the Group’s Senior Independent Director, who also receives and approves all investigation reports and corrective actions. Hunting PLC Annual Report and Accounts 2024 125 Strategic Report Corporate Governance Financial Statements Other Information Responsibilities of the Company Chair • Lead and build an effective and balanced Board; • Chair meetings of the Board, ensuring the agenda and materials are ﬁt for purpose; • Ensure the Directors are provided with accurate, timely and relevant information; • Promote good dialogue between all Directors, with strong contributions encouraged from all Board members; • Meet the non-executive Directors without the executive Directors present; • Discuss training and development with the non-executive Directors; • Arrange Director induction programmes; • Arrange an annual Board evaluation and act on its ﬁndings; and • Ensure shareholders and other stakeholders are communicated with effectively. Responsibilities of the Chief Executive • Manage the day-to-day activities of the Group; • Make strategic planning recommendations to the Board and implement the agreed Board strategy; • Identify and execute new business opportunities, acquisitions and disposals; • Ensure appropriate internal controls are in place; • Report to the Board regularly on the Group’s performance and position; and • Present to the Board an annual budget and operating plan. Responsibilities of the non-executive Directors • Provide independent challenge to executive management on the proposed strategy; • Monitor the execution of the approved strategy and of the ﬁnancial performance of the Company on an ongoing basis; • Ensure executive management remains motivated and incentivised through a responsible remuneration policy; and • Ensure the integrity of ﬁnancial information and that internal control and risk management processes are effective and defensible. Responsibilities of the Senior Independent Director • Provide a sounding board for the Company Chair and serve as an intermediary to other Directors; • Be available to shareholders, should the normal channels through the Company Chair and Chief Executive not be appropriate; • Chair meetings of the Board in the absence of the Company Chair; • Lead an annual performance evaluation of the Company Chair, supported by the other non-executive Directors; • Oversee the Group’s whistleblowing reports and responses; and • Attend meetings with shareholders to develop a balanced understanding of any issues or concerns. Responsibilities of the Company Secretary The Company Secretary is appointed by the Board and supports the Company Chair in providing all materials and information ﬂows between the executive and non-executive Directors, speciﬁcally on matters of governance and regulatory compliance. The Company Secretary is also available to the Board and all its Committees for advice and ensures that all procedures are followed. Directors’ and ofﬁcers’ liability insurance Hunting maintains insurance against certain liabilities which could arise from a negligent act or a breach of duty by the Directors and Ofﬁcers in the discharge of their duties. This is a qualifying third-party indemnity provision that was in force throughout the year, for both the parent Company and its subsidiaries. External appointments The Group has procedures in place that permit the executive Directors to join one other company board. In the year, neither the Chief Executive nor the Finance Director held any external board appointments. Corporate Governance Report continued Conﬂicts of interest Each Director is required to declare any potential conﬂict of interest that exists, or which may arise. These are formally recorded by the Company Secretary. Appropriate decision making, in light of this declaration, is undertaken which could include a Director not participating in a Board decision or vote. Each Director is required to complete a declaration of known conﬂicts of interest annually. Given that Mr Lough and Ms Krajicek are both former Directors of Capricorn Energy PLC, and Mr Lough being a former Director of Gulf Keystone Petroleum Limited, the Board discussed a possible conﬂict of interest in the appointment of Ms Krajicek. Following discussion, the Board agreed that no conﬂicts of interest existed and both Mr Lough and Ms Krajicek are fully independent. Division of responsibilities (Section 2 of the Code) At 6 March 2025, the Hunting Board comprises the independent non-executive Company Chair, Chief Executive, Finance Director and ﬁve independent non-executive Directors, one of whom is the Senior Independent Director. The proﬁles and experience of each Director are found on pages 116 and 117. In line with the Code’s recommendations, the Notice of Annual General Meeting incorporates details of the contribution in the year by each Director and the Board’s reasons for proposing the re-election of each Director. There is a clear division of responsibilities between the Company Chair and Chief Executive, with the Company Chair required to lead the Board, while the Chief Executive runs the Group’s businesses, as shown on the right. Hunting PLC Annual Report and Accounts 2024 126 Strategic Report Corporate Governance Financial Statements Other Information Executive Committee The Group has an Executive Committee (“ExCo”) comprising the senior leaders of the Group, the executive Directors, and the Company Secretary. The ExCo meets formally four times a year to discuss the quarterly performance of each operating segment, strategic initiatives, including the progress of capital investment programmes, Quality Assurance and HSE performance, in addition to Human Resources, Information Technology and Risk Management reports. For further information on the biographical details of the Executive Committee, please see page 118. Composition, succession and evaluation (Section 3 of the Code) Board appointments All appointments to the Board are in accordance with the Company’s Articles of Association and the Code and are made on the recommendation of the Nomination Committee. Recruitment of new Directors follows Group policy, including the formulation of a detailed description of the role that gives consideration to the required skills, experience and diversity requirements for the process. The Directors usually review a list of candidates, prior to a shortlist being recommended by the Nomination Committee, ahead of face-to-face interviews with each Director. Board independence (including Company Chair) at 6 March 2025 Independent Non-independent Board independence (excluding Company Chair) at 6 March 2025 Independent Non-independent 75% 25% 71% 29% Corporate Governance Report continued Margaret Amos was appointed on 10 January 2024, and Cathy Krajicek was appointed on 3 March 2025 as new, independent, non-executive Directors of the Board, in line with the succession and rotation recommendations tabled by the Nomination Committee. Jay Glick stepped down as a Director at the conclusion of the AGM on 17 April 2024. On 2 February 2024, Annell Bay was appointed for a further 12-month period, and stepped down as a Director on 1 February 2025. Board skills and experience The expertise and competencies of the non-executive Directors are noted in the table below, and underpin the balance of skills and knowledge of the Board. Director Expertise Margaret Amos Accounting and ﬁnance, corporate planning, aviation markets, and UK quoted companies. Stuart Brightman Oilﬁeld services and manufacturing, investor relations, business transformation, and US quoted companies. Carol Chesney Accounting and ﬁnance, UK corporate governance, ethics compliance, and UK quoted companies. Paula Harris Oilﬁeld services and manufacturing, US energy market development, investor stewardship, and ESG. Cathy Krajicek Upstream oil and gas, health and safety, technology and innovation, and UK quoted companies. Keith Lough Accounting and ﬁnance, upstream oil and gas, UK energy regulation and market development, and UK quoted companies. Board evaluation In H2 2024, the Board undertook a Board and Committee Effectiveness Review, which was completed by Clare Chalmers Limited. All Directors and key members of the senior leadership team, who regularly present to the Board, were interviewed as part of the process, with Board and Committee meeting observations taking place in August 2024. A review of internal documents was also undertaken, including Board papers, ﬁnancial and other reports, and meeting minutes. Key areas highlighted for improvement included training and succession planning, suggestions of more Board visits to Group facilities, and the possible streamlining of certain Board information. These recommendations will be implemented in the coming years. Ms Chalmers has no other connection to the Company or the individual Directors, other than in this process. Board independence On 5 December 2023, the Nomination Committee recommended the appointment of Annell Bay for a further 12-month period from 2 February 2024, which gave a total tenure of ten years. Ms Bay stepped down as a Director on 1 February 2025. Following the appointments of Margaret Amos on 10 January 2024 and Cathy Krajicek on 3 March 2025, at the date of signing these accounts, being 6 March 2025, the Board, including the Company Chair, comprises 75% independent non-executive Directors. Excluding the Company Chair, the Board comprised 71% independent non-executive Directors. The Board, including the Chair, has access to professional advisers, at the Company’s expense, to fulﬁl their various Board and Committee duties. Hunting PLC Annual Report and Accounts 2024 127 Strategic Report Corporate Governance Financial Statements Other Information Remuneration (Section 5 of the Code) Clarity and simplicity The Directors’ Remuneration Policy is based on ﬁxed and variable emoluments. Fixed emoluments are benchmarked against other global energy services companies and UK listed companies, to ensure the Company can attract and retain talent. Variable emoluments are based on two structures, an annual bonus and a long-term incentive plan. Both variable structures are based on the Group’s disclosed key performance indicators, including both ﬁnancial and non-ﬁnancial measures, and only pay out when performance has been achieved. The Chief Executive’s remuneration is benchmarked against global peers, who are mostly headquartered in the US, while the Finance Director is benchmarked against comparable roles within UK listed companies of similar size and complexity. Non-executive Director fees are set at levels that take into account the time commitment and responsibilities of each role. The non-executive Directors do not receive cash bonuses or other variable emoluments. The fees are benchmarked against other companies of a similar size, proﬁle and proﬁtability and are reviewed annually by the executive Directors. The Company Chair’s fee is set by the Remuneration Committee. The pay structures of the senior management team and wider workforce are generally based on the Company’s shareholder approved Directors’ Remuneration Policy, and can include pension and healthcare beneﬁts as well as an annual bonus and long-term incentives. Shareholder engagement is a key theme of the Directors’ Remuneration Policy, with proactive engagement occurring whenever major changes to the Policy or Committee decision making are contemplated. The Committee is satisﬁed that, over time, shareholder feedback has been reﬂected in the Directors’ Remuneration Policy. Risk, predictability and proportionality The Committee believes that the Directors’ Remuneration Policy aligns with the risk proﬁle of the Company, encouraging growth in the long term and discouraging excessive risk taking. The Policy is weighted towards variable pay on the delivery of long-term growth. As noted in the chart on page 129, the remuneration paid to the Chief Executive over time has aligned well with the Group’s performance, with annual bonus and long-term incentives only vesting on performance. Alignment The Board and the Remuneration Committee have reviewed the Company’s purpose, values and culture and believe that the remuneration framework operated by the Company encourages strong performance, based on a culture of honesty and integrity and putting stakeholder needs at the forefront of our strategic priorities. Corporate Governance Report continued The current Directors’ Remuneration Policy was approved by shareholders on 17 April 2024. The Policy aligns Hunting’s remuneration practices with the 2018 UK Corporate Governance Code, and includes: • Increasing the alignment of the pension arrangements of executive Directors with the workforce; and • Introducing a post-employment shareholding policy for the executive Directors. In respect of the 2024 Directors’ Remuneration Policy and the 2018 Code, the Committee notes the following: • The Company’s long-term incentive arrangements extend to a ﬁve-year time frame, with a three-year vesting period and a two-year post-vesting holding period; • Malus and clawback provisions are in place for all variable remuneration, with additional triggers introduced to reﬂect best practice; • The Committee has ﬂexibility within the Directors’ Remuneration Policy to exercise appropriate discretion; and • Pension provisions for new executive Director appointments will align with the workforce. Further, in 2021 the Remuneration Committee introduced ESG and carbon-focused deliverables into the executive Directors’ personal objectives contained in the annual bonus plan. Audit, risk and internal control (Section 4 of the Code) The Group’s policies, procedures and approach to audit, risk and internal control is described within the Risk Management section (pages 102 to 109) and the Audit and Risk Committee Report (pages 161 to 166) of the Annual Report and Accounts. The Risk Management section includes information on the Group’s principal and emerging risks, as required by the Code. Hunting PLC Annual Report and Accounts 2024 128 Strategic Report Corporate Governance Financial Statements Other Information The following chart summarises the components of executive remuneration and the key performance indicators that are inputs to the remuneration outcomes. The Board believes that the remuneration framework aligns with the purpose and culture of the Group, which is based on fair remuneration and reﬂects performance in the long term. This framework is also in place for the senior management of the Group, with participation in annual bonuses and inclusion in the long-term incentive scheme operated by the Company also featuring in emolument structures in many levels of the workforce. Fixed Variable Summary of remuneration structure and KPIs 0 1,000 3,000 2,000 4,000 5,000 6,000 7,000 8,000 $k 2024 2023 -40 -60 -20 0 20 40 60 80 Chief Executive Pay – $k (left axis) Adjusted PBT – $m (right axis) 2022 2021 $m 100 Adjusted result before tax ($m) vs Chief Executive pay ($k) Corporate Governance Report continued Source: Company Base salary Beneﬁts Pension provision Annual bonus Long-term incentive plan KPIs: Adjusted proﬁt before tax ROCE Personal performance objectives KPIs: ROCE TSR Adjusted diluted EPS FCF Safety and Quality Hunting PLC Annual Report and Accounts 2024 129 Strategic Report Corporate Governance Financial Statements Other Information Roadmap to compliance with the 2024 UK Corporate Governance Code The 2024 UK Corporate Governance Code (“2024 Code”) was published in January 2024, with the Directors reviewing the key changes to the Provisions and Principles early in the year. The Directors will be reporting the Company’s compliance with the 2024 Code, with the exception of Provision 29, in the 2025 Annual Report and Accounts, to be published in March 2026. Policies In 2024, the Group’s central compliance function completed a review process of the Group’s policies, in line with the requirement of Principle A of the 2024 Code. The Directors are satisﬁed that appropriate policies covering all key operational, ﬁnancial, and compliance matters are in place. The Group utilises a Group Manual, which contains all of the key accounting policies and procedures, which is also being revised in the year, ahead of 2026, when Provision 29 is to be reported against. Culture The Directors approved a framework to monitor and report on culture, in line with Principle C of the 2024 Code. The Board, through the Ethics and Sustainability Committee, has agreed that the metrics noted on page 124 will be adopted for reporting across the year. Further, the Board also agreed that each Director would increase visits to key facilities to ensure the views of employees are directly fed to the Board going forward, in parallel to the use of the Gallup Q12 survey, which is to be repeated in 2025. Risk management During the year, the Group’s risk management procedures have been enhanced, following the appointment of a Group Risk Manager in 2023. New risk identiﬁcation processes were introduced, with the Directors completing a risk workshop to agree the strategic and principal risks facing the Group, as the Hunting 2030 Strategy is being executed. This has led to a fully integrated risk management framework being implemented across the Group which covers ﬁnancial, operational, and compliance risks, including climate and environmental risks. In 2025, further work on the Group’s risk universe and culture will be completed. The Group has also commenced workshops with each of the product groups and operating segments in support of this work. These workstreams have directly interfaced with the work on internal control noted below. Internal control Provision 29 of the 2024 Code requires boards to monitor and review their company’s risk management and internal controls. We are aiming to report our compliance with Provision 29 within the 2026 Annual Report and Accounts, to be published in March 2027. In the year, a process to identify material controls across the Group commenced, including the determination of the internal controls over ﬁnancial reporting and entity level controls. A review of Group IT controls was also undertaken and an initial determination of non-ﬁnancial controls, including QAHSE information and compliance procedures was commenced. A Group Internal Controls Manager was appointed in mid-2024 to assist in the review and documentation of the Group’s internal controls, and in January 2025 a new software platform (AuditBoard) was purchased, which will be used by the Group’s central ﬁnance and internal audit functions to assess compliance and provide internal assurance to the Board about the Group’s internal control environment. As part of the review of the Group’s internal control environment as part of the compliance procedures for the 2024 UK Corporate Governance Code, we will also look to address some of the control deﬁciencies identiﬁed in the 2024 year-end audit. In January 2025, a Group IT Systems Manager was also appointed to commence the standardisation of the D365 ERP system, to enhance consistency of reporting across the Group’s business units and to input into the wider ﬁnancial controls enhancement, which is being undertaken. In H1 2025, it is anticipated that preliminary testing of assurance procedures against a number of material ﬁnancial controls will be completed, prior to wider roll out. Remuneration In 2024, the Company gained strong shareholder approval for the new Directors’ Remuneration Policy (“Policy”) and Long Term Incentive Plan. The new Policy was drafted with the requirements of the 2024 Code in mind and contains malus and clawback provisions (Provision 37). On behalf of the Board Stuart M. Brightman Company Chair 6 March 2025 Hunting PLC Annual Report and Accounts 2024 130 Strategic Report Corporate Governance Financial Statements Other Information Nomination Committee Report Member Invitation Number of meetings held 6 Number of meetings attended (actual/possible): Margaret Amos (from 10 January 2024) 5/5 – Annell Bay (to 1 February 2025) 6/6 – Stuart Brightman (Committee Chair from 17 April 2024) 6/6 – Carol Chesney 6/6 – Bruce Ferguson – 6/6 Jay Glick (Committee Chair to 17 April 2024) 3/3 – Paula Harris 6/6 – Jim Johnson – 6/6 Cathy Krajicek (from 3 March 2025) 0/0 – Keith Lough 5/6 – The work of the Nomination Committee during 2024 has been focused on delivering a seamless succession of the Company Chair, and the commencement of a new process to appoint a new independent non-executive Director. This latter process was completed on 3 March 2025, when we announced the appointment of Cathy Krajicek as a new, independent, non-executive Director of the Company. Introduction Since our last Annual Report, Hunting has seen the retirement of Jay Glick (Company Chair) and Annell Bay (Remuneration Committee Chair). Their wise counsel and expertise on many critical issues facing Hunting over the past decade has assisted in the success the Company sees today, with strong markets and a solid balance sheet on which to grow. We continue to refresh the proﬁle of the Board, with Margaret Amos joining in January 2024 and Cathy Krajicek joining in March 2025. Therefore we look to the future with a strong roster of Directors with deep skills and experience within our chosen end-markets, supported by an experienced senior leadership team. Composition and frequency of meetings The Committee comprises the Company Chair and the independent non-executive Directors of the Company. Stuart Brightman chairs the Committee. The Committee meets as required to discuss succession matters at both the Board and Executive Committee levels. During 2024, the Committee met six times (2023 – six times). The Committee operates under written Terms of Reference approved by the Board, which are published on the Company’s website at www.huntingplc.com. The attendance of the Nomination Committee during 2024 is noted in the table on the left. Terms of reference At its December 2024 meeting, the Committee reviewed its terms of reference. Externally facilitated effectiveness review In H2 2024, the Board completed an externally facilitated Board effectiveness review, using Clare Chalmers Limited. The Nomination Committee’s processes and procedures were reviewed as part of this wider process, and the results were reported to the Directors at a brieﬁng in December 2024. The review was co-ordinated by the Company Chair, Company Secretary, and Deputy Company Secretary. Clare Chalmers Limited has no other connection to the Company. For further information, please see page 115. Company Chair succession During 2023, the Nomination Committee completed a process to appoint a new Company Chair. The details of the process are contained in the 2023 Annual Report and Accounts. On Monday 8 January 2024, the Nomination Committee met to receive the recommendation of the sub-Committee appointed to complete the process, with Stuart M. Brightman being recommended as the successor to John (“Jay”) F. Glick as Hunting PLC’s Company Chair. This recommendation was agreed by the Nomination Committee, and then by the wider Board at the Meeting of Directors on Monday 8 January 2024. Mr Brightman, therefore, succeeded Mr Glick as Company Chair at the conclusion of the 2024 AGM on 17 April 2024, when Mr Glick retired as a Director and stepped down from the Board. Appointment of Margaret Amos As noted in last year’s Annual Report and Accounts, Margaret Amos was appointed as a Director of the Company on Wednesday 10 January 2024, and automatically retired and offered herself for appointment by shareholders at the 2024 AGM. Heidrick & Struggles assisted the Committee in the search process for Dr Amos. Stuart M. Brightman Chair of the Nomination Committee Hunting PLC Annual Report and Accounts 2024 131 Strategic Report Corporate Governance Financial Statements Other Information Reappointment of Carol Chesney and Keith Lough The Committee met in February 2024, to consider the reappointment of Carol Chesney and Keith Lough for a third three-year term, commencing on 23 April 2024. The Committee considered the independence of Mrs Chesney and Mr Lough, and their ongoing contribution to the Board, and recommended the reappointment to the wider Board at its meeting in February 2024. Hunting’s current Board proﬁle reﬂects a good balance between energy and non-oil and gas expertise as well as an excellent gender proﬁle. With the appointment of Cathy Krajicek we have strengthened our oil and gas expertise and look forward to her wise counsel as the energy industry evolves. Reappointment of Annell Bay Annell Bay was appointed to the Board on 2 February 2015 and was appointed Chair of the Remuneration Committee in August 2018. To provide continuity to the Board and Remuneration Committee as the shareholder consultation on the new Directors’ Remuneration Policy (the “new Policy”) concluded in Q1 2024, the Nomination Committee proposed the reappointment of Ms Bay for an additional 12-month period, to oversee the completion of discussions with shareholders and attend the 2024 AGM to answer possible shareholder questions on the new Policy. Ms Bay was duly reappointed for a ﬁnal 12 months on 2 February 2024 and, in line with the Company’s normal re-election procedures, automatically retired and offered herself for re-election at the 2024 AGM. Ms Bay received the necessary votes for re-election and retired from the Board on 1 February 2025, after completion of ten years’ service to the Company. The Directors would like to thank Annell for her excellent contribution to the Company during her tenure as a Director, offering her skills and expertise through the COVID-19 pandemic and as the Company implemented its Hunting 2030 Strategy, which management continues to execute. Retirement of Jay Glick As noted above, Jay Glick retired as a Director at the 2024 AGM on 17 April 2024. Jay was appointed to the Board on 2 February 2015 and was appointed Company Chair on 1 September 2017. Through Jay’s tenure as Company Chair, he led the Group through the COVID-19 pandemic, which was an extremely challenging time for the Board of Directors, the senior leadership team and wider workforce. Jay’s experience and leadership through the 2020 to 2021 period, and since this time as Hunting has returned to strong growth, is testament to the wise advice offered. The Directors wish Jay a happy retirement and thank him for his effective leadership since appointment. Appointment of Catherine Krajicek With the retirement of Jay Glick in April 2024 and Annell Bay in February 2025, the Board has lost over 60 years of energy-related sector expertise, in both the exploration and production and energy services sub-sectors of the industry. In September 2024, therefore, the Committee initiated a new search process to appoint a new, independent non-executive Director of the Company, with speciﬁc focus on energy expertise. Heidrick & Struggles was appointed to support the Directors in this new process. During Q4 2024, a long list of potential candidates was reviewed by the Directors and a shortlist assembled in November 2024. Interviews with the shortlist candidates were conducted in December 2024 and January 2025. On 28 February 2025, the Nomination Committee recommended to the Board the appointment of Catherine (“Cathy”) Krajicek, with Cathy joining the Board on 3 March 2025. Cathy has joined all of the Board’s Committees from this date. Further, Cathy will automatically retire at the 2025 AGM and will offer herself for reappointment by shareholders, in line with the Company’s Articles of Association. Board roles Dr Amos was appointed Chair of the Ethics and Sustainability Committee on 17 April 2024, with Mr Brightman retaining the Chair of the Nomination Committee as well as his main Company Chair duties. Gender balance With the appointments of Dr Amos and Ms Krajicek, and following the retirement of Mr Glick on 17 April 2024, the Hunting Board reports an equal gender balance. Senior management development and succession During the year, the Nomination Committee and wider Board have received reports on the development of the Group’s senior management team, with Russell Reynolds being appointed to assist executive management with this process. Throughout the year, all managing directors of the Group, who lead each operating segment, have presented to the Board as part of a broader initiative to increase interaction between the Directors and the Company’s senior leadership team. The Group’s Chief HR Ofﬁcer also submitted detailed succession plans for key positions across the Hunting organisation. On behalf of the Board Stuart M. Brightman Chair of the Nomination Committee 6 March 2025 Nomination Committee Report continued Hunting PLC Annual Report and Accounts 2024 132 Strategic Report Corporate Governance Financial Statements Other Information Ethics and Sustainability Committee Report Member Invitation Number of meetings held 2 Number of meetings attended (actual/possible): Margaret Amos (Committee Chair from 17 April 2024) 2/2 – Annell Bay (to 1 February 2025) 2/2 – Stuart Brightman – 2/2 Carol Chesney 2/2 – Bruce Ferguson – 2/2 Jay Glick (Committee Chair to 17 April 2024) – – Paula Harris 2/2 – Jim Johnson – 2/2 Cathy Krajicek (from 3 March 2025) 0/0 – Keith Lough 2/2 – The work of the Ethics and Sustainability Committee has focused on the expansion of our carbon reporting and to improve our external reporting of key environmental and sustainability metrics to enable our stakeholders to better understand the excellent work which underpins our business model and strategy. Introduction In the year, the Committee received reports on management’s initiative to expand our scope 3 emissions reporting. In 2023, we began a process of determining the scope 3 emissions of the Group’s Hunting Titan operating segment, predominantly due to the straightforward nature of the organisation, but also due to the contribution of Hunting Titan to the Group’s total emissions. This data was used to extrapolate Group-level scope 3 emissions for 2023, as reported last year. During 2024, management expanded scope 3 data collection to include the Subsea Technologies, EMEA and Asia Paciﬁc operating segments. The 2024 scope 3 carbon emissions data is, therefore, based on four of the ﬁve operating segments of the Group and provides a solid foundation for the reporting of Hunting’s total scope 1, 2 and 3 greenhouse gas (“GHG”) emissions footprint, from which further carbon reduction initiatives will be derived in the coming years. In 2025, the North America operating segment will be added to our data collection scope. The Committee also oversaw procedures to improve Hunting’s external ESG ratings, based on better external disclosures, but also improving our understanding of how we are scored by a range of third-party reporting agencies. A clear path to improve our externally published information has been formulated, which in part can be seen with the new disclosures in our ESG and Sustainability Report on pages 68 to 87. The Committee continues to monitor our human resources, quality assurance, health and safety, sanctions and other ethics-related matters. New workstreams are being agreed with management that will input into the wider project on internal control and risk management, which will include operational and compliance-related control matters. In summary, the Committee is well placed to contribute to the enhanced expectations of the 2024 UK Corporate Governance Code. Composition and frequency of meetings The Committee comprises the independent, non-executive Directors of the Company and is chaired by Margaret Amos. Dr Amos joined the Committee on her appointment as a Director on 10 January 2024. Jay Glick stepped down from the Committee on 17 April 2024 when he retired as a Director, with Margaret Amos succeeding him as Committee Chair on the same date. Stuart Brightman also stepped down from the Committee on his appointment as Company Chair. Annell Bay retired as a Director on 1 February 2025 and stepped down from the Committee on the same date. Cathy Krajicek joined the Committee on her appointment to the Board on 3 March 2025. The Committee met twice in the year, as planned, in June and December 2024. The attendance of the Ethics and Sustainability Committee is noted in the table on the left. Margaret Amos Chair of the Ethics and Sustainability Committee Hunting PLC Annual Report and Accounts 2024 133 Strategic Report Corporate Governance Financial Statements Other Information The 2024 scope 3 carbon emissions data is based on four of the ﬁve operating segments of the Group and provides a solid foundation for Hunting’s total scope 1, 2 and 3 GHG emissions footprint, from which further carbon reduction initiatives can be derived in the coming years. Terms of reference and Committee effectiveness The Committee operates under written terms of reference approved by the Board, which are published on the Company’s website at www.huntingplc.com. At its December 2024 meeting, the Committee reviewed its terms of reference and, as part of the externally facilitated Board effectiveness evaluation completed by Clare Chalmers Limited, considered its effectiveness in H2 2024, concluding that its performance had been satisfactory during the year. Responsibilities The principal responsibilities of the Ethics and Sustainability Committee are to: • Monitor the Group’s scope 1, 2 and 3 GHG emissions and the initiatives to contain and reduce its carbon footprint; • Monitor public disclosures in respect of the Task Force on Climate-related Financial Disclosures (“TCFD”) framework and the UK Climate-related Financial Disclosures (“UKCFD”); • Monitor the risks and opportunities which climate change presents to the Group’s operations; • Monitor the quality assurance and health, safety and environmental reports prepared by the Executive Committee; • Monitor the Group’s employee and human capital matters, including engagement with Hunting’s workforce; • Monitor the Group’s interaction with certain key stakeholders, including customers, suppliers and communities; • Monitor the Group’s modern slavery act initiatives; • Monitor the Group’s policies and procedures in respect of sanctioned territories; • Monitor the Group’s culture; • Monitor the Group’s whistleblowing procedures; and • Monitor the Group’s anti-bribery and corruption initiatives. Work undertaken by the Committee during 2024 The Committee discussed, reviewed, and made a number of decisions on key areas in 2024, which are set out below: Jun Dec Carbon and climate Procedures for measuring and monitoring the Group’s scope 1, 2 and 3 GHG emissions • • TCFD and UKCFD analysis and reporting • • Climate scenario reports • • Review resourcing needs • Stakeholders Employee and workforce reports • • Code of Conduct training reports • • Whistleblowing summary reports • • Quality assurance and health and safety reports • • Community reports • • Ethics Anti-bribery and corruption reports • • Entertainment and hospitality summary • • Modern slavery analysis • • Customer and supplier risk analysis • • Sanctions and export compliance • • Review resourcing needs • SASB reporting framework During the year, the Group reported against the SASB reporting standards for Oil & Gas – Services and Industrial Equipment & Machinery, which are noted on pages 86 and 87. The ISSB has issued its S1 and S2 reporting standards, which are still being evaluated by the UK regulator. However, the Committee anticipates that reporting against these standards will align with the SASB reporting framework and, on this basis, is implementing plans to report S1 disclosures aligned with data reported under SASB. Carbon and climate As noted above, a major workstream has been completed in 2024 to expand the collection of the Group’s scope 3 carbon emissions data to four of the ﬁve of the Group’s operating segments. A third-party expert was commissioned to assist with the evaluation and processing of the data, with the results reported in the Strategic Report on pages 31, 73 and 84. In 2025, the North America operating segment will be included in the data collection process, after which a carbon reduction plan for the whole Group will be prepared. The Committee also reviewed the work completed in the year with respect to the TCFD and UKCFD reporting requirements, which are included on pages 88 to 101. Hunting’s TCFD reporting aligns with the four recommended pillars of governance, strategy, risk management and targets. Further, the TCFD disclosures include the 11 recommended areas of narrative proposed by the TCFD panel, which was issued in 2017 and updated in 2021. For further information on the areas of carbon and climate, please refer to the Strategic Report. Employees The Committee received workforce reports from the Group’s Chief HR Ofﬁcer in the year, which included details of employee changes, tenure and engagement initiatives undertaken. Of note has been the focus on the development of talent across the Company, with training and development programmes being a key area of consideration. The HR reports also included diversity and inclusion planning, which are to be put in place in the coming years. Ethics and Sustainability Committee Report continued Hunting PLC Annual Report and Accounts 2024 134 Strategic Report Corporate Governance Financial Statements Other Information Quality assurance and HSE (“QAHSE”) As part of its review work, the Committee received quality assurance and health and safety reports from the Group’s Director for QAHSE. As noted in the introduction, efforts to increase our external disclosures on QAHSE, to include contractor HSE statistics and other key information monitored by external agencies, has led to additional information being disclosed in the ESG and Sustainability Report on pages 68 to 87. For further information on QAHSE performance, please refer to the Strategic Report. Code of Conduct The Group’s Code of Conduct contains policies and procedures covering how the Group conducts business and maintains its relationships with business partners. The Code of Conduct deals with a broad range of issues, including: • Preventing corruption, including measures that prevent bribery and corruption in our dealings with government ofﬁcials; • Personal integrity, including money laundering; • Conﬂicts of interest; • Employee share dealing; • Human rights; • Harassment and equal opportunity; • Tax evasion and facilitation of tax evasion; and • Our approach to national and international trade, including compliance with laws and regulations, competition, and export and import controls. The Code of Conduct is available on the Group’s website and is distributed to most customers. The Committee was pleased that the ﬁrst phase of the Code of Conduct training for employees was completed in the year. Supplier Code of Conduct In 2023, the Company also introduced a Supplier Code of Conduct, which commits businesses within Hunting’s supply chain to many of the principles contained in the Company’s Code of Conduct. Whistleblowing The Company’s Senior Independent Director, Keith Lough, is the primary point of contact for staff or other key partners of the Group to raise, in conﬁdence, concerns they may have over possible improprieties, ﬁnancial or otherwise. In addition, the Group engages the services of SafeCall Limited to provide an independent and anonymous whistleblowing service available to staff across all of Hunting’s operations. All employees have been notiﬁed of these arrangements through the corporate magazine, Group noticeboards and the Group’s website. During the year, the posters detailing these arrangements were refreshed. Communities The Committee also reviewed a report that summarised Community initiatives, which were undertaken by the Group’s businesses throughout the year. A number of these initiatives are described in the Section 172(1) Statement on page 112. Bribery Act In compliance with the UK Bribery Act, Hunting has procedures in place, including the publication of anti-bribery and corruption policies and detailed guidelines on interacting with customers, suppliers and agents, including speciﬁc policies for gifts, entertainment and hospitality. Senior managers across the Group are required to report their compliance activities, including an evaluation of risk areas. The Group has completed a screening exercise to identify relevant employees who face a heightened risk of bribery, with all relevant personnel completing a formal training and compliance course, as part of the Code of Conduct training, in line with the Group’s procedures. The Committee reviewed the compliance procedures relating to the Bribery Act at its December meeting, which incorporates risk assessments completed by each business unit and gifts and entertainment disclosures made during the reporting period. The Group’s internal audit function reviews local compliance with the Bribery Act and reports control improvements and recommendations to the Committee, where appropriate. Modern Slavery Act The Modern Slavery Act 2015 was enacted in 2016 and requires companies to evaluate internal and external risks related to human trafﬁcking and modern slavery. Procedures were introduced during 2016 and continued in 2024, whereby each business unit across the Group completed due diligence on its workforce to highlight employment risks in relation to trafﬁcking and slavery. All businesses within the Group also completed a risk-mapping exercise of their known supply chain to evaluate those customers and suppliers to the Group who operate in jurisdictions where trafﬁcking and slavery is more prevalent. Hunting published its Modern Slavery Act report in March 2024, located at www.huntingplc.com. The new Code of Conduct training course rolled out during 2023 and 2024 incorporates information on modern slavery and trafﬁcking and is completed by all members of staff. Sanctions and export compliance The Group sells products to over 70 countries, which presents a general risk of export and sanctions compliance. Hunting has detailed procedures in place that monitor sales in medium- to high-risk territories, where end-user disclosures, and company evaluation and analysis are completed prior to a sales order being agreed. Culture The Board has delegated the monitoring of the Group’s culture to the Committee. A framework to monitor and report on culture has been agreed and the metrics noted on page 124 will be adopted for reporting across the coming year. As part of this, the Committee will also assess how the Company’s culture is embedded across the Group. On behalf of the Board Margaret Amos Chair of the Ethics and Sustainability Committee 6 March 2025 Ethics and Sustainability Committee Report continued Hunting PLC Annual Report and Accounts 2024 135 Strategic Report Corporate Governance Financial Statements Other Information Member Invitation Number of meetings held 5 Number of meetings attended (actual/possible): Margaret Amos (from 10 January 2024) 5/5 – Annell Bay (Committee Chair to 1 February 2025) 5/5 – Stuart Brightman (member to 17 April 2024) 3/3 2/2 Carol Chesney 5/5 – Bruce Ferguson – 5/5 Jay Glick (to 17 April 2024) – 3/3 Paula Harris (Committee Chair from 2 February 2025) Jim Johnson 5/5 – – 5/5 Cathy Krajicek (from 3 March 2025) 0/0 – Keith Lough 5/5 – Paula Harris Chair of the Remuneration Committee Remuneration Committee Report On behalf of the Board, I am pleased to present the Remuneration Committee Report to shareholders for the year ended 31 December 2024. This letter provides a summary of the work completed by the Remuneration Committee (the “Committee”) in the year, including the context for the 2024 remuneration, major decisions taken in the year, determining remuneration outcomes, and details of how the new Directors’ Remuneration Policy and new Hunting Performance Share Plan were implemented following receipt of strong shareholder support at our AGM. Introduction 2024 has been a year of strong growth in the Group’s revenue, earnings and returns as our core energy markets remained generally buoyant throughout the year. The Company launched the Hunting 2030 Strategy in 2023, which laid out the strategic ambitions of the Board to the end of the decade. The 2030 Strategy highlighted OCTG (Oil Country Tubular Goods) and Subsea as growth areas for the Group, and in 2024 the Group delivered on a number of key milestones, including growth in these two product groups offset by the performance in Perforating Systems. The overall strength in OCTG and Subsea contributed to the impressive improvement in our ﬁnancial results when compared to the prior year. This demonstrates the increased resilience from Hunting’s strategy to strengthen and diversify its revenue streams. Supporting this new strategy was the formulation of the new Directors’ Remuneration Policy (the “new Policy”), which was approved at the 2024 AGM, and aligns the compensation of Hunting’s most senior executives with its global peers. At the 2024 AGM, the Committee and wider Board received compelling support, with 85% of votes cast in favour of the new Policy. This outcome provided a clear mandate from investors for our new remuneration framework. The 2024 Hunting Performance Share Plan (“2024 HPSP”) was also approved at last year’s AGM, replacing the 2014 HPSP which had reached the end of its ten-year life. The 2024 HPSP provides the Committee with ﬂexibility to grant both performance- and time-based awards to the executive Directors in line with the new Policy. Context of remuneration and key decisions The total remuneration for 2024 includes one-off adjustments to base salary that were discussed with shareholders during the new Policy review. The total remuneration for 2024 also reﬂects the in-year performance that was above the 2024 annual budget and a strong vesting of the 2022 HPSP, which was due to the growth in earnings, cash ﬂows and returns delivered over the three-year vesting period of 2022 to 2024. Approval and implementation of the new Directors’ Remuneration Policy The proposals submitted to shareholders with respect to the new Policy received strong levels of support at the AGM on 17 April 2024, aligned levels of remuneration of the executive Directors with their respective markets, and also addressed the longer-term succession needs of the Company. The Chief Executive’s remuneration is benchmarked against global peers, who are mostly headquartered in the US. The Finance Director’s remuneration is benchmarked against UK listed companies of a similar size and complexity. Following the implementation of the new Policy the total remuneration opportunity of the executive Directors is around the median against their peers, which is the long-term strategy of the Committee. In establishing pay practices for the executive Directors, the Remuneration Committee has endeavoured to align our incentive practices with the Company’s peers and the wider workforce. Of particular note was that the Chief Executive and Finance Director were previously the only members of the mid-level and senior leadership team who did not receive Restricted Stock Units (“RSUs”). The Group has also delivered a solid performance across the three years in the 2022 HPSP grant’s performance period, with the Company having positioned itself well to take advantage of strong market movements. Hunting PLC Annual Report and Accounts 2024 136 Strategic Report Corporate Governance Financial Statements Other Information To this end, and following detailed shareholder consultation and approval, the Remuneration Committee has, under the provisions of the new Directors’ Remuneration Policy, approved the grant of RSUs (time-based share awards) to Messrs Johnson and Ferguson in the year. Workforce base salary increases were also awarded in 2024, which averaged 5%. As part of our consultation process, which took into account benchmarked data from Mercer and Pearl Meyer, a 3.5% base salary increase over the workforce increase was awarded to the executive Directors. This was discussed with and approved by shareholders in 2024. Financial performance The Company recorded a 51% increase in adjusted proﬁt before tax year-on-year and ROCE of 8.86%, a 2.38 percentage point improvement on 2023’s result. This represents an “Above Target” performance compared to the annual budget targets set by the Board in December 2023. The Committee believes the ﬁnancial progress made by the senior leadership and executive teams in the year also reﬂect a signiﬁcant delivery of the annual strategic targets and advancement in the delivery of the operational progress published at the Company’s Capital Markets Day in 2023 despite the headwinds in the Perforating Systems product group. The personal performance objectives set by the Committee also delivered an “Above Target” result given the performance in the operational excellence, succession, GHG emissions reduction, and other matters delivered by the executive Directors in the year, and are discussed in the Annual Report on Remuneration. As a result of this notable in-year performance, the 2024 Annual Bonus has vested at 69.0% of maximum opportunity. The Group has also delivered a solid performance across the three years in the 2022 HPSP grant’s performance period, with the Company having positioned itself well to take advantage of strong market movements and delivering on its key priorities. As a result, the 2022 HPSP grant has vested at 98.3% of maximum. Three-year growth in adjusted diluted EPS is 216%; for ROCE, a 13.23 percentage point increase; and cash generation, on a cumulative basis over the three years, was $165.5m on a pre-capex basis. The Company’s TSR against its peer group was ranked third against a basket of 13 comparator companies and delivered a return of 100.4% over the three-year period. Thanks to impressive ESG performance in the period, the scorecard also reported a strong vesting, delivering the near-maximum vesting noted above. The table below and the graphs to the right highlight this growth path, emphasising the impressive execution by management. The single ﬁgure total remuneration outcomes for the executive Directors for 2024 are: 2024 2023 Chief Executive $7,522k $3,561k Finance Director $2,212k $1,239k The Committee is conscious that the vesting of the 2022 HPSP is close to maximum performance and, in determining the ﬁnal vesting of the awards, considered whether any discretion should be applied. The main points of consideration for the Committee were as follows: • The historic vesting average of the HPSP is c.30% (based on the grants vesting between 2016 and 2023), with the current vesting level exceeding 50% for the ﬁrst time since 2019, indicating that, over time, targets have been stretching and there is strong alignment between remuneration and performance; • Discretion was exercised in both 2020 and 2021 to reduce the face value of the grants under the HPSP by 20% and 22% respectively, given the subdued share price through the pandemic, and to prevent a windfall gain being generated in 2023 and 2024. The share price of 219.5p on the date of the 2022 grant had increased by 33% compared to the price used for the 2021 grants and, therefore, the Committee did not consider there to be any potential for windfall gains at the date of grant requiring a similar reduction at that time; Remuneration Committee Report continued Adjusted diluted earnings per share cents 31.4 2024 2023 20.3 2022 4.7 Source: Company Return on average capital employed % 9 2024 2023 6 2022 1 Source: Company Free cash ﬂow (pre-capex) $m 169.8 2024 2023 34.1 2022 (38.4) Source: Company Total shareholder return (1-year) % 0 2024 2023 (9) 2022 102 Source: Company Total recordable incident rate # 0.93 2024 2023 0.91 2022 0.97 Source: Company Internal manufacturing reject rate # 0.31 2024 2023 0.20 2022 0.13 Source: Company Performance and remuneration outcomes 2021 2022 2023 2024 1-year growth Absolute 3-year growth Link to remuneration Adjusted proﬁt (loss) before tax $(40.6)m $10.2m $50.0m $75.6m 51% 286% Annual bonus ROCE (4.37)% 1.45% 6.48% 8.86% 2.38 points 13.23 points Annual bonus and HPSP Adjusted diluted (LPS) EPS (27.1)c 4.7c 20.3c 31.4c 55% 216% HPSP FCF (pre-capex) $54.4m $(38.4)m $34.1m $169.8m 398% 212% HPSP Share price (31 December) 169p 333p 296p 289p (2)% 71% HPSP Free cash ﬂow as per the ﬁnancial statements for the relevant year, excluding tangible and intangible capital expenditure, as deﬁned for the 2022 HPSP grant. Non-GAAP measure see pages 255 to 262. Hunting PLC Annual Report and Accounts 2024 137 Strategic Report Corporate Governance Financial Statements Other Information Base salary Following approval of the new Policy at the AGM in April 2024, and as outlined to shareholders as part of the consultation on the Policy changes and in our 2023 Annual Report on Remuneration, the executive Directors received a one-off increase of 3.5% above the workforce (8.5% in total) effective from 1 January 2024. This represents only the third time Hunting’s executive Directors’ salaries have increased since April 2019 (the Directors not having received an increase in 2020 or 2023, in line with the wider workforce) as the Committee took a cautious approach to Directors’ salary increases due to the effects of COVID-19. Following the increases and changes to the Policy in 2024, Hunting’s total remuneration for both executive Directors is aligned with the median total remuneration of its global energy peers. Annual bonus The 2024 Annual Budget targets, which were set in December 2023, were linked to the Company’s KPIs (see pages 153 to 155) that focused on increased proﬁtability and returns, and which reﬂected a further strengthening in the Company’s core energy markets. In January 2025, the Committee reviewed the ﬁnancial out-turn for 2024, which included improvements in adjusted proﬁt before tax proﬁtability and positive returns on capital employed, reﬂecting the notable performance of the Group’s OCTG, Subsea and Advanced Manufacturing product groups. As a result of this performance, an award of 56.0% of the maximum opportunity of 80% for the ﬁnancial portion of the Annual Bonus was recorded. • The three-year growth targets were based on an extended forecast for the Group’s projected trading performance. This included independent market data on industry investment and activity in the medium term, published by Spears & Associates, who issue regular projections on which the trading outlook of the Group is measured. The Group’s performance has materially exceeded those market projections reviewed by the Committee at the time of the grant; • Management’s strategy of diversifying the portfolio allowed it to take advantage of the subsequent growth in oil and gas markets over the performance period; • The Committee noted that adjusted diluted EPS has increased by 216%, with the Group’s share price appreciating 71% over the same timescale, strongly outperforming the energy market increase; and • Quality and safety both underpin Hunting’s standing and reputation in the global energy industry which, in turn, support the Group’s long-term strategy. Each year, the Committee, with advice from Mercer, reviews the formulaic outcome for the quality and safety metrics within the HPSP against broader contextual factors when determining the ﬁnal outcome and determined that there were no such factors that would warrant adjusting the outcome. Details of these performance metrics can be found on page 155. Having considered these factors, the Committee believes that the quantum of the 2022 grant, the performance targets set, and the ﬁnal out-turn provide a fair reﬂection of performance across the three-year vesting period and, given the strong outperformance against expectations, believe that the vesting at 98.3% is a fair outcome and that no downward discretion should be applied to the outcome. Activities undertaken by the Remuneration Committee during 2024 Jan Feb Apr Aug Dec Overall remuneration • Annual base salary review • Review senior management annual emoluments • Review total remuneration against benchmarked data • • Shareholder and proxy group feedback on new Policy • • Items speciﬁc to the annual bonus Approve annual bonus including delivery of personal performance targets • • Review Annual Bonus Plan rules • Agree strategic/personal performance targets for the year ahead • • Items speciﬁc to long-term incentives Approve HPSP vesting and new annual grant • Review HPSP performance conditions • • Review HPSP grant performance targets • • • Governance and other matters Approve Annual Report on Remuneration • Review and approve Remuneration Policy (if required) • Review governance voting reports • Review AGM proxy votes received for Annual Report on Remuneration and Policy • Review Committee effectiveness • Review terms of reference • Review resourcing needs • Remuneration Committee Report continued Adjusted result before tax ($m) vs Chief Executive pay ($k) 0 1,000 3,000 2,000 4,000 5,000 6,000 7,000 8,000 $k 2024 2023 -40 -60 -20 0 20 40 60 80 Chief Executive Pay – $k (left axis) Adjusted PBT – $m (right axis) 2022 2021 $m 100 Source: Company Hunting PLC Annual Report and Accounts 2024 138 Strategic Report Corporate Governance Financial Statements Other Information Remuneration Committee Report continued The Committee also reviewed the delivery of the executive Directors’ personal performance objectives applicable to the remaining 20% of the annual bonus. In line with the outcome of the ﬁnancial bonus targets, the Committee noted the Above Target delivery of the objectives set at the start of the year, including delivery of certain milestones in respect of the Hunting 2030 Strategy, and awarded 13% of the maximum of 20% of this portion of the Annual Bonus. As the threshold targets of each goal set at the start of the year were exceeded, the Committee approved the vesting of 69.0% of the maximum Annual Bonus opportunity for the executive Directors, which resulted in an Annual Bonus of $1,213k receivable in the year for the Chief Executive and $456k receivable for the Finance Director. This will be delivered in cash, with 25% of the post-tax cash bonus to be utilised to purchase Ordinary shares of the Company, which must be held for two years from the date that the award vests, in line with the usual operation of the Annual Bonus Plan. 2022 HPSP awards vesting As noted above, the vesting of the 2022 HPSP was near-maximum. The performance conditions used in the 2022 HPSP were as follows: Return on Average Capital Employed (“ROCE”) 25%; adjusted diluted Earnings per Share (“EPS”) 20%; Free Cash Flow, pre-capex (“FCF”) 20%; relative Total Shareholder Return (“TSR”) 20%; and Strategic Scorecard 15%. The Committee adjusted the balance and number of performance conditions for this grant to include Free Cash Flow to provide strategic focus on cash generation – an important and widely used metric of the investor community in the energy sector. With the exception of the Free Cash Flow performance condition, the performance recorded a maximum vesting, with the Committee being satisﬁed that performance matched growth and the shareholder experience through the performance period. The 2022 HPSP grant, therefore, recorded a 98.3% vesting. As noted above, the Committee satisﬁed itself that there were no circumstances justifying the application of any downward discretion. 2024 HPSP award grant Following approval of the new Policy and the new long-term incentive plan at the AGM, on 18 April 2024 the Committee granted awards under the new 2024 Hunting Performance Share Plan (the “2024 HPSP”). These awards comprised performance shares (“PSP”) and restricted shares (“RSP”). The 2024 PSP grant was 350% and 160% of base salary for the Chief Executive and Finance Director, respectively. Vesting of these awards depends on achievement of stretching performance conditions against a number of metrics, which include: TSR 30%; ROCE 25%; EPS 15%; FCF, post-capex, 15%; and Strategic Scorecard 15%. The Committee considers that these metrics continue to provide a balance of performance targets for the executive Directors to achieve. The awards encourage a good balance between earnings and cash generation growth. These metrics were implemented following a shareholder consultation process on our Remuneration Policy, where shareholders requested that TSR be increased to ensure a focus on delivering growth. The 2024 RSP grant was 100% and 50% of base salary for the Chief Executive and Finance Director, respectively. These will vest after three years and are subject to an underpin based on holistic Company performance assessed by the Committee prior to vesting, and are subject to a two-year post-vesting holding period. Non-executive Directors fees As noted in the 2023 Annual Report on Remuneration, from 1 January 2024 the Board agreed to increase the additional fees paid to the Committee Chairs and Senior Independent Director from £10,000 to £11,000 per annum in recognition of the added workload and responsibilities associated with these roles. The annual basic fee remained unchanged at £64,000 per annum. The fee on the appointment of the new Company Chair was benchmarked to UK listed companies and was increased from £205,000 to £225,000 per annum, which includes chairing the Nomination Committee. 2024 AGM result At the Company’s AGM held on 17 April 2024, the Company received 85% of votes in favour of the resolution to approve the new Directors’ Remuneration Policy, 96% of votes in favour of the resolution to approve the new 2024 Hunting Performance Share Plan and 76% of votes in favour of the resolution to approve the 2023 Annual Report on Remuneration. Given the outcome in respect of the Annual Report on Remuneration, the Directors, in line with the 2018 UK Corporate Governance Code, engaged with shareholders to understand their views, with the result of this consultation being posted to the Company’s website in August 2024 and on page 151 of the 2024 Directors’ Remuneration Report. During the consultation, the majority of shareholders expressed that they were broadly satisﬁed with the remuneration proposals. One major shareholder did not support the resolution due to the levels of deferral under the annual incentive being below their preferred level. This feedback was considered by the Board and the Remuneration Committee, and it was decided that the deferral levels remain appropriate; however, they will be kept under review. Shareholders will note that future base salary increases are expected to be in line with the workforce, as conﬁrmed by the Committee to shareholders during the recent investor consultation process. Terms of reference and committee effectiveness The Committee reviewed its Terms of Reference at its December meeting. As part of the externally facilitated Board effectiveness review, the Committee’s Effectiveness was discussed, with the Committee and wider Board concluding that the remit and work of the Committee was effective. On behalf of the Board Paula Harris Chair of the Remuneration Committee 6 March 2025 Hunting PLC Annual Report and Accounts 2024 139 Strategic Report Corporate Governance Financial Statements Other Information Remuneration Committee Report continued Remuneration at a glance Remuneration paid to the executive Directors in the year was consistent with the 2024 Directors’ Remuneration Policy. Base salaries for the executive Directors were unchanged throughout 2023; however, following a benchmarking exercise carried out in parallel with the new Directors’ Remuneration Policy, which was approved at the 2024 AGM, salaries were increased by 8.5%. The 2024 Annual Bonus award is 69.0% of the maximum bonus opportunity, which reﬂects an “Above Target” performance compared to the Annual Budget, approved by the Directors at the end of 2023. The awards under the HPSP granted in 2022 vested on 4 March 2025, with an “Above Target” vesting outcome of 98.3%. Adjusted proﬁt before tax $ 75.6 m (2023 – $50.0m) Return on average capital employed 8.86 % (2023 – 6.48% restated) Total shareholder return (three-year) 100.4 % (2023 – 81.3%) Safety: total recordable incident rate (three-year average) 0.94 (2023 – 0.96) Adjusted diluted earnings per share 31.4 cents (2023 – 20.3 cents) Cumulative three-year FCF (pre-capex) $ 165.5 m (2023 – $50.1m) Quality: internal manufacturing reject rate (three-year average) 0.21 % (2023 – 0.15%) Performance metrics Total shareholder return (rebased to 100 at 31 December 2014) Hunting PLC DJ US Oil Equipment & Services 31/12/14 31/12/16 31/12/18 31/12/20 31/12/22 31/12/24 125 100 75 50 25 0 2024 AGM voting results The voting results, in respect of the new Policy and 2023 Annual Report on Remuneration are noted below. Directors’ Remuneration Policy Annual Report on Remuneration Date % of votes in favour Date % of votes in favour % of votes cast in favour 17 April 2024 84.6 17 April 2024 76.0 Details of the Policy can be found on pages 142 to 150 and at www.huntingplc.com. Link to strategy and KPIs The Group’s key performance indicators (“KPIs”) are described in detail on pages 18 and 19, and incorporate ﬁnancial measures including: Performance metrics Annual bonus HPSP Rationale Adjusted proﬁt before tax (“PBT”) x Reﬂects the achievements of the Group in a given ﬁnancial year and recognises sustained proﬁtability measured against an agreed annual budget. Return on average capital employed (“ROCE”) x x Reﬂects the value created on funds invested in the short and medium term. Total shareholder return (“TSR”) x Reﬂects the Group’s long-term goal to achieve superior levels of shareholder return. Adjusted diluted earnings per share (“EPS”) x Encourages sustained levels of earnings growth over the medium term. Free cash ﬂow (“FCF”) x Encourages sustained levels of cash generation to fund growth and shareholder distributions. Strategic/personal objectives x x Incentivises delivery of key strategic milestones that contribute to long-term success. Non-GAAP measure see pages 255 to 262. Hunting PLC Annual Report and Accounts 2024 140 Strategic Report Corporate Governance Financial Statements Other Information Remuneration Committee Report continued Remuneration at a glance continued Following the benchmarking exercise conducted in parallel with the new Directors’ Remuneration Policy which received shareholder approval at the 2024 AGM, the base salaries of the executive Directors were increased with effect from 1 January 2024. Base Salaries $ 879,217 (2023 – $810,338) Arthur James (Jim) Johnson Chief Executive $ 1,213 k (2023 – $1,467k) 1,196,368 shares (2023 – 259,145 shares) £ 344,623 (2023 – £317,625) Bruce Ferguson Finance Director £ 357 k (2023 – £431k) 284,488 shares (2023 – 58,894 shares) Annual Bonus Hunting Performance Share Plan In 2024, the ﬁnancial targets set by the Board within the annual budget were exceeded, with increases in adjusted proﬁt before tax and average return on capital employed being recorded. The Committee also reviewed the delivery of the personal performance objectives by the executive Directors. Overall, a 69.0% payout of the Annual Bonus opportunity was recorded. On this basis, Jim Johnson will receive a bonus of $1,213k and Bruce Ferguson will receive a bonus of £357k ($456k). The Annual Bonus will be delivered in cash, as per the normal operation of the annual bonus plan, with 25% of the post-tax bonus to be utilised to purchase Ordinary shares, to be retained for two years from the award vesting date. The Group’s 2022 HPSP grant’s performance conditions incorporated ROCE, and adjusted diluted EPS, measured for the year ended 31 December 2024, and FCF, relative TSR, and a Strategic Scorecard measured over the three ﬁnancial years ending 31 December 2024. Recorded performance Vesting ROCE 8.86% 25% Relative TSR Upper quartile 20% Adjusted diluted EPS 31.4 cents 20% FCF (pre-capex) $165.5m 18.3% Strategic Scorecard – Safety 0.94 7.5% – Quality 0.21% 7.5% * Cumulative FCF over the three-year vesting period. ** Average over the three-year vesting period. Following measurement of the performance conditions, the 2022 HPSP grant will vest at 98.3%. Dividend equivalents accrued over the vesting period totalling 28.5 cents per vested share will be added to this award. Hunting PLC Annual Report and Accounts 2024 141 Strategic Report Corporate Governance Financial Statements Other Information Directors’ Remuneration Policy Policy overview This section sets out the Directors’ Remuneration Policy (the “Policy”) applicable to Hunting’s executive and non-executive Directors, which was approved by shareholders at the Company’s Annual General Meeting (“AGM”) on 17 April 2024. The Policy aligns with the rules of the 2024 Hunting Performance Share Plan (the “2024 HPSP”), which was also approved at the 2024 AGM. The Policy is designed to take account of the principles of the 2024 UK Corporate Governance Code and the provisions of the Companies Act 2006 regarding remuneration, and is designed to promote the strategy and long-term sustainable success of the Company by ensuring that rewards are competitive within the relevant market for talent, and comprise ﬁxed and variable incentives that link total reward with corporate and individual performance as well as shareholder value creation. Executive Director pay is overseen by the Remuneration Committee. The Chief Executive’s remuneration is benchmarked against global peers, the majority of which are headquartered or listed in the US, and who are of a similar proﬁle and size to Hunting. The Finance Director’s remuneration is benchmarked against UK listed companies of a similar size. Non-executive Director fees are set at levels that take into account the time commitment and responsibilities of each role. Given the international scope of the business, each non-executive Director is required to give an above average time commitment to Group matters. Non-executive Directors do not receive bonuses or other variable emoluments. The fees are benchmarked against other UK companies of a similar size, proﬁle and proﬁtability and are reviewed annually by the Board. The Company Chair fee is set by the Remuneration Committee. The Remuneration Policy tables that follow provide an overview of each element of the Directors’ Remuneration Policy. As no Director is involved in the setting of their own pay, this mitigates conﬂicts of interest as required by the relevant regulations. Remuneration Committee Report continued Hunting PLC Annual Report and Accounts 2024 142 Strategic Report Corporate Governance Financial Statements Other Information Remuneration Committee Report continued Directors’ Remuneration Policy continued Executive Director Remuneration Policy table Fixed emoluments Purpose and link to strategy Operation Maximum opportunity Performance metrics Changes to policy proposed Base salary • To attract, retain and reward executives with the necessary skills to effectively deliver the Company strategy. • Base salaries are set at competitive rates, which take into account the individual’s country of residence and primary operating location as well as pay for similar roles in comparable companies. • Aimed at the market mid-point. • Annual increases take into account Company performance, inﬂation in the UK and US, and increases across the wider workforce. • Relocation and tax equalisation agreements are also in place for employees working across multiple geographic jurisdictions. • There is no prescribed maximum annual increase. Increases will normally be guided by the general increase for the broader employee population, but on occasions may need to recognise, for example, development in role, change in responsibility, and/or speciﬁc retention issues. • Individual and Group performance are taken into account when determining appropriate salaries. • None. 401k and tax-deferred savings plans (US-based roles) • To provide a tax efﬁcient long-term savings arrangement for US-based Directors. • The Group provides matching contributions (subject to limitations) to a US qualiﬁed 401k deferred savings plan and an additional non-qualiﬁed tax-deferred savings plan as allowed under US tax laws to US-based executive Directors. • The Company previously agreed to grandfather the incumbent Chief Executive’s original 401k and deferred compensation arrangements. • Any future executive Director appointees in the US will have a contribution cap set at the same level offered to the wider workforce. • None. • None. Hunting PLC Annual Report and Accounts 2024 143 Strategic Report Corporate Governance Financial Statements Other Information Purpose and link to strategy Operation Maximum opportunity Performance metrics Changes to policy proposed Pension (roles based outside of the US) • To provide a normal pension scheme appropriate to the country of residence. • Company contribution or an annual cash sum in lieu of contributions to a company pension scheme. • The Finance Director currently elects to receive a cash sum. • Equivalent arrangements would be offered to any future executive Director based outside of the US. • UK executive Directors receive a company pension contribution or cash alternative of up to 12% of salary, in line with the rest of the UK workforce. • None. • None. Beneﬁts • To provide standard beneﬁts appropriate to the country of residence. • Each executive Director is provided with healthcare insurance and a company car with fuel beneﬁts or allowance in lieu. • Additional beneﬁts may be provided to ensure the Group remains competitive within the relevant local market and/or where these are introduced to the wider workforce. • There is no maximum value set on beneﬁts. They are set at a level that is comparable to market practice. • None. • None. Executive Director Remuneration Policy table continued Fixed emoluments continued Remuneration Committee Report continued Directors’ Remuneration Policy continued Hunting PLC Annual Report and Accounts 2024 144 Strategic Report Corporate Governance Financial Statements Other Information Executive Director Remuneration Policy table continued Variable emoluments Purpose and link to strategy Operation Maximum opportunity Performance metrics Changes to policy proposed Annual bonus • To incentivise annual delivery of ﬁnancial and operational targets. • To provide high reward potential for exceeding demanding targets. • At least 25% of any after-tax Annual Bonus must be used to acquire shares in Hunting. These shares are required to be held for two years. • Malus and claw back provisions are incorporated and allow the Committee to reduce the bonus, potentially down to zero, in cases of material ﬁnancial misstatement, calculation error, corporate failure, gross misconduct or actions that cause reputational damage to the Company. • The Chief Executive and Finance Director have a maximum opportunity of 200% and 150% of salary, respectively. • For an on-target performance, 50% of the maximum opportunity will be paid. • Typically, 80% of the Annual Bonus will be based on ﬁnancial measures, with the remainder based on personal performance objectives, selected annually by the Remuneration Committee to reﬂect key performance targets for the year ahead. • The vesting of the personal component is normally subject to a ﬁnancial underpin. Should all ﬁnancial targets not be met, a 50% vesting cap of the personal component would normally be implemented. • None. Long-term incentive plan • To align the interests of executives with shareholders in growing the value of the business over the long term and provide a competitive total package that enables the Company to compete for talent in its key market of the US. • Awards of performance shares (“PSP”) or restricted shares (“RSP”), may be granted in the form of nil cost options or conditional awards to eligible participants. The performance conditions which apply to PSP awards will normally be measured over a period of at least three years. • Awards normally vest three years after grant and are retained, subject to settlement of any tax liabilities on vesting, in shares for up to two years. • Awards are subject to malus and clawback provisions for ﬁve years from grant, which cover cases of material ﬁnancial misstatement, calculation error, gross misconduct actions that cause reputational damage to the Company, or corporate insolvency or failure. • In respect of vested shares, participants are eligible to receive an amount equivalent to dividends paid by the Company during the vesting period, (and where relevant, the post-vesting holding period) once the ﬁnal vesting levels have been determined, either in cash or shares. This dividend equivalent payment may assume the reinvestment of dividends in shares. • In respect of any ﬁnancial year of the Company: – Chief Executive: PSP up to 350% and RSP up to 100% of base salary. – Finance Director: PSP up to 160% and RSP up to 50% of base salary. • PSP awards will vest on achievement of ﬁnancial and strategic performance targets, measured over a performance period of three years. Financial measures for PSP awards will be aligned with the strategy and, for 2024, include measures such as adjusted diluted EPS, FCF, and ROCE. A TSR element has also been included. Strategic performance targets may also be included and will not normally account for more than 15% of each award. • Achievement of threshold performance for PSP targets results in a 25% vesting. • In the event that all of the ﬁnancial performance targets are not met in respect of a PSP grant, the vesting of the Strategic performance measures will be reduced by 50%. • RSP awards are subject to an underpin based on the Committee’s assessment of the underlying performance of the business over the performance period having regard for a number of factors also measured over three ﬁnancial years. • The Committee has the ability to exercise discretion to override the PSP or RSP outcome in circumstances where strict application of the performance conditions or underpin would produce a result inconsistent with the Company’s remuneration principles. Any upward discretion would normally be subject to prior shareholder consultation. • None. Remuneration Committee Report continued Directors’ Remuneration Policy continued Hunting PLC Annual Report and Accounts 2024 145 Strategic Report Corporate Governance Financial Statements Other Information Purpose and link to strategy Operation Maximum opportunity Performance metrics Changes to policy proposed Minimum stock ownership requirement • To encourage the retention of shares under award to the executive Directors. • To align the long-term interests of the Directors with shareholders. • Executive Directors have ﬁve years to achieve the required holding level from the date of their appointment to the Board. • The Board has discretion to extend this period if warranted by individual circumstances. • The target holding of the Chief Executive is equal to a market value of 500% of base salary and for the Finance Director 200% of base salary. • None. • None. Post-employment shareholding requirement • To align the long-term interests of the executive Directors with shareholders for a period after they have left the Group. • To incentivise good succession planning. • Directors are required to hold Hunting shares for a period after stepping down as an executive Director. • The Committee will have discretion to reduce/waive the requirement in exceptional circumstances. • Executive Directors must continue to hold shares equal to the lesser of their actual holding on stepping down as an executive Director or 200% of base salary, for a minimum of 24 months. • This requirement applies to shares acquired under incentives granted after the 2024 AGM. • None. • None. Executive Director Remuneration Policy table continued Variable emoluments continued Remuneration Committee Report continued Directors’ Remuneration Policy continued Hunting PLC Annual Report and Accounts 2024 146 Strategic Report Corporate Governance Financial Statements Other Information Non-executive Director Remuneration Policy table The remuneration of the non-executive Directors is designed to reﬂect the time and commitment of each of their respective roles. Purpose and link to strategy Operation Maximum opportunity Performance metrics Changes to policy proposed Company Chair and non-executive Director fees • To attract and retain high-calibre non-executive Directors by offering a market competitive fee. • Fees for the non-executive Directors are determined by the Board as a whole and fees for the Company Chair are determined by the Remuneration Committee, following receipt of external fee information and an assessment of the time commitment and responsibilities involved. • The Company Chair is paid a single consolidated fee for his responsibilities, including chairing the Nomination Committee. • The non-executive Directors are paid a basic fee. • Non-executive Directors may be paid an additional fee to reﬂect their responsibilities – for example Directors who chair the Board’s Audit and Risk, Ethics and Sustainability, and Remuneration Committees and the Senior Independent Director. • The non-executive Directors and Company Chair do not participate in the Group’s share plans and do not receive a cash bonus or any other beneﬁts. Any travel or hospitality costs (including any tax thereon) related to the performance of their duties may be reimbursed by the Company. • Fees paid to the non- executive Directors are benchmarked against other UK companies of a similar size, proﬁle and proﬁtability to the Group. • The aggregate maximum fees for all non-executive Directors, including the Company Chair, within the Company’s Articles of Association are £750,000. • None. • None. Minimum stock ownership requirements • To align the non-executive Directors’ interests with the long-term interests of shareholders. • Non-executive Directors are required to build up a holding of shares in the Company and have ﬁve years to achieve the required holding level from the date of their appointment to the Board. • The target holding for the Company Chair and non-executive Directors is equal to 100% of their annual fee. • None. • None. Remuneration Committee Report continued Directors’ Remuneration Policy continued Hunting PLC Annual Report and Accounts 2024 147 Strategic Report Corporate Governance Financial Statements Other Information Remuneration Committee Report continued Directors’ Remuneration Policy continued Detailed Policy Amendments to the Policy The oil and gas industry remains a competitive marketplace, therefore recruiting and retaining the right individuals to deliver long-term growth for its shareholders is a key focus of management and the Remuneration Committee. It is anticipated that recruitment and retention will remain a challenge for the sector and, therefore, the Committee will continue to keep the Policy under review and will make any necessary revisions after appropriate consultation and approval from shareholders has been received. Remuneration Committee discretion The Committee has deﬁned areas of discretion within the Directors’ Remuneration Policy. Where discretion is applied, the Committee will disclose the rationale for the application of discretion. The Committee will operate the Annual Bonus Plan, HPSP and HRSP in accordance with the relevant plan rules and this Policy. The Committee retains discretion as to the operation and administration of these plans in several areas, including: • Selecting the participants in the incentive plans on an annual basis; • Determining the timing of grants of awards and/or payments; • Determining the quantum of awards and/or payments (within the limits set out in the Policy table on pages 143 to 147); • Reviewing performance against any performance targets; • Determining the extent of vesting based on the assessment of performance and to adjust the amount of any incentive pay-out to reﬂect any fact or circumstance that the Committee considers to be relevant, and to ensure that the outcome is a fair reﬂection of performance; • Making the appropriate adjustments required in certain circumstances, for instance for changes in capital structure; • Determining “Good Leaver” status for incentive plan purposes, including assessing part-year performance for bonus awards and applying the appropriate treatment; and • Undertaking the annual review of weighting of performance measures and setting targets for the incentive plans, where applicable, from year-to-year. If an event occurs that results in the Annual Bonus Plan or PSP performance conditions and/or targets being deemed no longer appropriate (e.g. material change acquisition or divestment), the Committee will have the ability to appropriately adjust the measures, peer groups, and/or targets and alter weightings, provided that the revised conditions are not materially less challenging than the original conditions. In addition, the oil and gas industry is a highly cyclical industry, where sentiment is driven by oil and gas commodity prices and activity levels across the industry. Given that these market conditions are outside management’s control, the Committee retains the discretion to partially adjust the performance targets of the performance conditions adopted for the PSP to align with the general market outlook, while continuing to be a demanding and stretching incentive. Any upward discretion would be subject to prior shareholder consultation. Other The Committee reserves the right to honour any remuneration commitments (including exercising any discretions available to it in connection with such payments) that are not in line with the Policy outlined above, where the terms of the payment were agreed either (i) before the Policy came into effect; or (ii) at a time when the relevant individual was not a Director of the Company and, in the opinion of the Committee, the payment was not in consideration for the individual becoming a Director of the Company. The Committee may also make any payments that it is required to make as a result of its statutory obligations or by way of settlement for any claim of breach of a Director’s legal entitlements. Choice of performance metrics The corporate strategy includes promoting the long-term success of the Group by investing in its existing products and services portfolio through capital investment or by acquisition and growing the business in a way that is aligned with the evolving global energy industry. For 2024, the performance of the executive Directors in executing this strategy were evaluated using a number of key performance indicators (“KPIs”) shown in the table below, which drive the variable components of the executive Directors’ emoluments. The PSP performance conditions and growth targets can be amended by the Remuneration Committee over the life of the Policy, with the targets set annually when each award is granted, following an assessment of the growth prospects of the Group. Taken together, the Committee believes that the executive Directors are appropriately incentivised to deliver both short- and long-term performance based on these metrics. Performance metrics Variable incentive Rationale Adjusted proﬁt before tax (“PBT”) Annual Bonus Adjusted PBT is a management KPI used to measure the performance of the Group. Adjusted PBT reﬂects the achievements of the Group in a given ﬁnancial year and recognises sustained proﬁtability measured against an agreed Annual Budget. Return on average capital employed (“ROCE”) Annual Bonus/ PSP ROCE is a management KPI used to measure the performance of the Group. ROCE reﬂects the value created on funds invested in the short and medium term. Total shareholder return (“TSR”) PSP TSR reﬂects the Group’s long-term goal to achieve superior levels of shareholder return. Adjusted diluted earnings per share (“EPS”) PSP To encourage sustained levels of earnings growth over the medium term. Free cash ﬂow (“FCF”) PSP To encourage sustained levels of cash generation to fund growth and shareholder distributions. Strategic/personal objectives Annual Bonus/ PSP To capture and incentivise delivery of key strategic milestones that contribute to long-term success. Underlying Group performance RSP Ensures that executives are not rewarded where the underlying performance of the Company is not satisfactory. Hunting PLC Annual Report and Accounts 2024 148 Strategic Report Corporate Governance Financial Statements Other Information Remuneration Committee Report continued Directors’ Remuneration Policy continued Detailed Policy continued Relevance to employee pay The Policy table on pages 143 to 147 summarises the remuneration structure that operates for executive Directors within Hunting and which also applies to senior executives of the Group. While bonus and pension arrangements are in place for most of the Group’s employees, lower aggregate remuneration operates below the executive Director and senior manager level, with total remuneration driven by market comparatives and the individual responsibilities of each role. Executive Director service contracts All existing executive Directors’ service contracts are rolling one-year agreements and contain standard provisions allowing the Company to terminate summarily for cause, such as gross misconduct. The service contracts can be reviewed at the Company’s registered ofﬁce, on request by a shareholder. Jim Johnson and Bruce Ferguson entered into service contracts with the Company on 7 December 2017 and 2 June 2020, respectively. Under the terms of these service contracts, both the Company and the Directors are required to give one year’s notice of termination. Messrs Johnson and Ferguson are entitled to receive a Performance Bonus on an annual basis, the quantum being determined by the Remuneration Committee. Messrs Johnson and Ferguson are also eligible to participate in the Hunting Performance Share Plan and any other long-term incentive schemes operated by the Company. Under the terms of their service contracts, beneﬁts may include the provision of a company car and fuel beneﬁts or allowance in lieu, long-term disability and healthcare beneﬁts offered by the Company, as well as participation in pension schemes operated by the Company or an allowance in lieu. Following a change of control, in line with standard UK practice, all stock options and stock-based awards granted will be tested for performance and pro-rated for time unless the Committee, acting fairly, decides otherwise. Non-executive Director letters of appointment On appointment, each non-executive Director is provided with a letter of appointment, which is retained by the Company Secretary at Hunting PLC’s registered head ofﬁce, that sets out the responsibilities and time commitments for the role. Additional duties, as requested by the Nomination Committee, including chairing a Board Committee, are also incorporated into the letters of appointment and fees paid. Non-executive Director appointments are usually for a ﬁxed three-year term, which can be terminated with immediate effect by either party at any time. External board appointments The Company may authorise an executive Director to undertake a non-executive directorship outside of the Group provided it does not interfere with their primary duties. During the year, neither executive Director held any external positions. Payment for loss of ofﬁce The Committee has considered the Company’s policy on remuneration for executive Directors leaving the Company and is committed to applying an approach consistent with best practice to ensure that the Company pays no more than is necessary. In line with normal market practice, the policy distinguishes between “Good Leavers” and “Bad Leavers”. A “Good Leaver” is deﬁned as an employee who has ceased to be employed by the Group due to death, ill-health, injury, disability, redundancy, retirement, the employee’s employing company or business ceasing to be part of the Group, or for any other reason if the Committee so decides. In the case of a “Good Leaver”, taking account of local conditions, the Policy normally allows: • Payment in lieu of notice equal to 12 months’ base salary, pension contributions, contractual beneﬁts and any other legal entitlements; and • Payment of a bonus for the period worked taking into account the achievement of the relevant performance conditions which may be delivered in such proportions of cash and shares, and subject to such deferral arrangements, as the Committee may determine; and • Any unvested long-term incentives that vest at the normal time taking into account the achievement of the relevant performance conditions and any other relevant factors, and will, unless the Committee determines otherwise, be pro-rated by reference to the performance period applicable to the award which has elapsed. If an executive Director dies (or any other exceptional circumstances prevail), awards will vest at the time the executive Director ceases to be a Director on the same basis as set out above for other “Good Leavers”. The Company may also provide assistance with any reasonable legal costs and a contribution towards outplacement services. If an executive Director departs the Group for any other reason, no bonus would be payable, and their unvested long-term incentives would lapse immediately on cessation of employment. Corporate events If there is a change of control of the Company, PSP and RSP awards will normally vest early. The extent to which awards vest in these circumstances will be determined by the Remuneration Committee, taking into account the extent to which the performance conditions have been satisﬁed, the underlying performance of the Company and the participant, any other relevant factors, and, unless the Remuneration Committee determines otherwise, the proportion of the performance period that has elapsed. If other corporate events affect the Company, such as a demerger, the Remuneration Committee may decide that awards vest on the same basis as for a change of control of the Company. Consideration of employment conditions elsewhere in the Group The Committee considers the general basic salary increases for the broader workforce when determining the annual salary increases for the executive Directors. Employees have not been consulted in respect of the design of the Company’s senior executive remuneration policy. Hunting PLC Annual Report and Accounts 2024 149 Strategic Report Corporate Governance Financial Statements Other Information Remuneration Committee Report continued Directors’ Remuneration Policy continued Detailed Policy continued Shareholder consultation and feedback When determining remuneration, the Committee takes into account views of leading shareholders and best practice guidelines issued by institutional shareholder bodies. The Committee is always available for feedback from shareholders on the remuneration policy and arrangements and will undertake a consultation with our largest shareholders in advance of any signiﬁcant future changes to the remuneration policy. The Committee will continue to monitor trends and developments in corporate governance and market practice to ensure the structure of executive remuneration remains appropriate. New Director policies As the Board of Hunting is refreshed with new executive and non-executive Director appointments, the Policy for remuneration for the new Board members will align with those detailed above. Hunting needs to be able to attract and retain the best executive and non-executive Directors in the market place. The Remuneration Committee believes that the Policy will enable the Company to achieve its recruitment aims. For executive Director appointments, the ﬁxed component of total emoluments will target the market mid-point, subject to geographic considerations of the candidate and relevant labour market practices. Where new appointees have initial base salaries set below market, any shortfall may be managed with phased increases, normally, over a period of two to three years, subject to the individual’s development and performance in the role. The service contracts will be rolling one-year agreements with standard provisions. Fixed pay will comprise base salary, including any appropriate relocation or tax equalisation agreements, beneﬁts (including healthcare insurance, pension contributions, and car beneﬁts) and any other components deemed necessary to secure an appointment. Variable pay will be in line with the policies above, subject to any future amendments to these arrangements being approved by shareholders. Any speciﬁc change of control provisions within new service contracts would be consistent with UK market norms. In addition, for new appointees, the Committee may offer additional cash and/or share-based elements when it considers these to be in the best interests of the Company and shareholders. Any such payments would take account of remuneration relinquished when leaving the former employer and would be structured to take account of the nature, time horizons, and performance requirements attaching to that remuneration. Shareholders will be informed of any such payments at the time of appointment. For non-executive Director appointments, the benchmarked fees against companies of similar size, proﬁle, and proﬁtability to Hunting will be applied. Remuneration scenarios for executive Directors The remuneration scenarios of the executive Directors for a ﬁxed, target and maximum performance are presented in the charts below, based on the 2024 Directors’ Remuneration Policy. Chief Executive Fixed Target Maximum Maximum Stretch $1,074k 100% 25% 16% 12% 20% 35% 20% 26% 45% 13% 20% 53% 15% $4,371k $6,789k $8,767k 0 3,000 2,000 1,000 5,000 4,000 6,000 9,000 8,000 7,000 Finance Director Fixed Target Maximum Maximum Stretch $511k 100% 36% 24% 20% 23% 25% 16% 32% 34% 10% 26% 41% 13% $1,414k $2,096k $2,559k 0 1,000 500 1,500 2,000 3,000 2,500 Total Fixed Annual Bonus PSP RSP Assumptions made for each scenario are as follows: • Fixed: latest salary, beneﬁts or payment in lieu of beneﬁts, and normal pension contributions or payments in lieu of pension contributions; • Target: ﬁxed remuneration plus half of maximum annual cash bonus opportunity plus 50% vesting of awards under the PSP plus 100% vesting of awards under the RSP; • Maximum: ﬁxed remuneration plus maximum annual cash bonus opportunity plus 100% vesting of all long-term incentives; and • Maximum Stretch: including the impact of a hypothetical 50% increase in share price on the value of the PSP and RSP in accordance with the reporting regulations. The Finance Director is paid in Sterling and the equivalent total remuneration scenarios are as follows – ﬁxed £400k; target £1,106k, maximum £1,640k and maximum stretch of £2,002k. On behalf of the Board Paula Harris Chair of the Remuneration Committee 6 March 2025 Hunting PLC Annual Report and Accounts 2024 150 Strategic Report Corporate Governance Financial Statements Other Information Remuneration Committee Report continued Annual Report on Remuneration Introduction The principles set out in the new Directors’ Remuneration Policy (the “Policy”) have been applied throughout the year. As noted in the Letter from the Remuneration Committee Chair, the new Directors’ Remuneration Policy and the 2024 Hunting Performance Share Plan were approved at the Company’s Annual General Meeting (“AGM”) on 17 April 2024. The changes to the Company’s compensation arrangements mainly focused on the long-term incentive arrangements to the executive Directors, meaning that, for the most part, the remuneration framework and outcomes reported this year were not materially different to those reported in recent years. Role The Committee is responsible for developing and implementing the Directors’ Remuneration Policy and has direct oversight of the remuneration of the executive Directors, Company Chair, and Company Secretary. The Company Chair and Chief Executive are consulted on proposals relating to the remuneration of the Finance Director and designated senior management. Where appropriate, the Company Chair and the other Directors are invited by the Committee to attend meetings but are not present when their own remuneration is considered. The Committee also reviews and monitors the remuneration framework of the Company’s Executive Committee and monitors base salary increases across the Company’s workforce. The remuneration of the non-executive Directors is agreed by the Board as a whole and follows the Articles of Association of the Company, which were last approved by shareholders on 18 April 2018. The full scope of the role of the Committee is set out in its Terms of Reference, which are reviewed annually, and can be found on the Group’s website at www.huntingplc.com. Membership and attendance The Committee consists entirely of independent non-executive Directors. Ms Harris, Ms Krajicek and Mr Lough have relevant energy sector expertise, while Mrs Chesney has relevant ﬁnancial expertise. Dr Amos has non-oil and gas and ﬁnance expertise. On 10 January 2024, Margaret Amos was appointed as a new independent non-executive Director and joined the Committee from this date. Stuart Brightman stepped down as a member of the Committee on 17 April 2024, following his appointment as Company Chair at Hunting PLC’s 2024 AGM. Annell Bay retired as a Director on 1 February 2025 and stepped down from the Committee on the same date. Cathy Krajicek joined the Committee on her appointment to the Board on 3 March 2025. Ms Harris was appointed Committee Chair on 1 February 2025. Ms Harris was ﬁrst appointed to the Committee when she was appointed a Director on 20 April 2022. Carol Chesney and Keith Lough were reappointed as Directors on 23 April 2024 for a ﬁnal three-year term and both retain membership of the Committee. The Committee met ﬁve times during 2024 and attendance details are shown on page 136. On 6 March 2025, being the date of signing the accounts, the members of the Committee and their unexpired terms of ofﬁce were: Director Latest appointment date Unexpired term as at 6 March 2025 months Margaret Amos 10 January 2024 23 Annell Bay 2 February 2024 0/retired Stuart Brightman 3 January 2023 10 Carol Chesney 23 April 2024 26 Bruce Ferguson i 20 April 2020 12 Jay Glick 1 September 2023 0/retired Paula Harris 20 April 2022 2 Jim Johnson i 1 September 2017 12 Cathy Krajicek 3 March 2025 36 Keith Lough 23 April 2024 26 i Messrs Ferguson and Johnson hold service contracts with the Company, which contain a 12-month notice period. Shareholder voting at the 2024 AGM At the Company’s AGM held in April 2024, the resolutions to approve the new Directors’ Remuneration Policy and the 2023 Annual Report on Remuneration received the following votes from shareholders: Directors’ Remuneration Policy Annual Report on Remuneration Number of votes cast % of votes cast Number of votes cast % of votes cast For 101,177,583 84.6 90,371,397 76.0 ii Against 18,392,295 15.4 28,500,673 24.0 Total votes cast 119,569,878 72.5 118,872,070 72.1 Votes withheld i 5,549 – 703,357 – i. A vote withheld is not a vote in law and is not included in the percentage for votes cast. ii. Following this outcome the Directors completed a shareholder engagement process, in line with the requirements of the 2018 UK Corporate Governance Code. Compliance statement The new Directors’ Remuneration Policy and the 2024 Annual Report on Remuneration reﬂect the Remuneration Committee’s reporting requirements under the Companies Act 2006 and the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (as amended), the Shareholder Rights Directive II, as enacted on 10 June 2019, and also the 2018 UK Corporate Governance Code, which became effective for the Company from 1 January 2019. The 2024 Annual Report on Remuneration, which includes the Letter from the Chair of the Remuneration Committee on pages 136 to 139, describes how the approved Directors’ Remuneration Policy was applied during the year. This report was approved by the Remuneration Committee at its meeting on Monday 3 March 2025. The Committee reviews the compensation paid to the executive Directors, the senior leadership team and wider workforce to ensure consistency throughout the organisation. Hunting PLC Annual Report and Accounts 2024 151 Strategic Report Corporate Governance Financial Statements Other Information Single ﬁgure remuneration (audited) Fixed Variable Total Remuneration Base Salary i Pension Provision ii Beneﬁts iii Sub Totals Annual Bonus HPSP Awards Sub Totals $k 2024 2023 2024 2023 2024 2023 2024 2023 2024 iv 2023 v 2024 vi 2023 vii (restated) 2024 2023 (restated) 2024 2023 (restated) Executive Directors Jim Johnson 879 810 126 137 70 72 1,075 1,019 1,213 1,467 5,234 1,075 6,447 2,542 7,522 3,561 Bruce Ferguson 440 395 53 47 18 17 511 459 456 536 1,245 244 1,701 780 2,212 1,239 Non-executive Directors Margaret Amos (from 10 January 2024) 89 – – – – – 89 – – – – – – – 89 – Annell Bay 96 92 – – – – 96 92 – – – – – – 96 92 Stuart Brightman 226 80 – – – – 226 80 – – – – – – 226 80 Carol Chesney 96 92 – – – – 96 92 – – – – – – 96 92 Jay Glick (to 17 April 2024) 86 255 – – – – 86 255 – – – – – – 86 255 Paula Harris 82 80 – – – – 82 80 – – – – – – 82 80 Keith Lough 96 92 – – – – 96 92 – – – – – – 96 92 Totals 2,090 1,896 179 184 88 89 2,357 2,169 1,669 2,003 6,479 1,319 8,148 3,322 10,505 5,491 The remuneration of the Finance Director and non-executive Directors is determined in UK Sterling, as shown in the table below. Fixed Variable Total Remuneration Base Salary i Pension Provision ii Beneﬁts iii Sub Totals Annual Bonus HPSP Awards Sub Totals £k 2024 2023 2024 2023 2024 2023 2024 2023 2024 iv 2023 v 2024 vi 2023 vii (restated) 2024 2023 (restated) 2024 2023 (restated) Executive Directors Bruce Ferguson 345 318 41 38 14 14 400 370 357 431 974 191 1,331 622 1,731 992 Non-executive Directors Margaret Amos (from 10 January 2024) 70 – – – – – 70 – – – – – – – 70 – Annell Bay 75 74 – – – – 75 74 – – – – – – 75 74 Stuart Brightman 177 64 – – – – 177 64 – – – – – – 177 64 Carol Chesney 75 74 – – – – 75 74 – – – – – – 75 74 Jay Glick (to 17 April 2024) 67 205 – – – – 67 205 – – – – – – 67 205 Paula Harris 64 64 – – – – 64 64 – – – – – – 64 64 Keith Lough 75 74 – – – – 75 74 – – – – – – 75 74 i. Following a benchmarking exercise conducted in parallel to the 2024 Directors’ Remuneration Policy, which was approved at the 2024 AGM, the base salaries of the executive Directors were increased by 8.5%, with effect from 1 January 2024. Stuart Brightman’s fee was increased from 17 April 2024, following his appointment as Company Chair. ii. Mr Johnson’s single ﬁgure pension remuneration represents Company contributions payable to his US pension arrangements. Mr Ferguson’s pension ﬁgure represents a cash sum in lieu of a Company pension contribution, which is set at 12% of his annual base salary. iii. Beneﬁts include the provision of healthcare insurance, subscriptions, and a company car with fuel beneﬁts or allowance in lieu. iv. With the Company recording another year of earnings growth, including an increase in adjusted proﬁt before tax (“PBT”) and return on average capital employed (“ROCE”), both of which exceeded the Annual Budget targets set in December 2023, a 69.0% vesting of the maximum opportunity has been recorded. On this basis, Mr Johnson will receive a bonus payment of $1,213k, being 138% of his base salary paid in 2024, and Mr Ferguson will receive a bonus payment of $456k (£357k), being 103% of his base salary. The bonuses will be paid in March 2025 and, in line with the usual operation of the Annual Bonus Plan, 25% of the after-tax bonus will be utilised to purchase Ordinary shares in the Company, to be retained for two years. v. In 2023, Mr Johnson’s Annual Bonus was $1,467k and Mr Ferguson’s Annual Bonus was $536k (£431k). The after-tax bonuses were utilised to purchase 52,652 and 16,434 Ordinary shares respectively in the Company, to be retained for two years. vi. The share awards granted in 2022 under the PSP had a three-year performance period to 31 December 2024 and vested on 4 March 2025. The 2022 grant comprised the following ﬁve performance conditions: ROCE, EPS, FCF, TSR, and a Strategic Scorecard, with the FCF performance condition recording an 18.3% vesting, while the other performance conditions recorded a maximum vesting. The total vesting was, therefore, 98.3%. On this basis, Mr Johnson will receive 1,196,368 Ordinary shares and Mr Ferguson will receive 284,488 Ordinary shares. A cash payment of 28.5 cents per vested share, equating to the dividends paid on each vested share across the vesting period was added to the gross vested amount. In total, the value of Mr Johnson’s vested 2022 long-term incentive was $5,234k and Mr Ferguson’s was $1,245k. The average mid-market closing price of £3.1927 during Q4 2024 has been applied to the number of vested shares and converted to dollars using the average £/$ exchange during Q4 2024, being £1.2811. Further details of the vesting calculation are shown on page 155. vii. The share awards granted in 2021 at £2.619 under the PSP had a three-year performance period to 31 December 2023 and incorporated four performance conditions. The awards were measured against the relevant performance conditions, with a 34.2% vesting. On this basis, Messrs Johnson and Ferguson received 259,145 and 58,894 Ordinary shares, respectively. For the purposes of the single ﬁgure calculation, the average mid-market closing price of £3.0344 was applied to the share awards vested on 4 March 2024, with the 2023 single ﬁgure table being restated to reﬂect the actual vested amount. The £/$ exchange rate of £1.2798 was also applied. Remuneration Committee Report continued Annual Report on Remuneration continued Hunting PLC Annual Report and Accounts 2024 152 Strategic Report Corporate Governance Financial Statements Other Information Salary and fees As outlined in our 2023 Directors’ Remuneration Report, following a rigorous shareholder engagement process on the new Directors’ Remuneration Policy, which concluded in Q1 2024, base salary increases of 3.5% in excess of the workforce increase (8.5% in total) were approved by the Committee with effect from 1 January 2024. This was only the third increase in executive Director salaries since April 2019, the Directors not having received an increase in either 2020 or 2023. Mr Johnson’s base salary following this increase was $879,217 and Mr Ferguson’s was $440,359 (£344,623) during the year. In December 2024, the Committee reviewed base salary increases for the workforce as part of the preparation of the 2025 Annual Budget. The Chief Executive proposed a Group-wide average increase of 4%, which was implemented in January 2025. The Committee will meet in April 2025 to discuss and agree the base salary increases for the executive Directors. The non-executive Directors are paid an annual base fee of £64,000 with an additional fee of £11,000 per annum for chairing a Committee or for the role of Senior Independent Director. On appointment Stuart Brightman’s base fee as Company Chair was set at £225,000 following receipt of benchmarked data from Mercer. Pensions (audited) In line with other similarly long-tenured employees in the US, Jim Johnson is a member of a deferred compensation scheme in the US, which is anticipated to provide a lump sum on retirement, and also contributes to a US 401k matched deferred savings plan. Company contributions to the former arrangement are $104,831 (2023 – $116,823) for the year. There are no additional beneﬁts provided on early retirement from this arrangement. In the year, the Group contributed to Mr Johnson’s 401k matched savings plan, totalling $20,700 (2023 – $19,800). Mr Ferguson receives a cash sum in lieu of pension contributions, representing 12% of his annual base salary. This contribution level aligns with the UK workforce, as required by the 2018 UK Corporate Governance Code. In the year, Mr Ferguson’s company contribution in lieu of pension was $52,843/£41,355 (2023 – $47,385/£38,115). Annual performance-linked bonus plan (audited) The annual performance-linked bonus plan for 2024 was based on the following metrics: Proportion of award Performance metric 60% Adjusted proﬁt before tax 20% Return on average capital employed 20% Personal performance objectives Delivery of ﬁnancial objectives The annual bonus targets are normally based on the Annual Budget agreed by the Board in December of the prior ﬁnancial year. The 2024 Annual Budget agreed by the Board in December 2023 contained ﬁnancial targets of adjusted proﬁt before tax of $70.3m and ROCE of 8.1%. The ﬁnancial performance targets for the 2024 Annual Bonus were thus set as follows: Threshold vesting Target vesting Maximum vesting Actual outcome % vesting Adjusted proﬁt before tax (“PBT”) $56.2m $70.3m $84.4m $75.6m 41.3% Return on average capital employed (“ROCE”) 6.4% 8.1% 9.6% 8.86% 14.7% Given the continued growth of the Company’s core markets, the Annual Bonus targets were exceeded, with 56.0% of a possible 80% outcome of the ﬁnancial component of the Annual Bonus award. Remuneration Committee Report continued Annual Report on Remuneration continued Hunting PLC Annual Report and Accounts 2024 153 Strategic Report Corporate Governance Financial Statements Other Information Delivery of personal performance objectives The personal performance objectives agreed by the Committee with the executive Directors in early 2024 are summarised in the table below. Objective Jim Johnson (Chief Executive) Bruce Ferguson (Finance Director) Performance achieved Outcome Revenue growth and product diversiﬁcation (35%) • Build revenue from non-energy markets to continue the path to 2030 goal of $250m per annum; present progress through the year, including delivery of non-oil and gas revenue of greater than $70m. • Present other material diversiﬁcation opportunities. • Build revenue from non-energy markets to continue the path to 2030 goal of $250m per annum; present progress through the year, including delivery of non-oil and gas revenue of greater than $70m. • Present other material diversiﬁcation opportunities. • The executive Directors delivered a Corporate Plan to the Board, which presented the growth opportunities and cost reduction measures that will contribute to the delivery of the Hunting 2030 Strategy. • Group revenue has grown by 13% in the year, with non-oil and gas being $75.1m. The Hunting Dearborn business unit has successfully pivoted its sales order book to aerospace and commercial space sales. • The Group has also delivered c.$60m of organic oil recovery orders, which represents a new, more diversiﬁed revenue to Hunting. • Management continues to evaluate non-oil and gas acquisition opportunities, but none were completed in the year. Target Progressing operating excellence (25%) • Work with senior leadership team to present long-term plans to increase revenue, grow market share, explore M&A opportunities in each product group and region as outlined at the Capital Markets Day, with a tie-in to the Annual Budget. • Enhance operating dashboard for senior leadership to present forecasts of budgets, actual revenue, utilisation, receivables, working capital, inventory. • Work with senior leadership team to present long-term plans to increase revenue, grow market share, explore M&A opportunities in each product group and region as outlined at the Capital Markets Day, with a tie-in to the Annual Budget. • Enhance operating dashboard for senior leadership to present forecasts of budgets, actual revenue, utilisation, receivables, working capital, inventory. • Strategic growth plans were presented to the Directors through the year by members of the Executive Committee. • Merger and acquisition opportunities were also presented by the executive Directors. • Enhanced ﬁnancial and operational reporting was delivered in the year, to enable the Directors to monitor progress of key income statement and balance sheet performance metrics. • Working capital ﬁnancing solutions were presented to the Directors and implemented, leading to a strong year-end total cash and bank/(borrowing) position. Above Target Leadership development and succession (25%) • Present Chief Executive succession candidates and development plans. • Chief HR Ofﬁcer to present succession candidates for Chief Executive’s direct reports and next level down. • Senior leadership team to develop and present speciﬁc internal succession plans for each of their key reports. • Chief HR Ofﬁcer to develop an emerging leaders programme with identiﬁed high performers. • Present Finance Director internal succession plans for direct reports and next level down. • Ensure the necessary size and skill set of ﬁnancial talent is hired to drive improvements to performance analysis and ﬁnancial reporting. • Investor Relations: develop activities as per the Capital Markets Day framework. • Succession plans for the senior leadership team were presented by the Chief Executive and Finance Director. • Executive development programmes were put in place to develop key management talent. • Enhanced investor relations and shareholder marketing initiatives were put in place, leading to new, material shareholders entering the register. • Executive and middle management leadership training programmes were implemented across the Group. Target Corporate Responsibility and ESG (15%) • Continue to track and reduce GHG emissions to meet the 2030 goal of 17,937 tonnes (from 35,874 tonnes in baseline year of 2019), targeting a 3% reduction during the year. • Work to contain carbon intensity to <30. • Continue to track and reduce GHG emissions to meet the 2030 goal of 17,937 tonnes (from 35,874 tonnes in baseline year of 2019), targeting a 3% reduction during the year. • Maintain and upgrade cyber security. • Scope 1 and 2 GHG emissions decreased 2%, while revenue and activity increased 13%, indicating that management was successfully managing the Group’s scope 1 and 2 emissions. • The intensity factor of 21.2 delivered in the year exceeded the Group’s 2030 target with a new, more demanding target being announced in March 2025. Above Target The Committee awarded a 13% outcome of the 20% vesting of the personal performance component of the Annual Bonus award. Remuneration Committee Report continued Annual Report on Remuneration continued Hunting PLC Annual Report and Accounts 2024 154 Strategic Report Corporate Governance Financial Statements Other Information Annual Bonus outcome (audited) Based on this outcome of a vesting of 69.0%, the following bonus awards were made to the executive Directors: Proportion of award Performance metric Percentage of annual bonus awarded 60% Adjusted proﬁt before tax 41.3% 20% Return on average capital employed 14.7% 20% Personal performance objectives 13.0% Mr Johnson was, therefore, awarded a bonus for the year of $1,213k (2023 – $1,467k), and Mr Ferguson was awarded a bonus of $456k (2023 – $536k). In line with the normal operation of the Annual Bonus, and the Directors’ Remuneration Policy, 25% of the post-tax bonus is required to be utilised to purchase Ordinary shares in the Company, to be retained for two years. 2022 HPSP vesting (audited) The 2022 awards under the PSP have been measured against the performance conditions following completion of the three-year performance period ended 31 December 2024. The 2024 awards were based on ﬁve performance conditions – ROCE (25%); adjusted diluted EPS (20%); Free Cash Flow, pre-capex (20%); relative TSR (20%) and a Strategic Scorecard (15%) comprising two sub-measures being the Group’s Safety and Quality performance. Performance is measured for the year ended 31 December 2024 for ROCE and adjusted diluted EPS and over three ﬁnancial years ending 31 December 2023 for free cash ﬂow, relative TSR and the Strategic Scorecard. A summary of the performance achieved is detailed below: % of award Threshold vesting target Maximum vesting target Recorded performance % vesting outcome ROCE 25% 4.0% 8.0% 8.86% 25% Relative TSR 20% Median Upper quartile Upper quartile 20% Adjusted diluted EPS 20% 16.6 cents 24.9 cents 31.4 cents 20% Free Cash Flow 20% $115m $172m $165.5m 18.3% Strategic Scorecard – Safety 7.5% 2.00 <1.00 0.94 7.5% – Quality 7.5% 0.8% 0.5% 0.21% 7.5% The ROCE and EPS components of the 2022 grant under the PSP have recorded a 100% vesting based on the performance of the Company in the year-ended 31 December 2024. The Free Cash Flow component has recorded an 18.3% vesting, based on the cumulative free cash ﬂow across the three-year performance period. The Strategic Scorecard components of the PSP grant of Safety and Quality, which are based on an average of the past three years, have vested in full. The Total Shareholder Return (“TSR”) performance condition was measured by Mercer in January 2025, following completion of the three-year performance period. Hunting’s TSR performance against the 13 comparator companies was then ranked, resulting in a “Upper Quartile” performance corresponding to a 100% vesting of this portion of the grant. The comparator group included Akastor, Expro, Flotek Industries, Forum Energy Technologies, Innovex International Inc, Nine Energy Services, NOV, Oceaneering, Oil States International, Schoeller-Bleckmann, TechnipFMC, Tenaris and Vallourec. Overall, the total vesting of the 2022 PSP award is 98.3%. The vesting date of the 2022 PSP award is 4 March 2025. Mr Johnson will, therefore, receive 1,196,368 Ordinary shares and Mr Ferguson will receive 284,488 Ordinary shares on 6 March 2025. A cash equivalent of dividends paid by the Company during the vesting period, totalling 28.5 cents per vested share, will be added to the award on the vesting date. The 2022 PSP vesting has been calculated as follows: Number of shares granted in 2022 Vesting % Number of shares vested Value of vested shares at 31 December 2024 $ Value of dividends at 28.5 cents per share $ Total award value $ Value attributable to share price growth $ Jim Johnson 1,217,058 98.3 1,196,368 4,893,346 340,965 5,234,311 1,529,142 Bruce Ferguson 289,408 98.3 284,488 1,163,604 81,079 1,244,683 363,620 * As per the methodology for reporting the values of unvested awards, the average price of a Hunting PLC share during Q4 2024 of £3.1927 has been applied and converted to US dollars at an exchange rate of £1.2811 for the period. ** The weighted average share price on the date of grant was £2.26. In accordance with the Directors’ Remuneration Policy, these vested shares (net of tax) are to be held for two years from the vesting date. 2021 HPSP vesting (audited) The 2021 awards under the HPSP were measured against the performance conditions, following completion of the three-year performance period, resulting in the following outcome: Number of shares granted in 2021 Vesting % Number of shares vested Value of vested shares at 4 March 2024 $ Value of dividends at 26.0 cents per share $ Total award value $ Value attributable to share price growth $ Jim Johnson 757,732 34.2 259,145 1,006,343 68,662 1,075,005 137,755 Bruce Ferguson 172,203 34.2 58,894 228,704 15,604 244,308 31,306 * The value of awards have been restated at the market price of £3.034366 per share with an FX rate of $1.27978 on 4 March 2024. Further details have been included under the share interests table. ** The weighted average share price on the date of grant was £2.619. In accordance with the Directors’ Remuneration Policy, these vested shares (net of tax) are to be held for two years from the vesting date. Remuneration Committee Report continued Annual Report on Remuneration continued Hunting PLC Annual Report and Accounts 2024 155 Strategic Report Corporate Governance Financial Statements Other Information 2024 HPSP grant (audited) On 18 April 2024, the Committee approved the grant of nil-cost share awards to Jim Johnson and Bruce Ferguson under the rules of the new 2024 Hunting Performance Share Plan (the “new HPSP”) which was approved by shareholders at the Company’s AGM on 17 April 2024. Under the new HPSP, performance-based (“PSP”) and time-based (“RSP”) awards have been granted to the executive Directors, with a three-year vesting period. Further, the historic award quantum of the grants to the executive Directors has not been altered, with the Chief Executive receiving a face-value grant quantum of 450% of base salary and the Finance Director receiving a face-value grant of 210% of base salary. The 2024 grant will vest on 18 April 2027, with the performance-based awards being subject to the achievement of the performance metrics, and the time-based awards being subject to a holistic view of performance across the performance period, including consideration of the TSR performance of the Group and other matters. A two-year holding period will then be applied to the post-tax vested shares. The details of the long-term arrangements of the executive Directors is contained in the Directors’ Remuneration Policy on pages 142 to 150. Award as a % of base salary Number of shares under grant Face value of award at threshold vesting $ Face value of award at maximum vesting $ Jim Johnson Performance-based awards (PSP) 350 665,858 769,316 3,077,260 Time-based awards (RSP) 100 190,245 879,217 879,217 Total 450 856,103 1,648,533 3,956,477 Bruce Ferguson Performance-based awards (PSP) 160 155,105 179,205 716,818 Time-based awards (RSP) 50 48,470 224,004 224,004 Total 210 203,575 403,209 940,822 The PSP performance awards include a TSR performance metric, which is utilised to reﬂect shareholder returns over the performance period. The other performance conditions and targets encourage capital efﬁciency (ROCE), cash generation (FCF), and strong growth in earnings (EPS) in addition to the important ESG metrics within the Strategic Scorecard, namely Quality and Safety performance. The targets for each performance condition are as follows: Performance condition Proportion of award % Threshold vesting target Maximum vesting target Relative TSR ii 30 Median Upper Quartile ROCE i 25 13.5% 15.0% FCF ii 15 $220m $270m Adjusted diluted EPS i 15 50.0 cents 60.0 cents Strategic Scorecard ii – Safety 7.5 2.00 <1.00 – Quality 7.5 0.8% 0.5% i. Measured for the year ended 31 December 2026. ii. Measured across the three-year vesting period. Following shareholder feedback the comparator group has been fully aligned to the companies used in the benchmarking process completed in 2023–24. The following quoted businesses comprise the TSR comparator group for the 2024 award: Akastor Liberty Energy Schoeller Bleckmann Cactus Nine Energy Services TechnipFMC Core Laboratories NOV Tenaris Dril-Quip (Innovex) Oceaneering International TETRA Technologies Expro Group Holdings Oil States International Vallourec Flotek Industries Patterson-UTI Energy Forum Energy Technologies Petrofac * Dril-Quip Inc merged with Innovex Downhole Solutions on 6 September 2024 and began trading as Innovex International Inc on 9 September 2024. The comparator TSR tracks Dril-Quip until the date of the merger and Innovex International Inc afterwards. The time-based RSP awards are subject to an underpin based on holistic company performance assessed by the Committee prior to vesting taking account of both relative business performance in terms of the Company’s ﬁnancial KPIs and shareholder returns and key ESG-related performance indicators; which include sustainability, health and safety, quality assurance, and reputation. The face value of the 2024 award is based on the closing mid-market share price on 17 April 2024, which was 355.5 pence per share. Remuneration Committee Report continued Annual Report on Remuneration continued Hunting PLC Annual Report and Accounts 2024 156 Strategic Report Corporate Governance Financial Statements Other Information Changes to Director and employee pay The table below is presented in compliance with the Shareholder Rights Directive II. The changes to the pay of the executive Directors includes base salaries, beneﬁts in kind, and bonuses and excludes pension contributions and share awards. If a Director has not served for the entire year, the change in annual salary or fee is based on the date of appointment or retirement. 2019 to 2020 2020 to 2021 2021 to 2022 2022 to 2023 2023 to 2024 Executive Directors Jim Johnson Base salary +1% +1% +4% +5% +8.5% Annual cash bonus -74% +5% +906% -5% -22% Beneﬁts +31% -7% +1% +6% +3% Bruce Ferguson i Base salary – +3% +8% +5% +8.5% Annual cash bonus – +55% +913% -5% -17% Beneﬁts – +44% 0% +8% 0% Average global employee Base salary -2% +9% +5% +3% +2% Annual cash bonus -81% +9% +726% -21% -11% Beneﬁts +7% +4% -3% +9% +33% Non-executive Directors (fees) Margaret Amos ii – – – – 0% Annell Bay 0% 0% 0% +6% +1% Stuart Brightman iii – – – – +183% Carol Chesney 0% 0% 0% +6% +1% Jay Glick iv 0% 0% 0% +11% 0% Paula Harris v – – – 0% 0% Cathy Krajicek vi – – – – – Keith Lough 0% 0% 0% +6% +1% i. Bruce Ferguson was appointed to the Board on 15 April 2020. ii. Margaret Amos was appointed to the Board on 10 January 2024. iii. Stuart Brightman was appointed to the Board on 3 January 2023. He was appointed Company Chair on 17 April 2024. iv. Jay Glick retired from the Board after the 2024 AGM on 17 April 2024. v. Paula Harris was appointed to the Board on 20 April 2022. vi. Catherine (“Cathy”) Krajicek was appointed to the Board on 3 March 2025. The average salary for employees in 2024 reﬂects a change in the average monthly global employee headcount of 2,423 compared to the prior year of 2,361, coupled with base salary increases applied to the existing workforce in January 2024. Hunting PLC, the parent Company, does not have any employees. Directors’ shareholdings, ownership policy and share interests (audited) The beneﬁcial interests of the Directors in the issued Ordinary shares of the Company are as follows: Director At 31 December 2024 i At 31 December 2023 i Executive Directors Jim Johnson iii 777,557 567,988 Bruce Ferguson iii 266,439 215,554 Non-executive Directors Margaret Amos – – Annell Bay 21,347 21,347 Stuart Brightman – – Carol Chesney 24,000 24,000 Jay Glick ii (to 17 April 2024) 75,923 75,923 Paula Harris 3,300 – Keith Lough 24,000 24,000 i. Beneﬁcial share interests are those Ordinary shares owned by the Director or spouse, which the Director is free to dispose of. ii. As at cessation date. iii. The shareholdings for Messrs Johnson and Ferguson include shares restricted from sale, in line with the rules of the Annual Bonus Plan and Hunting Performance Share Plan. At 31 December 2024, 308,094 restricted-from-sale Ordinary shares are held by Mr Johnson and 70,922 are held by Mr Ferguson. There have been no further changes to the Directors’ share interests in the period 31 December 2024 to 6 March 2025. The Group operates a share ownership policy that requires Directors and certain senior executives within the Group to build up a holding in shares equal in value to a certain multiple of their base salary or annual fee. The multiple takes into account the post-tax value of vested but unexercised share awards or options. The required shareholding of each Director expressed as a multiple of base salary or annual fee as at 31 December 2024 is presented below: Director Required holding expressed as a multiple of base salary or fee Requirement met Jim Johnson 5 N Bruce Ferguson 2 Y Margaret Amos 1 N Stuart Brightman 1 N Carol Chesney 1 Y Paula Harris 1 N Keith Lough 1 Y * The value of the holding of the Directors has been determined using the value on purchase of Ordinary shares or the share price at 31 December 2024 of £2.89. Mr Johnson’s shareholding requirement has not been met within the prescribed ﬁve-year time period, given the low levels of vesting of the 2014 HPSP. However, following the vesting of the 2022 grant under the 2014 HPSP, Mr Johnson will be in compliance with the requirement. Remuneration Committee Report continued Annual Report on Remuneration continued Hunting PLC Annual Report and Accounts 2024 157 Strategic Report Corporate Governance Financial Statements Other Information Directors’ shareholdings, ownership policy and share interests (audited) continued The interests of the executive Directors in Hunting PLC Ordinary shares under the HPSP are set out below. The vesting of options and awards are subject to performance conditions set out within the Policy. All share awards automatically vest and expire on the third anniversary of the grant, with the exception of options awarded to Mr Ferguson, which expire on the tenth anniversary of grant. Director Interests at 1 January 2024 Options/awards granted in year Options/awards exercised in year Options/awards lapsed in year Interests at 31 December 2024 Exercise price p Grant date Date exercisable Expiry date Scheme Jim Johnson 757,732 – (259,145) (498,587) – Nil 04.03.2021 04.03.2024 – PSP^ 1,217,058 – – – 1,217,058 Nil 04.03.2022 04.03.2025 – PSP^ 994,687 – – – 994,687 Nil 06.03.2023 06.03.2026 – PSP^ – 665,858 – – 665,858 Nil 18.04.2024 18.04.2027 – New PSP^ – 190,245 – – 190,245 Nil 18.04.2024 18.04.2027 – New RSP^ Total 2,969,477 856,103 (259,145) (498,587) 3,067,848 Bruce Ferguson 172,203 – (58,894) (113,309) – Nil 04.03.2021 04.03.2024 04.03.2031 PSP~ 289,408 – – – 289,408 Nil 04.03.2022 04.03.2025 04.03.2032 PSP~ 236,529 – – – 236,529 Nil 06.03.2023 06.03.2026 06.03.2033 PSP~ – 155,105 – – 155,105 Nil 18.04.2024 18.04.2027 – New PSP^ – 48,470 – – 48,470 Nil 18.04.2024 18.04.2027 – New RSP^ Total 698,140 203,575 (58,894) (113,309) 729,512 ^ Nil-cost share awards that are not yet vested or exercisable and still subject to the performance conditions being measured in accordance with the PSP/new PSP/new RSP schemes. ~ Nil-cost share options that are not yet vested or exercisable and still subject to the performance conditions being measured in accordance with the PSP scheme. Executive Director remuneration and shareholder returns The following chart compares the TSR of Hunting PLC between 2014 and 2024 to the DJ US Oil Equipment and Services indices. In the opinion of the Directors, this index is the most appropriate against which the shareholder return of the Company’s shares should be compared because it comprises other companies in the oil and gas services sector. The accompanying table details remuneration of the Chief Executive. Total shareholder return (rebased to 100 at 31 December 2014) Hunting PLC DJ US Oil Equipment & Services 31/12/14 31/12/16 31/12/18 31/12/20 31/12/22 31/12/24 125 100 75 50 25 0 Single ﬁgure remuneration $000 i Annual cash bonus % ii HPSP % vesting iii LTIP award % iv 2024 – Jim Johnson 7,522 69 98 n/a 2023 – Jim Johnson v 3,561 91 34 n/a 2022 – Jim Johnson 2,710 100 8 n/a 2021 – Jim Johnson 1,165 10 8 n/a 2020 – Jim Johnson 1,179 10 16 n/a 2019 – Jim Johnson 2,229 39 66 n/a 2018 – Jim Johnson 3,715 100 75 n/a 2017 – Jim Johnson (from 1 September) 819 33 4 n/a 2017 – Dennis Proctor (to 1 September) 3,972 67 13 n/a 2016 – Dennis Proctor 941 Nil Nil n/a 2015 – Dennis Proctor 1,031 Nil Nil Nil i. Single ﬁgure remuneration reﬂects the aggregate remuneration paid to the Chief Executive as deﬁned within the Directors’ Remuneration Policy. ii. Annual cash bonus percentages reﬂect the bonus received by the Chief Executive each year expressed as a percentage of maximum bonus opportunity. iii. Percentage vesting reﬂects the percentage of the HPSP that vested in the ﬁnancial year where a substantial portion of the performance period was completed at the ﬁnancial year-end. Messrs Johnson’s and Proctor’s awards have been pro-rated for their period of service as Chief Executive in 2017. iv. LTIP award percentage reﬂects the award value expressed as a percentage of maximum award opportunity received each year measured at 31 December. The LTIP expired in 2015 with no further awards outstanding. v. Restated as per single ﬁgure table disclosure on page 152. Remuneration Committee Report continued Annual Report on Remuneration continued Hunting PLC Annual Report and Accounts 2024 158 Strategic Report Corporate Governance Financial Statements Other Information Chief Executive workforce pay ratio Year Method 25th percentile pay ratio 50th percentile pay ratio 75th percentile pay ratio 2019 Option A 49:1 38:1 22:1 Workforce Pay Quartiles $45,663 $58,603 $99,521 2020 Option A 22:1 18:1 10:1 Workforce Pay Quartiles $51,239 $61,329 $107,314 2021 Option A 21:1 17:1 11:1 Workforce Pay Quartiles $52,699 $63,718 $102,807 2022 Option A 55:1 43:1 26:1 Workforce Pay Quartiles $48,736 $62,108 $105,704 2023 Option A 70:1 54:1 33:1 Workforce Pay Quartiles $49,837 $64,467 $106,492 2024 Option A 143:1 107:1 66:1 Workforce Pay Quartiles $52,689 $70,398 $114,493 The Company has elected to voluntarily disclose the pay ratio of the Group’s Chief Executive and workforce, in line with The Companies (Miscellaneous Reporting) Regulations 2018 and has adopted Option A from the regulations as the basis for presenting the pay ratio. Hunting is not required to present this information, given that its UK workforce is below the reporting threshold, as detailed in the regulations. Option A has been selected by the Committee as it believes this methodology aligns closely with the Chief Executive’s single ﬁgure remuneration calculation. The Remuneration Committee believes that the compensation framework in operation across the Group is appropriate and, in addition to a base salary and beneﬁts appropriate to the relevant jurisdiction of operation, can include annual bonuses and participation in long-term incentive programmes. External benchmarking is a regular feature of the Group’s overall pay framework to ensure Hunting remains competitive in its chosen markets. This data has been collated as at 31 December 2024 based on 223 UK employees (2023 – 203), which represents 9% (2023 – 8%) of the Group’s total workforce. The basis of the workforce pay calculations is aligned with the basis of preparation of the single ﬁgure table on page 152, comprising ﬁxed and variable emoluments and calculated on a full-time equivalent basis, in line with the requirements of the regulations. Further, the above disclosure assumes a maximum company pension contribution of 12% of base salary. However, it is noted that not all UK employees elect to receive this level of contribution. The changes to the Chief Executive pay ratios in the year mainly reﬂect a higher HPSP vesting percentage of 98.3% compared to 34.2% in 2023. In addition, no annual bonuses were paid to employees within the EMEA operating segment, given the losses recorded in the year, lowering the overall compensation paid in the year to the workforce. Relative importance of spend on pay The table below shows the relative importance of spend on employee remuneration in relation to corporate taxation, dividends and capital investment. The choice of performance metrics represents certain operating costs of the Group and the use of operating cash ﬂows in delivering long-term shareholder value. 2024 $m 2023 $m Change Employee remuneration i 268.2 254.8 5% Net tax paid ii 3.5 9.1 (62)% Dividends paid to Hunting PLC shareholders ii 16.7 15.0 11% Capital investment ii 25.3 23.7 7% i. Includes staff costs for the year (note 7) plus beneﬁts in kind of $39.7m (2023 – $35.8m), which primarily comprises US medical insurance costs. ii. Please refer to NGM N. Payments to past Directors (audited) There were no payments to past Directors in the year. Payments for loss of ofﬁce There were no payments for loss of ofﬁce in the year. External advisers Mercer and Pearl Meyer are engaged by the Committee to provide remuneration consultancy services. Their appointments were subject to formal tenders and both companies are regarded as independent, having been appointed by and acting under direction of the Committee. Mercer is a signatory to the UK Remuneration Consultants’ Group Code of Conduct and provides UK governance advice and compensation benchmarking, while Pearl Meyer provides US remuneration data for consideration by the Committee. The total cost of advice to the Committee during the year to 31 December 2024 was $202,989 (2023 – $300,553) and includes fees paid in respect of review work in salary benchmarking, Policy review, share plans, and remuneration reporting disclosure requirements. Fees are charged on a time basis for consultancy services received. Fees paid to Mercer totalled $190,214 (2023 – $300,553) in the year, while fees paid to Pearl Meyer were $12,775 (2023 – $nil). Neither Mercer nor Pearl Meyer have any other connection to the Company or any Director. Remuneration Committee Report continued Annual Report on Remuneration continued Hunting PLC Annual Report and Accounts 2024 159 Strategic Report Corporate Governance Financial Statements Other Information Implementation of policy in 2025 The remuneration policy for 2025 will be applied in line with those detailed on pages 143 to 147. Salary and fees Base salary increases for 2025 will be determined by the Committee in April 2025. Any increase will be in line with the wider workforce. Pension and beneﬁts Jim Johnson will continue to receive contributions towards a US deferred compensation scheme and a US 401k matched deferred savings plan, in line with previous years. Bruce Ferguson will continue to receive a cash sum in lieu of a pension contribution, which will be ﬁxed at 12% of his base salary. No changes are anticipated to the provision of beneﬁts that will continue to include healthcare insurance, a company car and fuel beneﬁts or allowance in lieu. Annual bonus The annual performance-linked bonus for 2025 will operate in line with the 2024 Directors’ Remuneration Policy. The Committee will disclose details of performance against the pre-set ﬁnancial targets and personal performance objectives after the year-end, as the Board believes that forward disclosure of the ﬁnancial targets is commercially sensitive. The annual performance-linked bonus plan for 2025 is based on the following metrics: Proportion of award Performance metric 60% Adjusted proﬁt before tax 20% Return on average capital employed 20% Personal performance objectives Long-term incentive plan In April 2025, an award under the 2024 HPSP will be granted to the executive Directors and wider members of the Group. The performance-based awards to the Chief Executive and Finance Director will be granted over shares with a face value of 350% of base salary for Mr Johnson and 160% of base salary for Mr Ferguson. The performance conditions to be adopted for these awards are expected to include relative TSR (30%); ROCE (25%); adjusted diluted EPS (15%); Free Cash Flow (15%); and the Strategic Scorecard (15%). The proposed TSR peer group will comprise: Akastor, Cactus, Core Laboratories, Expro Group Holdings, Flotek Industries, Forum Energy Technologies, Innovex International Inc, Liberty Energy, Nine Energy Services, NOV, Oceaneering International, Oil States International, Patterson-UTI Energy, Petrofac, Schoeller Bleckmann, TechnipFMC, Tenaris, TETRA Technologies, and Vallourec. Time-based awards will also be granted to the executive Directors, being 100% of base salary for the Chief Executive and 50% for the Finance Director, which are subject to an underpin based on holistic company performance assessed by the Committee prior to vesting taking account of both relative business performance in terms of the Company’s ﬁnancial KPIs and shareholder returns and key ESG-related performance indicators; which include sustainability, health and safety, quality assurance and reputation. The performance targets will be detailed in the Stock Exchange announcement that accompanies the award, which can be located at www.huntingplc.com. On behalf of the Board Paula Harris Chair of the Remuneration Committee 6 March 2025 Remuneration Committee Report continued Annual Report on Remuneration continued Hunting PLC Annual Report and Accounts 2024 160 Strategic Report Corporate Governance Financial Statements Other Information Member Invitation Number of meetings held 4 Number of meetings attended (actual/possible): Margaret Amos (from 10 January 2024) 4/4 – Annell Bay (to 1 February 2025) 4/4 – Stuart Brightman 2/2 2/2 Carol Chesney (Committee Chair) 4/4 – Bruce Ferguson – 4/4 Jay Glick (to 17 April 2024) – 2/2 Paula Harris 4/4 – Jim Johnson – 4/4 Cathy Krajicek (from 3 March 2025) 0/0 – Keith Lough 4/4 – Carol Chesney Chair of the Audit and Risk Committee Audit and Risk Committee Report With the Group’s improved ﬁnancial performance in the year, the Committee’s work has focused on Hunting’s working capital and cash generation cycles, particularly following the receipt of $231m of orders from Kuwait Oil Company. The deteriorating performance of the Hunting Titan operating segment led to closer monitoring of its underlying market, its cost base, and its balance sheet. The impairment to goodwill recorded at the year-end reﬂects a balanced view by management and the Board of the carrying values of the operating segment on the consolidated balance sheet. The projections reﬂect a level of improvement in the US market, as noted in the outlook statement. The Committee received several brieﬁngs in the year to prepare for compliance with Provision 29 ‘Internal Controls’ of the 2024 UK Corporate Governance Code. There is much work to do in the coming years, but the Board remains conﬁdent of being compliant with most provisions in the medium term. Introduction Hunting has delivered another year of increased revenue and adjusted proﬁts, in line with the Group’s medium-term strategy for growth. Of note is the improved cash generation of the Company and the year-end total cash and bank/ (borrowing) position of $104.7m, which reﬂects a robust balance sheet, maintained through strong working capital management. While Hunting’s OCTG, Subsea and Advanced Manufacturing product groups have performed well during the year, the Perforating Systems product group saw extremely challenging markets, driven by lower commodity prices and rig counts across North America. This led to a below target trading performance for the product group, which led to a restructuring being announced during Q2 2024 and an impairment to the carrying value of goodwill for the associated cash generating units at the year-end. Despite this, the Committee and wider Board believe that Hunting remains in a solid position to execute the Hunting 2030 Strategy. The $300m of new, committed borrowing facilities secured in October 2024 also reﬂect management’s strong performance in increasing liquidity and securing funding to execute our growth strategy. At the year-end, Hunting was able to record total liquidity of c.$344.8m, which represents the combined cash and borrowing capacity at 31 December 2024. In April 2024, the Committee reviewed Deloitte’s internal controls report and responded with endorsing new procedures being implemented in the year by management. An update to the implementation of these new controls was presented at the December 2024 meeting of the Committee. Further, new procedures are being put in place in respect of the provisions of the 2024 UK Corporate Governance Code. In the year, the Committee continued to review the ﬁnancial reporting, risk management, and internal control framework in place across the Group. During the year, enhanced risk management procedures were presented to the Committee, which included a refreshed understanding of the risk culture and risk universe of the Group. Further, the Committee also received brieﬁngs by the central ﬁnance function on the plans for compliance with the 2024 UK Corporate Governance Code. The Committee noted the major changes included in the new Code, which centre on risk management and internal control – with a requirement by the Board to make a declaration on the robustness of the internal control environment in the coming years. The brieﬁngs held in the year focused on the approach management will take to enhance the internal control procedures and operating environment, and also the investment required to meet this compliance. The Committee, therefore, proposed to the Board that its title be renamed as the Audit and Risk Committee, reﬂecting the enhanced workstreams to be included in the years ahead. Composition and frequency of meetings The Committee currently comprises ﬁve independent non-executive Directors (at 6 March 2025) and is chaired by Carol Chesney. Following appointment to the Board on 10 January 2024, Margaret Amos joined the Committee. On 17 April 2024, Stuart Brightman stepped down from the Committee following his appointment as Company Chair, which followed the retirement of Jay Glick on the same date. Hunting PLC Annual Report and Accounts 2024 161 Strategic Report Corporate Governance Financial Statements Other Information Annell Bay also stepped down from the Committee on 1 February 2025, following ten years’ service to the Company. Cathy Krajicek joined the Committee on her appointment as a Director on 3 March 2025. Mrs Chesney is a qualiﬁed Chartered Accountant and is considered to have recent and relevant ﬁnancial experience. Ms Harris (Chair of the Remuneration Committee), Ms Krajicek and Mr Lough have experience of the global energy industry, with particular expertise in UK and US oil and gas markets. Dr Amos brings accounting, aviation and broader non-oil and gas experience to the Board. Further details of the Committee’s experience can be found in the biographical summaries set out on pages 116 and 117. The Committee normally meets four times a year and operates under written terms of reference approved by the Board, which are published on the Company’s website at www.huntingplc.com. During 2024, the Committee met four times, in February, April, August, and December; and the attendance record of the Committee members and Board invitees is noted in the table on the previous page. All Directors and internal and external auditors are normally invited to attend meetings. Responsibilities The principal responsibilities of the Audit and Risk Committee are to: • Monitor and review reports from the executive Directors, including the Group’s ﬁnancial statements and Stock Exchange announcements; • Consider and approve any adjusting items proposed by management; • Provide the Board with a recommendation regarding the Half Year and Annual Report and Accounts, including whether they are fair, balanced and understandable; • Review the Company’s and Group’s Going Concern and Viability Statement; • Monitor, review and assess the Group’s systems of risk management and internal control; • Review reports from the Group’s external and internal auditors, including approving the proposed audit plans, scope and resourcing; and review whether the external and internal auditors have met their respective audit plans; • Consider and recommend to the Board the appointment or reappointment of the external auditor as applicable; • Agree the scope and fees of the external audit; • Monitor and approve engagement of the external auditor for the provision of non-audit services to the Group; review the external auditor’s independence and objectivity as well as the effectiveness of the external audit process; and review the external auditor’s management letter; and • Monitor corporate governance and accounting developments. Review of the 2024 ﬁnancial statements The Committee reviews ﬁnal drafts of the Group’s Report and Accounts for both the half and full year. As part of this process, the performance of the Group’s major operating segments is considered, with key judgements, estimates and accounting policies being approved by the Committee ahead of a recommendation to the Board. In addition to brieﬁngs and supporting reports from the central ﬁnance team on signiﬁcant issues, the Committee engages in discussion with Deloitte LLP, the Group’s external auditor. Work undertaken by the Committee during 2024 Feb Apr Aug Dec Financial report Annual Report and Full Year Results announcement • Going Concern basis • • Viability Statement • Half Year Report and Half Year Results announcement • Review accounting policies • Internal controls and risk management Risk management and internal controls report • • • Key risks and mitigating controls • Effectiveness of internal controls and internal audit function • Monitoring the proposed procedures and investments required for the new UK Corporate Governance Code procedures • • Internal audit report • • • Internal audit resourcing • • • • Internal audit plan • External auditor Auditor’s objectivity, independence, and appointment • Full Year and Half Year report to the Audit and Risk Committee • • Final Management letter on internal controls • Auditor’s performance and effectiveness • Proposed year-end audit plan including scope, fees and engagement letter • • Risk of auditor leaving the market • Other business Non-Audit Services Policy Review • Employment of Former Audit Staff Policy Review • Committee effectiveness and terms of reference • Review resourcing needs • Signiﬁcant matters reviewed by the Committee in connection with the 2024 Annual Report and Accounts were as follows: Impairment reviews The Committee receives reports on the review of impairment of goodwill and other assets held on the consolidated balance sheet. A review for impairment triggers was undertaken at the half-year which indicated limited headroom over the carrying value of the Hunting Titan group of CGUs. As part of the annual goodwill impairment review, and further reviews for impairment triggers through to the year-end, management determined there to be an impairment to the carrying value of the Hunting Titan group of CGUs. This was due to the Hunting Titan operating segment recording deteriorating results in the year, the subdued North American market reported in the year which led to a reduced medium-term trading outlook for the business and the likely lower gross margins to be generated by the segment in the medium term. Audit and Risk Committee Report continued Hunting PLC Annual Report and Accounts 2024 162 Strategic Report Corporate Governance Financial Statements Other Information As a result, the full-year assessment concluded that a $109.1m impairment to the carrying value of goodwill should be recorded. As part of the year-end audit process, the external auditor reviewed management’s impairment models, in particular the Hunting Titan impairment model, and concluded that the impairment to goodwill recorded at the year-end was appropriate. The Committee challenged management on the medium-term revenue and margin forecasts for the Hunting Titan operating segment, the tax treatment of the impairment and the discount rates used to derive the quantum of the impairment. The Committee noted the other business units where headroom for the carrying value of goodwill was more limited, with these units undergoing detailed modelling as part of the year-end process to support the values recorded. Management continues to utilise independent drilling and production projections published by Spears & Associates to support its analysis, with summaries presented in the Market Summary section of the Strategic Report on pages 40 to 42. Given the quantum of the impairment, the Committee reviewed the recognition of the impairment as an adjusting item and agreed that this treatment was appropriate. Review of import duties During the year, the Committee reviewed procedures in respect of the treatment of import duties within certain subsidiaries and concluded that it would be necessary to record a prior year provision in respect of outstanding payments to be made to a tax authority. The Committee challenged management on its local control procedures in respect of import/export documentation, in addition to the corrective actions to the control environment. Due to the nature and quantum of the provision, the Committee agreed that the provision of $9.6m be treated as an adjusting item, and noted that the restatement of the prior year results was appropriate. The external auditor reviewed the treatment of the prior year provision and the restatement of the prior-period ﬁnancial statements and concluded that the adjustments were appropriate. Netherlands inventory and internal control As part of the year-end audit procedures, which includes inventory cycle counts and stock taking, it was found that some items of OCTG inventory had been recorded in error at the Group’s facility in the Netherlands. A full review of inventory and internal control procedures was completed in January 2025, with management determining that c.$4.2m of stock should be written off due to this error. The Committee challenged management on the control environment in place in the Netherlands and the corrective actions required, given the future reporting and attestation requirements on internal control. The Audit and Risk Committee and the wider Board of Directors were briefed on this issue during January/February 2025, with the Committee agreeing that the total error should be booked within the operating result of the EMEA operating segment, and not as an adjusting item. Revenue recognition Given that a material proportion of the Group’s revenue originates from the OCTG, Subsea Technologies and Advanced Manufacturing products groups, revenue recognition remains an area of focus for the Committee, and in particular the “on-time” or “over time” revenue recognition of key longer-term contracts. The Committee noted that the enhanced procedures implemented in recent years, including the external review of certain contracts to agree the appropriate accounting treatment, enabled a rigorous assessment to be made of the appropriate accounting treatment, with the Committee being comfortable that longer-term contracts had been recorded appropriately. Additional scrutiny of the Kuwait Oil Company (“KOC”) contracts was applied due to their size, and is an example of the application of our enhanced procedures. The Committee challenged management on its recognition approach to the KOC contracts, with the Committee being comfortable with the accounting treatment. Tax The Committee continues to monitor both direct and indirect tax risk, tax audits and provisions held for taxation in view of the international spread of operations. In 2023, the Company recognised $81.3m of deferred tax assets (“DTAs”) in respect of Hunting’s US businesses on the consolidated balance sheet. Given the deteriorating results in Hunting Titan that led to the adjusting item being recorded in the year, the Committee reviewed reports to support the ongoing recognition of these DTAs. Following a brieﬁng from the Group’s Head of Tax, the Committee concluded that, given the medium-term projections of the Group’s US businesses, it remained appropriate for the DTAs to continue to be recognised on the Company’s balance sheet. Inventory valuation and provisioning procedures During 2024, inventory valuation and provisioning procedures continued to be an area of close review for the Committee. The Committee reviewed reports by both management and the external auditor on inventory valuation and was satisﬁed that the inventory valuation model was being deployed appropriately by management, that the judgements being applied were balanced, and the carrying values of inventories at the year-end were appropriate. Inventories At the year-end, the Group held $303.3m (2023 – $328.4m) of inventory. This represents approximately 34% of the Group’s net assets (2023 – 35%). Inventory levels have decreased despite the increase in activity levels in the Group and certain inventory purchases were increased to meet the requirements of the sales order book. However, there was increased focus in the year on reducing inventory carried in Hunting Titan. As noted above, the inventory provisioning methodology continued to be reﬁned through the year, with the Committee satisﬁed that a robust process was now embedded, which encompassed all key product lines sold by the Group. Property, plant and equipment (“PPE”) The year-end balance sheet includes $252.8m (2023 – $254.5m) for PPE. This represents approximately 28% of the Group’s net assets (2023 – 27%). The movement in PPE reﬂects depreciation of $25.2m and disposals of $2.8m offset by additions of $25.2m and other items totalling $1.1m. Audit and Risk Committee Report continued Hunting PLC Annual Report and Accounts 2024 163 Strategic Report Corporate Governance Financial Statements Other Information The Committee reviewed the PPE impairment tests and, following discussion, was satisﬁed that the assumptions and the disclosures in the year-end accounts were appropriate. Goodwill The year-end balance sheet includes $45.1m (2023 – $154.4m) of goodwill, following the impairment recorded within the Hunting Titan cash generating unit, as noted above. The year-end carrying value represents approximately 5% of the Group’s net assets (2023 – 16%). The Committee considered and challenged the discount rates and the other assumptions used in the goodwill review process. After discussion, it was satisﬁed that the carrying values recorded and the disclosures in the year-end accounts were appropriate. Other intangible assets The year-end balance sheet includes other intangible assets of $39.4m (2023 – $40.8m). This represents approximately 4% of the Group’s net assets (2023 – 4%). Additions in the year were $4.8m (2023 – $10.9m) and the amortisation charge recorded in the consolidated income statement was $5.9m (2023 – $6.6m). The Committee considered and conﬁrmed the appropriateness of the assumptions and factors used in the impairment review process and were comfortable with the carrying values, as recorded. Right-of-use assets The year-end balance sheet includes right-of-use assets of $28.3m (2023 – $26.2m). This represents approximately 3% of the Group’s net assets (2023 – 3%). The movement in the year is predominantly attributed to additions of $2.7m (2023 – $6.2m) and lease modiﬁcations of $7.0m (2023 – $0.9m), offset by depreciation of $7.2m (2023 – $6.6m). The Committee reviewed the movement in the carrying values of these items and conﬁrmed the appropriateness of the assumptions and factors used in the review process and were comfortable with the items, as recorded. Adjusting items and presentation of ﬁnancial statements The Committee is responsible for reviewing and approving any adjusting items proposed by management. As noted above, an adjusting item, in respect of the impairment of goodwill within the Hunting Titan operating segment, totalling $109.1m, was recorded as part of the year-end audit procedures, together with a deferred tax credit of $27.8m. Further, management noted the positive contribution from the Group’s joint ventures and associates projected for the medium term and proposed to the Committee that the proﬁt/(loss) contribution from this line item be included in the Group’s operating result within the consolidated income statement from 1 January 2024. A restatement of the prior-period ﬁnancial statements was recorded in the year, following approval by the Committee. As noted above, the 2023 ﬁnancial statements were restated to reﬂect the $9.1m provision in respect of a revised import duty assessment conducted in the year. The Committee reviewed the appropriateness of the above restatements to the ﬁnancial statements, and the adjusting items recorded in the year, and following discussion, approved the accounting treatment. Area of judgement The determination of when control is transferred to a customer and when revenue is recognised is an area of judgement. The determination can be complex in contracts where goods are shipped and conﬁrming shipping documentation is produced after the goods have been loaded onto a vessel, potentially in a different ﬁnancial period. This was an area of challenge from the external auditor during the year. Viability Statement and Going Concern basis The Committee monitored assumptions around Going Concern at the half and full year, as well as those around the Group’s Viability Statement for the full year. Driven by the improved proﬁtability of the Group, led by the performance of the North America, Subsea Technologies and Asia Paciﬁc operating segments, the Committee concluded that good support for Hunting’s longer-term viability exists. In particular, the Committee noted the increase to total cash and bank/(borrowings) at 31 December 2024, reﬂecting improved receivable collections and the use of working capital instruments to shorten the cash receipt cycle of the orders received from KOC and noted that the consolidated balance sheet at the year-end was robust. The Committee also noted the reﬁnancing of the Group’s borrowing facilities, including the cancellation of the $150m Asset Based Lending facility and the agreement of $300m of new, committed borrowing facilities in October 2024, which comprised a $200m revolving credit facility and a $100m term loan, which in combination provides Hunting with c.$344.8m of liquidity to fund its longer-term strategic objectives. The Committee noted these positive developments in the year and their impact on going concern and viability. As part of the Company’s 2024 half-year and full-year procedures, management presented various trading scenarios to support the Going Concern assumption, which were reviewed by the Committee and the external auditor. This included a downside trading scenario. The Going Concern review period covers a period of at least 12 months after the date of approval of these ﬁnancial statements, and the Directors consider that the Going Concern assumption continues to be suitable for the Group. The Directors have reached their conclusion on Going Concern after assessing the Group’s principal risks, as set out in detail on pages 104 to 109. As part of Hunting’s Viability Statement procedures, management prepared an extended forecast that provided trading projections to 2028. The Board approved this in January 2025 and it was used to support the carrying values of assets held on the consolidated balance sheet. On 3 March 2025, the Committee approved the Viability Statement, detailed on pages 110 to 111 of the Strategic Report, noting that it presented a reasonable outlook for the Group for the next three years. Fair, balanced and understandable assessment The Committee reviewed the ﬁnancial statements, together with the narrative contained within the Strategic Report set out on pages 2 to 112, and believes that the 2024 Annual Report and Accounts, taken as a whole, is fair, balanced and understandable. In arriving at this conclusion, the Committee undertook the following: • Review and dialogue in respect of the monthly management accounts and supporting narrative circulated to the Board; • Review of early drafts of the Annual Report and Accounts, providing relevant feedback to the executive Directors; • Regular review and discussion of the ﬁnancial results during the year, including brieﬁngs by Group ﬁnance and operational management; • Receipt and review of reports from the external and internal auditors. Audit and Risk Committee Report continued Hunting PLC Annual Report and Accounts 2024 164 Strategic Report Corporate Governance Financial Statements Other Information The Committee advised the Board of its conclusion that the 2024 Annual Report and Accounts, taken as a whole, was fair, balanced and understandable at a Meeting of Directors on 3 March 2025. Risk management and effectiveness of internal control In determining its opinion on the effectiveness of the risk management and internal ﬁnancial controls during 2024, the Committee considered the results of internal audit work, the key risk and areas of judgement and estimation uncertainty, issues identiﬁed by management or reported through whistleblowing arrangements (including the associated investigations) and the output of the external audit work. The Group has an established risk management framework and internal control environment which it continues to invest in, through improvements to the general IT environment and its people and processes. In assessing the effectiveness of the internal control environment in the current year the Committee noted control deﬁciencies both in the speciﬁc areas outlined within this report, and more broadly in relation to revenue recognition and General IT Controls. As noted elsewhere, a review of the Group’s internal control environment is underway as part of the compliance procedures for the 2024 UK Corporate Governance Code, and due to the control deﬁciencies identiﬁed in the year. During the year, the Group’s risk management reporting procedures have been enhanced, following the appointment of a Group Risk Manager in 2023. Enhanced risk identiﬁcation processes were introduced, with the Directors completing a risk workshop to agree the strategic and principal risks facing the Group, as the Hunting 2030 Strategy is being executed. On 3 March 2025, the Committee met and considered the Company’s risk management and internal control environment in operation throughout the year. Following discussion, the Committee agreed that overall the Company’s risk and control framework remained effective, despite the control matters recorded within the EMEA operating segment discussed on page 163. The Committee noted the control enhancements to be implemented in the Netherlands and UK operations and concluded that the remedial actions to the local control environment were appropriate. Internal audit An annual programme of internal audit assignments in respect of 2024 was reviewed and approved by the Committee in February 2024. During the year, the Committee received reports from the Internal Audit function. The Chair of the Committee also had regular dialogue with the function throughout the year. During the year, 11 ﬁeld audits were completed in line with the 2024 Internal Audit Plan. In addition, further work on revenue recognition and control review procedures was carried out, given the ongoing implementation of the Group’s new ERP system within a number of businesses. In the year, one business unit was reviewed in detail for revenue recognition and allocation of labour costs, given the increase in activity reported. The Committee met with the Head of Internal Audit, without the presence of the executive Directors, on three occasions during the year. The Committee reviews the internal audit process and effectiveness as part of the Group’s internal control and risk assessment programme. The effectiveness of the Internal Audit function was considered by the Committee at its February 2024 meeting, and included a review of the scope of work completed in the year, the control recommendations proposed and implemented by management and the speed of response by management to reports agreed. Following this review, the Committee concluded that the function remained effective. External audit Deloitte LLP was appointed by the Group’s shareholders as external auditor in 2019, therefore, no tenders have been undertaken in the year due to their current tenure. During 2024, the audit engagement partner rotated from the Hunting account, with Thomas Murray being appointed as lead audit partner following conclusion of the 2023 year-end audit. As part of a wider refreshing of the Deloitte account, the senior audit manager rotated off following the 2024 half-year review process. The external auditor presented reports at the February, April, August and December meetings of the Audit Committee during 2024. Further, the Chair of the Committee also had regular dialogue with the audit engagement partner throughout the year. In April 2024, Deloitte LLP presented its Management Controls Report, which highlighted control improvements that they recommend be made by the Group. On 3 March 2025, a full-year report by Deloitte LLP was considered ahead of publication of the Group’s 2024 Annual Report and Accounts. The Committee normally meets with the external auditor, without executive Directors present, at the end of each formal meeting. During the year, the Company complied with the provisions of the Statutory Audit Services for Large Companies Market Investigation (Mandatory Use of Competitive Tender Process and Audit Committee Responsibilities) Order 2014. Materiality The Committee discussed materiality with the external auditor regarding both accounting errors to be brought to the Audit and Risk Committee’s attention and amounts to be adjusted so that the ﬁnancial statements give a true and fair view. Overall, audit materiality was set at $4.0m (2023 – $4.5m), which equates to 5.3% of the adjusted proﬁt before tax result, and approximately 0.4% (2023 – 0.5%) of the Group’s total external revenue reported in 2024. Furthermore, the auditor agreed to draw to the Audit and Risk Committee’s attention all identiﬁed, uncorrected misstatements greater than $0.2m and any misstatements below that threshold considered to be qualitatively material. Audit scope The Audit and Risk Committee considered the audit scope and materiality threshold. The audit scope addressed Group-wide risks and local statutory reporting, enhanced by desktop reviews for smaller, low risk entities. 87% of the Group’s reported revenue and 85% of the Group’s net assets were audited, covering 20 reporting units, including a number of investment holding companies, across ﬁve countries. Audit and Risk Committee Report continued Hunting PLC Annual Report and Accounts 2024 165 Strategic Report Corporate Governance Financial Statements Other Information Audit effectiveness and independence The external auditor’s full-year report includes a statement on their independence, their ability to remain objective and their ability to undertake an effective audit. The Committee considers and assesses this independence statement on behalf of the Board, taking into account the level of fees paid, particularly for non-audit services. Having considered these factors, the Committee concluded that Deloitte LLP was independent from the Group throughout the year and to the date of their audit report. Auditor reappointment Following discussion in March 2025, the Committee approved the recommendation to propose the reappointment of Deloitte LLP at the Company’s 2025 Annual General Meeting. The effectiveness of the audit process was considered throughout the year, with a formal review undertaken by the Company at the April meeting of the Committee. The assessment summarises management feedback and considers the performance of the external auditor, including: • The external auditor’s understanding of the Group’s business and industry sector; • The planning of the audit and execution of the audit plan by the external auditor approved by the Committee; and • The communication between the Group and audit engagement team. In addition, the Committee reviewed and took account of the reports from the Financial Reporting Council on Deloitte LLP, and reviewed the Transparency Report prepared by Deloitte LLP. After considering these matters, the Committee was satisﬁed with the effectiveness of the year-end audit process. Non-audit services The Committee closely monitors fees paid to the auditor in respect of non-audit services. With the exception of non-audit services which included the interim review process and the ESEF assurance report, which totalled $0.3m (2023 – $0.2m), there were no non-audit service fees paid during the year (2023 – $nil). The scope and extent of non-audit work undertaken by the external auditor was monitored by, and required prior approval from, the Committee to ensure that the provision of such services did not impair the external auditor’s independence or objectivity. Review of Committee effectiveness In H2 2024, the Committee reviewed its effectiveness as part of the wider externally facilitated Board and Committee Effectiveness Review, which was completed by Clare Chalmers Limited. The review’s ﬁndings were reported to the Committee and wider Board at the December 2024 Meeting of Directors. No issues were identiﬁed as part of this review process. 2024 UK Corporate Governance Code In January 2024, the Financial Reporting Council issued a new version of the UK Corporate Governance Code, which included a number of revisions that will impact the work of the Audit and Risk Committee in the coming years. The most signiﬁcant change proposed in the new Code is the introduction of enhanced Internal Control and Risk Management procedures and reporting, with the recommendation that by 2026 UK public companies should make a declaration in their external reporting of the robustness and effectiveness of material ﬁnancial and non-ﬁnancial controls. In 2024, Hunting’s central ﬁnance function commenced a project to review the Group’s internal control environment, with the intention of: 1) Reviewing and enhancing the documentation of the Group’s internal controls; 2) Identifying material ﬁnancial and non-ﬁnancial controls in line with the requirements of the Code; 3) Enhancing management oversight and consistency of risk reporting and the grading of principal risks; and 4) Correlating material controls with relevant assurance procedures. New personnel were hired in the central ﬁnance function to assist in this work, including a new Internal Controls Manager, an IT Systems Manager, in addition to a Group Risk Manager who was appointed in 2023, to bring together the reporting of the new internal control procedures. New software to assist in the reporting of controls was purchased in January 2025 as part of this important project. At the August and December 2024 meetings of the Committee and wider Board, an update was given by management on the proposed procedures and investments required for the new Code procedures. As noted on page 130, a roadmap to compliance with the 2024 UK Corporate Governance Code has been published, with the Committee and wider Board targeting compliance with the new Code provisions on appropriate Group-level policies, risk management and internal controls by 2026. Further brieﬁngs are planned in 2025, given the extra work anticipated by management to comply with the 2024 Code. Audit Committees and the External Audit: Minimum Standard The Audit Committee has complied with the requirements of the Minimum Standard during the year, giving consideration to the non-audit relationships held by the Company to ensure there is a fair choice as and when an audit tender is undertaken. No tender was completed in the year, therefore the requirements on appointment and remuneration are not relevant in 2024. The Audit and Risk Committee has ensured that the external auditor has had access to Company staff and records and encourages challenge to management’s position. Ahead of the AGM, the Audit and Risk Committee also considers the objectivity and independence of the external auditor, prior to recommending to the Board of Directors the reappointment of the auditor. The effectiveness of the external audit is also considered annually. On behalf of the Board Carol Chesney Chair of the Audit and Risk Committee 6 March 2025 Audit and Risk Committee Report continued Hunting PLC Annual Report and Accounts 2024 166 Strategic Report Corporate Governance Financial Statements Other Information Directors’ Report Statement of Directors’ Responsibilities The Directors are responsible for preparing the Annual Report and the ﬁnancial statements in accordance with applicable law and regulations. Company law requires the Directors to prepare ﬁnancial statements for each ﬁnancial year. Under that law the Directors are required to prepare the group ﬁnancial statements in accordance with United Kingdom adopted international accounting standards. The Directors have also chosen to prepare the parent Company ﬁnancial statements under United Kingdom adopted international accounting standards. Under company law the Directors must not approve the ﬁnancial statements unless they are satisﬁed that they give a true and fair view of the state of affairs of the Company and of the proﬁt or loss of the Company for that period. In preparing these ﬁnancial statements, International Accounting Standard 1 requires that Directors: • Properly select and apply accounting policies; • Present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information; • Provide additional disclosures when compliance with the speciﬁc requirements of the ﬁnancial reporting framework is insufﬁcient to enable users to understand the impact of particular transactions, other events and conditions on the entity’s ﬁnancial position and ﬁnancial performance; and • Make an assessment of the Company’s ability to continue as a going concern. The Directors are responsible for keeping adequate accounting records that are sufﬁcient to show and explain the Company’s transactions and disclose, with reasonable accuracy at any time, the ﬁnancial position of the Company and enable them to ensure that the ﬁnancial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Directors are responsible for the maintenance and integrity of the corporate and ﬁnancial information included on the Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of ﬁnancial statements may differ from legislation in other jurisdictions. Responsibility Statement We conﬁrm that to the best of our knowledge: • The ﬁnancial statements, prepared in accordance with the relevant ﬁnancial reporting framework, give a true and fair view of the assets, liabilities, ﬁnancial position and proﬁt or loss of the Company and the undertakings included in the consolidation taken as a whole; • The Strategic Report includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face; and • The Annual Report and Accounts, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the Company’s position and performance, business model and strategy. This responsibility statement was approved by the Board of Directors at their meeting on Tuesday 4 March 2025. Directors The Directors of the Company, as at the date of signing these accounts, are listed on pages 116 and 117. Powers of the Directors Subject to the Articles, UK legislation and any directions prescribed by resolution at a general meeting, the business of the Company is managed by the Board. The Articles may only be amended by special resolution at a general meeting of shareholders. Where class rights are varied, such amendments must be approved by the members of each class of share separately. The Directors have been authorised to allot and issue Ordinary shares and to disapply statutory pre-emption rights. These powers are exercised under authority of resolutions of the Company passed at its AGM. During the ﬁnancial year ended 31 December 2024, no Ordinary shares were issued pursuant to the Company’s various share plans. The Company has authority, renewed annually, to purchase up to 14.99% of the issued share capital, equating to 24,724,518 shares. Any shares purchased will either be cancelled and the number of Ordinary shares in issue reduced accordingly, held in treasury, sold for cash, or (provided UK Listing Rule requirements are met) transferred for the purposes of or pursuant to an employee share scheme. These powers are effective for 15 months from the date of shareholder approval, or up to the next general meeting where new authorities are sought. The Directors will be seeking a renewal for these powers at the 2025 AGM. Appointment and replacement of Directors The rules about the appointment and replacement of Directors are contained in the Articles. On appointment, in accordance with the Articles, Directors may be appointed by a resolution of the Board but are then required to be reappointed by ordinary resolution by shareholders at the Company’s next AGM. Directors’ interests Details of Directors’ remuneration, service contracts and interests in the Company’s shares and share options are set out in the Directors’ Remuneration Policy and Annual Report on Remuneration, located at www.huntingplc.com. Further information regarding employee long-term incentive schemes is given in note 37 of the ﬁnancial statements. Directors’ conﬂict of interest All Directors have a duty under the Companies Act 2006 to avoid a situation in which they have, or could have, a direct or indirect conﬂict of interest with the Company. The duty applies, in particular, to the exploitation of any property, information or opportunity, whether or not the Company could take advantage of it. The Articles provide a general power for the Board to authorise such conﬂicts. Directors are not counted in the quorum for the authorisation of their own actual or potential conﬂicts. Authorisations granted are recorded by the Company Secretary in a register and are noted by the Board. On an ongoing basis, the Directors are responsible for informing the Company Secretary of any new, actual or potential conﬂicts that may arise, or if there are any changes in circumstances that may affect an authorisation previously given. Hunting PLC Annual Report and Accounts 2024 167 Strategic Report Corporate Governance Financial Statements Other Information Even when provided with authorisation, a Director is not absolved from his or her statutory duty to promote the success of the Company. If an actual conﬂict arises post-authorisation, the Board may choose to exclude the Director from receipt of the relevant information and participation in the debate, or suspend the Director from the Board, or, as a last resort, require the Director to resign. As at 31 December 2024, no Director of the Company had any beneﬁcial interest in the shares of Hunting’s subsidiary companies. Auditors A resolution for the reappointment of Deloitte LLP as auditor to the Company and a resolution which gives the Audit and Risk Committee the authority to determine the remuneration of the auditor will be proposed at the 2025 AGM. Statement of disclosure of information to auditors In accordance with the Companies Act 2006, all Directors in ofﬁce as at the date of this report have conﬁrmed, so far as they are aware, there is no relevant audit information of which the Group’s auditors are unaware and each Director has taken all reasonable steps necessary in order to make themselves aware of any relevant audit information and to establish that the Group’s auditors are aware of that information. This conﬁrmation should be interpreted in accordance with the provisions of Section 418 of the Companies Act 2006. Share capital Hunting PLC is a listed public company limited by shares, with its Ordinary shares quoted on the London Stock Exchange in the Equity Shares Commercial Company category. The Company’s issued share capital comprises a single class, which is divided into 164,940,082 Ordinary shares of 25 pence each. All of the Company’s issued Ordinary shares are fully paid up and rank equally in all respects. Details of the issued share capital of the Company and the number of shares held in treasury as at 31 December 2024 can be found in note 33 to the ﬁnancial statements. Subject to applicable statutes, shares may be issued with such rights and restrictions as the Company may, by ordinary resolution, decide, or (if there is no such resolution or so far as it does not make speciﬁc provision) as the Board (as deﬁned in the Articles) may decide. Voting rights and restrictions on transfer of shares Holders of Ordinary shares are entitled to receive dividends (when declared), receive the Company’s Annual Report and Accounts, attend and speak at general meetings of the Company, and appoint proxies or exercise voting rights. On a show of hands at a general meeting of the Company, every holder of Ordinary shares present in person or by proxy and entitled to vote has one vote and, on a poll, every member present in person or by proxy and entitled to vote has one vote for every Ordinary share held. None of the Ordinary shares carry any special rights with regard to control of the Company. Proxy appointments and voting instructions must be received by the Company’s Registrars no later than 48 hours before a general meeting. A shareholder can lose their entitlement to vote at a general meeting where that shareholder has been served with a disclosure notice and has failed to provide the Company with information concerning interests in those shares. Shareholders’ rights to transfer shares are subject to the Articles of Association. Transfers of uncertiﬁcated shares must be carried out using CREST and the Directors can refuse to register a transfer of an uncertiﬁcated share in accordance with the regulations governing the operation of CREST. The Directors may decide to suspend the registration of transfers, for up to 30 days a year, by closing the register of shareholders. The Directors cannot suspend the registration of transfers of any uncertiﬁcated shares without obtaining consent from CREST. There are no restrictions on the transfer of Ordinary shares in the Company other than: • Certain restrictions that may, from time to time, be imposed by laws and regulations, for example insider trading laws; • Pursuant to the Company’s share dealing code whereby the Directors and certain employees of the Company require approval to deal in the Company’s shares; and • Where a shareholder with at least a 0.25% interest in the Company’s certiﬁcated shares has been served with a disclosure notice and has failed to provide the Company with information concerning interests in those shares. Interests in voting rights Other than as stated in the table on page 169, the Company is not aware of any further agreements between shareholders that may result in restrictions on the transfer of Ordinary shares or on voting rights. Market capitalisation The market capitalisation of the Company at 31 December 2024 was £0.5bn (2023 – £0.5bn). Share price 2024 p 2023 p At 1 January 295.5 333.0 At 31 December 289.0 295.5 High during the year 459.0 351.5 Low during the year 274.0 197.4 Dividends The Company normally pays dividends semi-annually. Details of the Company’s dividend policy is set out on page 11. The Company paid the 2023 Final Dividend of 5.0 cents per share on 10 May 2024, which absorbed $8.0m of cash. At the Group’s 2024 Half Year Results, the Board declared an Interim Dividend of 5.5 cents per share, which was paid to shareholders on 25 October 2024, and absorbed $8.7m of cash. The Board is recommending a Final Dividend for 2024 of 6.0 cents per share, to be paid to shareholders on 9 May 2025, subject to approval by shareholders at the Company’s 2025 AGM. Employee Beneﬁt Trust The Group operates an Employee Beneﬁt Trust (the “Trust”) as a vehicle to satisfy share options and awards granted to employees who participate in the Company’s share-based incentive schemes. At 31 December 2024, the Trust held 7,191,845 Ordinary shares in the Company (2023 – 6,591,918). The Trust has a policy to purchase shares in the market or subscribe for new shares to partially meet the future requirements of these incentive schemes. The Trust has waived all dividends payable by the Company and voting rights in respect of the Ordinary shares held by it. Directors’ Report continued Hunting PLC Annual Report and Accounts 2024 168 Strategic Report Corporate Governance Financial Statements Other Information Major shareholders The Company’s major shareholders, as at 31 December 2024, are listed in the table below. Notes Number of Ordinary shares % of ISC Abrdn 14,540,689 8.82 Schroder Investment Management 13,377,973 8.11 BlackRock 1 12,475,269 7.56 Franklin Templeton 11,697,897 7.09 Hunting Investments Limited 2/3/4 11,003,487 6.67 Hunting Employee Beneﬁt Trust 5 7,191,845 4.36 Slaley Investments Limited 4 6,424,591 3.89 Dimensional Fund Advisors 5,459,505 3.31 David R L Hunting 2/3/4/6/7 194,120 0.12 – as trustee 3,157,750 1.91 – other beneﬁcial 1,875,950 1.14 James Trafford – as trustee 5,175,966 3.14 Orbis Investment Management 5,170,596 3.13 1. On 28 January 2025, BlackRock notiﬁed the Company that their shareholding had reduced to 6.16% of the issued share capital. Further, on 5 March 2025, BlackRock conﬁrmed that its shareholding had reduced to below 5% of the issued share capital. 2. Included in this holding are 9,437,743 Ordinary shares held by Huntridge Limited, a wholly-owned subsidiary of Hunting Investments Limited. Neither of these companies is owned by Hunting PLC either directly or indirectly. 3. David RL Hunting is a director of Hunting Investments Limited. 4. In 2014, Hunting Investments Limited, Slaley Investments Limited, certain Hunting family members, including Richard H Hunting and David RL Hunting and the Hunting family trusts, to which James Trafford is a trustee (together known as “the Hunting Family Interests”), entered into a voting agreement. The voting agreement has the legal effect of transferring all voting rights of Hunting PLC Ordinary shares held by the Hunting Family Interests to a voting committee. The beneﬁcial ownership of Hunting PLC Ordinary shares remains as per the table shown above. At 6 March 2025, the Hunting Family Interests, party to the agreement, totalled 24,135,770 Ordinary shares in the Company, representing 14.6% of the total voting rights. 5. The Company has an agreement with the Employee Beneﬁt Trust (“EBT”), whereby the EBT purchases Hunting shares on a monthly basis, and since 31 December 2024 has purchased 562,745 shares. 6. After elimination of duplicate holdings, the total Hunting family trustee interests shown above amount to 5,175,966 Ordinary shares. 7. David RL Hunting and his children are or could become beneﬁciaries under the relevant family trusts of which Mr Hunting is also a trustee. Payments to governments In accordance with the UK’s Disclosure and Guidance Transparency Rule 4.3A, Hunting PLC is required to report annually on payments made to governments with respect to its oil and gas activities. Hunting’s report on “Payments to Governments” for the year ended 31 December 2023 was published on 19 April 2024. Following the disposal of the Company’s exploration and production assets, which were held by Hunting’s wholly owned subsidiary Tenkay Resources, Inc. in 2024, the Group did not make any material payments to governments and Payments to Governments were below the threshold required by the legislation. Research and development Group subsidiaries undertake, where appropriate, research and development to meet particular market and product needs. The Group’s research and development costs in the year totalled $8.8m (2023 – $6.9m), with the amount expensed in the year totalling $6.6m (2023 – $4.7m). Companies Act 2006 Section 415 In compliance with section 415 of the Companies Act 2006, the Directors present their report and the audited ﬁnancial statements of Hunting PLC for the year ended 31 December 2024. The Strategic Report incorporates the Hunting 2030 Strategy, Key Performance Indicators, Company Chair’s Statement, Chief Executive’s Review and Outlook, Market Summary, Business Model and Strategy, Stakeholders and Engagement protocols, Product Review, Operating Segment Review, Group Financial Review, ESG and Sustainability, and Risk Management and is located on pages 2 to 112. As permitted by legislation, the Board has chosen to set out, within the Strategic Report and Corporate Governance Report, some of the matters required to be disclosed in the Directors’ Report, which it considers to be complementary to communicating Hunting’s ﬁnancial position and performance, as follows: • Changes in the Group and its interests (pages 36, 37 and 38); • Dividends (page 7); • Future developments (page 39); • Risk management, objectives and policies (pages 102 to 109); • Bribery and corruption (pages 27 to 30, 77 and 78); • Employment of disabled persons (pages 28 and 80); • Ethnicity and diversity (pages 28 and 80); and • Greenhouse gas emissions and environmental matters (pages 31, 73, and 82 to 101). For further information, please see the Shareholder and Statutory Information section located on pages 264 and 265. The Company’s Non-ﬁnancial Information and Sustainability Statement can be found on page 265. The Companies (Miscellaneous Reporting) Regulations 2018 As required by The Companies (Miscellaneous Reporting) Regulations 2018 (the “Regulations”), the Board of Hunting PLC has prepared a Section 172(1) Statement, which can be found on page 112 and also on the Group’s website www.huntingplc.com. The Directors’ Stakeholder Engagement and Decision Making disclosures are summarised within the Strategic Report on pages 25 to 32, and include cross references to the various engagement activities across the Group’s operations. Additional disclosures in respect of customers, suppliers and other key business relationships can also be found within the Strategic Report. Approval of accounts The 2024 Annual Report and Accounts were approved by the Directors at their meeting on Tuesday 4 March 2025. By order of the Board Ben Willey Company Secretary 6 March 2025 Other information Signiﬁcant agreements The Company is party to the Revolving Credit Facility and Term Loan in which the counterparties can determine whether or not to cancel the agreements where there has been a change of control of the Company. The service agreements of the executive Directors include provisions for compensation for loss of ofﬁce or employment as a result of a change of control. Political contributions It is the Group’s policy not to make political donations. Accordingly, there were no political donations made during the year (2023 – $nil). Directors’ Report continued Hunting PLC Annual Report and Accounts 2024 169 Strategic Report Corporate Governance Financial Statements Other Information Financial Statements Independent Auditor’s Report to the Members of Hunting PLC 171 Consolidated Income Statement 184 Consolidated Statement of Comprehensive Income 185 Consolidated Balance Sheet 186 Consolidated Statement of Changes in Equity 187 Consolidated Statement of Cash Flows 189 Notes to the Consolidated Financial Statements 190 Company Balance Sheet 246 Company Statement of Changes in Equity 247 Notes to the Company Financial Statements 248 Hunting PLC Annual Report and Accounts 2024 170 Strategic Report Other Information Financial Statements Corporate Governance Independent Auditor’s Report to the Members of Hunting PLC Report on the audit of the ﬁnancial statements 1. Opinion In our opinion: • the ﬁnancial statements of Hunting plc (the ‘parent Company’) and its subsidiaries (the ‘Group’) give a true and fair view of the state of the Group’s and of the parent Company’s affairs as at 31 December 2024 and of the Group’s loss for the year then ended; • the Group ﬁnancial statements have been properly prepared in accordance with United Kingdom adopted international accounting standards; • the parent Company ﬁnancial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 101 “Reduced Disclosure Framework”; and • the ﬁnancial statements have been prepared in accordance with the requirements of the Companies Act 2006. We have audited the ﬁnancial statements which comprise: • the consolidated income statement; • the consolidated statement of comprehensive income; • the consolidated and parent Company balance sheets; • the consolidated and parent Company statements of changes in equity; • the consolidated statement of cash ﬂows; and • the related notes 1 to 41 to the consolidated ﬁnancial statements, and notes C1 to C15 to the parent Company ﬁnancial statements. The ﬁnancial reporting framework that has been applied in the preparation of the Group ﬁnancial statements is applicable law and United Kingdom adopted international accounting standards. The ﬁnancial reporting framework that has been applied in the preparation of the parent Company ﬁnancial statements is applicable law and United Kingdom Accounting Standards, including FRS 101 “Reduced Disclosure Framework” (United Kingdom Generally Accepted Accounting Practice). 2. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the ﬁnancial statements section of our report. We are independent of the Group and the parent Company in accordance with the ethical requirements that are relevant to our audit of the ﬁnancial statements in the UK, including the Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard as applied to listed public interest entities, and we have fulﬁlled our other ethical responsibilities in accordance with these requirements. The non-audit services provided to the Group for the year are disclosed in note 6 to the ﬁnancial statements. We conﬁrm that we have not provided any non-audit services prohibited by the FRC’s Ethical Standard to the Group or the parent Company. We believe that the audit evidence we have obtained is sufﬁcient and appropriate to provide a basis for our opinion. 3. Summary of our audit approach Key audit matters The key audit matters that we identiﬁed in the current year were: • Impairment of goodwill and non-current assets of Titan’s group of cash generating units (“CGU”); • Revenue recognition on speciﬁc point in time and over time contracts; and • Inventory provision valuation in Titan US and pressure control equipment in US Manufacturing. Within this report, key audit matters are identiﬁed as follows: Newly identiﬁed Increased level of risk Similar level of risk Materiality The materiality that we used for the Group ﬁnancial statements was $4.0 million which was determined on the basis of proﬁt before tax, adjusted for the impairment of goodwill. Scoping The scope of our Group audit includes account balances of 20 reporting units across six countries, including a number of head ofﬁce entities. In aggregate these account for 87% of the Group’s revenue and 85% of net assets. Signiﬁcant changes in our approach As a result of the reduced performance and market outlook for Titan US, goodwill associated with Titan has been written down by $109m, as noted on page 55 of the strategic report. Due to the signiﬁcance of the judgements and estimates made in relation to the impairment assessment, we consider the impairment of goodwill and non-current assets of the Titan group of CGUs as a key audit matter. In addition, the speciﬁc contracts to which our revenue recognition key audit matter relates have been updated to reﬂect changes in the portfolio of contracts this year. We have changed the basis on which materiality is determined. Refer to section 6 of this report. Hunting PLC Annual Report and Accounts 2024 171 Strategic Report Corporate Governance Financial Statements Other Information Independent Auditor’s Report to the Members of Hunting PLC continued 4. Conclusions relating to going concern In auditing the ﬁnancial statements, we have concluded that the Directors’ use of the going concern basis of accounting in the preparation of the ﬁnancial statements is appropriate. Our evaluation of the Directors’ assessment of the Group’s and parent Company’s ability to continue to adopt the going concern basis of accounting included: • Enquiries as to the process followed by management and obtained an understanding of the relevant controls over the preparation of budgets and forecasts cover the foreseeable future, the assumptions on which the assessment is based and management’s plans for future actions; • Evaluating the cash ﬂow forecasts that drive the going concern assessment, including the reliability of the underlying data and challenging management on the assumptions applied by comparing to external industry data where relevant and considering how these have been sensitised to determine reasonable downside scenarios including the impact of the proﬁt warning; • Assessing the terms of the term loan and revolving credit facility and whether any amounts had been drawn down in order to determine whether covenants in the agreement have been breached and therefore could impact the going concern assessment; and • Assessing the appropriateness of the disclosures in the ﬁnancial statements, and whether these were sufﬁciently detailed. Based on the work we have performed, we have not identiﬁed any material uncertainties relating to events or conditions that, individually or collectively, may cast signiﬁcant doubt on the Group’s and parent Company’s ability to continue as a going concern for a period of at least twelve months from when the ﬁnancial statements are authorised for issue. In relation to the reporting on how the Group has applied the UK Corporate Governance Code, we have nothing material to add or draw attention to in relation to the Directors’ statement in the ﬁnancial statements about whether the Directors considered it appropriate to adopt the going concern basis of accounting. Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report. 5. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most signiﬁcance in our audit of the ﬁnancial statements of the current period and include the most signiﬁcant assessed risks of material misstatement (whether or not due to fraud) that we identiﬁed. These matters included those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the ﬁnancial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Hunting PLC Annual Report and Accounts 2024 172 Strategic Report Corporate Governance Financial Statements Other Information Independent Auditor’s Report to the Members of Hunting PLC continued 5.1. Impairment of goodwill and non-current assets of Titan’s group of cash generating units (“CGU”) Key audit matter description The Group recognises goodwill of $45.1 million (2023: $154.4 million), which is tested annually for impairment. As outlined in Note 15, in 2024, the Group recognised a net impairment for the Titan CGU of $81 million ($109 million reduction in goodwill, offset by deferred tax liability release of $28 million). Testing goodwill for impairment requires determination of its recoverable amount, which involves judgement and key sources of estimation uncertainty that depend on the forecast future ﬁnancial performance of the CGU, future market performance, market share analysis and relevant terminal growth rates. As such, we identiﬁed this as a key audit matter related to the potential risk of fraud. In addition, this key audit matter relates to the sensitivity of the valuation refer to Note 15 on page 205 of the Annual Report to changes in: • forecast revenue growth assumptions, particularly in FY25; • forecast gross margin improvements; • the long-term growth rate applied; and • planned reductions in inventory levels over the forecast period. Refer to the Key Sources of Estimation Uncertainty on page 190 in respect of the estimates of future cash ﬂows. Refer to page 163 of the Audit and Risk Committee Report and notes 1 and 15 to the ﬁnancial statements. How the scope of our audit responded to the key audit matter We performed the following procedures to assess the impairment of goodwill and non-current assets of the Titan’s group of CGU: • we obtained an understanding of relevant controls over the impairment assessment, including understanding management’s process and relevant controls over forecasting future cash ﬂows and determination of the key assumptions as detailed above; • we challenged forecast revenue growth performance with reference to the recent and historical performance of Titan, market share analysis and a range of industry outlook and competitor information; • for forecast improvements in gross margins we engaged in dialogue with operational staff to understand changes being made to the production process; • tested a sample of purchase orders that evidenced achieved reductions in component costs; • challenged the ability for the business to reduce production variances based on recent and historical performance; • in conjunction with our valuation specialists, we challenged the long-term growth rate assumption and discount rate with reference to market, industry and economic data; • challenged the planned reductions in inventory levels through operational discussions and analysis of past performance trends, and a detailed analysis of the component parts of inventory and the relative improvements required; • tested the integrity of management’s impairment model used to derive the recoverable amount; • in assessing the total value in use (and therefore recoverable amount), we considered observable enterprise value (EV) and EBITDA multiples for comparable listed groups, as well as a public offer made on a competitor during 2024 and considered how that compared to the value in use valuation; • completed a search for potentially contradictory information by considering external, third party data and considered that in the context of the assumptions made. Key observations We are satisﬁed that the assumptions are reasonable and supportable based on available evidence, both internal and external. As such, we conclude the impairment charge recognised for Titan is appropriate. Hunting PLC Annual Report and Accounts 2024 173 Strategic Report Corporate Governance Financial Statements Other Information Independent Auditor’s Report to the Members of Hunting PLC continued 5.2. Revenue recognition on speciﬁc point in time and over time contracts Key audit matter description The revenue recognised by the Group in 2024 is $1,048.9 million (2023 – $929.1 million). There is complexity involved in the application of the Group’s revenue recognition policy. This complexity arises most notably in those contracts where revenue is recognised over time due to the judgement involved in estimating a contract’s costs to complete; and where revenue is recognised at a point in time, in the timing of recognition including judgement relating to the transfer of control. Our revenue recognition key audit matter speciﬁcally relates to: • The application of IFRS 15 “Revenue from contracts with customers” in determining the appropriate basis for revenue recognition for the $231 million KOC contract as disclosed on page 35. As outlined in the Group’s Critical Accounting Judgement on page 190 signiﬁcant judgement was applied in relation to the timing of the recognition of revenue for shipments made close to the year-end (where goods were at sea prior to the year end, yet shipping documents were provided post year end). For this contract, having obtained legal advice over the transfer of title, the Group’s judgement was that control had not passed and therefore revenue was not recognised in the current year; and • Whether the Group had appropriately estimated the forecast costs to complete, including material costs, labour costs and outside services in their over time revenue for three contracts in Spring. Given the judgement taken around the timing of revenue recognition close to year-end and the estimates involved in forecasting the cost to complete on the three contracts in Spring, this is considered a key audit matter related to the potential risk of fraud. Refer to the Critical Accounting Judgement on page 190 in respect of the timing of revenue recognition at a point in time where signiﬁcant judgement was applied. (Refer to page 163 of the Audit and risk committee report and notes 3 and 40 to the ﬁnancial statements). Hunting PLC Annual Report and Accounts 2024 174 Strategic Report Corporate Governance Financial Statements Other Information Independent Auditor’s Report to the Members of Hunting PLC continued How the scope of our audit responded to the key audit matter We performed the following procedures to assess the revenue recognition on speciﬁc point in time and over time contracts. Application of IFRS 15 to the KOC contract, including the timing of recognition of revenue for shipments made close to the year-end: • obtained an understanding of the relevant controls over the revenue recognition process relating to the KOC contract, including the controls over the preparation and review of management’s accounting paper, and the process for aligning revenue recognition with the transfer of control outlined in the contract; • assessed the interpretation of terms in the related contract and analyses from management to determine whether the conclusions were appropriate and in accordance with the requirements of IFRS 15; • assessed management’s Critical Accounting Judgement in relation to the timing of recognising revenue by inspecting shipping documents and evaluating legal advice taken by the Group to establish when legal title and the ability to direct the goods transferred to the customer; and • for other shipments close to the year-end where revenue was recognised, we tested a sample of the shipments to the relevant shipping documents made available and provided to the customer prior to the year-end. Assessing the completeness and accuracy of forecast costs to complete: • met with the project managers to understand progress on the projects and areas of risk or opportunity; • assessed changes to the expected total contract costs relative to the prior year, and validated changes in the year to the trigger event and associated supporting information (i.e. change orders or successful test events); • on a sample basis, tested estimated cost line items and agreed them to supporting evidence, such as: – for estimated material costs, a committed purchase order or an equivalent purchase order incurred on a similar project; – for estimated labour hours, the relevant completed labour hours information from other similar projects; and – for outside services, the relevant equivalent costs incurred on other similar projects or services already incurred to date which will reoccur. • Performed a stand back analysis of the overall cost to complete estimates and how they compare to our knowledge of the contracts and the other information obtained through our testing. Key observations We are satisﬁed that revenue in relation to the KOC contract, including for the shipment that represents a Critical Accounting Judgement, has been recognised appropriately and in accordance with IFRS 15 “Revenue from Contracts with Customers”. The judgements and estimates taken in respect of estimated costs to complete, and the associated revenue recognised on the three contracts in Spring are appropriate. A number of control ﬁndings were identiﬁed in respect of the timing of revenue recognised of the KOC contract which were reported to the Audit and Risk Committee, which the Group is assessing for future remediation. Hunting PLC Annual Report and Accounts 2024 175 Strategic Report Corporate Governance Financial Statements Other Information Independent Auditor’s Report to the Members of Hunting PLC continued 5.3. Inventory provision valuation in Titan US and pressure control equipment in US Manufacturing Key audit matter description The Group holds inventory of $302.8 million at 31 December 2024 (2023 – $328.4 million), net of a provision of $57.5 million (2023 – $52.5 million). The cyclical and current trading environment and market conditions in the United States continue to expose the Group to the risk of over-valuation of aged inventory and therefore it is key that the Group has an appropriate provisioning model. We identiﬁed inventory provision valuation in Titan US and pressure control equipment in US Manufacturing as a key audit matter given the risk that certain inventory lines held may remain technically relevant but demand in the marketplace may be low and therefore there could be excess inventory on hand that will never be sold at or above its carrying amount. The Directors’ judgement in assessing the valuation of inventory is primarily based on expectations of future sales, the forecast turn period and inventory utilisation plans, combined with their consideration of historical sales and their assessment of the continued technological relevance of the Group’s products. Given the level of inherent judgement that is applied to the determination of the provision, it is considered to be a key audit matter related to the potential risk of fraud. Refer to page 163 of the Audit and risk committee report and notes 1, 20 and 40 to the ﬁnancial statements for disclosures relating to the Directors’ critical judgements and key assumptions, inventory and principal accounting policies respectively. How the scope of our audit responded to the key audit matter We performed the following procedures to assess the valuation of management’s inventory provision valuation in Titan US and pressure control equipment in US Manufacturing: • obtained an understanding of relevant controls over the inventory valuation process, including how management estimate their inventory reserves; • assessed the mechanical accuracy of the inventory provisioning models and detailed analysis prepared by management, to determine whether the Group’s provisioning policy has been applied appropriately and whether the approach taken appropriately reﬂect current market conditions; • challenged key assumptions in the model such as the historical sales period used to drive expected forward turns, the forecast turn period applied and any additional uplifts or decreases factored in by management to adjust historical sales run rates to better reﬂect future trading expectations. This included consideration of historically achieved revenue levels, any signiﬁcant changes in business structure or markets, inventory utilisation plans, third-party industry forecasts, production capacity levels and current revenue run rates to demonstrate whether the inferred future revenue levels are reasonable; • evaluated management’s comparison of forecast sales against relevant third-party forecasts as a stand-back assessment on the future utilisation of current inventory levels; • evaluated the data provided by management, including current sales transactions, used to determine an appropriate net realisable value to assess whether inventory is being held at an appropriate amount. We also made direct enquiries of sales and operational personnel; and • assessed the disclosure relating to inventory. Key observations We are satisﬁed that the judgements taken by the Directors in relation to inventory valuation are appropriate in light of current market conditions. As such, we conclude the inventory provision is appropriate. Hunting PLC Annual Report and Accounts 2024 176 Strategic Report Corporate Governance Financial Statements Other Information Independent Auditor’s Report to the Members of Hunting PLC continued 6. Our application of materiality 6.1. Materiality We deﬁne materiality as the magnitude of misstatement in the ﬁnancial statements that makes it probable that the economic decisions of a reasonably knowledgeable person would be changed or inﬂuenced. We use materiality both in planning the scope of our audit work and in evaluating the results of our work. Based on our professional judgement, we determined materiality for the ﬁnancial statements as a whole as follows: Group ﬁnancial statements Parent Company ﬁnancial statements Materiality $4.0 million (2023: $4.5 million). $3.6 million (2023: $4.1 million). Basis for determining materiality 5.3% of proﬁt before tax, adjusted for the impairment of goodwill (Refer to note 15). In the prior year, 0.5% of revenue was used as our primary benchmark. Current year materiality represents 0.4% of revenue. Parent Company materiality determined based on 0.5% of net assets (2023: 0.4% of net asset), which is capped at 90% of Group materiality. Rationale for the benchmark applied We changed the basis for determining materiality given the improvement in and stabilisation of underlying operations. A proﬁt-based measure is therefore the key metric for users of the ﬁnancial statements. We adjusted proﬁt before tax for the impairment of goodwill as this is not part of the underlying business operations and is a non-recurring item. The users of the ﬁnancial statements now consider this to be their key metric. This represents a change from prior years where revenue was the key metric. Given that the parent Company’s balance sheet is mostly made up of investments and intercompany receivables, we consider net assets to be the most relevant benchmark. $4.0m Group materiality $4.0m Component materiality range $1.2m to $2.4m Audit Committee reporting threshold $0.20m Proﬁt before tax excluding goodwill impairment $76m Group materiality Hunting PLC Annual Report and Accounts 2024 177 Strategic Report Corporate Governance Financial Statements Other Information Independent Auditor’s Report to the Members of Hunting PLC continued 6.2. Performance materiality We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate, uncorrected and undetected misstatements exceed the materiality for the ﬁnancial statements as a whole. Group ﬁnancial statements Parent Company ﬁnancial statements Performance materiality 67.5% (2023: 70%) of Group materiality 67.5% (2023: 70%) of parent Company materiality Basis and rationale for determining performance materiality In determining performance materiality, we considered the following factors: • our knowledge obtained from the prior year audit; • the level of corrected and uncorrected misstatements identiﬁed in the prior years; and • the reliability of the entity’s controls over ﬁnancial reporting and the control ﬁndings identiﬁed in the year, including the prior year control deﬁciencies identiﬁed which continued to impact the current year. 6.3. Error reporting threshold We agreed with the Audit and Risk committee that we would report to the Committee all audit differences in excess of $200,000 (2023: $225,000), as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds. We also report to the Audit and Risk committee on disclosure matters that we identiﬁed when assessing the overall presentation of the ﬁnancial statements. 7. An overview of the scope of our audit 7.1. Identiﬁcation and scoping of components The Group has 57 (2023: 56) reporting units and the ﬁnancial statements reﬂect a consolidation of entities covering centralised functions, operating units and non-trading legal entities. The reporting units of the Group are diverse and operate across a number of geographies. The reporting units do not share service centres and controls are designed and implemented at each reporting unit independently. The parent Company is located in London and audited directly by the Group audit team. Our scoping consisted of performing a risk-based approach considering both quantitative and qualitative factors to obtain sufﬁcient appropriate audit evidence to address the risk of material misstatement over the Group ﬁnancial statements. Our audit work covered Group operations in six (2023: ﬁve) countries, covering 20 (2023: 18) reporting units, including a number of head ofﬁce entities. Six (2023: three) reporting units were audited by the Group engagement team, and included overseas reporting units in the Netherlands and Canada. The other 14 (2023: 15) were audited by respective Deloitte component audit teams in the US, the UK, Singapore and China. For the 20 reporting units, procedures on one or more classes of transactions, account balances or disclosures were performed. Together, they represent 87% (2023: 79%) of revenue, and 85% (2023: 79%) of net assets. Our audit work at the 20 reporting units were executed at levels of performance materiality applicable to each reporting unit which were lower than Group performance materiality and ranged from $1.2m to $2.4m (2023: $1.6m to $4.1m). The remaining reporting units were subject to analytical procedures by the Group engagement team. Further, speciﬁc audit procedures over the central functions and areas of signiﬁcant judgement including taxation, treasury and goodwill and non-current asset impairment were performed by the Group audit team centrally. In 2024, Hunting BV (The Netherlands) reporting unit was brought into scope for audit procedures over certain account balances. As outlined in Audit and Risk Committee report on page 163, during the year errors were found by management in inventory, such that an adjustment to inventory of $4.2 million has been recorded through the current year. As a result, the Group engagement team revised their risk assessment and increased the extent of audit work beyond what was initially planned. 87% 13% 85% 15% Revenue Speciﬁed audit procedures Review at Group level Net assets Speciﬁed audit procedures Review at Group level Hunting PLC Annual Report and Accounts 2024 178 Strategic Report Corporate Governance Financial Statements Other Information Independent Auditor’s Report to the Members of Hunting PLC continued 7.2. Our consideration of the control environment We identiﬁed the main Enterprise Resource Planning (“ERP”) system (“D365”) and the consolidation tool (“Cognos”) as the key IT systems relevant to our audit. We have involved our IT specialists to obtain an understanding of the associated general IT controls (“GITCs”) for D365 and Cognos. The Group continues to invest in its IT systems and there is a proactive programme of remediating any control ﬁndings where they are identiﬁed. During the current year the Group has been implementing its plan to remediate control ﬁndings identiﬁed in the prior year in relation to workﬂow approvals within D365, which has impacted a number of reporting units. Where the remediation activity remained ongoing during the current year, or the remediated controls were not in place for a sufﬁcient enough period prior to the year-end, we did not seek to place reliance on the GITCs for D365 at those reporting units. A number of control ﬁndings were identiﬁed in relation to the GITCs over Cognos this year which are planned to be remediated in the coming year. Where reporting units migrated from their legacy ERP system to D365 during the year, we assessed certain implementation controls over the data conversion and the data migration. This included GITCs and manual controls. This principally related to reporting units in the UK, Europe and Middle East. Where we were able to rely on relevant GITCs and automated controls within D365, controls were tested in support of our control reliance approach across the revenue processes within certain reporting units (Titan US, US Connections and Dearborn). For certain other reporting units we were unable to adopt a controls reliance approach to revenue in the current year due to the existence of manual revenue control deﬁciencies. Across the Group, we also obtained an understanding of relevant manual controls within the ﬁnancial reporting processes, controls relevant to our signiﬁcant risks, and any other controls we deemed relevant. Whilst there are reporting units where we are able to rely on controls, there are a number of reporting units where a number of control ﬁndings were identiﬁed which require remediation. As discussed in the Audit and Risk Committee report on page 163, signiﬁcant control weaknesses were identiﬁed in the Hunting BV business unit in the Netherlands, relating to the existence of inventory. We did not place reliance on any manual controls at that reporting unit and we modiﬁed the nature, timing and extent of our audit procedures over inventory existence and increased the extent of audit work in the other account balances in the reporting unit as described in section 7.1 above. As acknowledged in the Audit and Risk Committee report on page 163 an overall review of the Group’s internal control environment is underway both as a result of the changes to the UK Corporate Governance code and due to the control deﬁciencies identiﬁed in the year. 7.3. Our consideration of climate-related risks In planning our audit, we have considered the potential impact of climate change on the Group’s business and its ﬁnancial statement. The Group continues to develop its assessment of the potential impacts of climate change with speciﬁc transitional and physical climate related risks identiﬁed in the Strategic Report on pages 92 to 96. As a part of our audit we obtained management’s climate-related risk assessment and held discussions with management to understand the process of identifying climate-related risks, the determination of mitigating actions and the impact on the Group’s ﬁnancial statements. As explained in note 1 on page 190, the Directors’ view is that the external long-term forecasts used in preparing their forecasts incorporate climate change developments, supporting the view that there will be a robust demand for the Group’s oil and gas products over the short and medium term. Estimates made using these forecasts do not currently identify any concerns regarding the carrying values or expected lives of longer-lived assets. We performed our own qualitative risk assessment of the potential impact of climate change on the Group’s account balances and classes of transaction and did not identify any reasonably possible risks of material misstatement. Our procedures were performed with the involvement of our climate change specialists and included evaluating whether appropriate climate-related disclosures have been made in the ﬁnancial statements and reading disclosures included in the Strategic Report to consider whether they are materially consistent with the ﬁnancial statements and our knowledge obtained in the audit. Hunting PLC Annual Report and Accounts 2024 179 Strategic Report Corporate Governance Financial Statements Other Information Independent Auditor’s Report to the Members of Hunting PLC continued 7.4 Working with other auditors We directed and supervised our component audit teams through regular discussions and interactions during the planning phase of our audit and throughout the year end process. The lead audit partner visited our component teams in the US, Singapore and China during the year. Other senior members of the audit team visited our component team in the UK. We performed a detailed review of their work over areas including key judgements and signiﬁcant and higher risks, using technology to access component auditors’ working papers remotely, where relevant. Underlying audit working papers were all prepared in English, except in China where we utilised Mandarin-speaking Deloitte UK resources to review the underlying work. 8. Other information The other information comprises the information included in the annual report, other than the ﬁnancial statements and our auditor’s report thereon. The Directors are responsible for the other information contained within the annual report. Our opinion on the ﬁnancial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the ﬁnancial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the ﬁnancial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. 9. Responsibilities of Directors As explained more fully in the Directors’ responsibilities statement, the Directors are responsible for the preparation of the ﬁnancial statements and for being satisﬁed that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of ﬁnancial statements that are free from material misstatement, whether due to fraud or error. In preparing the ﬁnancial statements, the Directors are responsible for assessing the Group’s and the parent Company’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so. 10. Auditor’s responsibilities for the audit of the ﬁnancial statements Our objectives are to obtain reasonable assurance about whether the ﬁnancial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to inﬂuence the economic decisions of users taken on the basis of these ﬁnancial statements. A further description of our responsibilities for the audit of the ﬁnancial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. Hunting PLC Annual Report and Accounts 2024 180 Strategic Report Corporate Governance Financial Statements Other Information Independent Auditor’s Report to the Members of Hunting PLC continued 11. Extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. 11.1. Identifying and assessing potential risks related to irregularities In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: • the nature of the industry and sector, control environment and business performance including the design of the Group’s remuneration policies, key drivers for Directors’ remuneration, bonus levels and performance targets; • results of our enquiries of management, internal audit, the Directors and the audit and risk committee about their own identiﬁcation and assessment of the risks of irregularities, including those that are speciﬁc to the Group’s sector; • any matters we identiﬁed having obtained and reviewed the Group’s documentation of their policies and procedures relating to: – identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance, including the incorrect treatment of import taxes resulting in a prior year adjustment of $9.1m as disclosed in note 41 of the ﬁnancial statements. – detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud. – the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations, including the Group’s whistleblowing procedures. • the matters discussed among the audit engagement team including component audit teams and relevant internal specialists, including tax, valuations, IT, fraud and industry specialists regarding how and where fraud might occur in the ﬁnancial statements and any potential indicators of fraud. As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identiﬁed the greatest potential for fraud in the following areas: revenue recognition in relation to forecast cost to complete on over time contracts and sales made close to period end for point in time contracts; inventory provision valuation and impairment as it relates to the Titan cash-generating units. In common with all audits under ISAs (UK), we are also required to perform speciﬁc procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory frameworks that the Group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the ﬁnancial statements. The key laws and regulations we considered in this context included the UK Companies Act, UK Listing Rules, pensions legislation and tax legislation. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the ﬁnancial statements but compliance with which may be fundamental to the Group’s ability to operate or to avoid a material penalty. These included employment legislation, health, safety and the environment (“HSE”) regulations, international trading laws, patent law and environmental regulations. Hunting PLC Annual Report and Accounts 2024 181 Strategic Report Corporate Governance Financial Statements Other Information Independent Auditor’s Report to the Members of Hunting PLC continued 11.2. Audit response to risks identiﬁed As a result of performing the above, we identiﬁed impairment of goodwill and non-current assets of Titan’s group of CGUs, revenue recognition on speciﬁc point in time and over time contracts and inventory provision valuation in Titan US as key audit matters related to the potential risks of fraud. The key audit matters section of our report explains the matters in more detail and also describes the speciﬁc procedures we performed in response to those key audit matters. In addition to the above, our procedures to respond to risks identiﬁed included the following: • reviewing the ﬁnancial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the ﬁnancial statements; • enquiring of management and the audit and risk committee concerning actual and potential litigation and claims and worked with our tax specialists to review and challenge management’s determination of the prior year import duties adjustment of $9.1 million. We obtained the external data received by management from the relevant authority and assessed, on a sample basis, the completeness and accuracy of management’s calculation of the provision applying our understanding of the legislative requirements and likely outcome of the assessment; • performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; • reading minutes of meetings of those charged with governance, reviewing internal audit reports and reviewing correspondence with HMRC; and • in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any signiﬁcant transactions that are unusual or outside the normal course of business. We also communicated relevant identiﬁed laws and regulations and potential fraud risks to all engagement team members including internal specialists and component audit teams, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. Report on other legal and regulatory requirements 12. Opinions on other matters prescribed by the Companies Act 2006 In our opinion the part of the Directors’ remuneration report to be audited has been properly prepared in accordance with the Companies Act 2006. In our opinion, based on the work undertaken in the course of the audit: • the information given in the strategic report and the Directors’ report for the ﬁnancial year for which the ﬁnancial statements are prepared is consistent with the ﬁnancial statements; and • the strategic report and the Directors’ report have been prepared in accordance with applicable legal requirements. In the light of the knowledge and understanding of the Group and the parent Company and their environment obtained in the course of the audit, we have not identiﬁed any material misstatements in the strategic report or the Directors’ report. 13. Corporate Governance Statement The Listing Rules require us to review the Directors’ statement in relation to going concern, longer- term viability and that part of the Corporate Governance Statement relating to the Group’s compliance with the provisions of the UK Corporate Governance Code speciﬁed for our review. Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate Governance Statement is materially consistent with the ﬁnancial statements and our knowledge obtained during the audit: • the Directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any material uncertainties identiﬁed set out on page 111; • the Directors’ explanation as to its assessment of the Group’s prospects, the period this assessment covers and why the period is appropriate set out on page 110; • the Directors’ statement on fair, balanced and understandable set out on page 167; • the board’s conﬁrmation that it has carried out a robust assessment of the emerging and principal risks set out on page 102 to 110; • the section of the annual report that describes the review of effectiveness of risk management and internal control systems set out on page 166; and • the section describing the work of the audit and risk committee set out on page 162. Hunting PLC Annual Report and Accounts 2024 182 Strategic Report Corporate Governance Financial Statements Other Information Independent Auditor’s Report to the Members of Hunting PLC continued 14. Matters on which we are required to report by exception 14.1. Adequacy of explanations received and accounting records Under the Companies Act 2006 we are required to report to you if, in our opinion: • we have not received all the information and explanations we require for our audit; or • adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or • the parent Company ﬁnancial statements are not in agreement with the accounting records and returns. We have nothing to report in respect of these matters. 14.2. Directors’ remuneration Under the Companies Act 2006 we are also required to report if in our opinion certain disclosures of Directors’ remuneration have not been made or the part of the Directors’ remuneration report to be audited is not in agreement with the accounting records and returns. We have nothing to report in respect of these matters. 15. Other matters which we are required to address 15.1. Auditor tenure Following the recommendation of the Audit and Risk committee, we were appointed by the Directors on 17 April 2019 to audit the ﬁnancial statements for the year ending 31 December 2019 and subsequent ﬁnancial periods. The period of total uninterrupted engagement including previous renewals and reappointments of the ﬁrm is six years, covering the years ending 31 December 2019 to 31 December 2024. 15.2. Consistency of the audit report with the additional report to the audit and risk committee Our audit opinion is consistent with the additional report to the Audit and Risk Committee we are required to provide in accordance with ISAs (UK). 16. Use of our report This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed. As required by the Financial Conduct Authority (FCA) Disclosure Guidance and Transparency Rule (DTR) 4.1.15R – DTR 4.1.18R, these ﬁnancial statements will form part of the Electronic Format Annual Financial Report ﬁled on the National Storage Mechanism of the FCA in accordance with DTR 4.1.15R – DTR 4.1.18R. This auditor’s report provides no assurance over whether the Electronic Format Annual Financial Report has been prepared in compliance with DTR 4.1.15R – DTR 4.1.18R. We have been engaged to provide assurance on whether the Electronic Format Annual Financial Report has been prepared in compliance with DTR 4.1.15R – DTR 4.1.18R and will publicly report separately to the members on this. Thomas Murray, ACA (Senior statutory auditor) For and on behalf of Deloitte LLP Statutory Auditor London, United Kingdom 6 March 2025 Hunting PLC Annual Report and Accounts 2024 183 Strategic Report Corporate Governance Financial Statements Other Information Consolidated Income Statement For the year ended 31 December Notes 2024 $m Restated i 2023 $m Revenue 3 1,048.9 929.1 Cost of sales (777.0) (701.4) Gross proﬁt 271.9 227.7 Selling and distribution costs (53.5) (49.3) Administrative expenses (127.9) (128.7) Net operating income and other expenses 4 (2.4) 2.4 Share of associates’ and joint venture’s results 16 (0.1) (0.6) Impairment of goodwill 15 (109.1) – Operating (loss)/proﬁt 6 (21.1) 51.5 Finance income 8 3.2 0.9 Finance expense 8 (15.6) (11.3) (Loss)/proﬁt before tax (33.5) 41.1 Taxation 9 8.0 71.1 (Loss)/proﬁt for the year (25.5) 112.2 Attributable to: Owners of the parent (28.0) 110.3 Non-controlling interests 2.5 1.9 (25.5) 112.2 cents cents (Loss)/earnings per share Basic 10 (17.6) 69.5 Diluted 10 (17.6) 65.9 i. Comparative balances have been restated, see note 1. The notes on pages 190 to 245 are an integral part of these consolidated ﬁnancial statements. Hunting PLC Annual Report and Accounts 2024 184 Strategic Report Corporate Governance Financial Statements Other Information Consolidated Statement of Comprehensive Income For the year ended 31 December Notes 2024 $m Restated i 2023 $m (Loss)/proﬁt for the year (25.5) 112.2 Other comprehensive (expense)/income, after tax: Items that may subsequently be reclassiﬁed to proﬁt or loss: Exchange adjustments (4.3) 3.4 Fair value losses arising on cash ﬂow hedges during the year (0.7) (0.3) Fair value gains arising on cash ﬂow hedges reclassiﬁed to proﬁt or loss (0.1) (0.2) Items that will not be reclassiﬁed to proﬁt or loss: Remeasurement of deﬁned beneﬁt pension schemes 32,35 (0.1) – Other comprehensive (expense)/income, after tax (5.2) 2.9 Total comprehensive (expense)/income for the year (30.7) 115.1 Attributable to: Owners of the parent (32.9) 113.4 Non-controlling interests 2.2 1.7 (30.7) 115.1 i. Comparative balances have been restated, see note 1. Total comprehensive (expense)/income attributable to owners of the parent arises from the Group’s continuing operations. Hunting PLC Annual Report and Accounts 2024 185 Strategic Report Corporate Governance Financial Statements Other Information Notes 2024 $m Restated i 2023 $m ASSETS Non-current assets Property, plant and equipment 11 252.8 254.5 Right-of-use assets 12 28.3 26.2 Goodwill 13 45.1 154.4 Other intangible assets 14 39.4 40.8 Investments in associates and joint ventures 16 9.2 20.5 Investments 17 4.8 4.4 Trade, contract and other receivables 18 5.4 1.8 Deferred tax assets 19 108.5 95.2 493.5 597.8 Current assets Inventories 20 303.3 328.4 Trade, contract and other receivables 18 261.5 251.4 Cash and cash equivalents 21 206.6 45.5 Current tax assets 2.2 1.3 Assets held for sale 16 12.1 – 785.7 626.6 Consolidated Balance Sheet At 31 December Notes 2024 $m Restated i 2023 $m LIABILITIES Current liabilities Trade, contract and other payables 22 (208.5) (163.4) Lease liabilities 24 (7.4) (8.0) Borrowings 25 (11.3) (46.3) Provisions 27 (12.6) (13.9) Current tax liabilities (9.0) (3.3) (248.8) (234.9) Net current assets 536.9 391.7 Non-current liabilities Trade, contract and other payables 22 (5.5) (3.7) Lease liabilities 24 (22.7) (20.7) Borrowings 25 (94.5) (3.9) Provisions 27 (1.7) (2.7) Deferred tax liabilities 19 (3.7) (8.4) (128.1) (39.4) Net assets 902.3 950.1 Equity attributable to owners of the parent Share capital 33 66.5 66.5 Share premium 33 153.1 153.0 Other components of equity 34 6.4 8.7 Retained earnings 35 670.8 718.6 Total attributable to owners of the parent 896.8 946.8 Non-controlling interests 5.5 3.3 Total equity 902.3 950.1 i. Comparative balances have been restated, see note 1. The notes on pages 190 to 245 are an integral part of these consolidated ﬁnancial statements. The ﬁnancial statements on pages 184 to 245 were approved by the Board of Directors on 6 March 2025 and were signed on its behalf by: Jim Johnson Bruce Ferguson Director Director Registered number: 00974568 Hunting PLC Annual Report and Accounts 2024 186 Strategic Report Corporate Governance Financial Statements Other Information Year ended 31 December 2024 Notes Share capital $m Share premium $m Other components of equity ii $m Retained earnings $m Total attributable to owners of the parent $m Non- controlling interests $m Total equity $m At 1 January 2024, restated i 66.5 153.0 8.7 718.6 946.8 3.3 950.1 (Loss)/proﬁt for the year – – – (28.0) (28.0) 2.5 (25.5) Other comprehensive expense – – (4.8) (0.1) (4.9) (0.3) (5.2) Total comprehensive (expense)/income – – (4.8) (28.1) (32.9) 2.2 (30.7) Transfer of cash ﬂow hedging gains to the initial carrying value of hedged items – – (0.2) – (0.2) – (0.2) Dividends paid to Hunting PLC shareholders 36 – – – (16.7) (16.7) – (16.7) Treasury shares: – purchase of treasury shares 35 – – – (14.2) (14.2) – (14.2) – disposal of treasury shares – 0.1 – 0.2 0.3 – 0.3 Share options and awards: – value of employee services – – 12.3 – 12.3 – 12.3 – discharge – – (9.6) 9.0 (0.6) – (0.6) – taxation – – – 2.0 2.0 – 2.0 At 31 December 2024 66.5 153.1 6.4 670.8 896.8 5.5 902.3 Consolidated Statement of Changes in Equity For the year ended 31 December Hunting PLC Annual Report and Accounts 2024 187 Strategic Report Corporate Governance Financial Statements Other Information Restated i Year ended 31 December 2023 Notes Share capital $m Share premium $m Other components of equity ii $m Retained earnings $m Total attributable to owners of the parent $m Non- controlling interests $m Total equity $m At 1 January 2023 66.5 153.0 15.8 609.3 844.6 1.6 846.2 Proﬁt for the year – – – 110.3 110.3 1.9 112.2 Other comprehensive income/(expense) – – 3.1 – 3.1 (0.2) 2.9 Total comprehensive income – – 3.1 110.3 113.4 1.7 115.1 Transfer of cash ﬂow hedging losses to the initial carrying value of hedged items – – 0.3 – 0.3 – 0.3 Dividends paid to Hunting PLC shareholders 36 – – – (15.0) (15.0) – (15.0) Treasury shares: – purchase of treasury shares 35 – – – (9.0) (9.0) – (9.0) – disposal of treasury shares – – – 0.3 0.3 – 0.3 Share options and awards: – value of employee services – – 12.3 – 12.3 – 12.3 – discharge – – (8.3) 7.9 (0.4) – (0.4) – taxation – – – 0.3 0.3 – 0.3 Transfer between reserves – – (14.5) 14.5 – – – At 31 December 2023 66.5 153.0 8.7 718.6 946.8 3.3 950.1 i. Comparative balances have been restated, see note 1. ii. An analysis of other components of equity is provided in note 34. Consolidated Statement of Changes in Equity continued Hunting PLC Annual Report and Accounts 2024 188 Strategic Report Corporate Governance Financial Statements Other Information Consolidated Statement of Cash Flows For the year ended 31 December Notes 2024 $m Restated i 2023 $m Operating activities Operating (loss)/proﬁt (21.1) 51.5 Adjusting items (NGM A) 109.1 8.9 Depreciation, amortisation and impairment (NGM C) 38.3 42.0 EBITDA (NGM C) 126.3 102.4 Share-based payment expense 37 14.1 13.5 Decrease/(increase) in inventories 20.8 (56.7) Increase in receivables (11.4) (19.2) Increase in payables 43.9 20.9 (Decrease)/increase in provisions (2.0) 0.5 Net taxation paid (3.5) (9.1) Net gain on disposal of property, plant and equipment (0.9) (1.7) Proceeds from disposal of property, plant and equipment held for rental 0.3 – Purchase of property, plant and equipment held for rental (NGM N) (1.7) (0.6) Share of associates’ and joint venture’s results 0.1 0.6 Payment of US pension scheme liabilities 32 (0.2) – Other non-cash items 2.7 (1.3) Net cash inﬂow from operating activities 188.5 49.3 Investing activities Interest received 2.4 0.7 Proceeds from disposal of property, plant and equipment 1.2 1.9 Proceeds from disposal of investments 0.2 – Dividend received from associates 16 – 0.6 Investment in associates and joint ventures 16 (0.9) (1.6) Purchase of property, plant and equipment (NGM N) (23.6) (23.1) Purchase of intangible assets (4.8) (10.9) Net cash outﬂow from investing activities (25.5) (32.4) Notes 2024 $m Restated i 2023 $m Financing activities Interest and bank fees paid (15.3) (8.0) Payment of lease liabilities, principal and interest (8.9) (10.4) Increase in bank borrowings 100.0 42.1 Repayments of bank borrowings (44.5) – Dividends paid to Hunting PLC shareholders 36 (16.7) (15.0) Purchase of treasury shares 35 (14.2) (9.0) Proceeds on disposal of treasury shares 0.3 0.3 Net cash inﬂow from ﬁnancing activities 0.7 – Net increase in cash and cash equivalents 163.7 16.9 Cash and cash equivalents at the beginning of the year 44.1 27.3 Effect of foreign exchange rates (2.7) (0.1) Cash and cash equivalents at the end of the year 205.1 44.1 Cash and cash equivalents at the end of the year comprise: Cash and cash equivalents included in current assets 21 206.6 45.5 Bank overdrafts included in borrowings 25 (1.5) (1.4) 205.1 44.1 i. Comparative balances have been restated, see note 1. Hunting PLC Annual Report and Accounts 2024 189 Strategic Report Corporate Governance Financial Statements Other Information Hunting PLC 190 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements 1. Basis of Preparation Hunting PLC is a public company limited by shares, quoted on the London Stock Exchange in the Equity Shares in Commercial Companies (ESCC) category. Hunting PLC was incorporated in the United Kingdom under the Companies Act and is registered in England and Wales. The address of the Company’s registered ofﬁce is 30 Panton Street, London, SW1Y 4AJ, United Kingdom. The principal activities of the Group and the nature of the Group’s operations are set out in the Strategic Report on pages 2 to 112. The ﬁnancial statements consolidate those of Hunting PLC (the “Company”) and its subsidiaries (together referred to as the “Group”), including the Group’s interests in associates and joint ventures and are presented in US Dollars, the currency of the primary economic environment in which the Group operates. The consolidated ﬁnancial statements have been prepared in accordance with United Kingdom adopted international accounting standards and in conformity with the requirements of the Companies Act 2006. The ﬁnancial statements have been prepared on a going concern basis under the historical cost convention as modiﬁed by the revaluation of the US deferred compensation plan and those ﬁnancial assets and ﬁnancial liabilities held at fair value (note 29). The Board’s consideration of the applicability of the going concern basis is detailed further in the Strategic Report on page 111. The material accounting policies applied in the preparation of these ﬁnancial statements are set out in note 40. These policies have been consistently applied to all the years presented. Critical Accounting Judgements and Key Sources of Estimation Uncertainty Critical accounting judgements are those that the Directors have made in the process of applying the Group’s accounting policies and that have the most signiﬁcant effect on the amounts recognised in the Group’s ﬁnancial statements. Key estimates are those concerning future expectations and other key sources of estimation uncertainty at the end of the reporting period, that may have a signiﬁcant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next ﬁnancial year. Critical accounting judgements were made in the following areas: • In determining the point in time at which control is transferred to customers and revenue is recognised, as described in note 40. In the majority of Hunting’s contracts this is straightforward. However, the determination can become more complex in contracts where goods are shipped and conﬁrming shipping documentation, indicating transfer of legal title and an ability to direct the goods, can take a short period of time to be produced and provided to the customer, which can be after the ship has departed port and the transfer of risk has occurred. In applying the Group’s revenue recognition policy, in these instances, the Group’s judgement is to recognise revenue at the point in time when the conﬁrming shipping documentation is provided to the customer which could potentially be in a different accounting period to when the goods are loaded onto the ship and risk transfers, in accordance with incoterms. At 31 December 2024, there was a shipment at sea containing goods with a revenue value of c.$32m. Risk had transferred to the customer per the stated incoterms; however, the conﬁrming shipping documentation had not been produced and, therefore, the Group still had the ability to direct the goods. Management considered the different indicators of control in accordance with IFRS 15 and concluded that Hunting retained control of the goods at 31 December 2024 and, therefore, revenue was recognised in 2025; • In determining if the contractual terms for various signiﬁcant Subsea contracts met the requirements for over time revenue recognition, as described in note 40; and • In considering whether the conditions were appropriate to recognise deferred tax assets (see note 9). The key estimates used in the preparation of the accounts were: • The estimates of future cash ﬂows in the budget and extended forecasts considered in the impairment test for cash generating units and the recoverable amounts (see note 15); and • Estimates of future turn rates by inventory line item in determining inventory provisions (see note 20). The Directors believe that there are no other critical accounting judgements or key estimates applied in the preparation of the consolidated ﬁnancial statements. New and Amended Standards adopted by the Group There are no new standards that came into effect for the current ﬁnancial year. A number of amended standards became effective for the ﬁnancial year beginning on 1 January 2024, however, the Group did not have to change its accounting policies or make retrospective adjustments as a result of adopting these amendments. Future Standards, Amendments and Interpretations The following standards, amendments and interpretations are effective subsequent to the year-end, and have not been early adopted. The Directors do not expect that the adoption of the standards and amendments listed below will have a material impact on the ﬁnancial statements of the Group in future periods, except for IFRS 18, which the Group is assessing. • IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information i • IFRS S2 Climate-related Disclosures i • IFRS 18 Presentation and Disclosures in Financial Statements i • IFRS 19 Subsidiaries without Public Accountability: Disclosures i • Amendments to IAS 21: Lack of Exchangeability ii • Amendments to SASB standards to enhance their international applicability i • Amendments to IFRS 9 and IFRS 7 regarding the classiﬁcation and measurement of ﬁnancial instruments i • Annual Improvements to IFRS Accounting Standards – Volume 11 i i. Not yet endorsed by the UK as at the date of authorisation of the ﬁnancial statements. ii. Mandatory adoption date and effective date for the Company is 1 January 2025. Hunting PLC 191 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 1. Basis of Preparation continued Climate Change The impact of climate change is presented in the Strategic Report on pages 88 to 101. The Directors have considered the potential impact that climate change could have on the ﬁnancial statements of the Group and recognise that climate change is a principal risk that the Group will monitor and react to appropriately. In the judgement of the Directors, the external mid- and long-term forecasts used by the Company incorporate climate change developments, and support the view that there will be robust demand for the Group’s oil- and gas-based products for a signiﬁcant time span. The Group utilises mid-term forecasts to consider whether there are any concerns regarding the carrying values or expected lives of longer-lived assets, including goodwill. Climate-related risks are not expected to have a signiﬁcant adverse impact on the Group’s revenue or EBITDA in the medium- term. The Directors also believe there is signiﬁcant operational adaptability in the Group’s asset base to move into other non-hydrocarbon product lines, if required. Prior Period Restatements (a) Import Tax Provision In July 2024, as part of an internal review, an EMEA business unit was identiﬁed as not following the tax authority’s interpretation of the correct process for importing goods, under speciﬁc contracts, in their jurisdiction and thus had not paid amounts which would have been due based on the tax authority’s guidance in place at the time. The business is working with the tax authority to regularise the position. While no incremental proﬁt or cash ﬂow was recognised, resolution is dependent upon discretion by the authority, and therefore an exposure exists. A provision of $9.5m was recognised at 30 June 2024, which represented the Group’s best estimate of the potential liability at that date. The carrying value of the provision at 31 December 2024 reduced to $8.6m following ongoing dialogue with the tax authority and a review of the assumptions. This amount is expected to be settled within 12 months. The provision contains uncertainties with respect to the amount of the liability, including whether there are any mitigations available, relief that can be utilised or penalties which may be incurred. The Group has reviewed all the periods which could potentially be impacted and evaluated its controls such that no further exposure existed after 30 June 2024. Of the total provision, an amount totalling $9.1m related to 2023. As the information necessary to identify this issue and make a provision existed in prior periods, and management considers the impact to prior periods to be material to the Group, the 2023 ﬁnancial statements and related notes have been corrected by restating the respective ﬁnancial statement line items in accordance with IAS 8 (see note 41). There is no material impact to the opening position at 1 January 2023. The above stated values are the amounts that would be recognised on the balance sheet as a provision at the end of each period. The actual amounts charged to the income statement in each period differ due to the impact of foreign exchange rate changes. The corresponding expense has been included in administrative expenses within the income statement as this presentation most appropriately reﬂects the nature of the adjustment. Additionally, a deferred tax asset and related income statement tax credit were recognised in 2023 as management expects the expense to reduce future taxable income when the provision is released or utilised. Due to their size and nature, the amounts relating to 2023 have been disclosed separately as required by IAS 1 and have been presented as adjusting items (NGM A), as described in note 5. Further information regarding the process relating to the recognition of deferred tax assets is included in note 9. (b) Presentation of Associates’ and Joint Venture’s results On 1 January 2024, the Group changed its accounting policy to present its share of associates’ and joint venture’s results as part of operating proﬁt and has represented the results for the year ending 31 December 2023 on this basis, with operating proﬁt and EBITDA decreasing by $0.6m. With the mobilisation of the joint venture with Jindal SAW in the second half of 2023, the reclassiﬁcation reﬂects a more appropriate presentation of the share of associates’ and joint venture’s results, aligning them with Hunting’s core operating business. The share of associates’ and joint venture’s results arose in the North America operating segment ($0.4m loss) and the Asia Paciﬁc operating segment ($0.2m loss) in the year ending 31 December 2023. This reclassiﬁcation had no impact on the proﬁt for the year, the net assets or cash and cash equivalents in 2023. The impacts to the Group’s ﬁnancial statements in 2023 are outlined in note 41. 2. Segmental Reporting For the year ended 31 December 2024, the Group has been reporting on ﬁve operating segments in its internal management reports, which are used to make strategic decisions by the Hunting PLC Board, the Group’s Chief Operating Decision Maker. The Hunting PLC Board examines the Group’s performance mainly from a geographic perspective, based on the location of the operating activities, as well as by product group, in order to understand the drivers of Group performance and trends. Due to their size and/or nature of their operations, Hunting Titan and Subsea Technologies are reported separately. There is no aggregation of operating segments. The Board assesses the performance of the operating segments based on revenue and adjusted operating results. Adjusted operating result is reported operating proﬁt excluding adjusting items (see NGM A). Finance income and ﬁnance expense are not allocated to operating segments as this type of activity is overseen by the Group’s central treasury function which manages the funding position of the Group. Inter-segment sales are priced in line with the transfer pricing policy on an arm’s length basis and are eliminated on consolidation. Costs and overheads are apportioned to the operating segments on the basis of level of activity and time attributed to those operations by senior executives. Accounting policies used for segmental reporting reﬂect those used for the Group. The domicile of Hunting PLC is the UK. Hunting PLC 192 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 2. Segmental Reporting continued (a) Segment Revenue and Proﬁt 2024 Total Inter- Total Adjusted Reported segment segment external operating Adjusting operating revenue revenue revenue result items i result $m $m $m $m $m $m Hunting Titan 230.3 (9.8) 220.5 (8.3) (109.1) (117.4) North America 388.4 (31.1) 357.3 45.5 – 45.5 Subsea Technologies 147.1 – 147.1 25.6 – 25.6 EMEA 87.7 (1.1) 86.6 (12.4) – (12.4) Asia Paciﬁc 240.6 (3.2) 237.4 37.6 – 37.6 Total 1,094.1 (45.2) 1,048.9 88.0 (109.1) (21.1) Net ﬁnance expense (12.4) – (12.4) Proﬁt/(loss) before tax 75.6 (109.1) (33.5) Restated ii 2023 Total Inter- Total Adjusted Reported segment segment external operating Adjusting operating revenue revenue revenue result items i result $m $m $m $m $m $m Hunting Titan 259.2 (9.0) 250.2 12.7 – 12.7 North America 374.7 (35.4) 339.3 33.7 – 33.7 Subsea Technologies 98.6 – 98.6 8.0 – 8.0 EMEA 88.2 (1.5) 86.7 (2.3) (8.9) (11.2) Asia Paciﬁc 157.6 (3.3) 154.3 8.3 – 8.3 Total 978.3 (49.2) 929.1 60.4 (8.9) 51.5 Net ﬁnance expense (10.4) – (10.4) Proﬁt before tax 50.0 (8.9) 41.1 i. Adjusting items are disclosed in note 5. ii. Comparative balances have been restated, see note 1. Hunting PLC 193 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 2. Segmental Reporting continued (a) Segment Revenue and Proﬁt continued A breakdown of external revenue by products and services is presented below: 2024 2023 $m $m Perforating Systems 222.7 243.8 OCTG 463.7 395.8 Advanced Manufacturing 126.9 112.1 Subsea 147.1 98.6 Other Manufacturing 88.5 78.8 Total 1,048.9 929.1 Revenue from products is further analysed between: Oil and gas 973.8 853.2 Non-oil and gas 75.1 75.9 Total 1,048.9 929.1 (b) Other Segment Items 2024 2023 Impairment Impairment Impairment Impairment of non-current of current of non-current of current Depreciation i Amortisation assets ii assets iii Depreciation i Amortisation assets ii assets iii $m $m $m $m $m $m $m $m Hunting Titan 7.2 1.7 109.1 2.6 7.5 1.7 – 2.9 North America 15.7 1.0 – 3.4 17.9 2.0 0.2 1.6 Subsea Technologies 2.3 2.1 – 0.4 2.4 1.9 1.4 0.2 EMEA 3.9 0.6 – 2.0 3.4 0.6 – 0.3 Asia Paciﬁc 3.3 0.5 – 0.6 2.6 0.4 – 1.6 Total 32.4 5.9 109.1 9.0 33.8 6.6 1.6 6.6 i. Depreciation in 2024 comprises depreciation of property, plant and equipment of $25.2m (2023 – $27.2m) and depreciation of right-of-use assets of $7.2m (2023 – $6.6m). ii. Impairment of non-current assets comprises impairment of goodwill of $109.1m (2023 – $1.4m) and impairment of right-of-use assets of $nil (2023 – $0.2m). The $109.1m impairment of goodwill in 2024 is presented as an adjusting item, see note 5. iii. Impairment of current assets comprises the net impairment of inventories of $8.2m (2023 – $5.7m) and the net impairment of trade and other receivables of $0.8m (2023 – $0.9m). Hunting PLC 194 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 2. Segmental Reporting continued (c) Geographical Segment Information Information on the physical location of non-current assets is presented below. The allocated non-current assets below exclude deferred tax assets. Restated i 2024 2023 $m $m Hunting Titan – US 67.9 177.2 Hunting Titan – Canada 1.8 2.4 Hunting Titan – Other 2.0 2.7 Hunting Titan 71.7 182.3 North America – US 199.7 213.4 North America – Canada 1.5 0.7 North America 201.2 214.1 Subsea Technologies – US 39.4 38.0 Subsea Technologies – UK ii 20.2 21.4 Subsea Technologies 59.6 59.4 EMEA – UK ii 20.6 19.6 EMEA – Rest of Europe 4.4 5.0 EMEA – Middle East 4.3 4.3 EMEA 29.3 28.9 Asia Paciﬁc – China 10.8 9.4 Asia Paciﬁc – Indonesia 3.4 2.9 Asia Paciﬁc – Singapore 9.0 5.6 Asia Paciﬁc 23.2 17.9 Unallocated assets: Deferred tax assets 108.5 95.2 Total non-current assets 493.5 597.8 i. Comparative balances have been restated, see note 1. ii. The value of non-current assets located in the UK, the Group’s country of domicile, is $40.8m (2023 – $41.0m). Revenue from external customers attributable to the UK, the Group’s country of domicile, included in the Subsea Technologies and EMEA operating segments, is $41.3m (2023 – $34.7m). Revenue attributable to foreign countries totalled $1,007.6m (2023 – $894.4m). Revenue attributable to the US, the Group’s largest individual foreign country where revenue is earned, is $646.2m (2023 – $619.8m), which represents 62% (2023 – 67%) of the Group’s revenue from external customers. Revenue attributed to an individual country is based on where the invoice is raised, however, customers can either be domestic or international customers. (d) Major Customer Included in external revenue is revenue of $140.7m which arose from sales to our distributor for orders to Kuwait Oil Company (2023 – $79.8m sales to Halliburton Company Group (“Halliburton”)), the Group’s largest customer. This represents 13% (2023 – 9%) of the Group’s revenue from external customers. All of this revenue arose within the Asia Paciﬁc operating segment (2023 – all of Hunting’s operating segments except for Subsea Technologies beneﬁted from trading with Halliburton). Hunting PLC 195 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 3. Revenue In the following tables, a breakdown of the Group’s different revenue streams by segment has been given, including the disaggregation of revenue from contracts with customers. 2024 Revenue Total from contracts Rental Other external with customers revenue revenue revenue $m $m $m $m Hunting Titan 220.0 0.5 – 220.5 North America 355.1 2.2 – 357.3 Subsea Technologies 147.1 – – 147.1 EMEA 82.8 3.8 – 86.6 Asia Paciﬁc 237.2 0.2 – 237.4 Total 1,042.2 6.7 – 1,048.9 2023 Revenue Total from contracts Rental Other external with customers revenue revenue revenue $m $m $m $m Hunting Titan 248.9 1.3 – 250.2 North America 336.6 1.7 1.0 339.3 Subsea Technologies 98.6 – – 98.6 EMEA 82.0 4.7 – 86.7 Asia Paciﬁc 154.1 0.2 – 154.3 Total 920.2 7.9 1.0 929.1 Revenue is typically recognised for products when the product is shipped or made available to customers for collection, or over time as control of the product is transferred to customers, and for services either on completion of the service or, at a minimum, monthly for services covering more than one month. Of the total external revenue, $805.6m (2023 – $726.3m) was recognised at a point in time and $243.3m (2023 – $202.8m) was recognised over time. The Group’s revenue recognised over time is predominantly within the North America and Subsea Technologies operating segments. The amount of consideration is not adjusted for the effects of a signiﬁcant ﬁnancing component as, at contract inception, the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. 4. Net Operating Income and Other Expenses 2024 2023 $m $m Operating income from leasing assets (note 24) 1.4 2.7 Gain on disposal of property, plant and equipment 1.3 2.2 Government grants 0.1 0.2 Foreign exchange gains i 2.6 1.1 Other income ii 2.4 1.8 Total operating income 7.8 8.0 Loss on disposal of property, plant and equipment (0.4) (0.5) Foreign exchange losses iii (3.1) (0.3) Research and development costs expensed (6.6) (4.7) Other operating expenses iv (0.1) (0.1) Total other operating expenses (10.2) (5.6) Net operating income and other expenses (2.4) 2.4 i. Includes fair value gains on derivatives designated in a cash ﬂow hedge of $0.2m (2023 – $0.3m). ii. Includes fair value gains on derivatives not designated in a hedge of $0.1m (2023 – $0.1m). iii. Includes fair value losses on derivatives designated in a fair value hedge of $0.7m (2023 – $nil). iv. Includes fair value losses on derivatives not designated in a hedge of $0.1m (2023 – $0.1m). Hunting PLC 196 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 5. Adjusting Items Due to their size and nature, the following items have been disclosed separately, as required by IAS 1. 2024 Gross Tax amount impact $m $m Impairment of goodwill (109.1) 27.8 Following the annual review of goodwill, an impairment charge of $109.1m was recognised in relation to Hunting Titan (note 15). The impairment charge relates entirely to goodwill and has been presented separately on the face of the consolidated income statement. An associated deferred tax credit of $27.8m has been recognised reﬂecting the reduction in the book value for deferred tax purposes for tax deductible goodwill in the US. Restated i 2023 Gross Tax amount impact $m $m Recognition of US deferred tax assets – 83.1 Import tax provision (8.9) 2.1 Total (8.9) 85.2 i. Comparative balances have been restated, see note 1. During 2023, previously unrecognised US deferred tax assets of $83.1m were recognised on the balance sheet, reﬂecting the improved proﬁtability in the US which resulted in the criteria for recognition being met (note 9). The related tax credit in the income statement was presented as an adjusting item (NGM A). Adjusting items for the year ended 31 December 2023 have been restated to include a provision of $8.9m for import tax relating to one of the business units in the EMEA operating segment, which had not followed the correct processes for importing goods (NGM A), see note 1. These costs were included within administrative expenses. Additionally, a deferred tax asset and related income statement tax credit of $2.1m were recognised as management expects the expense to reduce future taxable income when the provision is released or utilised. 6. Operating (Loss)/Proﬁt The following items were charged/(credited) in arriving at operating (loss)/proﬁt: 2024 2023 $m $m Staff costs (note 7) 228.1 218.5 Depreciation of property, plant and equipment (note 11) 25.2 27.2 Amortisation of intangible assets (included in cost of sales and administrative expenses) (note 14) 5.9 6.6 Impairment of goodwill (included in administrative expenses in 2023) (note 13) 109.1 1.4 Impairment of trade and other receivables (note 18) 0.8 0.9 Net gain on disposal of property, plant and equipment (note 4) (0.9) (1.7) Net lease charges included in operating proﬁt (note 24) 9.3 8.6 Research and development costs expensed (note 4) 6.6 4.7 Fees payable to the Group’s independent auditor and its associates are for: 2024 2023 $m $m The audit of these ﬁnancial statements 3.1 2.8 The audit of the ﬁnancial statements of the Company’s subsidiaries 0.7 0.5 Total audit 3.8 3.3 Audit-related assurance services 0.3 0.2 Total audit and audit-related services 4.1 3.5 7. Employees 2024 2023 $m $m Wages and salaries (including annual cash bonuses) 189.9 183.4 Social security costs 14.8 13.6 Share-based payments (note 37) 14.1 13.5 Pension costs – deﬁned contribution schemes (note 32) 9.3 8.2 – unfunded deﬁned beneﬁt schemes – US and Middle East (note 32) 0.5 0.3 Net gains on the unfunded deﬁned beneﬁt schemes included in net ﬁnance expense (note 32) (0.1) – Staff costs for the year 228.5 219.0 Hunting PLC 197 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 7. Employees continued Staff costs for the year included in the ﬁnancial statements are as follows: 2024 2023 $m $m Total staff costs included in operating proﬁt (note 6) 228.1 218.5 Net gains on the unfunded deﬁned beneﬁt schemes included in net ﬁnance expense (note 32) (0.1) – Staff costs capitalised as R&D 0.5 0.5 228.5 219.0 The average monthly number of employees by geographical area (including executive Directors) during the year was: 2024 2023 Number Number North America 1,661 1,672 Europe 286 261 Asia Paciﬁc 365 324 Central America, Middle East and Africa 111 104 2,423 2,361 The average monthly number of employees by operating segment (including executive Directors) during the year was: 2024 2023 Number Number Hunting Titan 565 647 North America 911 868 Subsea Technologies 217 180 EMEA 276 261 Asia Paciﬁc 365 324 Central 89 81 2,423 2,361 The actual number of employees at the year-end was 2,367 (2023 – 2,420). Key management comprises the Board and the ten members of the Executive Committee who acted during the year (2023 – ten). Their aggregate remuneration in the year was: 2024 2023 $m $m Salaries, annual cash bonuses and short-term employee beneﬁts 9.5 9.8 Post-employment beneﬁts 0.8 0.4 Share-based payments 6.7 5.7 17.0 15.9 Remuneration of the Board, included as part of key management compensation, can be found in the Annual Report on Remuneration on pages 136 to 160. The Annual Report on Remuneration disclosures do not include Executive Committee members who are not part of the Board and disclose share scheme remuneration on a vested rather than an accruals basis. Short-term employee beneﬁts comprise healthcare insurance, company cars and fuel beneﬁts. Post-employment beneﬁts comprise employer pension contributions. Share-based payments comprise the charge to the consolidated income statement. The total amounts for Directors’ remuneration in accordance with Schedule 5 to the Accounting Regulations were as follows: 2024 2023 $m $m Salaries, annual cash bonuses and short-term employee beneﬁts 3.9 4.0 Gains on exercise of share awards i 6.5 1.3 Post-employment beneﬁts 0.2 0.2 10.6 5.5 i. The gain on exercise of share awards in 2023 has been restated to $1.3m (previously reported $1.2m). The Group contributes on behalf of the Chief Executive to a US 401k deferred savings plan and an additional deferred compensation scheme. The Finance Director receives an annual cash sum in lieu of contributions to a company pension scheme. Hunting PLC 198 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 8. Net Finance Expense 2024 2023 $m $m Finance income: Interest received on bank balances and deposits 0.5 0.2 Foreign exchange gains i 0.6 0.1 Fair value gains on money market funds 0.9 – Fair value gains on non-hedging derivative ﬁnancial instruments 0.9 0.4 Other ﬁnance income 0.3 0.2 3.2 0.9 Finance expense: Interest on lease liabilities (1.4) (1.3) Bank fees and commissions (3.4) (2.9) Interest on bank borrowings (4.9) (5.2) Foreign exchange losses (1.2) (0.6) Other ﬁnance expense ii (4.7) (1.3) (15.6) (11.3) Net ﬁnance expense (12.4) (10.4) i. Foreign exchange gains include gains of $0.1m (2023 – $nil) in relation to lease liabilities. ii. Other ﬁnance expense includes fair value losses on derivatives not designated in a hedge of $0.5m (2023 – $0.2m), fair value losses on derivatives designated in a cash ﬂow hedge of $1.7m (2023 – $0.1m) and in a fair value hedge of $0.6m (2023 – $nil) and losses on derecognition of ﬁnancial assets recognised at amortised cost arising on letter of credit discounting and interest incurred in respect of trade receivable purchasing programmes of $1.7m (2023 – $0.1m). 9. Taxation Restated i 2024 2023 $m $m Current tax: Current year charge (8.7) (8.4) Adjustments in respect of prior years (0.1) 0.4 (8.8) (8.0) Deferred tax: Origination and reversal of temporary differences 15.9 (4.6) Adjustments in respect of prior years 0.9 0.6 Recognition of US deferred tax assets – 83.1 16.8 79.1 Taxation credit 8.0 71.1 i. Comparative balances have been restated, see note 1. The tax credit for the year was $8.0m (restated 2023 – $71.1m) and the effective tax rate (“ETR”) was 24% (restated 2023 – minus 173%). The Group’s ETR is broadly in line with what might be expected from prevailing jurisdictional rates and the difference arises from distortion caused when deferred tax is not fully recognised in loss-making jurisdictions, as was the situation in prior years. In 2023, the Group’s ETR was signiﬁcantly different to that which might be expected from prevailing jurisdictional rates as the recognition of the US deferred tax asset during the year distorted the IFRS reported effective tax rate considerably. When adjusting items are excluded, the Group’s adjusted ETR is 26% (2023 – 28%). The calculation of the adjusted tax charge and adjusted effective tax rate can be found in NGM D. The adjustments in respect of prior years within both current tax and deferred tax, totalling a credit of $0.8m (2023 – $1.0m) mainly relate to true-ups of prior year balances. The table below reconciles the tax on the Group’s (loss)/proﬁt before tax to a weighted average tax rate for the Group based on the tax rates applicable to each entity in the Group. A weighted average applicable rate for the year of 29% (2023 – 23%) was used as this reﬂects the applicable rates for the countries applied to their respective proﬁts/losses in the year. The total tax credit for the year is different to the weighted average rate of tax of 29% (2023 – 23%) for the following reasons: Restated i 2024 2023 $m $m (Loss)/proﬁt before tax (33.5) 41.1 Tax at 29% (2023 – 23%) 9.8 (9.4) Permanent differences including tax credits (0.2) (2.7) Current year deferred tax not recognised (2.3) (0.6) Recognition of previously unrecognised deferred taxes – 83.1 Difference in tax rates (0.1) (0.3) Adjustments in respect of prior years 0.8 1.0 Taxation credit 8.0 71.1 i. Comparative balances have been restated, see note 1. Hunting PLC 199 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 9. Taxation continued Tax effects relating to each component of other comprehensive income were as follows: Restated i 2024 2023 Before tax Tax credited After tax Before tax Tax credited After tax $m $m $m $m $m $m Exchange adjustments (4.3) – (4.3) 3.4 – 3.4 Fair value losses arising on cash ﬂow hedges during the year (0.8) 0.1 (0.7) (0.3) – (0.3) Fair value gains reclassiﬁed to proﬁt or loss (0.2) 0.1 (0.1) (0.3) 0.1 (0.2) Remeasurement of deﬁned beneﬁt pension schemes (0.1) – (0.1) – – – (5.4) 0.2 (5.2) 2.8 0.1 2.9 i. Comparative balances have been restated, see note 1. The tax relating to the components of other comprehensive income comprises a deferred tax credit of $0.2m (2023 – $0.1m). Tax-related Judgements The Group is subject to income taxes in numerous jurisdictions and signiﬁcant judgement is required in determining the worldwide provision for those taxes, as tax legislation can be complex and open to different interpretation. Deferred tax assets are only recognised to the extent that it is probable that future taxable proﬁts will be available, against which the temporary differences can be utilised. The recoverability of deferred tax assets is supported by deferred tax liabilities against which the reversal can be offset as well as the expected level of future proﬁts. This is considered by jurisdiction, or by entity, dependent on the tax laws of the jurisdiction. Where there is both a history of loss making and continued loss making in the year, stronger supporting evidence is required to meet recognition policy criteria. Supporting evidence reviewed includes: whether actual results, when excluding non-recurring items, meet or exceed budget; the level of taxable proﬁts generated in the base case and downside case of longer-term forecasts; and the nature of how the deferred tax assets arose and how this relates to the ongoing activities of the business. The recognition of deferred tax assets as at 31 December 2024 has been based on the forecast accounting proﬁts in the 2025 and 2026 budget and the extended forecast period as presented to the Board. This is the same forecast that is used to derive cash ﬂows for the impairment testing of non-current assets, per note 15. For periods beyond the extended forecast period, proﬁts have been assumed to grow in a manner consistent with the terminal growth rate assumptions used for impairment testing. In addition, a risk factor has been applied to reduce future proﬁts for the extended forecast period and beyond. These adjustments are to reﬂect the potential decrease in reliability of forecasts for future periods beyond the Board-approved budget period. Historical tax losses make up the majority of the deductible temporary differences. These losses mainly arose from varying factors including non-recurring events such as losses arising at the start of newly-formed businesses and losses arising from periods of economic downturn, such as during the COVID-19 pandemic. Historically, the majority of the deferred tax not recognised in the Group was in relation to deferred tax arising in the US. As a result of the recognition of deferred tax in the US in the year ended 31 December 2023, the level of deferred tax not recognised across the Group signiﬁcantly reduced. The level has increased slightly in the year ended 31 December 2024, largely due to current year losses in jurisdictions where deferred tax was not recognised in the prior year. Management will continue to monitor the position in those jurisdictions where deferred tax is not recognised. The main jurisdiction where there was a change in deferred tax recognition in the year ended 31 December 2023 is the US. The estimated taxable proﬁts in the year ended 31 December 2024 and revised budget and extended forecast continue to support full recognition of the deferred tax asset in the US. Hunting PLC 200 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 10. (Loss)/Earnings per Share Basic (loss)/earnings per share (“(LPS)/EPS”) is calculated by dividing (loss)/earnings attributable to Ordinary shareholders by the weighted average number of Ordinary shares outstanding during the year. For diluted (loss)/earnings per share, the weighted average number of outstanding Ordinary shares was adjusted to assume conversion of all dilutive potential Ordinary shares. Dilution arises through the possible issue of shares to satisfy awards made under the Group’s long-term incentive plans. Reconciliations of the (loss)/earnings and weighted average number of Ordinary shares used in the calculations are set out below: Restated i 2024 2023 Loss attributable Basic weighted Earnings attributable Basic weighted to Ordinary average number of Loss to Ordinary average number of Earnings shareholders Ordinary shares per share shareholders Ordinary shares per share $m millions cents $m millions cents Basic (LPS)/EPS (28.0) 159.1 (17.6) 110.3 158.6 69.5 Effect of dilutive long-term incentive plans ii – 10.4 – – 8.7 (3.6) Diluted (LPS)/EPS (28.0) 169.5 (17.6) 110.3 167.3 65.9 i. Comparative balances have been restated, see note 1. ii. For the year ended 31 December 2024, the Group reported a loss, therefore, the effect of dilutive long-term incentive plans was anti-dilutive. As such, they were disregarded in the calculation of diluted loss per share. The calculation of adjusted earnings per share is presented in NGM B. 11. Property, Plant and Equipment 2024 Plant, machinery Land and and motor buildings vehicles Rental tools Total $m $m $m $m Cost: At 1 January 2024 258.3 345.3 26.3 629.9 Exchange adjustments (0.8) (1.7) (0.4) (2.9) Additions 1.4 22.1 1.7 25.2 Disposals (6.8) (6.6) (1.8) (15.2) Reclassiﬁcation from inventories (note 20) – – 1.7 1.7 Reclassiﬁcations 0.3 0.4 (0.7) – At 31 December 2024 252.4 359.5 26.8 638.7 Accumulated depreciation and impairment: At 1 January 2024 (85.5) (271.6) (18.3) (375.4) Exchange adjustments 0.5 1.6 0.2 2.3 Depreciation charge for the year (6.2) (17.3) (1.7) (25.2) Disposals 4.9 5.8 1.7 12.4 Reclassiﬁcations – (0.4) 0.4 – At 31 December 2024 (86.3) (281.9) (17.7) (385.9) Net book amount 166.1 77.6 9.1 252.8 Hunting PLC 201 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 11. Property, Plant and Equipment continued 2023 Plant, machinery Oil and gas Land and and motor exploration and buildings vehicles Rental tools development Total $m $m $m $m $m Cost: At 1 January 2023 255.5 331.7 24.1 112.3 723.6 Exchange adjustments 2.0 1.5 0.8 – 4.3 Additions 1.0 21.4 0.6 0.1 23.1 Disposals (0.1) (9.6) (0.5) (112.4) (122.6) Reclassiﬁcation from inventories (note 20) – – 1.5 – 1.5 Reclassiﬁcations (0.1) 0.3 (0.2) – – At 31 December 2023 258.3 345.3 26.3 – 629.9 Accumulated depreciation and impairment: At 1 January 2023 (77.9) (262.9) (16.2) (109.9) (466.9) Exchange adjustments (1.3) (1.3) (0.5) – (3.1) Depreciation charge for the year (6.3) (16.7) (2.2) (2.0) (27.2) Disposals – 9.4 0.5 111.9 121.8 Reclassiﬁcations – (0.1) 0.1 – – At 31 December 2023 (85.5) (271.6) (18.3) – (375.4) Net book amount 172.8 73.7 8.0 – 254.5 The net book amount of property, plant and equipment at 1 January 2023 was $256.7m. During 2023, the Group disposed of oil and gas exploration and development assets with a net book value of $0.5m. These legacy assets were owned by Tenkay Resources, Inc and reported as part of the North America operating segment. Included in the net book amount is expenditure relating to assets in the course of construction of $0.2m (2023 – $0.2m) for buildings and $0.8m (2023 – $0.7m) for plant and machinery. Group capital expenditure committed for the purchase of property, plant and equipment, but not provided for in these ﬁnancial statements, amounted to $2.5m as at 31 December 2024 (2023 – $7.0m). The net book amount of land and buildings of $166.1m (2023 – $172.8m) comprises freehold land and buildings of $163.1m (2023 – $169.2m) and capitalised leasehold improvements of $3.0m (2023 – $3.6m). The net book amount of land and buildings that are leased out is $3.5m at 31 December 2024 (2023 – $4.8m). In accordance with the requirements of the Group’s committed ABL bank facility, security was granted over speciﬁc items of property, plant and equipment that had a carrying value of $137.8m at 31 December 2023. The ABL facility was cancelled in October 2024 and replaced with an earnings-based facility that does not require security over assets. Hunting PLC 202 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 12. Right-of-use Assets 2024 Plant, machinery Land and and motor buildings vehicles Total $m $m $m Cost: At 1 January 2024 65.0 3.0 68.0 Exchange adjustments (1.5) – (1.5) Additions 2.6 0.1 2.7 Lease cessations (9.1) (0.1) (9.2) Modiﬁcations 7.0 – 7.0 At 31 December 2024 64.0 3.0 67.0 Accumulated depreciation and impairment: At 1 January 2024 (40.3) (1.5) (41.8) Exchange adjustments 0.9 0.2 1.1 Depreciation charge for the year (6.6) (0.6) (7.2) Lease cessations 9.1 0.1 9.2 At 31 December 2024 (36.9) (1.8) (38.7) Net book amount 27.1 1.2 28.3 2023 Plant, machinery Land and and motor buildings vehicles Total $m $m $m Cost: At 1 January 2023 60.7 2.1 62.8 Exchange adjustments 0.4 0.1 0.5 Additions 5.4 0.8 6.2 Lease cessations (2.2) (0.2) (2.4) Modiﬁcations 0.7 0.2 0.9 At 31 December 2023 65.0 3.0 68.0 Accumulated depreciation and impairment: At 1 January 2023 (35.8) (1.0) (36.8) Exchange adjustments (0.4) (0.2) (0.6) Depreciation charge for the year (6.1) (0.5) (6.6) Impairment of assets (0.2) – (0.2) Lease cessations 2.2 0.2 2.4 At 31 December 2023 (40.3) (1.5) (41.8) Net book amount 24.7 1.5 26.2 The net book amount of right-of-use assets at 1 January 2023 was $26.0m. The Group sub-leases certain right-of-use assets under operating leases. The net book amount of items that are sub-leased included in the table above is $1.4m (2023 – $2.1m) for land and buildings. Included in land and buildings in 2024 were lease cessations relating to facilities in Canada, the US and Singapore that were fully depreciated and lease modiﬁcations in Hunting Titan and the US where property leases were extended. In 2023, land and buildings additions included $2.1m for a new lease for Hunting’s Dubai operations, $1.6m relating to a new lease in the US and $1.4m for a lease renewal in Saudi Arabia. 13. Goodwill 2024 2023 $m $m Cost: At 1 January 529.1 527.1 Exchange adjustments (2.2) 2.0 At 31 December 526.9 529.1 Accumulated impairment: At 1 January (374.7) (371.6) Exchange adjustments 2.0 (1.7) Impairment of assets (note 15(b)) (109.1) (1.4) At 31 December (481.8) (374.7) Net book amount 45.1 154.4 The net book amount of goodwill at 1 January 2023 was $155.5m. Details of the allocation of goodwill by cash-generating unit (“CGU”), the impairment testing of goodwill and associated disclosures, including sensitivities, are given in note 15(b). Hunting PLC 203 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 14. Other Intangible Assets 2024 Patented Customer technology and Unpatented relationships trademarks technology Software Other Total $m $m $m $m $m $m Cost: At 1 January 2024 7.5 75.2 84.8 23.1 4.6 195.2 Exchange adjustments (0.1) (0.2) (0.2) (0.1) (0.1) (0.7) Additions – 0.4 2.2 1.9 0.3 4.8 Disposals – (0.4) – (0.4) (0.1) (0.9) At 31 December 2024 7.4 75.0 86.8 24.5 4.7 198.4 Accumulated amortisation and impairment: At 1 January 2024 (2.9) (63.6) (75.0) (10.7) (2.2) (154.4) Exchange adjustments 0.1 0.1 0.1 0.1 – 0.4 Amortisation charge for the year (0.8) (1.7) (0.7) (2.3) (0.4) (5.9) Disposals – 0.4 – 0.4 0.1 0.9 At 31 December 2024 (3.6) (64.8) (75.6) (12.5) (2.5) (159.0) Net book amount 3.8 10.2 11.2 12.0 2.2 39.4 2023 Patented Customer technology and Unpatented relationships trademarks technology Software Other Total $m $m $m $m $m $m Cost: At 1 January 2023 7.1 73.7 82.4 16.6 3.5 183.3 Exchange adjustments 0.4 0.7 0.2 0.2 0.2 1.7 Additions – 0.8 2.2 7.0 0.9 10.9 Disposals – – – (0.7) – (0.7) At 31 December 2023 7.5 75.2 84.8 23.1 4.6 195.2 Accumulated amortisation and impairment: At 1 January 2023 (2.0) (61.7) (73.3) (8.8) (1.8) (147.6) Exchange adjustments (0.2) (0.2) (0.2) (0.3) – (0.9) Amortisation charge for the year (0.7) (1.7) (1.5) (2.3) (0.4) (6.6) Disposals – – – 0.7 – 0.7 At 31 December 2023 (2.9) (63.6) (75.0) (10.7) (2.2) (154.4) Net book amount 4.6 11.6 9.8 12.4 2.4 40.8 Hunting PLC 204 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 14. Other Intangible Assets continued The net book amount of other intangible assets at 1 January 2023 was $35.7m. All intangible assets are regarded as having a ﬁnite life and are amortised accordingly. Amortisation charges relating to intangible assets were charged to cost of sales and administrative expenses in the consolidated income statement. Internally generated intangible assets have been included within patented and unpatented technology as shown in the table below: 2024 2023 Internally Internally Internally Internally generated generated generated generated patented unpatented patented unpatented technology technology technology technology $m $m $m $m Cost: At 1 January 13.0 31.4 12.1 29.0 Exchange adjustments (0.1) (0.2) 0.2 0.2 Additions 0.4 2.2 0.7 2.2 At 31 December 13.3 33.4 13.0 31.4 Accumulated amortisation and impairment: At 1 January (7.2) (21.6) (6.5) (19.9) Exchange adjustments 0.1 0.1 – (0.2) Amortisation charge for the year (0.7) (0.7) (0.7) (1.5) At 31 December (7.8) (22.2) (7.2) (21.6) Net book amount 5.5 11.2 5.8 9.8 15. Impairment of Non-current Assets (a) Impairment Testing Process (i) Cash-generating Units (“CGUs”) The Group has an annual impairment testing date of 30 September. In Hunting, CGUs are generally separate business units. In certain cases, combinations of business units that are tightly integrated through inter-company trading, shared management or cost base are treated as a CGU. In 2024, the US Subsea CGU was split into two separate CGUs; Subsea Stafford and Subsea Spring. The goodwill previously held in the US Subsea CGU arose on the acquisition of Subsea Stafford and, therefore, has been allocated entirely to this CGU. The recoverable amount of each CGU was determined using a value-in-use method which uses discounted cash ﬂow projections. The key assumptions for the value-in-use calculations are revenue growth rates, taking into account the impact these have on margins, terminal growth rates and the discount rates applied. For 2025 and 2026, cash ﬂows are based on the latest detailed budget, as approved by the Board. For 2027 to 2029, management made revenue projections using Spears & Associates Drilling & Production Outlook independent reports as a default basis, selecting the most appropriate geographic markets and drivers (rig count, footage drilled or exploration and production spend) for each CGU. Management applied judgemental changes to revenue growth expectations, if appropriate, to reﬂect circumstances speciﬁc to the CGU. Having determined the projected revenues, management modelled the expected impact on margins and cash ﬂow from the resulting revenue projections. This process can give a diverse range of outcomes depending on market or business speciﬁc conditions. Compound annual growth rates (“CAGR”) for revenue for the CGUs from 2024 to 2029 vary between (3)% and 22% (2023 – CAGR from 2023 to 2028 vary between 5% and 20%). The weighted average growth rate for revenue from 2024 to 2029 was 4% (2023 – from 2023 to 2028 was 9%). After 2029, a terminal value was calculated assuming growth of 2% (2023 – 50 basis points above assumed inﬂation, giving nominal growth rates between 2% and 6%). Fundamentally, this long-term growth is based on a proxy for global long-term inﬂation taking into consideration more developed and developing markets. Cash ﬂows were discounted using nominal pre-tax rates between 9% and 14% (2023 – 12% and 17%). The discount rates reﬂected current market assessments of the equity market risk premiums, the volatility of returns, the risks associated with the cash ﬂows, the likely external borrowing rate of the CGU and expected levels of leverage. Consideration was also given to other factors such as a size premium, currency risk, operational risk and country risk. Required returns on equity were determined using the capital asset pricing model, which is then incorporated into a weighted average cost of capital calculation. Risk free rates are determined using long-dated government borrowing instruments. Management have also considered indicators of impairment in the carrying value of the assets, including the excess of the value calculated under the value-in-use methodology described above, compared to the Group’s market capitalisation, and any changes after the impairment testing date in external or internal sources of information, which might indicate an asset is impaired. (ii) Impairment Tests for Individual Assets For individual assets, an impairment test is conducted if there are indicators of impairment. Impairment arises when the carrying value of the asset is greater than the higher of either its fair value less costs of disposal, or its value-in-use. The fair value less costs of disposal or the value-in-use is a Level 3 measurement per the fair value hierarchy as deﬁned within IFRS 13 due to unobservable inputs used in the valuation. If the cash ﬂows of an asset cannot be assessed individually, then the asset or a group of assets are aggregated into a CGU and tested as described above. Hunting PLC 205 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 15. Impairment of Non-current Assets continued (b) Impairment Tests for Goodwill (i) Allocation Goodwill is allocated to the Group’s CGUs as follows: Operating 2024 2023 CGU segment $m $m Hunting Titan Hunting Titan 5.7 114.9 Subsea Stafford Subsea Technologies 15.0 15.0 Enpro Subsea Technologies 4.3 4.4 Dearborn North America 7.6 7.6 US Manufacturing North America 12.5 12.5 At 31 December 45.1 154.4 Goodwill is tested at least annually for impairment. A charge of $109.1m was recognised in 2024 (2023 – $1.4m) in relation to the Hunting Titan CGU (2023 – Enpro CGU). The impairment charge relates solely to goodwill and has been presented separately on the face of the consolidated income statement (2023 – within administrative expenses). The goodwill balance also decreased by $0.2m during the year due to foreign exchange movements. (ii) Hunting Titan The trading performance at Hunting Titan continued to decline through the second half of 2024 following decreased activity in the US onshore well completions market and a resulting fall in demand for its Perforating Systems products. As a result of this, management has reassessed its short and medium-term forecasts. The revised outlook for Hunting Titan is underpinned by modest growth in the US onshore market and management expects margins to improve due to ongoing efﬁciencies in the production cost of gun systems, combined with operating cost improvements, which include the beneﬁts from the actions taken in the ﬁrst half of 2024. The compound annual growth rate for revenue for Hunting Titan from 2024 to 2029 was 3% (2023 – 2023 to 2028 was 8%). EBITDA margin is expected to reach low double digits by 2029. Management is of the view that the impact of climate change to Hunting Titan is minimal given the outlook for demand for oil and gas related products in the medium-term and the ability of Hunting to pivot to non-oil and gas in this timescale. Further details on climate-related risks and opportunities are disclosed on pages 92 to 96. The ensuing recoverable amount, determined on a value-in-use basis, was lower than the carrying value at 30 September 2024, indicating an impairment was necessary. Additionally, there were indicators of further impairment in the period to 31 December due to an increase in the discount rate used to discount the cash ﬂow projections, driven largely by a rise in the risk-free rate. This led to management recalculating the value-in-use at 31 December resulting in an impairment charge of $109.1m. There was also an associated deferred tax credit of $27.8m reﬂecting the reduction in the book value for deferred tax purposes for tax deductible goodwill in the US. Taking this into consideration, the overall write down of the Hunting Titan CGU was $81.3m. The projected cash ﬂows for Hunting Titan were discounted using a nominal pre-tax rate of 11% (2023 – 13%). The recoverable amount of the Hunting Titan CGU, after the impairment charge, is equal to its carrying value of $228.0m. Consequently, any adverse changes in key assumptions would, in isolation, cause a further impairment charge to be recognised. (iii) Other CGUs The recoverable amounts were in excess of the carrying values for the other CGUs and there were no indicators of impairment in the period to 31 December 2024. (c) CGU Sensitivities (i) Hunting Titan At 31 December 2024, the Group was carrying $5.7m (2023 – $114.9m) of goodwill and $13.0m (2023 – $11.7m) of other intangible assets in respect of the Hunting Titan CGU. The following changes to key assumptions would, in isolation, lead to an increase in the impairment charge at Hunting Titan: Additional impairment Sensitivity $m Pre-tax discount rate Increase of 1.0% (20.4) Terminal value growth rate Decrease of 0.5% (3.8) Revenue growth rates (CAGR from 2024 to 2029) Decrease of 1.0% (14.8) EBITDA margin (reduction in 2029 and into perpetuity) Decrease of 1.0% (25.6) (ii) Other CGUs For the other CGUs that carry goodwill, management has concluded that there are no reasonably possible changes in key assumptions that would result in an impairment charge in 2024. (d) Impairment of Other Non-Current Assets There was no impairment of other non-current assets in 2024. In 2023, an impairment charge of $0.2m was made against right-of-use assets in the North America operating segment (note 2(b) and note 12). Hunting PLC 206 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 16. Investments in Associates and Joint Ventures Movement on investments in associates and joint ventures: 2024 2023 $m $m At 1 January 20.5 20.1 Additions 0.9 1.6 Share of associates’ and joint venture’s results for the year (0.1) (0.6) Dividends received from associates – (0.6) Transferred to held for sale (12.1) – At 31 December 9.2 20.5 During 2024, the Group invested a further $0.9m in Cumberland Additive Holdings LLC (“Cumberland”), increasing its share of equity to 30.7% (2023 – 30.4%). During 2023, the Group invested a further $1.6m in Cumberland. At 31 December 2024, the Group’s investment in Rival met the criteria to be classiﬁed as held for sale, in accordance with IFRS 5. Accordingly, the investment of $12.1m has been presented within current assets on the face of the consolidated balance sheet. The investments in associates and joint ventures, including the name, country of incorporation and proportion of ownership interest, are disclosed in note C14. Rival Downhole Tools LC (“Rival”) is a provider of drilling and thru tubing tools and motors to the upstream oil and gas industry. Cumberland is a contract manufacturer which specialises in metal and polymer 3D printing and computer numerical control machining to support the aerospace, defence, space and energy markets. The joint venture with Jindal SAW, leaders in pipe manufacturing, is to deliver OCTG products in India. (a) Material Associates and Joint Ventures The tables below provide summarised ﬁnancial information for Rival which is considered to be a material associate of the Group. The Group has a 23.0% (2023 – 23.0%) interest in the equity shares of Rival. The information disclosed reﬂects the amounts presented in the ﬁnancial statements of Rival and not Hunting PLC’s share of those amounts. They have been amended to reﬂect adjustments made by Hunting when using the equity method, including fair value adjustments and modiﬁcations for differences in accounting policy. Rival 2024 2023 $m $m Summarised statement of comprehensive income: Revenue 40.8 53.5 Operating (loss)/proﬁt (2.9) 6.7 Total comprehensive (expense)/income (2.9) 6.7 The Group’s share of Rival’s post-tax loss was $0.7m (2023 – $1.4m proﬁt). Amortisation of $0.3m (2023 – $0.3m) was charged to the Group’s income statement during the year in relation to the intangible assets recognised at the time the investment in Rival was made. Rival 2024 2023 $m $m Summarised balance sheet: Non-current assets 18.1 26.6 Current assets 27.1 25.4 Total assets 45.2 52.0 Non-current liabilities (5.1) (7.1) Current liabilities (4.1) (6.0) Total liabilities (9.2) (13.1) Net assets 36.0 38.9 Reconciliation to carrying amounts: Opening net assets at 1 January 38.9 32.2 (Loss)/proﬁt for the year (2.9) 6.7 Net assets 36.0 38.9 Group’s share of equity % 23.0% 23.0% Group’s share of net assets 8.2 8.9 Goodwill 2.1 2.1 Other intangible assets 1.8 2.1 Carrying amount at 31 December 12.1 13.1 (b) Individually Immaterial Associates and Joint Ventures In addition to the material associates disclosed above, the Group also has interests in a number of individually immaterial associates and joint ventures, all of which are unlisted, that are accounted for using the equity method. The Group’s share of the results and its aggregated assets and liabilities, are as follows: 2024 2023 $m $m Aggregate carrying amount of individually immaterial associates 5.2 5.7 Aggregate carrying amount of individually immaterial joint ventures 4.0 1.7 Share of immaterial associates’ and joint venture’s results for the year 0.9 (1.7) Hunting PLC 207 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 17. Investments 2024 2023 $m $m Listed equity investments and mutual funds 2.6 2.2 Well Data Labs convertible ﬁnancing 2.2 2.2 4.8 4.4 The listed equity investments and mutual funds are held in relation to the US deﬁned beneﬁt scheme (note 32). In February 2021, the Group entered into a strategic alliance with Wells Data Labs, a data analytics business focused on the onshore drilling market, through the provision of $2.5m in convertible ﬁnancing, which had a fair value of $2.2m (2023 – $2.2m) at the year-end (note 29(b)). 18. Trade, Contract and Other Receivables 2024 2023 $m $m Non-current: Prepayments 3.0 1.8 Other receivables 2.4 – 5.4 1.8 Other receivables includes ﬁnance lease receivables of $2.3m (2023 – $nil), see note 24 for further details. 2024 Contracts with Rental Other customers receivables receivables Total $m $m $m $m Current: Trade receivables 193.1 1.9 – 195.0 Accrued revenue 2.8 0.4 – 3.2 Gross receivables 195.9 2.3 – 198.2 Less: provisions for impairment (3.4) (0.3) – (3.7) Net receivables 192.5 2.0 – 194.5 Prepayments – – 36.9 36.9 Other receivables – – 6.4 6.4 Total trade and other receivables 192.5 2.0 43.3 237.8 Contract assets (note 23) 23.7 – – 23.7 Trade, contract and other receivables 216.2 2.0 43.3 261.5 2023 Contracts with Rental Other customers receivables receivables Total $m $m $m $m Current: Trade receivables 202.7 2.0 – 204.7 Accrued revenue 2.5 – – 2.5 Gross receivables 205.2 2.0 – 207.2 Less: provisions for impairment (3.2) (0.3) – (3.5) Net receivables 202.0 1.7 – 203.7 Prepayments – – 27.1 27.1 Other receivables – – 3.1 3.1 Total trade and other receivables 202.0 1.7 30.2 233.9 Contract assets (note 23) 17.5 – – 17.5 Trade, contract and other receivables 219.5 1.7 30.2 251.4 Current and non-current other receivables generally arise from transactions outside the usual operating activities of the Group and comprise receivables from tax (VAT, GST, franchise taxes, and sales and use taxes) of $3.5m (2023 – $1.0m), derivative ﬁnancial assets of $0.5m (2023 – $0.5m) and other receivables of $4.8m (2023 – $1.6m), the latter of which are classiﬁed as ﬁnancial assets measured at amortised cost. During the year, the Group sold trade receivables amounting to $59.2m (2023 – $9.9m) to third parties under trade receivables purchasing programmes in order to accelerate collections. Upon sale, the receivables were derecognised from the balance sheet. In accordance with the requirements of the Group’s committed ABL bank facility, security was granted over certain US and Canadian trade and other receivables, which had a carrying value of $77.6m at 31 December 2023. For the receivables pledged as security, their carrying value approximates their fair value. The ABL facility was cancelled in October 2024 and replaced with an earnings-based facility that does not require security over assets. Hunting PLC 208 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 18. Trade, Contract and Other Receivables continued Impairment of Trade, Contract and Other Receivables The Group applies lifetime expected credit losses (“ECLs”) to trade receivables, accrued revenue, contract assets and certain other receivables upon their initial recognition. Each entity within the Group uses provision matrices for recognising ECLs on its receivables, which are based on actual credit loss experience over the past two years, at a minimum. Receivables are appropriately grouped by geographical region, product type or type of customer, and separate calculations produced, if historical or forecast credit loss experience shows signiﬁcantly different loss patterns for different customer segments. Actual credit loss experience is then adjusted to reﬂect differences in economic conditions over the period the historical data was collected, current economic conditions, forward-looking information based on macro-economic information and the Group’s view of economic conditions over the expected lives of the receivables. The contract assets relate to unbilled work in progress and have substantially the same risk characteristics as the trade receivables and accrued revenue for the same types of contracts. It has, therefore, been concluded that the expected loss rates for trade receivables are a reasonable approximation of the loss rates for the contract assets. At 31 December 2024, the ageing of the Group’s gross ﬁnancial assets, based on days overdue, is as follows: Not 1 – 30 31 – 60 61 – 90 91 – 120 More than Total gross overdue days days days days 120 days ﬁnancial assets $m $m $m $m $m $m $m Trade receivables – contracts with customers 118.8 28.4 18.6 6.2 7.3 13.8 193.1 Trade receivables – rental receivables 1.5 0.2 0.1 0.1 – – 1.9 Total trade receivables 120.3 28.6 18.7 6.3 7.3 13.8 195.0 Accrued revenue – contracts with customers 2.8 – – – – – 2.8 Accrued revenue – rental receivables 0.4 – – – – – 0.4 Other receivables i 4.7 – 0.1 – – – 4.8 Contract assets 23.7 – – – – – 23.7 151.9 28.6 18.8 6.3 7.3 13.8 226.7 i. Other receivables excludes $3.5m in relation to receivables from tax as these are not considered ﬁnancial assets and $0.5m in relation to derivative assets as these are not subject to the impairment requirements of IFRS 9. Since 31 December 2023, there has been a decrease in the ageing of trade receivables with trade receivables not overdue at the year-end comprising 62% of gross trade receivables compared to 55% at 31 December 2023. Overdue debts arise due to a number of different factors, including the time taken in resolving any disputes, a culture of slow/late payment in some jurisdictions and some debtors experiencing cash ﬂow difﬁculties. At 31 December 2023, the ageing of the Group’s gross ﬁnancial assets, based on days overdue, was as follows: Not 1 – 30 31 – 60 61 – 90 91 – 120 More than Total gross overdue days days days days 120 days ﬁnancial assets $m $m $m $m $m $m $m Trade receivables – contracts with customers 111.0 40.9 23.9 9.7 8.5 8.7 202.7 Trade receivables – rental receivables 0.7 0.1 0.5 0.3 0.2 0.2 2.0 Total trade receivables 111.7 41.0 24.4 10.0 8.7 8.9 204.7 Accrued revenue – contracts with customers 2.5 – – – – – 2.5 Other receivables i 1.6 – – – – – 1.6 Contract assets 17.5 – – – – – 17.5 133.3 41.0 24.4 10.0 8.7 8.9 226.3 i. Other receivables excludes $1.0m in relation to receivables from tax as these are not considered ﬁnancial assets and $0.5m in relation to derivative assets as these are not subject to the impairment requirements of IFRS 9. This balance has been restated in 2023 to exclude derivatives. Concentrations of credit risk with respect to trade receivables are limited due to the Group’s wide and unrelated customer base. The maximum exposure to credit risk is the carrying amount of each class of ﬁnancial asset disclosed above. The carrying value of each class of receivable approximates their fair value as described in note 29(b)(iv). Hunting PLC 209 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 18. Trade, Contract and Other Receivables continued Impairment of Trade, Contract and Other Receivables continued Default on a ﬁnancial asset is usually considered to have occurred when any contractual payments under the terms of the debt are more than 90 days overdue. Usually, no further deliveries are made or services provided to customers that are more than 90 days overdue unless there is a valid reason to do so, such as billing issues that have prevented the customer from settling the invoice. Permission from the local ﬁnancial controller can be obtained to continue trading with customers with debts that are more than 90 days overdue, and the outstanding debts may also be rescheduled with the permission of the ﬁnancial controller. While a proportion, 11% (2023 – 9%), of the Group’s trade receivables are more than 90 days overdue, the majority of these have not been impaired. Some of these debts have become overdue due to billing and other issues or due to general slow payment by the customer. Where there is no history of bad debts and there are no indicators that the debts will not be settled, the receivables have not been impaired. These customers are monitored very closely for any indicators of impairment. Receivables are written off when there is no reasonable expectation of recovery. Indicators that receivables are generally not recoverable include the failure of the debtor to engage in a repayment plan, failure to make contractual payments for a period greater than 180 days past due and the debtor being placed in administration. Where receivables have been written off, the Group will continue to try to recover the outstanding receivable. Impairment losses on receivables are presented net of unused provisions released to the consolidated income statement within administrative expenses. Subsequent recoveries of amounts previously written off are credited against the same line item. Credit risk arises on accrued revenue where goods or services have been provided to a customer but the amount is yet to be invoiced. The accrued revenue balance is short term and relates to customers with a strong credit history. Therefore, the ECLs on this balance are immaterial and no provision for impairment has been recognised. During the year, the movements on the provisions for impairment were as follows: 2024 Contracts with Rental customers receivables Total $m $m $m At 1 January 2024 (3.2) (0.3) (3.5) Charge to the consolidated income statement – lifetime expected credit losses (1.1) – (1.1) Utilised against receivables written off 0.6 – 0.6 Unused provisions released to the consolidated income statement 0.3 – 0.3 At 31 December 2024 (3.4) (0.3) (3.7) The provision for the impairment of trade and other receivables has marginally increased by $0.2m to $3.7m at 31 December 2024. Management is of the view that the credit risk is largely unchanged during the year. 2023 Contracts with Rental customers receivables Total $m $m $m At 1 January 2023 (3.3) (0.4) (3.7) Charge to the consolidated income statement – lifetime expected credit losses (0.9) – (0.9) Utilised against receivables written off 1.0 0.1 1.1 At 31 December 2023 (3.2) (0.3) (3.5) 19. Deferred Tax Deferred income tax assets and liabilities are only offset when there is a legally enforceable right to offset, when the deferred income taxes relate to the same ﬁscal authority and there is an intention to settle the balance net. The offset amounts are as follows: Restated i 2024 2023 $m $m Deferred tax assets 108.5 95.2 Deferred tax liabilities (3.7) (8.4) 104.8 86.8 i. Comparative balances have been restated, see note 1. The movement in the total deferred tax shown in the balance sheet is as follows: Restated i 2024 2023 $m $m At 1 January 86.8 7.3 Exchange adjustments (0.4) – Credit to the consolidated income statement (note 9) 16.8 79.1 Taken direct to equity 1.6 0.4 At 31 December 104.8 86.8 i. Comparative balances have been restated, see note 1. Hunting PLC 210 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 19. Deferred Tax continued Deferred tax assets of $65.1m gross and $9.4m tax (2023 – $57.8m gross and $7.1m tax) have not been recognised as the assessment of recoverability at 31 December 2024 is that it is uncertain and therefore does not meet the criteria for recognition under IAS 12. This includes $64.7m gross and $9.3m tax (2023 – $57.5m gross and $7.0m tax) in respect of trading losses, the majority of which do not have an expiry date. A deferred tax asset of $65.3m (2023 – $69.4m) has been recognised in respect of tax losses in various locations where recognition assessment has provided support that sufﬁcient future taxable proﬁts will be available against which the tax losses could be utilised. See note 9 for further details on the recognition assessment performed at each balance sheet date. The movements in deferred tax assets and liabilities, prior to taking into consideration the offsetting of balances within the same tax jurisdictions, are shown below: At 1 January Exchange (Charge)/credit to Taken direct At 31 December Net deferred Net deferred 2024 adjustments income statement to equity 2024 tax assets tax liabilities $m $m $m $m $m $m $m Tax losses 69.4 (0.3) (3.8) – 65.3 64.8 0.5 Inventory 13.8 – (0.4) – 13.4 13.4 – Goodwill and intangibles i (11.5) – 18.9 – 7.4 10.2 (2.8) Interest deductible in future periods 17.1 – 0.8 – 17.9 17.9 – Property, plant and equipment (15.9) – (0.1) – (16.0) (14.8) (1.2) Share-based payments 4.6 – 0.1 1.4 6.1 6.1 – Other 9.3 (0.1) 1.3 0.2 10.7 10.9 (0.2) 86.8 (0.4) 16.8 1.6 104.8 108.5 (3.7) Restated i At 1 January Exchange (Charge)/credit to Taken direct At 31 December Net deferred Net deferred 2023 adjustments income statement to equity 2023 tax assets tax liabilities $m $m $m $m $m $m $m Tax losses 24.2 0.3 44.9 – 69.4 51.2 18.2 Inventory 0.8 – 13.0 – 13.8 13.8 – Goodwill and intangibles (19.7) (0.1) 8.3 – (11.5) 13.8 (25.3) Interest deductible in future periods – – 17.1 – 17.1 17.1 – Property, plant and equipment (0.9) – (15.0) – (15.9) (14.6) (1.3) Share-based payments 1.0 (0.1) 3.4 0.3 4.6 4.6 – Other 1.9 (0.1) 7.4 0.1 9.3 9.3 – 7.3 – 79.1 0.4 86.8 95.2 (8.4) i. Included within the credit to the income statement of $18.9m is a credit of $27.8m relating to the release of deferred tax liabilities associated with the goodwill impairment recognised in 2024, disclosed as an adjusting item, see note 5. ii. Comparative balances have been restated, see note 1. Hunting PLC 211 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 20. Inventories 2024 2023 $m $m Raw materials 133.3 150.9 Work in progress 83.8 94.0 Finished goods 143.3 136.0 Gross inventories 360.4 380.9 Less: provisions for impairment (57.1) (52.5) Net inventories 303.3 328.4 2024 2023 $m $m Gross inventories: At 1 January 380.9 322.1 Exchange adjustments (2.9) 1.6 Additions 713.9 719.1 Charged to cost of sales in the consolidated income statement (729.8) (660.4) Reclassiﬁcation to property, plant and equipment (note 11) (1.7) (1.5) At 31 December 360.4 380.9 Provisions for impairment: At 1 January (52.5) (50.0) Exchange adjustments 0.5 (0.4) Charged to cost of sales in the consolidated income statement (10.2) (7.5) Provisions utilised against inventories written off 3.1 3.6 Provisions released to the consolidated income statement 2.0 1.8 At 31 December (57.1) (52.5) Net inventories 303.3 328.4 The Group’s inventory is highly durable and it can hold its value well with the passing of time. The nature of our market is that demand for products depends on the technical requirements of the projects being developed. For some markets and product lines there may be a limited number of sales, or even no sales, to form a benchmark in the current year. Management looks at relevant historical activity levels and has to form a judgement as to likely future demand in light of market forecasts and likely competitor activities. Within gross inventories charged to cost of sales is $4.2m (2023 – $nil) relating to inventory written off in the year. During 2024, inventory provisions increased by $4.6m to $57.1m at 31 December 2024, which represents 16% of gross cost balances (2023 – 14%). The increased provision in the year reﬂects new charges exceeding the utilisation of provisions and the reversal of unutilised provisions. Management has considered the judgements and estimates made in each of the Group’s businesses and, other than pressure control equipment, has not identiﬁed any individual estimates, which in the event of a change, would lead to a material change in the next ﬁnancial period. Provisions for inventories held at NRV are subject to change if expectations change. Inventories of $225.7m are expected to be realised within 12 months of the balance sheet date (2023 – $245.2m) and $77.6m after 12 months (2023 – $83.2m). Inventories of $279.1m (2023 – $306.0m) are carried at cost and $24.2m (2023 – $22.4m) are carried at net realisable value. In accordance with the requirements of the Group’s committed ABL bank facility, security was granted over inventories which had a carrying value of $172.3m at 31 December 2023, held in certain US and Canadian subsidiaries. The ABL facility was cancelled in October 2024 and replaced with an earnings-based facility that does not require security over assets. 21. Cash and Cash Equivalents 2024 2023 $m $m Cash at bank and in hand 78.1 45.5 Money market funds 76.7 – Short-term deposits with less than 3 months to maturity 51.8 – Cash and cash equivalents 206.6 45.5 Cash at bank and in hand and short-term deposits are carried at amortised cost. Money market funds are ﬁnancial assets carried at fair value through proﬁt or loss. The maximum exposure to credit risk is the carrying amount. Please see note 30(c)(i) for further disclosures on credit risk. As shown in note 26, cash and cash equivalents for cash ﬂow statement purposes also includes bank overdrafts shown in borrowings in note 25. At 31 December 2024, the Group held cash balances totalling $44.1m (2023 – $24.4m) within China. As such, this cash was subject to the usual exchange controls and other regulatory restrictions that prevailed in China at the balance sheet date. Hunting PLC 212 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 22. Trade, Contract and Other Payables 2024 2023 $m $m Non-current: US deferred compensation plan obligation (note 32(b)(i)) 2.6 2.2 Social security and other taxes 0.3 0.4 Other payables 2.6 1.1 5.5 3.7 2024 2023 $m $m Current: Trade payables 41.4 62.5 Accruals 47.1 50.7 Social security and other taxes 8.3 7.4 Other payables i 98.4 3.2 Total trade and other payables 195.2 123.8 Contract liabilities (note 23) 13.3 39.6 Trade, contract and other payables 208.5 163.4 i. Other payables includes derivative ﬁnancial liabilities of $3.4m (2023 – $0.1m). Within other payables are amounts totalling $92.4m (2023 – $nil) in relation to payments due to ﬁnancial institutions arising under bank acceptance drafts, which represent payments to suppliers for materials. 23. Contract Assets and Liabilities The following table provides information about receivables, accrued income, contract assets and contract liabilities arising from contracts with customers. 2024 2023 2022 $m $m $m Contract assets (note 18) 23.7 17.5 8.6 Contract liabilities (note 22) (13.3) (39.6) (8.8) Trade receivables – contracts with customers (note 18) 193.1 202.7 180.1 Provisions for impairment (note 18) (3.4) (3.2) (3.3) Net trade receivables – contracts with customers 189.7 199.5 176.8 Accrued revenue – contracts with customers (note 18) 2.8 2.5 2.0 (a) Signiﬁcant Changes in Contract Assets and Contract Liabilities Contract assets increased from $17.5m at 31 December 2023 to $23.7m at 31 December 2024 due to an increase in bespoke customer work-in-progress at Subsea Technologies invoiced in arrears. Contract liabilities represent deposits received from customers (or amounts presently due under non-cancellable contracts) in excess of the value of the work completed to date at Subsea Technologies, as well as deposits received from customers for the purchase of pipe in the Asia Paciﬁc businesses. Contract liabilities decreased by $26.3m in the year to $13.3m at 31 December 2024, reﬂecting the progress made and revenue recognised on contracts during the year. (b) Revenue Recognised in Relation to Contract Liabilities During the year, $39.6m of revenue was recognised in relation to amounts that were included in the contract liabilities balance at the beginning of the year (2023 – $8.8m). There was no revenue recognised from performance obligations satisﬁed or partially satisﬁed in previous years (2023 – none). (c) Unsatisﬁed Performance Obligations The Group applies the practical expedient in paragraph 121 of IFRS 15 and does not disclose information about remaining performance obligations that are part of contracts that have original expected durations of one year or less. This is the vast majority of Hunting’s contracts with customers. In the prior year, the Group disclosed the aggregate amount of the transaction price allocated to partially or fully unsatisﬁed performance obligations as equal to the sales order book (NGM T). As such, the amount disclosed included orders that were wholly unperformed where either Hunting or the customer had the unilateral enforceable right to terminate the contract without compensating the other party. In 2024, these amounts have been excluded from the disclosure and, as a result, the comparatives below have been restated. For the contracts that have original expected durations of greater than one year, the aggregate amount of the transaction price allocated to partially or fully unsatisﬁed performance obligations as at the year-end is $203.7m (restated 2023 – $152.6m). It is expected that $184.5m of the transaction price allocated to unsatisﬁed performance obligations as of 31 December 2024 will be recognised as revenue in 2025 (restated 2023 – $82.0m in 2024) and the remaining $19.2m in future years (restated 2023 – $70.6m after 2024). Hunting PLC 213 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 24. Leases The Group leases various ofﬁces, warehouses, equipment and vehicles. Rental contracts for ofﬁces and warehouses are typically made for ﬁxed periods of between three and ten years, but may have extension options as described below. Rental contracts for equipment and vehicles are typically made for ﬁxed periods of between three and seven years. The Group also has short-term leases and leases of low-value assets. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any covenants. As at 31 December 2024, the Group did not have any commitments for leases that were due to commence in 2025 or later (31 December 2023 – no commitments due to commence in 2024 or later). Extension and termination options are included in a number of property and equipment leases across the Group. These terms are used to maximise operational ﬂexibility in terms of managing contracts. For extension and termination options that are exercisable only by the Group and not by the respective lessor, management considers all facts and circumstances that create an economic incentive for the Group to exercise an extension option, or not exercise a termination option, in determining the lease term. The lease term is determined according to management’s expectation of exercising any available extension and termination options. Extension or termination options are only adjusted in the lease term if the lease option is reasonably certain to be exercised. (a) Amounts Recognised in the Consolidated Balance Sheet The analysis of right-of-use assets is presented in note 12. 2024 2023 $m $m Lease liabilities Current 7.4 8.0 Non-current 22.7 20.7 30.1 28.7 (b) Amounts Recognised in the Consolidated Income Statement 2024 2023 $m $m Depreciation of right-of-use assets (note 12) (7.2) (6.6) Expense relating to short-term leases and leases of low-value assets (2.1) (1.8) Impairment of right-of-use assets (note 12) – (0.2) Lease charges included in operating proﬁt (note 6) (9.3) (8.6) Interest on lease liabilities (included in ﬁnance expenses) (note 8) (1.4) (1.3) Foreign exchange gains on lease liabilities (note 8) 0.1 – Lease charges included in (loss)/proﬁt before tax (10.6) (9.9) (c) Amounts Recognised in the Consolidated Statement of Cash Flows 2024 2023 $m $m Payments for short-term and low-value leases (2.1) (1.8) Payment of lease liabilities, principal and interest (8.9) (10.4) (11.0) (12.2) Payments for short-term leases, payments for leases of low-value assets and variable lease payments that are not included in the measurement of the lease liabilities are presented within cash ﬂows from operating activities. Payments for the principal and interest elements of lease liabilities and proceeds on disposal of lease liabilities are presented within cash ﬂows from ﬁnancing activities. The analysis of the contractual, undiscounted cash ﬂows relating to lease liabilities is shown in note 30(d)(iii). Hunting PLC 214 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 24. Leases continued (d) The Group as Lessor A number of the Group’s properties included within property, plant and equipment and right-of-use assets are leased to third parties under operating lease agreements. Income from leasing these assets during the year was $1.4m (2023 – $2.7m) and is included within operating income (note 4). The Group also earns revenue from the rental of tools, which are items of property, plant and equipment (note 11). Rental revenue during the year was $6.7m (2023 – $7.9m) (note 3). The table below shows the maturity analysis of the undiscounted future lease payments expected to be received in relation to non-cancellable operating leases: Property Property 2024 2023 $m $m Year one 1.4 2.5 Year two 0.2 0.8 Year three 0.1 0.7 Year four – 0.7 Year ﬁve – 0.7 Total lease income receivable 1.7 5.4 The Group also leases a property in the US to a third party under a ﬁnance lease arrangement. The net investment in the lease amounted to $2.3m at 31 December 2024 (31 December 2023 – $nil) and is presented within other receivables (note 18). Additional disclosures for the ﬁnance lease receivable as required by IFRS 16 have not been presented as the amounts are immaterial. 25. Borrowings 2024 2023 $m $m Non-current: Bank borrowings secured (note 30(d)(i)) 90.6 – Shareholder loan from non-controlling interest 3.9 3.9 94.5 3.9 Current: Bank borrowings secured (note 30(d)(i)) 9.8 44.9 Bank overdrafts secured 1.5 1.4 11.3 46.3 Total borrowings 105.8 50.2 In accordance with the requirements of the Group’s committed ABL bank facility, at 31 December 2023 security was granted over certain freehold property, receivables and inventories. The carrying amounts of the assets pledged as security are disclosed in notes 11, 18 and 20. All of the borrowings are ﬁnancial liabilities measured at amortised cost and are denominated in US Dollars. The shareholder loan is interest-free and not repayable on demand. Hunting PLC 215 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 26. Changes in Net Cash/(Debt) Hunting operates a centralised treasury function that manages all cash and borrowing positions throughout the Group and ensures funds are used efﬁciently through the use of cash concentration account structures and other such measures. Net cash/(debt) (NGM L) is a non-GAAP measure; however, management and the Group treasury function monitor total cash and bank/(borrowings) (NGM K) to ensure there is sufﬁcient liquidity to meet business requirements. As the Group manages funding on a total cash and bank/(borrowings) basis, internal reporting focuses on changes in total cash and bank/(borrowings) and this is presented in the Strategic Report. The net cash/(debt) reconciliation below provides an analysis of the movement in the year for each component of net cash/(debt) split between cash and non-cash items. Net cash/(debt) comprises total cash and bank less total lease liabilities and the shareholder loan from a non-controlling interest. At Non-cash At 1 January movements on Exchange 31 December 2024 Cash ﬂow lease liabilities i movements 2024 $m $m $m $m $m Cash and cash equivalents (note 21) 45.5 163.8 – (2.7) 206.6 Bank overdrafts secured (note 25) (1.4) (0.1) – – (1.5) Cash and cash equivalents – per cash ﬂow statement 44.1 163.7 – (2.7) 205.1 Total lease liabilities (note 24) (28.7) 8.9 (11.0) 0.7 (30.1) Shareholder loan from non-controlling interest (note 25) (3.9) – – – (3.9) Total bank borrowings (note 25) (44.9) (55.5) – – (100.4) Liabilities arising from ﬁnancing activities (77.5) (46.6) (11.0) 0.7 (134.4) Total net debt/(cash) (33.4) 117.1 (11.0) (2.0) 70.7 i. Non-cash movements on lease liabilities comprise new leases of $2.6m, lease modiﬁcations of $7.0m and interest expense of $1.4m. During the year, $2.1m of bank borrowing facility fees were amortised (2023 – $1.7m) and $4.3m (2023 – $nil) was paid in respect of arrangement fees for the new facility. The fees for the borrowing facility were capitalised in prepayments and amortised over the expected useful life of the facility. At Non-cash At 1 January movements on Exchange 31 December 2023 Cash ﬂow lease liabilities i movements 2023 $m $m $m $m $m Cash and cash equivalents (note 21) 29.4 16.2 – (0.1) 45.5 Bank overdrafts secured (note 25) (2.1) 0.7 – – (1.4) Cash and cash equivalents – per cash ﬂow statement 27.3 16.9 – (0.1) 44.1 Total lease liabilities (note 24) (30.6) 10.4 (8.4) (0.1) (28.7) Shareholder loan from non-controlling interest (note 25) (3.9) – – – (3.9) Total bank borrowings (note 25) (2.8) (42.1) – – (44.9) Liabilities arising from ﬁnancing activities (37.3) (31.7) (8.4) (0.1) (77.5) Total net debt (10.0) (14.8) (8.4) (0.2) (33.4) i. Non-cash movements on lease liabilities comprise new leases of $6.2m, lease modiﬁcations of $0.9m and interest expense of $1.3m. Hunting PLC 216 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 27. Provisions and Contingent Liabilities (a) Provisions Asset decommissioning and Import remediation tax Other Total $m $m $m $m At 1 January 2024, restated i 1.5 9.1 6.0 16.6 Exchange adjustments (0.1) (0.1) (0.1) (0.3) Charged to the consolidated income statement – 0.5 0.1 0.6 Charged other 0.1 – – 0.1 Provisions utilised – – (1.5) (1.5) Unutilised amounts reversed (0.1) (0.9) (0.2) (1.2) At 31 December 2024 1.4 8.6 4.3 14.3 Provisions are due as follows: Restated i 2024 2023 $m $m Current 12.6 13.9 Non-current 1.7 2.7 14.3 16.6 i. Comparative balances have been restated, see note 1. Asset decommissioning and remediation provisions of $1.4m (2023 – $1.5m) relate to the Group’s obligations to restore leased properties. The restoration provisions are expected to be utilised at the end of the respective leases, with $0.7m current and $0.7m non-current. Provisions are made on a discounted basis; however, the impact of discounting is not material. Other provisions include provisions for onerous contracts of $0.1m (2023 – $0.5m), restructuring provisions of $0.3m (2023 – $0.3m), a provision for a pension fund for ofﬁcers and ratings in the mercantile marine industry from a legacy subsidiary of $0.9m (2023 – $0.9m), warranties and tax indemnities of $0.1m (2023 – $0.3m), litigation costs of $2.3m (2023 – $2.3m) and $0.6m (2023 – $1.7m) for various other items. The provision for import tax of $8.6m (restated 2023 – $9.1m) relates to an ongoing review which commenced in July 2024 and identiﬁed that an EMEA business unit had not followed the tax authority’s interpretation of the correct processes for importing goods, under speciﬁc contracts, in their jurisdiction and thus had not paid amounts which would have been due based the tax authority’s guidance in place at the time. The business is working with the tax authority to regularise the position. While no incremental proﬁt or cash ﬂow was recognised, resolution is dependent upon discretion by the authority, and therefore an exposure exists. The provision represents the best estimate of the potential liability and is expected to be settled within 12 months. The provision contains uncertainties with respect to the amount of the liability, including whether there are any mitigations available, relief that can be utilised or penalties which may be incurred. See note 1 for further details. (b) Contingent Liabilities The Group recognises provisions for liabilities when it is more likely than not a settlement will be required and the value of the economic outﬂow can be estimated reliably. Liabilities that are not provided for in the ﬁnancial position of the Group are disclosed, unless the probability of an economic outﬂow is considered to be remote. The Group has entered into a number of guarantee and performance bond arrangements arising in the normal course of business which have not been provided for as any signiﬁcant liability is considered to be remote. 28. Derivatives and Hedging (a) Currency Derivatives The Group uses derivatives for economic hedging purposes and there are no speculative positions entered into by the Group. However, where derivatives do not meet the hedge accounting criteria, they are classiﬁed as “held for trading” for accounting purposes and are accounted for at fair value through proﬁt or loss. The Group has used spot and forward foreign exchange contracts to hedge its exposure to exchange rate movements during the year. Foreign exchange outright contracts are used to manage exposures, with funding swaps being used to produce required currencies when needed. The fair values of outstanding derivative ﬁnancial instruments are set out below: 2024 2023 Total Total Total Total assets liabilities assets liabilities $m $m $m $m Forward foreign exchange contracts – cash ﬂow hedges 0.1 (2.6) 0.3 – Forward foreign exchange contracts – fair value hedges – (0.7) – – Foreign exchange swaps – not in a hedge 0.4 (0.1) 0.2 (0.1) 0.5 (3.4) 0.5 (0.1) Derivative ﬁnancial assets are presented within current other receivables (note 18) and derivative ﬁnancial liabilities are presented within current other payables (note 22). Net fair value gains on contracts that are not designated in a hedge relationship of $0.4m (2023 – $0.2m) were recognised in the consolidated income statement during the year, within net operating income and other expenses (note 4) and net ﬁnance expenses (note 8). Hunting PLC 217 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 28. Derivatives and Hedging continued (b) Fair Value Hedge Forward foreign exchange contracts have also been designated in a fair value hedge to hedge the foreign exchange movement in foreign currency trade receivables and payables during the year. The value of the forward foreign exchange contract matches the value of the trade receivables and payables and they move in opposite directions as a result of movements in the CAD/USD or CNY/USD exchange rates, being the hedged risk. Fair value losses of $1.3m (2023 – $nil) were recognised in the consolidated income statement in net operating income and other expenses (note 4) and net ﬁnance expenses (note 8) during the year. At the year-end, the fair value of derivative liabilities designated in a fair value hedge was $0.7m (2023 – $nil). (c) Cash Flow Hedge The Group entered into contracts to purchase materials from suppliers in a currency other than the relevant subsidiary’s functional currency. Certain of these highly probable forecast transactions have been designated in a cash ﬂow hedge relationship and hedged using forward foreign exchange contracts during the year. The value of the forward foreign exchange contract matches the value of the forecast inventory purchase and they move in opposite directions as a result of movements in the CAD/USD, EUR/USD, EUR/GBP, SGD/USD and the CNY/USD exchange rates, being the hedged risk. This will effectively result in recognising inventory at the ﬁxed foreign currency rate for the hedged purchases. It is anticipated that the materials will be sold within 12 months after purchase, at which time the amount previously deferred in equity and included as part of the cost of inventory, will impact proﬁt or loss as part of the cost of inventories sold. The Group also entered into forward foreign exchange contracts to hedge certain receipts from customers and these highly probable forecast transactions have been designated in a cash ﬂow hedge relationship. The value of the forward foreign exchange contract matches the value of the forecast cash ﬂow and they move in opposite directions as a result of movements in the GBP/USD, and USD/EUR exchange rates, being the hedged risk. It is anticipated that the trade receivables will be collected within 12 months after the invoice is issued, at which time the amount previously deferred in equity, will be taken to proﬁt or loss. The Group’s cash ﬂow hedge reserve, which is disclosed as part of other components of equity in note 34, relates to the spot component of forward foreign exchange contracts. The movements in the hedging reserve during the year are shown in note 34. Fair value losses of $1.5m (2023 – $0.2m gains) were recognised in the consolidated income statement in net operating income and other expenses (note 4) and net ﬁnance expenses (note 8) during the year. The effects of outstanding forward foreign exchange contracts on the Group’s ﬁnancial position and performance are as follows: 2024 2023 Carrying amount of the forward foreign exchange contracts (net) $m (2.5) 0.3 Notional amount of the forward foreign exchange contracts $m 90.7 23.1 Maturity date 2 January 2025 to 2 January 2024 to 30 July 2025 24 June 2024 Hedge ratio i 1:1 1:1 Change in value of hedged item used to determine hedge effectiveness $m (2.5) (0.3) i. The forward foreign exchange contracts are denominated in the same currency as the highly probable forecast transactions to match the exposed currency risk, therefore the hedge ratio is 1:1. Immaterial changes in the forward points, the differential between the forward rate and the market spot rate, have been recognised in the consolidated income statement during the year and previous year. (d) Hedge Effectiveness Hedge effectiveness is determined at the inception of the hedge relationship and through periodic prospective effectiveness assessments to ensure that an economic hedge relationship exists between the hedged item and the hedging instrument. For hedges of foreign currency purchases, the Group enters into hedge relationships where the critical terms of the hedging instrument match exactly with the terms of the hedged item. The Group, therefore, performs a qualitative assessment of effectiveness. If changes in circumstances affect the terms of the hedged item such that the critical terms no longer match exactly with the critical terms of the forward foreign exchange contract, then the Group uses the hypothetical derivative method to assess effectiveness. Ineffectiveness may arise if there is a change in the timing of the forecast transaction from what was originally estimated or from a change in the US Dollar amount charged and invoiced. A possible source of ineffectiveness is also a change in credit risk of either party to the derivative. However, any change in credit risk is not expected to be material. Hunting PLC 218 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 29. Financial Instruments This note provides information about the Group’s ﬁnancial instruments, including an overview of all ﬁnancial instruments held by the Group; speciﬁc information about each type of ﬁnancial instrument; and information about determining the fair value of the instruments, including judgements and estimation uncertainty involved. The Group’s exposure to various risks associated with the ﬁnancial instruments is disclosed in note 30. The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of ﬁnancial asset. Contract assets are not ﬁnancial assets; however, they are explicitly included in the scope of IFRS 7 for the purpose of the credit risk disclosures in note 30. (a) Financial Instruments at Amortised Cost The carrying values of the Group’s ﬁnancial instruments at amortised cost are as follows: 2024 2023 $m $m Financial assets at amortised cost: Trade and other receivables (note 18): Trade receivables 195.0 204.7 Accrued revenue 3.2 2.5 Other receivables – non-current i 2.4 – Other receivables – current 2.4 1.6 Less: provisions for impairment (3.7) (3.5) Cash and cash equivalents (note 21): Cash at bank and in hand 78.1 45.5 Short-term deposits with less than 3 months to maturity 51.8 – 329.2 250.8 Financial liabilities at amortised cost: Trade and other payables ii (note 22): Trade payables (41.4) (62.5) Accruals – current iii (22.8) (24.2) Other payables – current iv (94.8) (2.8) Lease liabilities – current and non-current (note 24) (30.1) (28.7) Borrowings (note 25): Shareholder loan from non-controlling interest (3.9) (3.9) Bank borrowings secured (100.4) (44.9) Bank overdrafts secured (1.5) (1.4) (294.9) (168.4) i. Excludes non-ﬁnancial assets of $3.5m (2023 – $1.0m) and those ﬁnancial assets measured at fair value of $0.5m (2023 – $0.5m). ii. Excludes non-current payables of $2.6m (2023 – $1.1m) as these are non-ﬁnancial liabilities. iii. Excludes accruals of $24.3m (2023 – $26.5m) recognised under IAS 19 and IFRS 2 that are outside the scope of IFRS 7. iv. Excludes non-ﬁnancial liabilities of $0.2m (2023 – $0.3m) and ﬁnancial liabilities measured at fair value of $3.4m (2023 – $0.1m). Amounts recognised in proﬁt or loss in relation to ﬁnancial instruments carried at amortised cost were: 2024 2023 $m $m Net foreign exchange (losses)/gains included in operating income and other operating expenses (note 4) (0.5) 0.8 Net foreign exchange losses included in net ﬁnance expense (note 8) (0.6) (0.5) Interest received on bank balances and deposits (note 8) 0.5 0.2 Bank fees and commissions (note 8) (3.4) (2.9) Other ﬁnance expense (note 8) (1.7) (0.1) (b) Financial Instruments Measured at Fair Value (i) Valuation Techniques used to Determine Fair Values There have been no changes to the valuation techniques used during the year. Money market funds are debt instruments measured at fair value through proﬁt or loss (“FVTPL”), with the fair value based on their current bid prices in an active market, which is considered to be the most representative of fair value, at the balance sheet date. The listed equity investments and mutual funds (note 17) are equity instruments measured at FVTPL, with the fair value based on their current bid prices in an active market, which is considered to be the most representative of fair value, at the balance sheet date. The fair value of the convertible ﬁnancing provided to Wells Data Labs was determined by considering the probability weighted average discounted cash ﬂows of the different scenarios using a discount rate of 13% (2023 – 13%). The most signiﬁcant unobservable inputs to the fair value calculation are the probabilities of a conversion to equity and change of control assumptions. The fair value at 31 December 2024 was $2.2m (2023 – $2.2m) (note 17), with a fair value loss of $nil (2023 – $0.7m) recognised in net ﬁnance expense during the year (note 8). At 31 December 2024, management considers there to be no reasonable changes in unobservable inputs that would result in a signiﬁcant change in fair value. The following instruments do not qualify for measurement at either amortised cost or at fair value through other comprehensive income (“FVTOCI”). Therefore, they are ﬁnancial instruments that have mandatorily been measured at FVTPL: • The fair value of forward foreign exchange contracts is determined by comparing the cash ﬂows generated by the contract with the coterminous cash ﬂows potentially available in the forward foreign exchange market on the balance sheet date. Details of the fair value gains and losses recognised during the year on derivative contracts are given in note 28; and • The fair value of foreign currency swaps is determined by calculating the present value of the estimated future cash ﬂows in each currency for both legs of the swap based on observable yield curves. One leg’s present value is converted into the other currency using the current spot exchange rate. Hunting PLC 219 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 29. Financial Instruments continued (b) Financial Instruments Measured at Fair Value continued (ii) Fair Value Hierarchy The following tables present the Group’s net ﬁnancial assets and liabilities that are measured and recognised at fair value at the year-end and show the level in the fair value hierarchy in which the fair value measurements are categorised. There were no transfers between levels during the year. Fair value at 31 December 2024 Level 1 Level 2 Level 3 $m $m $m $m Equity instruments at FVTPL Listed equity investments and mutual funds 2.6 2.6 – – Debt instruments at FVTPL Wells Data Labs convertible ﬁnancing 2.2 – – 2.2 Money market funds 76.7 76.7 – – Current derivatives in a hedge Derivative ﬁnancial assets 0.1 – 0.1 – Derivative ﬁnancial liabilities (3.3) – (3.3) – Current derivatives held for trading Derivative ﬁnancial assets 0.4 – 0.4 – Derivative ﬁnancial liabilities (0.1) – (0.1) – 78.6 79.3 (2.9) 2.2 Fair value at 31 December 2023 Level 1 Level 2 Level 3 $m $m $m $m Equity instruments at FVTPL Listed equity investments and mutual funds 2.2 2.2 – – Debt instruments at FVTPL Well Data Labs convertible ﬁnancing 2.2 – – 2.2 Current derivatives in a hedge Derivative ﬁnancial assets 0.3 – 0.3 – Current derivatives held for trading Derivative ﬁnancial assets 0.2 – 0.2 – Derivative ﬁnancial liabilities (0.1) – (0.1) – 4.8 2.2 0.4 2.2 The fair value hierarchy has the following levels: Level 1 – inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 – inputs other than quoted prices included within Level 1 that are observable for the asset or liability. Level 3 – unobservable inputs used in the valuation. • The fair values of non-US Dollar denominated ﬁnancial instruments are translated into US dollars using the year-end exchange rate. • The inputs used to determine the fair value of derivative ﬁnancial instruments are inputs other than quoted prices that are observable and so the fair value measurement is categorised in Level 2 of the fair value hierarchy. • The fair value of listed equities and mutual funds and money market funds are based on quoted market prices and therefore the fair value measurements are categorised in Level 1 of the fair value hierarchy. • Due to unobservable inputs used in the valuation, the fair value of the Wells Data Labs convertible ﬁnancing is a Level 3 measurement as per the fair value hierarchy. (iii) Amounts Recognised in Proﬁt or Loss During the year, the following gains and losses were recognised in relation to ﬁnancial instruments measured at FVTPL: 2024 2023 $m $m Fair value gains on the listed equity investments and mutual funds (note 8) 0.2 0.1 Fair value loss on Wells Data Labs convertible ﬁnancing (note 8) – (0.7) Fair value gains on money market funds (note 8) 0.9 – Fair value gains on ﬁnancial instruments mandatorily measured at FVTPL: Net fair value (losses)/gains on derivative ﬁnancial instruments (note 4) (0.5) 0.3 Net fair value (losses)/gains on derivative ﬁnancial instruments (note 8) (1.9) 0.1 The fair value gains on the listed investments and mutual funds and the Wells Data Labs convertible ﬁnancing are unrealised gains recognised in proﬁt or loss attributable to balances held at the end of the reporting period. (iv) Fair Values of Other Financial Instruments Carried at Amortised Cost Due to their short-term nature, the carrying values of trade receivables, accrued revenue, other receivables considered to be ﬁnancial assets, cash and cash equivalents, trade payables, accruals, other payables considered to be ﬁnancial liabilities, lease liabilities, bank overdrafts and bank borrowings approximates their fair value. Hunting PLC 220 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 30. Financial Risk Management The Group’s activities expose it to certain ﬁnancial risks, namely market risk (including foreign exchange risk and interest rate risk), as well as credit risk and liquidity risk. The Group’s risk management strategy seeks to mitigate potential adverse effects on its ﬁnancial performance. As part of its strategy, both primary and derivative ﬁnancial instruments are used to hedge certain risk exposures. There are clearly deﬁned objectives and principles for managing ﬁnancial risks established by the Board of Directors, with policies, parameters and procedures covering the speciﬁc areas of funding, banking relationships, foreign exchange and interest rate exposures and cash management, together with the investment of surplus cash. The Group’s treasury function is responsible for implementing the policies and for providing a centralised service to the Group for funding, foreign exchange and interest rate management and counterparty risk management. It is also responsible for identifying, evaluating and hedging ﬁnancial risks in close cooperation with the Group’s operating companies. (a) Market Risk: Foreign Exchange Risk The Group’s international base is exposed to foreign exchange risk from its investing, ﬁnancing and operating activities, particularly in respect of Sterling, Chinese Renminbi, Saudi Arabia Riyal and Canadian Dollars. Foreign exchange risks arise from future commercial transactions and cash ﬂows, and from recognised monetary assets and liabilities that are not denominated in the functional currency of the Group’s local operations. Foreign exchange rates that the Group has the largest exposures to are: Sterling Chinese Renminbi Saudi Arabia Riyal Canadian Dollars 2024 2023 2024 2023 2024 2023 2024 2023 Average exchange rate to US Dollars 0.79 0.80 7.18 7.07 3.75 3.75 1.36 1.35 Year-end exchange rate to US Dollars 0.80 0.79 7.30 7.08 3.75 3.75 1.44 1.33 The aggregate net foreign exchange losses recognised in proﬁt or loss during the year were $1.1m (2023 – $0.3m gains). (i) Transactional Risk The exposure to exchange rate movements in signiﬁcant future commercial transactions and cash ﬂows is hedged by using forward foreign exchange contracts. Certain forward foreign exchange contracts have been designated as hedging instruments of highly probable forecast transactions. Treasury engages with business units to help identify transactional exposures. External hedging activity is then performed by Treasury on behalf of the business units to ensure that transactional risk is managed appropriately and in accordance with Treasury policy. Exposures are also identiﬁed and hedged, if necessary, on an ad hoc basis, such as when a purchase order in a foreign currency is placed. Currency exposures arise where the cash ﬂows are not in the functional currency of the entity. Exposures arising from committed long-term projects beyond a 12-month period are also identiﬁed. Hunting PLC 221 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 30. Financial Risk Management continued (a) Market Risk: Foreign Exchange Risk continued (i) Transactional Risk continued The table below shows the carrying values of the Group’s ﬁnancial instruments at 31 December, including derivative ﬁnancial instruments, on which exchange differences would potentially be recognised in the consolidated income statement in the following year. Currency of denomination US UAE Singapore Saudi Arabia Chinese Other Sterling Dollars Dirham Dollars Riyal Renminbi currencies Total At 31 December 2024 $m $m $m $m $m $m $m $m Functional currency of Group’s entities: Sterling – 2.5 – – – – 0.2 2.7 US Dollars (1.3) – (3.7) 0.5 – (40.5) 1.3 (43.7) Saudi Riyals (0.3) (2.0) (0.1) – – – – (2.4) Euro (0.2) 3.9 – – – – (0.2) 3.5 Other currencies – (1.0) – – – – – (1.0) (1.8) 3.4 (3.8) 0.5 – (40.5) 1.3 (40.9) Currency of denomination US UAE Singapore Saudi Arabia Chinese Other Sterling Dollars Dirham Dollars Riyal Renminbi currencies Total At 31 December 2023 $m $m $m $m $m $m $m $m Functional currency of Group’s entities: Sterling – (1.0) – – – – – (1.0) US Dollars (2.0) – (1.7) (0.6) 2.2 (1.6) (0.2) (3.9) Canadian Dollars – (0.5) – – – – – (0.5) Euro (0.2) 1.1 – – – – – 0.9 Chinese Renminbi – (0.5) – – – – – (0.5) (2.2) (0.9) (1.7) (0.6) 2.2 (1.6) (0.2) (5.0) Financial instruments comprise cash balances, trade and other receivables, accrued revenue, trade and other payables, accrued expenses, ﬁnance lease liabilities and intra-Group balances. Derivatives designated in a cash ﬂow hedge are excluded as fair value gains and losses arising on these are recognised in other comprehensive income. (ii) Translational Risk Foreign exchange risk also arises from ﬁnancial assets and liabilities not denominated in the functional currency of an entity’s operations. Forward foreign exchange contracts are used to manage the exposure to changes in foreign exchange rates. Where appropriate, hedge accounting is applied to the forward foreign exchange contracts and the hedged item to remove any accounting mismatch. Foreign exchange risk also arises from the Group’s investments in foreign operations. This has previously been hedged using foreign exchange swaps that have been designated in a net investment hedge to hedge the foreign currency translation risk. The foreign exchange exposure arising from the translation of its net investments in foreign operations into the Group’s presentation currency of US Dollars has also previously been managed by designating any borrowings that are not US Dollar denominated as a hedge of the net investment in foreign operations. The foreign exchange exposure primarily arises from Sterling and Canadian Dollar denominated net investments. The accumulated foreign exchange net pre-tax gains included in the currency translation reserve in respect of net investment hedges at the beginning and end of the year is $25.0m. (b) Market Risk: Interest Rate Risk Variable interest rates on cash at bank, short-term deposits, overdrafts and borrowings expose the Group to cash ﬂow interest rate risk, and ﬁxed interest rates on loans and short-term deposits expose the Group to fair value interest rate risk. The Group’s treasury function manages the Group’s exposure to interest rate risk and uses interest rate swaps and caps, when considered appropriate. Hunting PLC 222 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 30. Financial Risk Management continued (c) Credit Risk The Group’s credit risk arises from its cash at bank and in hand, money market funds, short-term deposits, investments, derivative ﬁnancial instruments, accrued revenue, outstanding trade receivables, other receivables and contract assets. At the year-end, the Group had credit risk exposure to a wide range of counterparties. Credit risk exposure is continually monitored and no individual exposure is considered to be signiﬁcant in the context of the ordinary course of the Group’s activities whether through exposure to individual customers, speciﬁc industry sectors and/or regions. (i) Credit Risk: Total Cash and Bank Hunting PLC’s Board approves the treasury policies that determine which counterparties can be used. Due diligence is carried out prior to the authorisation of a bank or ﬁnancial institution as an approved counterparty. For banks and ﬁnancial institutions, exposure limits are set for each approved counterparty, as well as the types of transactions that may be entered into. Approved institutions that the Group’s treasury function can invest surplus cash with must all have a minimum A2, P2 or F2 short-term rating from Standard & Poor’s, Moody’s or Fitch rating agencies, respectively. At the year-end, cash at bank and in hand totalled $78.1m (2023 – $45.5m), with $63.6m (2023 – $31.2m) deposited with banks with Fitch short-term ratings of F1 to F1+. Of the remaining $14.5m (2023 – $14.3m), $5.3m (2023 – $11.6m) was held with one (2023 – two) ﬁnancial institution within mainland China which, given the Group’s operations in this jurisdiction, were deemed necessary. Despite not having formal credit ratings from any of the ratings agencies mentioned above, an internal assessment determined that the banks’ credit proﬁles were appropriate for the amounts held on deposit. There are no formal restrictions on this cash as such; however, prior approval would be required from various state authorities in China before any cash could be paid offshore. This cash balance could be used by the Group to service intercompany loans, which total $1.6m at the year-end. In order for the Group to access the balance of $3.7m, a dividend would need to be declared. During the year, the treasury function invested surplus cash in-line with its cash management and investment policies in short-term deposits and money market funds. The use of these deposits and funds enables the treasury function to diversify its counterparty concentration risk by depositing funds with various ﬁnancial institutions and improve the yields on a portion of its surplus cash. The credit ratings of the ﬁnancial institutions where the Group’s total cash and bank balances have been invested are listed below: 2024 2023 Credit rating $m $m Cash at bank and in hand Fitch F1 to F1+ 63.6 31.2 Cash at bank and in hand n/a 14.5 14.3 Short-term deposits with less than 3 months to maturity Fitch F1 to F1+ 51.8 – Money market funds Fitch AAAmmf 76.7 – Derivative ﬁnancial assets Fitch AA-(dcr) 0.4 0.5 Derivative ﬁnancial assets Fitch A+(dcr) 0.1 – The credit risk of foreign exchange contracts is calculated before the contract is acquired and compared to the credit risk limit set for each counterparty. Credit risk is calculated as a ﬁxed percentage of the nominal value of the instrument. (ii) Credit Risk: Receivables The Group makes sales to a large number of different customers; however a signiﬁcant proportion of sales are made to service companies in the oil and gas sector. The majority of the Group’s customers are based in North America. On a quarterly basis, the Group’s entities submit information to the head ofﬁce on individual receivables balances greater than $0.2m, on individual receivable balances that are both greater than $32,000 and 60 days overdue, and on quarterly average receivables balances. At the year-end, trade receivables of $137.7m (2023 – $179.4m) comprised individual balances greater than $0.2m, with no individual customer balance representing more than 8% (2023 – 9%) of the year-end receivables balance of $195.0m (2023 – $204.7m). The risk of customer default for outstanding trade receivables, accrued revenue and contract assets is continuously monitored. Credit account limits are set locally by management and are primarily based on the credit quality of the customer taking into account past experience through trading relationships and the customer’s ﬁnancial position. The probability that a customer would default has remained broadly ﬂat in 2024. The Group used Credit Benchmark software to monitor the creditworthiness and changing credit proﬁles of its customers. Credit Benchmark uses a similar ratings framework to the main credit ratings agencies for classifying the credit quality of a business. However, Credit Benchmark ratings are based on contributed risk views from leading global ﬁnancial institutions, including 15 Global Systemically Important Banks domiciled in the US, Continental Europe, Switzerland, UK, Japan, Canada, Australia and South Africa. The contributions are anonymised, aggregated and published twice monthly in the form of Credit Consensus Ratings and Aggregate Analytics. Although in most cases the Credit Benchmark consensus rating of a business is based on a number of contributing views, there are instances where there is only a single source on which the rating is based. During 2024, 44% of sales, which is more than $463m (2023 – 38%/$347m) of the Group’s revenue, were made to customers with a Credit Benchmark investment-grade rating of bbb or higher, as shown in the table below. This includes customers with a single-source rating, whereby the rating is based on only a single source rather than a consensus rating which has been derived from a number of contributing views. % of Revenue Credit Benchmark – Credit Consensus Ratings 2024 2023 aa 1 8 a 39 22 bbb 4 8 bb 8 7 b 3 – No rating 45 55 Hunting PLC 223 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 30. Financial Risk Management continued (c) Credit Risk continued (ii) Credit Risk: Receivables continued To reduce credit risk exposure from outstanding receivables, the Group has taken out credit insurance with an external insurer, subject to certain conditions. Details of the impairment of trade and other receivables can be found in note 18. (iii) Credit Risk: Other Financial Assets The Group operates a deﬁned beneﬁt pension scheme in the US, which is unfunded. Contributions are paid into a separate investment vehicle and invested in a wide portfolio of US mutual funds. Investments at the year-end amounted to $2.6m (2023 – $2.2m) and are expected to be fully recovered. The Group has provided Wells Data Labs with $2.5m in convertible ﬁnancing, the fair value of which was $2.2m at 31 December 2024 (2023 – $2.2m). The investment is considered to have a low credit risk, although the credit risk of the debt instrument has increased since the loan was advanced. This increased risk has been reﬂected in the fair value calculation of the debt instrument. (d) Liquidity Risk (i) Bank Facilities The Group’s treasury function ensures that there are sufﬁcient committed facilities available to the Group, with an appropriate maturity proﬁle, to provide operational ﬂexibility and to support investment in key Group projects. The Group has sufﬁcient credit facilities to meet both its long- and short-term requirements. The Group’s treasury function ensures ﬂexibility in funding by maintaining availability under committed credit facilities. The Group’s credit facilities are provided by a variety of funding sources and total $432.4m (2023 – $193.8m) at the year-end. The Group’s undrawn facilities at the year-end were as follows: 2024 2023 $m $m Secured committed facilities 200.0 103.1 Unsecured uncommitted facilities 40.1 34.4 240.1 137.5 Secured Committed Facilities: Term Loan and Revolving Credit Facility (“RCF”) In October 2024, the Group entered into $300m of new committed borrowing facilities to ﬁnance the ongoing working capital requirements of the existing business and to support Hunting’s growth strategy. The new funding arrangements comprise a $200m RCF and a $100m term loan. These facilities replace the now cancelled $150m Asset Based Lending (“ABL”) facility, increasing the Group’s access to committed liquidity and extending the maturity of bank borrowing facilities. A conventional earnings-based covenant regime governs the new facilities and includes a leverage test (being the ratio of total net debt to adjusted EBITDA not exceeding 3.0:1) and an interest cover test (being the ratio of consolidated EBITDA to consolidated net ﬁnance charges not being less than 4.0:1). The RCF has been arranged with an initial tenor of four years, expiring on 16 October 2028, with an option that allows the Group to extend the contracted maturity date by an additional twelve-month term. Like the ABL facility, the new RCF contains an accordion feature. This allows the Group to increase the facility quantum by an additional $100m (subject to further credit approval from the relevant lenders) enabling an increase of the total RCF to $300m. The $100m term loan has been arranged with a three-year tenor and pursuant to the conditions of the facility agreement, was fully drawn on signing of the facilities. After an initial twelve-month grace period, the term loan is repaid with eight quarterly repayments of $9.4m and a ﬁnal repayment of $25.0m in September 2027. On signing of the new facilities, the ABL facility was repaid and cancelled, with drawings under the new term loan used in part for this purpose. Management has detailed the wider considerations regarding going concern and future covenant compliance in the Going Concern Statement on page 111. In order to support the sizable orders from Kuwait Oil Company received during 2024, the Group utilises letter of credit discounting arrangements and bank acceptance drafts with ﬁnancial institutions to assist with management of the working capital cycle. Unsecured Uncommitted Facilities To support orders in China, a number of local facilities have been arranged. The facilities comprise the Bank of Jiangsu for CNY80.0m, ICBC for CNY210.0m, HSBC China for CNY540.0m and a ﬁnal facility with China Merchants Bank for CNY100.0m. All of these facilities mature in 2025. These facilities, totalling CNY930.0m ($127.4m; 31 December 2023 – $38.9m), have all been arranged on an uncommitted, unsecured basis and are only available to the Group’s Chinese subsidiary. Utilisation of the facilities can occur through cash borrowing or trade ﬁnance, including bank acceptance drafts. At 31 December 2024, $92.4m of the facilities were utilised (31 December 2023 – $9.4m). Hunting PLC 224 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 30. Financial Risk Management continued (d) Liquidity Risk continued (ii) Management of Cash The Group needs to ensure that it has sufﬁcient liquid funds available to support its working capital and capital expenditure requirements and that adequate liquidity levels are maintained. All subsidiaries submit weekly cash forecasts to the treasury function to enable it to monitor the Group’s requirements. A consolidated 12-week forecast, produced weekly, is maintained by the Group’s treasury function, which monitors long- and short-term liquidity requirements of the Group and also identiﬁes any unexpected variances week-on-week. Treasury’s cash management objective is to centrally manage and, where possible, to concentrate the Group’s cash and bank balances back to the treasury function to ensure that funds are managed in the best interests of the Group. Short-term cash balances, together with undrawn facilities, enable the treasury function to manage its day-to-day liquidity risk. Any short-term surplus is invested in accordance with Board-approved treasury policy. This strategy is subject to legislative and regulatory constraints in certain jurisdictions such as exchange control restrictions and minimum capital requirements. Where cash concentration cannot be applied, Group treasury approves all local banking arrangements, including the opening and closing of bank accounts and the investment of surplus cash via bank deposits. Cash Management Arrangements In respect of the UK business units and head ofﬁce companies, the treasury function has arranged a cash concentration structure with HSBC Bank UK whereby, at the close of each business day, any surplus balances held in certain subsidiaries’ bank accounts are swept to treasury-owned accounts (“pool header” accounts), with a corresponding adjustment to the intercompany loan receivable, or payable, between that subsidiary and treasury. Similarly, any end-of-day deﬁcit in the same group of subsidiary accounts is funded by a cash sweep from the treasury-owned pool header accounts, and the corresponding intercompany loan is adjusted accordingly. This arrangement enables more efﬁcient utilisation of UK-based entities’ surplus cash and at the same time allows the treasury function to meet any short-term funding needs of the UK business units in a more coordinated fashion and from one single pool of liquidity. In addition, a similar cash concentration structure has been organised with Wells Fargo Bank, N.A. in the US, whereby surplus and deﬁcit cash balances are swept to and from a single pool header account, held by one central US subsidiary, with a corresponding movement in the respective companies’ intercompany loan balance. Treasury has systems in place that allow for same-day centralisation of net surplus cash balances in the US to the UK, or indeed to fund any net cash deﬁcit in the US cash concentration structure. As above, this arrangement allows treasury to efﬁciently repatriate surplus operational cash from the US to the UK on a daily basis, if deemed cost effective to do so, and the most appropriate application of that cash can then be decided upon by treasury. This arrangement also allows treasury to meet any short-term funding needs of the Group’s US-based business units from cash resources held in, or borrowing facilities that have been arranged by, treasury in the UK. For other regions, such as Canada and Singapore, while formal sweeping arrangements are not in place, treasury monitors balances on a daily basis and periodically transfers surplus cash to the centre using similar intercompany loan arrangements as described above. The Group’s interests in China are subject to the most highly regulated environment of all the Group’s active jurisdictions, in regards to cash management operations. The free movement of cash both to and from China is a highly restricted activity and, as a consequence, treasury is unable to arrange intercompany loans in the same way as it does for the rest of the Group. Treasury has organised banking arrangements with HSBC in China on behalf of the Group’s Chinese business units and, therefore, has visibility of any cash balances held with HSBC and transaction data for these accounts via HSBC’s proprietary online banking system. For balances held at other Chinese banks, treasury has visibility either via its SWIFT connection or from information supplied by Hunting’s local entity. Deposits and Investments of Surplus Cash Short-term deposits and money market funds are held for the purpose of meeting short-term cash commitments, minimising counterparty concentration risk and improving cash investment returns. Short-term deposits of surplus cash are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Group. These deposits earn interest at the respective short-term deposit rates. The Group has invested surplus cash in money market funds as they are considered to be highly liquid since cash can be redeemed from each fund on a same-day basis. The yield on the funds is calculated on the daily performance of the various instruments with a particular fund. During the year, the treasury function has invested surplus cash in short-term deposits ($51.8m) and money market funds ($76.7m) in line with its cash management and investment policies that would enable a fair return, while maintaining the ability to access the cash easily. At the end of 2023, no surplus cash was held in deposits or money market funds. The use of these deposits and funds enables the treasury function to diversify its counterparty concentration risk by depositing funds with various ﬁnancial institutions and improve the yields on a portion of its surplus cash. The interest received and gains made during the year are disclosed in note 8. Cash at bank earns interest at ﬂoating rates based on daily bank deposit rates. (iii) Future Cash Flows of Financial Liabilities The following tables analyse the expected timings of cash outﬂows for each of the Group’s non- derivative ﬁnancial liabilities. The tables analyse the cash outﬂows into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity dates of the ﬁnancial liabilities. The amounts disclosed in the tables are the contractual, undiscounted cash ﬂows and include interest cash ﬂows and other contractual payments, where applicable, so will not always reconcile with the amounts disclosed in the consolidated balance sheet. The carrying values are the amounts in the consolidated balance sheet and are the discounted amounts. Balances due within one year have been included in the maturity analysis at their carrying amounts, as the impact of discounting is not signiﬁcant. Hunting PLC 225 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 30. Financial Risk Management continued (d) Liquidity Risk continued (iii) Future Cash Flows of Financial Liabilities continued 2024 On demand Between or within one and After Carrying one year ﬁve years ﬁve years Total value $m $m $m $m $m Non-derivative ﬁnancial liabilities: Trade payables 41.4 – – 41.4 41.4 Accruals 22.8 – – 22.8 22.8 Other payables 94.8 – – 94.8 94.8 Lease liabilities 7.7 19.9 8.2 35.8 30.1 Bank borrowings secured 18.2 108.5 – 126.7 100.4 Bank overdrafts secured 1.5 – – 1.5 1.5 Shareholder loan from non-controlling interest – – 3.9 3.9 3.9 Total 186.4 128.4 12.1 326.9 294.9 2023 On demand Between or within one and After Carrying one year ﬁve years ﬁve years Total value $m $m $m $m $m Non-derivative ﬁnancial liabilities: Trade payables 62.5 – – 62.5 62.5 Accruals 24.2 – – 24.2 24.2 Other payables 2.8 – – 2.8 2.8 Lease liabilities 8.2 16.2 10.3 34.7 28.7 Bank borrowings secured 48.6 4.1 – 52.7 44.9 Bank overdrafts secured 1.4 – – 1.4 1.4 Shareholder loan from non-controlling interest – – 3.9 3.9 3.9 Total 147.7 20.3 14.2 182.2 168.4 The Group had no net settled ﬁnancial liabilities at the year-end (2023 – none). The table below analyses the Group’s derivative ﬁnancial instruments, which will be settled on a gross basis, into maturity groupings based on the period remaining from the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual, undiscounted cash ﬂows. 2024 2023 On demand Between On demand Between or within one and or within one and one year ﬁve years Total one year ﬁve years Total $m $m $m $m $m $m Currency derivatives: Inﬂows 276.3 – 276.3 58.2 – 58.2 Outﬂows (279.7) – (279.7) (57.9) – (57.9) (e) Capital Risk Management The Group’s objectives, policies and processes for managing capital are outlined in the Strategic Report within the Group Funding section on pages 64 and 65. Within this section, the Group provides a deﬁnition of capital, provides details of the external ﬁnancial covenants imposed, key measures for managing capital and the objectives for managing capital. Quantitative disclosures are made together with the parameters for meeting external ﬁnancial covenants. 31. Financial Instruments: Sensitivity Analysis The following sensitivity analysis is intended to illustrate the sensitivity to changes in market variables on the Group’s ﬁnancial instruments and show the impact on proﬁt or loss and shareholders’ equity. Financial instruments affected by market risk include cash at bank and in hand, trade and other receivables, trade and other payables, lease liabilities, borrowings and derivative ﬁnancial instruments. The sensitivity analysis relates to the position as at 31 December 2024. The analysis excludes the impact of movements in market variables on the carrying value of pension and other post-retirement obligations, provisions and non-ﬁnancial assets and liabilities of foreign operations. The following assumptions have been made in calculating the sensitivity analysis: • Foreign exchange rate and interest rate sensitivities have an asymmetric impact on the Group’s results, that is an increase in rates does not result in the same amount of movement as a decrease in rates; • For ﬂoating rate assets and liabilities, the amount of asset or liability outstanding at the balance sheet date is assumed to be outstanding for the whole year; • Fixed-rate ﬁnancial instruments that are carried at amortised cost are not subject to interest rate risk for the purpose of this analysis; and • The carrying values of ﬁnancial assets and liabilities carried at amortised cost do not change as interest rates change. Positive ﬁgures represent an increase in proﬁt or equity. Hunting PLC 226 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 31. Financial Instruments: Sensitivity Analysis continued (a) Interest Rate Sensitivity (i) UK Interest Rates The sensitivity rate of 1.0% (2023 – 2.0%) for UK interest rates represents management’s assessment of a reasonably possible change, based on historical volatility and a review of analysts’ research and banks’ expectations of future interest rates. The impact on the consolidated income statement, with all other variables held constant, in applying the sensitivity above results in a $0.5m (2023 – $nil) increase or decrease in post-tax proﬁt for an increase or decrease in US interest rates. There is no impact on other comprehensive income (“OCI”) for a change in US interest rates. (ii) Other Interest Rates For all other interest rates, there is an immaterial impact on post-tax proﬁt or loss for any reasonably possible changes in other interest rates, based on historical volatility and a review of analysts’ research and banks’ expectations of future interest rates. There is no impact on OCI for a change in other interest rates. (b) Foreign Exchange Rate Sensitivity Management has considered the impact of changes to the various foreign exchange rates on the exposed ﬁnancial assets and liabilities disclosed in note 30(a)(i). The sensitivity rates selected range between 2% and 7% and represent management’s assessment of a reasonably possible change, based on historical volatility and a review of analysts’ research and banks’ expectations of future foreign exchange rates. There is an immaterial impact on post-tax proﬁt or loss and on OCI for any reasonably possible changes in the foreign exchange rates. 32. Post-employment Beneﬁts (a) Deﬁned Contribution Arrangements A number of deﬁned contribution arrangements, which are open to current employees, are operated across the Group. Employer contributions to these arrangements are charged directly to proﬁt and loss and in 2024 these totalled $9.3m (2023 – $8.2m). (b) Unfunded Deﬁned Beneﬁt Schemes (i) US Deﬁned Beneﬁt Scheme The Group operates a cash balance arrangement in the US for certain executives. Members build up beneﬁts in this arrangement by way of notional contributions and notional investment returns. Actual contributions are paid into an entirely separate investment vehicle held by the Group, which is used to pay beneﬁts due from the arrangement when a member retires. Under IAS 19, the cash balance arrangement is accounted for as an unfunded deﬁned beneﬁt scheme. The amounts charged to the consolidated income statement during the year were $0.1m (2023 – $0.2m) reﬂecting the employer’s current service cost of $0.2m (2023 – $0.2m) charged to administrative expenses and a net $0.1m credit (2023 – $nil) relating to fair value gains on the listed equities and mutual funds and interest charged on the beneﬁt obligations. Movements in the present value of the obligation for the unfunded deﬁned beneﬁt US deferred compensation plan 2024 2023 $m $m Present value of the obligation at the start of the year 2.2 1.9 Current service cost (equal to the notional contributions) 0.2 0.2 Contributions by plan participants 0.2 – Remeasurement – excess of notional investment returns over interest cost 0.1 – Interest on beneﬁt obligations 0.1 0.1 Beneﬁts paid (0.2) – Present value of the obligation at the end of the year 2.6 2.2 The obligation of $2.6m (2023 – $2.2m) is presented in the consolidated balance sheet in non-current payables (note 22). (ii) Middle East Deﬁned Beneﬁt Schemes The Group operates two unfunded deﬁned beneﬁt pension schemes in Dubai and Saudi Arabia, whereby local law requires payment to be made to an employee when they leave their employment with the business unit based on their salary and number of years of service. The combined obligation at the year-end was $1.1m (2023 – $0.8m), with $0.3m (2023 – $0.1m) recognised in the consolidated income statement during the year. The obligation is presented in non-current other payables (note 22). 33. Share Capital and Share Premium The Company’s share capital comprises a single class of Ordinary shares, which are classiﬁed as equity. Ordinary Ordinary shares of shares of Share 25p each 25p each premium Number $m $m At 1 January 2023 and 2024 164,940,082 66.5 153.0 Disposal of treasury shares – – 0.1 At 31 December 2024 164,940,082 66.5 153.1 There are no restrictions attached to any of the Ordinary shares in issue and all Ordinary shares carry equal voting rights. The rights attached to the Company’s Ordinary shares are summarised on page 168. All of the Ordinary shares in issue are fully paid. At 31 December 2024, 7,191,845 (2023 – 6,591,918) Ordinary shares were held by an Employee Beneﬁt Trust. Details of the carrying amount are set out in note 35. During 2024, the Company sold treasury shares where the proceeds exceeded the purchase price paid by the Company. The excess of $0.1m was transferred to the share premium account. Hunting PLC 227 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 34. Other Components of Equity 2024 Share-based Currency Capital Merger reserve payments reserve translation reserve redemption reserve Hedge reserve Total $m $m $m $m $m $m At 1 January 2024 – 19.9 (12.1) 0.8 0.1 8.7 Exchange adjustments – – (4.0) – – (4.0) Share options and awards: – value of employee services – 12.3 – – – 12.3 – discharge – (9.6) – – – (9.6) Fair value gains and losses: – losses arising on cash ﬂow hedges during the year – – – – (0.8) (0.8) – gains arising on cash ﬂow hedges transferred to initial carrying value of hedged items – – – – (0.2) (0.2) – gains arising on cash ﬂow hedges reclassiﬁed to proﬁt or loss – – – – (0.2) (0.2) – taxation – – – – 0.2 0.2 At 31 December 2024 – 22.6 (16.1) 0.8 (0.9) 6.4 Restated i 2023 Share-based Currency Capital Merger reserve payments reserve translation reserve redemption reserve Hedge reserve Total $m $m $m $m $m $m At 1 January 2023 11.8 15.9 (13.0) 0.8 0.3 15.8 Exchange adjustments – – 3.6 – – 3.6 Share options and awards: – value of employee services – 12.3 – – – 12.3 – discharge – (8.3) – – – (8.3) Fair value gains and losses: – losses arising on cash ﬂow hedges during the year – – – – (0.3) (0.3) – losses arising on cash ﬂow hedges transferred to initial carrying value of hedged items – – – – 0.3 0.3 – gains arising on cash ﬂow hedges reclassiﬁed to proﬁt or loss – – – – (0.3) (0.3) – taxation – – – – 0.1 0.1 Transfer between reserves (note 35) (11.8) – (2.7) – – (14.5) At 31 December 2023 – 19.9 (12.1) 0.8 0.1 8.7 i. Comparative balances have been restated, see note 1. The merger reserve comprises the proceeds received, net of transaction costs, in excess of the nominal value of the Ordinary shares issued by way of the share placing completed on 31 October 2016. In accordance with section 612 of the Companies Act 2006, the premium was credited to the merger reserve, instead of to the share premium account, because the share placing was pursuant to the Company securing over 90% of another entity. The proceeds were used to pay down the Group’s borrowings at that time. The reserve is currently non-distributable and is transferred to distributable retained earnings when the proceeds meet the deﬁnition of qualifying consideration. During 2023, the remaining balance of $11.8m was transferred from the merger reserve to retained earnings. This portion of the reserve was considered to be realised, as the equivalent amount of the proceeds from the share placing in 2016 met the deﬁnition of qualifying consideration. Hunting PLC 228 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 34. Other Components of Equity continued The share-based payments reserve represents the Group’s obligation to settle share-based awards issued to its employees. When employees exercise their awards, the portion of the share-based payments reserve which represents the share-based payment charge for those awards is transferred to retained earnings and the Group discharges its obligation. The currency translation reserve contains the accumulated foreign exchange differences that arise from the translation of the ﬁnancial statements of the Group’s foreign operations into US Dollars when the Group’s entities are consolidated, together with exchange differences arising on foreign currency loans used to ﬁnance foreign currency net investments. The currency translation reserve also includes the accumulated foreign exchange net gains in respect of net investment hedges, which will be released to the income statement on the disposal or dissolution of the relevant subsidiary. During 2023, there was a transfer of $2.7m between the currency translation reserve and retained earnings. The capital redemption reserve is a statutory, non-distributable reserve into which amounts are transferred following the purchase of the Company’s own shares out of distributable proﬁts. The hedge reserve represents the accumulated fair value gains and losses in relation to the spot component of forward foreign exchange contracts designated in a cash ﬂow hedge that were taken out to hedge the purchase of an asset, such as property, plant and equipment or inventory, in a foreign currency. The fair value gain or loss accumulated in the hedge reserve is transferred to the cost of the asset when it is acquired. 35. Retained Earnings Restated i 2024 2023 $m $m At 1 January 718.6 609.3 (Loss)/proﬁt for the year (28.0) 110.3 Remeasurement of deﬁned beneﬁt pension schemes net of tax (note 32) (0.1) – Dividends paid to Hunting PLC shareholders (16.7) (15.0) Treasury shares: – purchase of treasury shares (14.2) (9.0) – proceeds on disposal of treasury shares 0.2 0.3 Share options and awards: – discharge 9.0 7.9 – taxation 2.0 0.3 Transfer between reserves (note 34) – 14.5 At 31 December 670.8 718.6 i. Comparative balances have been restated, see note 1. The share options and awards taxation taken directly to equity of $2.0m (2023 – $0.3m) comprises a deferred tax credit of $1.4m (2023 – $0.3m) and a current tax credit of $0.6m (2023 – $nil). Retained earnings include the following amounts in respect of the carrying amount of treasury shares: 2024 2023 $m $m Cost: At 1 January (22.2) (19.2) Purchase of treasury shares (14.2) (9.0) Cost of treasury shares disposed 7.9 6.0 At 31 December (28.5) (22.2) At 31 December 2024, 7,191,845 Ordinary shares were held by the Employee Beneﬁt Trust (2023 – 6,591,918). The Company purchased 2,917,742 (2023 – 2,935,096) additional treasury shares during the year for $14.2m (2023 – $9.0m). The loss on disposal of treasury shares during the year, which is recognised in retained earnings, was $7.7m (2023 – $5.7m). 36. Dividends Paid to Hunting PLC Shareholders 2024 2023 Cents Cents per share $m per share $m Ordinary dividends: 2023 ﬁnal dividend 5.0 8.0 – – 2024 interim dividend 5.5 8.7 – – 2022 ﬁnal dividend – – 4.5 7.1 2023 interim dividend – – 5.0 7.9 10.5 16.7 9.5 15.0 A ﬁnal dividend for 2024 of 6.0 cents per share has been proposed by the Board, amounting to an estimated distribution of $9.5m. The proposed ﬁnal dividend is subject to approval by the shareholders at the Annual General Meeting to be held on 16 April 2025 and has not been provided for in these ﬁnancial statements. If approved, the dividend will be paid in Sterling on 9 May 2025, to shareholders on the register on 11 April 2025, and the Sterling value of the dividend payable per share will be ﬁxed, and announced approximately two weeks prior to the payment date, based on the average spot exchange rate over the three business days preceding the announcement date. Guidance on the Company’s position on declaring and paying future dividends is provided within the Strategic Report on page 11. Hunting PLC 229 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 37. Share-based Payments (a) 2009 Performance Share Plan (“PSP”) (i) Time-based Awards and Options The Company granted nil-cost, time-based share awards and options under the PSP between 2009 and 2013. Annual awards were made to employees, subject to continued employment during the vesting period. There were no performance conditions attached. The ﬁnal grant under the PSP occurred in 2013 and vested in 2016 and option holders had seven years in which to exercise their vested awards. Share awards can only be exercised by the employees to whom they were granted. The PSP was replaced by the 2014 Hunting Performance Share Plan following shareholder approval at the Annual General Meeting (“AGM”) of the Company on 16 April 2014. Details of the time-based share option movements during the year are as follows: 2024 2023 Number of Number of shares shares Outstanding at the beginning of the year – 1,001 Vested and exercised during the year – (1,001) Outstanding and exercisable at the end of the year – – The weighted average share price at the date of exercise during 2023 was 332.0 pence. There are no time-based PSP awards or options outstanding at 31 December 2024 and there was no fair value charge to the consolidated income statement attributable to the time-based PSP (2023 – $nil). (b) 2014 Hunting Performance Share Plan (“HPSP”) The Company granted share awards annually to executive Directors and senior employees under the rules of the 2014 HPSP between 2014 and 2023. Awards were granted as either performance or time-based options or awards at nil cost under the HPSP and can only be exercised by the employees to whom they were granted. Share options, which are subject to tax on exercise, are granted to UK employees. Share option holders have seven years in which to exercise their vested awards. Share awards, which are subject to tax on vesting, are granted to employees resident in some other tax jurisdictions. (i) Performance-based Awards The performance-based HPSP awards, which were granted to the executive Directors and senior employees, are divided into ﬁve tranches of differing proportions. Each tranche is subject to a three-year vesting period and Company performance is measured against various performance metrics, as shown in the table below. The award weightings for the years 2022 and 2023 are in the table below. Award Award weighting weighting 2023 2022 Performance measure % % Total Shareholder Return (“TSR”) of a bespoke comparator group 20 25 Adjusted diluted earnings per share (“EPS”) 20 20 Return on average capital employed (“ROCE”) 25 20 Free cash ﬂow (“FCF”) 20 20 Balanced strategic scorecard – non-ﬁnancial KPIs comprising Quality and Safety performance 15 15 Details of the performance-based HPSP award movements during the year are set out below: 2024 2023 Number of Number of shares shares Outstanding at the beginning of the year 7,829,492 7,641,325 Granted during the year to executive Directors – 1,231,216 Granted during the year to senior employees – 1,263,083 Vested and exercised during the year (755,432) (178,211) Lapsed during the year (1,648,749) (2,127,921) Outstanding at the end of the year 5,425,311 7,829,492 Hunting PLC 230 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 37. Share-based Payments continued (b) 2014 Hunting Performance Share Plan (“HPSP”) continued (i) Performance-based Awards continued Details of the performance-based HPSP awards outstanding at 31 December 2024 are as follows: 2024 2023 Number of Number of Normal shares shares vesting date Expiry date Date of grant: 3 March 2020 – options – 1,566 3 March 2023 3 March 2030 4 March 2021 – options – 365,499 4 March 2024 4 March 2031 4 March 2021 – awards – 1,838,743 4 March 2024 – 4 March 2022 – options 505,420 505,420 4 March 2025 4 March 2032 4 March 2022 – awards 2,636,297 2,662,151 4 March 2025 – 6 March 2023 – options 425,229 425,229 6 March 2026 6 March 2033 6 March 2023 – awards 1,858,365 2,030,884 6 March 2026 – Outstanding at the end of the year 5,425,311 7,829,492 Exercisable at the end of the year – 1,566 Weighted average remaining contractual life of options outstanding at the end of the year 7.64 years 8.25 years In 2024, a total of 755,432 awards were exercised (2023 – 178,211). The weighted average share price at the date of exercise during 2024 was 310.8 pence (2023 – 230.4 pence). (ii) Time-based Awards The Company also grants time-based share awards annually to senior employees under the 2014 HPSP, which are subject to a three-year vesting period. Annual awards of shares may be made to employees subject to continued employment during the vesting period. There are no performance conditions attached. Details of the time-based HPSP award movements during the year are set out below: 2024 2023 Number of Number of shares shares Outstanding at the beginning of the year 5,698,418 5,382,246 Granted during the year – 2,143,469 Vested and exercised during the year (1,492,105) (1,434,673) Lapsed during the year (278,458) (392,624) Outstanding at the end of the year 3,927,855 5,698,418 In 2024, a total of 1,492,397 awards were exercised (2023 – 1,434,673). The weighted average share price at the date of exercise during 2024 was 316.1 pence (2023 – 251.1 pence). Details of the time-based HPSP awards outstanding at 31 December 2024 are as follows: 2024 2023 Number of Number of Normal shares shares vesting date Expiry date Date of grant: 11 March 2016 – options – 1,411 11 March 2019 11 March 2026 3 March 2017 – options – 1,859 3 March 2020 3 March 2027 19 April 2018 – options 2,816 4,341 19 April 2021 19 April 2028 21 March 2019 – options 5,719 13,384 21 March 2022 21 March 2029 3 March 2020 – options 19,429 68,328 3 March 2023 3 March 2030 4 March 2021 – options 31,895 219,433 4 March 2024 4 March 2031 4 March 2021 – awards 2,105 1,005,865 4 March 2024 – 4 March 2022 – options 347,465 363,760 4 March 2025 4 March 2032 4 March 2022 – awards 1,698,214 1,961,409 4 March 2025 – 6 March 2023 – options 342,346 356,321 6 March 2026 6 March 2033 6 March 2023 – awards 1,477,866 1,702,307 6 March 2026 – Outstanding at the end of the year 3,927,855 5,698,418 Exercisable at the end of the year 131,012 89,323 Weighted average remaining contractual life of options outstanding at the end of the year 7.51 years 8.14 years Hunting PLC 231 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 37. Share-based Payments continued (b) 2014 Hunting Performance Share Plan (“2014 HPSP”) continued (iii) Fair Value of HPSP Awards The fair value of awards granted under the 2014 HPSP was calculated using two separate models: (1) The fair value of awards subject to a market-related performance condition, speciﬁcally Company performance against the TSR of a bespoke peer group, was calculated using the Stochastic pricing model (also known as the “Monte Carlo” model). The assumptions used in this model were as follows: 2023 Date of grant/valuation date 6 March 2023 Weighted average share price at grant 277.0p Exercise price nil Expected dividend yield nil Expected volatility 54.8% Risk-free rate 3.84% Expected life 3 years Weighted average fair value at grant 156.6p (2)The fair value of performance-based awards not subject to a market-related performance condition include the EPS, ROCE, FCF and balanced strategic scorecard performance targets, and the time-based HPSP awards, with the fair value being calculated using the Black-Scholes pricing model. The assumptions used in this model were as follows: 2023 Date of grant/valuation date 6 March 2023 Weighted average share price at grant 277.0p Exercise price nil Expected dividend yield nil Expected volatility 54.8% Risk-free rate 3.84% Expected life 3 years Weighted average fair value at grant 277.0p The methods used to calculate the assumptions are described on page 234. (c) Cash Conditional Share Awards 2014 HPSP The Company granted cash conditional awards annually to employees in certain overseas tax jurisdictions. These awards are aligned with the rules of the 2014 HPSP and are subject to employees’ continued employment during the vesting period. Awards are granted at nil cost and are settled at the closing mid-market price of a Hunting PLC Ordinary share on the third anniversary of the date of grant. (i) Performance-based Awards The performance-based cash conditional awards to senior employees are divided into ﬁve tranches of differing proportions. Each tranche is subject to a three-year vesting period and Company performance is measured against various performance measures as shown in the table below. The award weightings for the 2022 and 2023 awards were as follows: Award Award weighting weighting 2023 2022 Performance measure % % TSR of a bespoke comparator group (“TSR”) 20 25 Adjusted diluted earnings per share (“EPS”) 20 20 Return on average capital employed (“ROCE”) 25 20 Free cash ﬂow (“FCF”) 20 20 Strategic scorecard – non-ﬁnancial KPIs comprising Quality and Safety performance 15 15 Details of the cash conditional performance-based award movements during the year are set out below: 2024 2023 Number of Number of shares shares Outstanding at the beginning of the year 540,150 546,402 Granted during the year – 158,991 Vested and exercise during the year (60,501) (12,392) Lapsed during the year (129,191) (152,851) Outstanding at the end of the year 350,458 540,150 Hunting PLC 232 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 37. Share-based Payments continued (c) Cash Conditional Share Awards 2014 HPSP continued (i) Performance-based Awards continued Details of the cash conditional performance-based awards outstanding at 31 December 2024 are as follows: 2024 2023 Number of Number of Normal shares shares vesting date Date of grant: 4 March 2021 – 176,897 4 March 2024 4 March 2022 202,235 204,262 4 March 2025 6 March 2023 148,223 158,991 6 March 2026 Outstanding at the end of the year 350,458 540,150 The fair value of the cash conditional performance-based awards is calculated at the date of grant using the same assumptions and model as the fair value of the performance-based awards not subject to a market-related condition (see 37(b)(iii) above for 2023 grant). The weighted average fair value of the award at 31 December 2023 was 244.0 pence (2023 – 295.5 pence). (ii) Time-based Awards The Company also grants time-based cash conditional awards annually, which are subject to a three-year vesting period. Annual cash awards may be made to employees subject to continued employment during the vesting period. There are no performance conditions attached. Details of the cash conditional time-based award movements during the year are set out below: 2024 2023 Number of Number of shares shares Outstanding at the beginning of the year 706,822 532,437 Granted during the year – 265,816 Vested and exercised during the year (116,097) (89,036) Lapsed during the year (25,833) (2,395) Outstanding at the end of the year 564,892 706,822 The weighted average share price at the date of exercise during 2024 was 318.1 pence (2023 – 282.0 pence). Details of the cash conditional time-based awards outstanding at 31 December 2024 are as follows: 2024 2023 Number of Number of Normal shares shares vesting date Date of grant: 4 March 2021 7,043 117,837 4 March 2024 4 March 2022 313,596 325,564 4 March 2025 6 March 2023 244,253 263,421 6 March 2026 Outstanding at the end of the year 564,892 706,822 Exercisable at the end of the year 40,319 – The fair value of the cash conditional awards is calculated at the date of grant using the same assumptions and model as the fair value of performance-based awards not subject to a market-related performance condition (see 37(b)(iii) above for 2023 grant). The weighted average fair value of the award at 31 December 2024 was 289.0 pence (2023 – 295.5 pence). (d) 2024 Hunting Performance Share Plan (“HPSP”) The Company grants share awards annually to executive Directors and senior employees under the rules of the 2024 HPSP, following shareholder approval at the Annual General Meeting (“AGM”) of the Company on 17 April 2024. Awards are granted as either performance or time-based awards at nil cost under the HPSP and can only be exercised by the employees to whom they were granted. (i) Performance-based Awards The performance-based HPSP awards granted to the executive Directors and senior employees are divided into ﬁve tranches of differing proportions. Each tranche is subject to a three-year vesting period and Company performance is measured against various performance metrics, as shown in the table below. The performance period for awards granted on 18 April 2024 under the HPSP is 1 January 2024 to 31 December 2026. The vesting date of the 2024 award is 18 April 2027. The award weightings for the 2024 awards are as follows: Award weighting 2024 Performance measure % Total Shareholder Return (“TSR”) of a bespoke comparator group 30 Return on average capital employed (“ROCE”) 25 Adjusted diluted earnings per share (“EPS”) 15 Free cash ﬂow (“FCF”) 15 Strategic scorecard – non-ﬁnancial KPIs comprising Quality and Safety performance 15 Hunting PLC 233 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 37. Share-based Payments continued (d) 2024 Hunting Performance Share Plan (“HPSP”) continued (i) Performance-based Awards continued Details of the performance-based HPSP award movements during the year are set out below: 2024 Number of shares Outstanding at the beginning of the year – Granted during the year to executive Directors 820,963 Granted during the year to senior employees 1,085,471 Lapsed during the year (149,050) Outstanding at the end of the year 1,757,384 Details of the performance-based HPSP awards outstanding at 31 December 2024 are as follows: 2024 Number of Normal shares vesting date Expiry date Date of grant: 18 April 2024 – awards 1,757,384 18 April 2027 – Outstanding at the end of the year 1,757,384 Exercisable at the end of the year – In 2024, no awards were exercised. (ii) Time-based Awards The Company also grants time-based share awards annually to senior employees under the HPSP, which are subject to a three-year vesting period. Annual awards of shares may be made to employees subject to continued employment during the vesting period. There are no performance conditions attached. Details of the time-based HPSP award movements during the year are set out below: 2024 Number of shares Outstanding at the beginning of the year – Granted during the year 1,993,209 Vested and exercised during the year (3,662) Lapsed during the year (157,924) Outstanding at the end of the year 1,831,623 In 2024, a total of 3,662 awards were exercised. The weighted average share price at the date of exercise during 2024 was 392.2 pence. Details of the time-based HPSP awards outstanding at 31 December 2024 are as follows: 2024 Number of Normal shares vesting date Expiry date Date of grant: 18 April 2024 – awards 1,831,623 18 April 2027 – Outstanding at the end of the year 1,831,623 Exercisable at the end of the year 1,991 (iii) Fair Value of HPSP Awards The fair value of awards granted under the HPSP is calculated using two separate models: (1) The fair value of awards subject to a market-related performance condition, speciﬁcally Company performance against the TSR of a bespoke peer group, has been calculated using the Stochastic pricing model (also known as the “Monte Carlo” model). The assumptions used in this model were as follows: 2024 Date of grant/valuation date 18 April 2024 Weighted average share price at grant 354.0p Exercise price nil Expected dividend yield nil Expected volatility 50.82% Risk-free rate 4.35% Expected life 3 years Weighted average fair value at grant 274.37p Hunting PLC 234 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 37. Share-based Payments continued (d) 2024 Hunting Performance Share Plan (“HPSP”) continued (iii) Fair Value of HPSP Awards continued (2)The fair value of performance-based awards not subject to a market-related performance condition include the EPS, ROCE, FCF and balanced strategic scorecard performance targets, and the time-based HPSP awards, with the fair value being calculated using the Black-Scholes pricing model. The assumptions used in this model were as follows: 2024 Date of grant/valuation date 18 April 2024 Weighted average share price at grant 354.0p Exercise price nil Expected dividend yield nil Expected volatility 50.82% Risk-free rate 4.35% Expected life 3 years Weighted average fair value at grant 354.0p The methods to calculate the assumptions for both models are: • The expected volatility was calculated using historic weekly volatility, equal in length to the remaining portion of the performance period at the date of grant; • The expected life of the award has been calculated commensurate with the vesting period; • The risk-free rate is based on the zero coupon UK government bond yield commensurate with the vesting period prevailing at the date of grant; • Participants are entitled to a dividend equivalent over the number of shares that make up their award. It is accumulated over the vesting period and released subject to the achievement of the performance conditions. This is factored into the fair value calculation and as a result the dividend yield assumption is set to zero; and • The initial accounting charge of the performance-based HPSP awards granted under the HPSP incorporates an estimate of the number of shares that are expected to lapse for those participants who cease employment during the vesting period. The estimate of the expected forfeiture rate is 5% per annum. The subsequent accounting charge includes an adjustment to the initial accounting charge to allow for actual lapses rather than estimated lapses. (e) Cash Conditional Share Awards 2024 HPSP The Company also grants cash conditional awards annually to employees in certain overseas tax jurisdictions. These awards are aligned with the rules of the 2024 HPSP and are subject to employees continued employment during the vesting period. Awards are granted at nil cost and are settled at the closing mid-market price of a Hunting PLC Ordinary share on the third anniversary of the date of grant. (i) Performance-based Awards The performance-based cash conditional awards to senior employees are divided into ﬁve tranches of differing proportions. Each tranche is subject to a three-year vesting period and Company performance is measured against various performance measures as shown in the table below. The performance period for the 2024 awards is 1 January 2024 to 31 December 2026. The award weightings for the 2024 awards are shown in the table below: Award weighting 2024 Performance measure % TSR of a bespoke comparator group 30 Return on average capital employed (“ROCE”) 25 Adjusted diluted earnings per share (“EPS”) 15 Free cash ﬂow (“FCF”) 15 Balanced strategic scorecard – non-ﬁnancial KPIs comprising Quality and Safety performance 15 Details of the cash conditional performance-based award movements during the year are set out below: 2024 Number of shares Outstanding at the beginning of the year – Granted during the year 126,120 Lapsed during the year (16,662) Outstanding at the end of the year 109,458 Hunting PLC 235 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 37. Share-based Payments continued (e) Cash Conditional Share Awards 2024 HPSP continued (i) Performance-based Awards continued Details of the cash conditional performance-based awards outstanding at 31 December 2024 are as follows: 2024 Number of Normal shares vesting date Date of grant: 18 April 2024 109,458 18 April 2027 Outstanding at the end of the year 109,458 The fair value of the cash conditional performance-based awards is calculated at the date of grant using the same assumptions and model as the fair value of the performance-based awards not subject to a market-related condition (see 37(d)(iii) above). The weighted average fair value of the award at 31 December 2024 was 86.7 pence. (ii) Time-based Awards The Company also grants time-based cash conditional awards annually, which are subject to a three-year vesting period. Annual cash awards may be made to employees subject to continued employment during the vesting period. There are no performance conditions attached. Details of the cash conditional time-based award movements during the year are set out below: 2024 Number of shares Outstanding at the beginning of the year – Granted during the year 223,353 Vested and exercised during the year (1,419) Lapsed during the year (21,722) Outstanding at the end of the year 200,212 The weighted average share price at the date of exercise during 2024 was 406.0 pence. Details of the cash conditional time-based awards outstanding at 31 December 2024 are as follows: 2024 Number of Normal shares vesting date Date of grant: 18 April 2024 200,212 18 April 2027 Outstanding at the end of the year 200,212 Exercisable at the end of the year 3,407 The fair value of the cash conditional awards is calculated at the date of grant using the same assumptions and model as the fair value of performance-based awards not subject to a market-related performance condition (see 37(d)(iii) above). The weighted average fair value of the award at 31 December 2024 was 289.0 pence. (f) Amounts Included in the Accounts The charge to the consolidated income statement attributable to the cash conditional share awards is $1.8m (2023 – $1.2m) and the total charge attributable to the equity-settled awards is $12.3m (2023 – $12.3m). The total charge to the consolidated income statement for the year for share-based payments is $14.1m (2023 – $13.5m), see note 7. The total liability in relation to the cash-settled awards included in accruals at the year-end is $2.8m (2023 – $1.8m), of which $nil (2023 – $nil) related to awards that had vested. Hunting PLC 236 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 38. Related-party Transactions The following related-party transactions took place between wholly-owned subsidiaries of the Group and associates and joint ventures during the year: 2024 2023 $m $m Additional investment in Cumberland (note 16) (0.9) (1.6) Revenue from sales to joint ventures 4.2 0.6 Dividends received from Tianjin Huaxin (note 16) – 0.6 Year-end balances: Shareholder loan from non-controlling interest note 25) (3.9) (3.9) The outstanding balances at the year-end are unsecured and have no ﬁxed date for repayment. During the year, revenue of $4.3m (2023 – $9.2m) was generated from sales to BestLink Tube Pte. Ltd., the minority interest holder in Hunting Energy Services (China) Pte. Ltd. Additionally, revenue of $2.1m (2023 – $3.0m) was recognised from sales to Jindal SAW, the Indian joint venture partner. All ownership interests in associates are in the equity shares of those companies. The ownership interests in associates, joint ventures and subsidiaries are set out in notes C14 and C15 of the Company ﬁnancial statements. The key management of the Group comprises the Hunting PLC Board and members of the Executive Committee. Details of their compensation are disclosed in note 7. The Hunting PLC Directors and the members of the Executive Committee had no material transactions other than as a result of their service agreements. Hunting PLC is the parent company of the Hunting PLC Group. The Company is listed on the London Stock Exchange, with none of the shareholders owning more than 20% of the issued share capital of the Company (see page 169). Accordingly, the Directors do not consider there to be an ultimate controlling party. 39. Events After the Balance Sheet Date (a) Rival divestment On 3 March 2025, the Group sold its investment in associate, Rival Downhole Tools LC, for consideration of $13.1m. Hunting received $12.0m cash at closing and will receive a further $1.1m contingent on the completion and outcome of any outstanding matters, which is expected to be within 12 months. The sale had no impact on the carrying value of Rival at 31 December 2024. (b) EMEA restructuring On 14 January 2025, the Group announced that a major restructuring of the EMEA operating segment had commenced. The restructuring followed a detailed review of the outlook for the Group’s European operations, which took into account the conﬁrmation of the tax regime of the UK North Sea oil and gas industry and the parallel strategy of the UK government to decarbonise its energy supply. Total cost savings are expected to be in the region of up to c.$10m, including a contribution from a review of sales, general and administration costs. 40. Material Accounting Policies The Group’s material accounting policies are described below: (a) Consolidation • The Group ﬁnancial statements include the results of the Company and its subsidiaries, together with its share of associates and joint ventures. • Subsidiaries are consolidated from the date on which control is transferred to the Group and are de-consolidated from the date control ceases. • The Group uses the acquisition method of accounting for business combinations. Consequently, the consideration is determined as the fair value of the net assets transferred to the vendor and includes an estimate of any contingent consideration. The net assets acquired are also measured at their respective fair values for initial recognition purposes on the acquisition date, unless stated as an exception to this in IFRS 3. • Acquisition-related costs arising on business combinations are expensed to the consolidated income statement as incurred. (b) Revenue (i) Revenue from Contracts with Customers • Revenue is recognised as performance obligations are satisﬁed when control of promised goods or services is transferred to the customer and is measured at the amount that reﬂects the consideration to which the Group expects to be entitled in exchange for those goods or services. • For each performance obligation within a contract, the Group determines whether it recognises revenue: 1. Wholly at a single point in time when the Group has completed its performance obligation; or 2. Piecemeal over time during the period that control incrementally transfers to the customer while the good is being manufactured or the service is being performed. • Hunting’s activities that require revenue recognition over time comprise: 1. The supply of goods that are speciﬁcally designed for, and restricted to, the use of a particular customer, and for which Hunting has an enforceable right to payment for the work completed to date, for example, the design and manufacture of bespoke products such as titanium stress joints; 2. The provision of services in which Hunting creates or enhances an asset that the customer controls as the asset is created or enhanced, such as the lathing of a thread onto the ends of customer-owned plain-end pipe and assembling or welding components that are owned by the customer; and 3. The provision of services in which the customer obtains the beneﬁt while the service is being performed, such as the storage and management services of customer-owned products. Hunting PLC 237 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 40. Material Accounting Policies continued (b) Revenue continued (i) Revenue from Contracts with Customers continued • In respect of revenue that is recognised over time, Hunting uses an input method for measuring the progress towards completion of its performance obligations and consequently for measuring the amount of revenue that is recognised. Speciﬁcally, revenue is recognised in proportion to the total expected consideration that mirrors the costs incurred to date relative to the total expected costs to complete the performance obligation. This method is considered to be the most appropriate as the inclusion of all costs, being materials, labour and direct overheads, best reﬂects the activities required in performing the promise to the customer. • Hunting’s activities that require revenue recognition at a point in time comprise: 1. The sale of goods that are not speciﬁcally designed for use by one particular customer. These products include tubulars acquired by Hunting as plain-end pipe on which lathing work has been applied and which are resold as threaded pipe; and 2. The manufacture of goods that are speciﬁcally designed for one particular customer but for which Hunting does not have an enforceable right to payment for the work completed to date. • In determining the point in time in which control is transferred to customers and revenue is recognised, the Group evaluates all relevant facts and circumstances. • The events that trigger the recognition of revenue at a point in time are most commonly: (i) delivery of the product in accordance with the contractual terms, or (ii) when conﬁrming shipping documents, which indicate transfer of legal title and an ability to direct the goods, are made available to a customer, before which the Group retains the ability to direct the use of, and obtain, substantially all of the remaining beneﬁts from, the goods, or (iii) when the product is made available to the customer for collection. • When revenue from a customer is recognised, the amount is reported on the balance sheet as a contract asset if the performance obligation is incomplete as this asset reﬂects that it is conditional upon Hunting completing the work. The revenue is recognised on the balance sheet as a trade receivable if a sales invoice has been issued as this asset reﬂects that it is unconditional other than the passage of time. The revenue is reported on the balance sheet as accrued income if the performance obligation has been completed but a sales invoice has not yet been issued. Accrued income is a sub-category of trade receivables, where receipt of cash is dependent only upon the passage of time. The Group recognises a contract liability on the balance sheet when amounts received and receivable from the customer exceed the value of the work done to date, reﬂecting that the Group is obligated to transfer goods or services in order to settle the prepayment from the customer. (ii) Rental Revenue • Rental revenue from operating leases, being leases in which Hunting does not transfer substantially all of the risks and rewards of the leased asset to the customer, is recognised as the income is earned. For Hunting this comprises the leases of properties to third parties and tools to customers. • Revenue from ﬁnance leases, being leases in which Hunting, as a manufacturer/dealer-lessor, transfers substantially all of the risks and rewards of the leased asset to the customer, is measured as the fair value of the underlying asset or, if lower, the present value of the lease payments. The carrying value of the leased asset minus the unguaranteed residual value is charged to cost of sales and interest earned during the term of the lease is recognised as ﬁnance income. (c) Interest • Interest income and expense is recognised in the consolidated income statement using the effective interest method. (d) Foreign Currencies (i) Individual Subsidiaries’, Associates’ and Joint Venture’s Financial Statements • The ﬁnancial statements for each of the Group’s subsidiaries, associates and joint ventures are denominated in their respective functional currencies. • The functional currency is the currency of the primary economic environment in which the entity operates. • Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rate ruling at the date of the transaction. • Monetary assets and liabilities, except borrowings designated as a hedging instrument in a net investment hedge, denominated in non-functional currencies are retranslated at the exchange rate ruling at the balance sheet date and exchange differences are taken to the consolidated income statement. • Borrowings designated as a hedging instrument in a net investment hedge are retranslated at the exchange rate ruling at the balance sheet date and exchange differences are taken directly to equity. (ii) Group Consolidated Financial Statements • The presentation currency of the Group is US Dollars. • The net assets of non-US Dollar denominated subsidiaries, associates and joint ventures are translated into US Dollars at the exchange rates ruling at the balance sheet date. • The income statements of subsidiaries, associates and joint ventures are translated into US Dollars at the average exchange rates for the year. • Exchange differences are recognised directly in equity in the currency translation reserve (“CTR”), together with exchange differences arising on foreign currency loans used to ﬁnance foreign currency net investments. • Upon adoption of IFRS on 1 January 2004, accumulated exchange differences arising on consolidation prior to 31 December 2003 were reset to zero and the CTR recommenced under IFRS on 1 January 2004. • The balance on the CTR represents the exchange differences arising on the retranslation of non-US Dollar amounts into US Dollars since 1 January 2004. • On the disposal of a business, the cumulative exchange differences previously recognised in the CTR relating to that business are transferred to the consolidated income statement as part of the gain or loss on disposal. Hunting PLC 238 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 40. Material Accounting Policies continued (e) Taxation • The taxation recognised in the consolidated income statement comprises current tax and deferred tax arising on the current year’s result before tax and adjustments to tax arising on prior years’ results. • Current tax is the expected tax payable or receivable arising in the current year on the current year’s result before tax, using tax rates enacted or substantively enacted at the balance sheet date, plus adjustments to tax in respect of prior years’ results. • Deferred tax is the tax that is expected to arise when the assets and liabilities recognised in the Group’s consolidated balance sheet are realised, using tax rates enacted or substantively enacted at the balance sheet date that are expected to apply when the asset is realised or the liability is settled. • Full provision is made for deferred tax, using the liability method, on all taxable temporary differences. Deferred tax assets and liabilities are recognised separately in the consolidated balance sheet and are reported as non-current assets and liabilities. • Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are recognised to the extent that it is probable that the unwind of taxable temporary differences, and/or future suitable and sufﬁcient taxable proﬁts, will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable proﬁt nor the accounting proﬁt and at the time of transaction does not give rise to equal amounts of taxable and deductible temporary differences. In addition, a deferred tax liability is not recognised if the temporary difference arises from the initial recognition of goodwill. • Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments are only recognised to the extent that it is probable that there will be sufﬁcient taxable proﬁts against which to utilise the beneﬁts of the temporary differences and they are expected to reverse in the foreseeable future. The recoverability of deferred tax assets is reviewed at each balance sheet date and deferred tax assets are recognised to the extent that sufﬁcient taxable proﬁt is expected to be available to allow the deferred tax asset to be utilised. • When items of income and expense are recognised in other comprehensive income, the current and deferred tax relating to those items is also recognised in other comprehensive income. (f) Property, Plant and Equipment • Property, plant and equipment is stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition and installation of the asset. • Land and assets under construction are not depreciated. • With the exception of oil and gas exploration and development, assets are depreciated using the straight-line method at the following rates: Freehold buildings – 2% to 10% Leasehold buildings – life of lease Plant, machinery and motor vehicles – 6% to 331⁄ 3 % Rental tools – 3% to 25% • The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. (g) Leases • Lessees: With regard to lessee contracts, the Group recognises a lease obligation as a liability and a right-of-use asset at the inception of the contract, except with regard to the two exemptions noted below. In measuring the lease liability, the Group takes account of all ﬁxed payments and the known amount of variable payments which depend on an index or rate. Management also assesses the likelihood of the Group exercising extension options, early termination options and purchase options when contractually offered, and incorporates the relevant assumed cash ﬂows in the initial measurement. These future gross cash ﬂows are then discounted using the incremental borrowing rate (“IBR”) that is relevant to each lease. The interest rate implicit in the lease is not used as the Group is unable to access the speciﬁc ﬁnancials of the lessor that would be required in order to determine that rate. The IBR is determined by reference to: (i) the weighted average period of the lease term; (ii) the risk-free rate of the currency of the lease, adjusted for country-speciﬁc government bond yields for contracts denominated in the Euro; (iii) the market risk premium associated with the currency of denomination of the contract; (iv) a ﬁnancing spread associated with the ﬁnancial status and country of location of the lessee entity; and (v) an asset-speciﬁc adjustment associated with the perceived security that each type of asset provides to the lessor. The right-of- use asset is usually initially measured as equal to the initial measurement of the lease liability plus any contracted remediation work that would be required at the end of the lease term as there are usually no initial direct costs or lease payments made prior to the inception of the contract. Hunting PLC 239 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 40. Material Accounting Policies continued (g) Leases continued • Lessees: continued Whenever circumstances change post-inception, for example when the judged likelihood of whether an option will or will not be exercised, or indices relevant to the measurement of variable payments change, or the lease term is extended with regard to a contract that does not offer an extension option, the lease liability is remeasured and the right-of-use asset is correspondingly amended. Remeasurement of the lease liability is typically based on a revised IBR as the change in circumstances has most commonly resulted from a change in the lease term. The cost of the lease is subsequently recognised in the consolidated income statement as interest charged on the lease liability and as depreciation charged on the right-of-use asset. Depreciation is charged on a straight-line basis over the lease term; to date the Group has not and is not expected to exercise a purchase option which would otherwise shorten the depreciation period. Hunting has adopted the two exemptions that permit lessees to charge the cost of certain leases directly to the consolidated income statement on a straight-line basis over the lease term. The two exemptions apply to: – leases that have a duration of one year or less; and – leases of assets that would have cost $5,000 or less, when new, to acquire if the asset had been purchased rather than leased. • Lessors: Hunting enters into lease arrangements as a lessor with respect to some of its owned and leased land and buildings and where it leases equipment to customers in the capacity of a manufacturer/ dealer lessor. Leases for which Hunting is a lessor are classiﬁed as ﬁnance leases or operating leases. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classiﬁed as a ﬁnance lease. All other leases are classiﬁed as operating leases. Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Amounts due from lessees/customers under ﬁnance leases are recognised as receivables at the amount of the Group’s net investment in the leases, after derecognition of the underlying asset. Finance lease income is allocated to accounting periods so as to reﬂect a constant periodic rate of return on the Group’s net investment outstanding in respect of the leases. (h) Goodwill • Goodwill arises when the fair value of the consideration paid for a business exceeds the fair value of the Group’s share of the net assets acquired. • Goodwill is recognised as an asset and is carried at cost less accumulated impairment losses. • Goodwill is allocated to cash generating units (“CGUs”) for the purpose of impairment testing. The allocation is made to the CGUs or groups of CGUs that are expected to beneﬁt from the business combination in which the goodwill arose. Goodwill is not allocated to a CGU or CGU group larger than an operating segment. • A CGU is the smallest identiﬁable group of assets that generates cash inﬂows that are largely independent of the cash inﬂows from other assets or groups of assets. • On the disposal of a business, goodwill relating to that business that remains in the consolidated balance sheet at the date of disposal is included in the determination of the proﬁt or loss on disposal. (i) Other Intangible Assets • Other intangible assets, whether obtained through acquisition or internal development, are capitalised when it is probable that the future economic beneﬁts that are attributable to the asset will be generated, provided the cost of the asset can be measured reliably. • Capitalisation occurs from the point when technical and commercial feasibility of the asset has been established. Prior to this, costs are expensed. For internally generated assets, only costs directly attributable to the development of the asset are capitalised. This typically includes employee remuneration and the cost of materials and services, such as testing, consumed in generating the intangible asset. • Other intangible assets are stated at cost less accumulated amortisation and any impairment losses. • These assets have a ﬁnite life and are amortised in accordance with the pattern of expected future economic beneﬁts, or when this cannot be reliably estimated, by using the straight-line method. • Intangible assets are amortised over the following periods: Customer relationships – eight to ten years Unpatented technology – eight to ten years Patents – eight to ten years Trademarks and domain names – one to ﬁve years Software – three to eight years Hunting PLC 240 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 40. Material Accounting Policies continued (j) Investments in Associates and Joint Ventures • An associate is an entity over which the Group has signiﬁcant inﬂuence but not control or joint control. A joint venture is a joint arrangement whereby the parties that have joint control have rights to the net assets of the arrangement. • The Group’s interests in these investments are accounted for using the equity method of accounting. • Upon initial recognition as at the date of acquisition, the interests are recognised in the balance sheet at cost plus directly incurred acquisition-related expenses. The excess of cost above the share of net assets is ascribed to goodwill and other intangible assets, as appropriate. The intangible assets are subsequently amortised and presented in the consolidated income statement as part of the post-tax share of the acquiree’s results. • Subsequently, the carrying amount of the investment is adjusted to include the Group’s share of the net assets after the date of acquisition and is assessed for impairment as a single asset at each balance sheet date. The Group recognises its share of the acquiree’s net proﬁt or loss after taxation as a separate line in the consolidated income statement. The Group’s share of the acquiree’s net assets plus direct acquisition expenses, goodwill and other acquisition-related intangible assets is presented in the consolidated balance sheet as investments in associates and joint ventures. (k) Impairments • The Group assesses at least annually whether there is any indication that an asset is impaired, and undertakes an assessment for an impairment if such an indication exists. • In addition, the Group undertakes an annual impairment assessment of goodwill, whether or not an indication of impairment actually exists. • Where assets do not generate their own independent cash ﬂows, they are tested at a CGU level and, if impairment is identiﬁed, the carrying amount of the CGU is reduced to its recoverable amount. For assets that generate independent cash ﬂows, the speciﬁc asset is impaired to its recoverable amount if an impairment is identiﬁed. • Where an impairment exists, an asset or CGU is written down to its recoverable amount being the higher of: (a) its fair value less costs to sell; and (b) its value-in-use. Details of how value-in-use is determined are given in note 15. • Impairments are recognised immediately in the consolidated income statement. • An impairment of goodwill is never reversed. When applicable, an impairment of any other asset or CGU is reversed, but only to the extent that the consequent carrying value does not exceed what would have been the carrying value had the impairment not originally been made. (l) Inventories • Inventories are stated at the lower of cost and net realisable value. • Cost is determined using the ﬁrst-in-ﬁrst-out method and net realisable value is the estimated selling price less costs of disposal in the ordinary course of business. The cost of inventories includes direct costs plus production overheads. (m) Cash and Cash Equivalents • Cash and cash equivalents comprise cash at bank and in hand, short-term deposits, qualifying ﬁxed term funds and money market funds, with a maturity of less than three months from the date of deposit. • Short-term deposits, ﬁxed term funds and money market funds have been classiﬁed as cash and cash equivalents as they are short-term, highly liquid, are readily convertible to a known amount of cash and are subject to an insigniﬁcant risk of change in value. These instruments are held for the purpose of settling current or potential cash commitments in the short term by the treasury function. • For cash ﬂow statement purposes, cash and cash equivalents include bank overdrafts. In the consolidated balance sheet, bank overdrafts are shown within borrowings in current liabilities. (n) Financial Assets • At initial recognition, the Group measures a ﬁnancial asset at its fair value plus, in the case of a ﬁnancial asset not at fair value through proﬁt or loss (“FVTPL”), transaction costs. Transaction costs of ﬁnancial assets at FVTPL are expensed immediately to the consolidated income statement. • Subsequent measurement of debt instruments depends on each Group entity’s business model for managing the asset in order to generate cash ﬂows and the cash ﬂow characteristics of the ﬁnancial asset. The Group’s debt instruments are classiﬁed into amortised cost or FVTPL. • Debt instruments that are held for the collection of contractual cash ﬂows, where those cash ﬂows represent solely payments of principal and interest, are subsequently measured at amortised cost. Interest income from these ﬁnancial assets is included in ﬁnance income using the effective interest method. If collection is expected in one year or less they are classiﬁed as current assets, otherwise they are presented as non-current assets. Debt instruments held for collection of contractual cash ﬂows include contract assets, trade receivables, accrued revenue and other receivables. • Any other debt instruments, including the convertible ﬁnancing, ﬁxed term funds and money market funds, which are subsequently not measured at amortised cost have been measured at FVTPL. • The Group’s ﬁnancial assets that are equity instruments, or debt instruments that are convertible into equity, are subsequently measured at FVTPL. Changes in the fair value of these instruments are recognised in other operating income, operating expenses, ﬁnance income or ﬁnance expense, as appropriate. Financial assets that are equity instruments comprise listed equity investments and mutual funds. The convertible debt instrument is currently a loan on which interest is earned prior to its potential conversion into equity, the conversion of which is dependent upon events outside of the Group’s control. • The Group applies lifetime expected credit losses (“ECLs”) to trade receivables, accrued revenue, contract assets and lease receivables, both short term and long term, upon their initial recognition. • The Group derecognises a ﬁnancial asset only when the contractual rights to the cash ﬂows from the asset expire, or when it transfers the ﬁnancial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred ﬁnancial asset, the Group continues to recognise the ﬁnancial asset and also recognises a collateralised borrowing for the proceeds received. Hunting PLC 241 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 40. Material Accounting Policies continued (o) Financial Liabilities • Financial liabilities are initially recognised at fair value at the trade date, which is normally the consideration received less, in the case of ﬁnancial liabilities that are not measured at FVTPL, transaction costs. The Group subsequently remeasures all of its non-derivative ﬁnancial liabilities, including trade payables, at amortised cost. • Payables are classiﬁed as current liabilities if payment is due within one year, otherwise they are presented as non-current liabilities. • Payments due to ﬁnancial institutions arising under bank acceptance drafts are presented as trade and other payables as they represent payments to suppliers for materials and form part of the working capital used in the Group’s normal operating cycle. Such amounts are presented as other payables. (p) Debt Issue Costs • Transaction costs in relation to the arrangement of borrowing facilities are capitalised and subsequently amortised on a straight-line basis over the expected life of the facility. The charge is recognised within ﬁnance expense in the income statement. Capitalised costs are presented in the balance sheet as prepayments. (q) Derivatives and Hedging • Derivatives are initially recognised at fair value on the date the derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. • The full fair value of a derivative is classiﬁed as a non-current asset or liability when the remaining maturity of the derivative is more than 12 months from the balance sheet date. • The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. • Where the derivatives are not designated in a hedge and accounted for using hedge accounting, they are classiﬁed as “held for trading” and are accounted for at fair value through proﬁt or loss, with changes in the fair value recognised immediately within the consolidated income statement. • The Group designates certain derivatives as: i. hedges of the fair value of recognised assets and liabilities; or ii. hedges of a particular risk associated with the cash ﬂows of highly probable forecast transactions; or iii. a hedge of the net investment in a foreign operation. • The Group has not disclosed the accounting polices relating to fair value hedges and cash ﬂow hedges as the amounts are immaterial to the ﬁnancial statements. (r) Provisions • Provisions are recognised when the Group has a present obligation as a result of a past event and it is probable that an outﬂow of resources will be required to settle the obligation. • The measurement of a provision is based on the most likely amount and timing of the expenditures. Payments that are expected to arise after more than one year are discounted to their present value using a risk-free interest rate that is relevant to the region in which the past event occurred. The risk-free interest rate is based on the redemption yields of government securities. (s) Post-employment Beneﬁts • Payments to deﬁned contribution retirement schemes are charged to the consolidated income statement when they fall due. (t) Share-based Payments • The Group issues equity-settled and cash-settled share-based payments (HPSP awards) to certain employees as consideration for services received from the employees. The fair value of the employees’ services is recognised as an expense in the consolidated income statement on a straight-line basis over the vesting period, and in the case of non-market based vesting conditions, based on the Group’s estimate of awards that will ultimately vest. The obligation to settle these awards is recognised within other components of equity; the obligation to settle the cash-settled awards is recognised as a liability. (u) Share Capital • Incremental costs directly attributable to the issue of new shares are charged to equity as a deduction from the proceeds, net of tax. (v) Merger Reserve • The merger reserve comprises the proceeds received, net of transaction costs, in excess of the nominal value of the Ordinary shares issued by way of the share placing completed on 31 October 2016. In accordance with section 612 of the Companies Act 2006, the premium was credited to the merger reserve, instead of to the share premium account, because the share placing was pursuant to the Company securing over 90% of another entity. The proceeds were used to pay down the Group’s borrowings at that time. The reserve is non-distributable and is transferred to distributable retained earnings when the proceeds meet the deﬁnition of a qualifying consideration. (w) Dividends • Dividends to the Group’s shareholders are recognised as liabilities in the Group’s ﬁnancial statements in the period in which the dividends are approved by shareholders. Interim dividends are recognised when paid. All dividends are dealt with in the statement of changes in equity. (x) Employee Beneﬁt Trust • The Hunting PLC Employee Beneﬁt Trust (“EBT”) holds treasury shares, which are shares in Hunting PLC, for the purpose of issuing shares to employees of the Group under share-based remuneration schemes. The EBT is consolidated in accordance with note 40(a) above. • The cost of treasury shares is presented as a deduction from retained earnings in the consolidated balance sheet. • The cost of shares issued to employees is recognised on a weighted average cost basis. Hunting PLC 242 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 41. Prior Period Restatements The impacts to the Group’s ﬁnancial statements for the import tax provision and the reclassiﬁcation of the share of associates’ and joint venture’s results in 2023 are outlined below. See note 1 for further details. Consolidated Income Statement (extract) Year ended 31 December 2023 Adjustments Presentation of As previously Import tax associates’ and joint reported provision venture’s results Restated $m $m $m $m Gross proﬁt 227.7 – – 227.7 Administrative expenses (119.8) (8.9) – (128.7) Net other operating expenses (46.9) – – (46.9) Share of associates’ and joint venture’s results – – (0.6) (0.6) Operating proﬁt 61.0 (8.9) (0.6) 51.5 Net ﬁnance expenses (10.4) – – (10.4) Share of associates’ and joint venture’s results (0.6) – 0.6 – Proﬁt before tax 50.0 (8.9) – 41.1 Taxation 69.0 2.1 – 71.1 Proﬁt for the year 119.0 (6.8) – 112.2 Attributable to: Owners of the parent 117.1 (6.8) – 110.3 Non-controlling interests 1.9 – – 1.9 119.0 (6.8) – 112.2 Earnings per share cents cents cents cents Basic 73.8 (4.3) – 69.5 Diluted 70.0 (4.1) – 65.9 Hunting PLC 243 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 41. Prior Period Restatements continued Consolidated Statement of Comprehensive Income (extract) Year ended 31 December 2023 Adjustments Presentation of As previously Import tax associates’ and joint reported provision venture’s results Restated $m $m $m $m Proﬁt for the year 119.0 (6.8) – 112.2 Other comprehensive income, after tax Exchange adjustments 3.6 (0.2) – 3.4 Other components of other comprehensive income (0.5) – – (0.5) Other comprehensive income, after tax 3.1 (0.2) – 2.9 Total comprehensive income for the year 122.1 (7.0) – 115.1 Attributable to: Owners of the parent 120.4 (7.0) – 113.4 Non-controlling interests 1.7 – – 1.7 122.1 (7.0) – 115.1 Hunting PLC 244 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 41. Prior Period Restatements continued Consolidated Balance Sheet (extract) At 31 December 2023 Adjustments Presentation of As previously Import tax associates’ and joint reported provision venture’s results Restated $m $m $m $m ASSETS Non-current assets Other non-current assets 502.6 – – 502.6 Deferred tax assets 93.1 2.1 – 95.2 595.7 2.1 – 597.8 Current assets 626.6 – – 626.6 LIABILITIES Current liabilities Other current liabilities (221.0) – – (221.0) Provisions (4.8) (9.1) – (13.9) (225.8) (9.1) – (234.9) Net current assets 400.8 (9.1) – 391.7 Non-current liabilities (39.4) – – (39.4) Net assets 957.1 (7.0) – 950.1 Equity attributable to owners of the parent Other equity balances 219.5 – – 219.5 Other components of equity 8.9 (0.2) – 8.7 Retained earnings 725.4 (6.8) – 718.6 Total attributable to owners of the parent 953.8 (7.0) – 946.8 Non-controlling interests 3.3 – – 3.3 Total equity 957.1 (7.0) – 950.1 Hunting PLC 245 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Consolidated Financial Statements continued 41. Prior Period Restatements continued Consolidated Statement of Cash Flows (extract) Year ended 31 December 2023 Adjustments Presentation of As previously Import tax associates’ and joint reported provision venture’s results Restated $m $m $m $m Operating activities Operating proﬁt 61.0 (8.9) (0.6) 51.5 Adjusting items (NGM A) – 8.9 – 8.9 Depreciation, amortisation and impairment (NGM C) 42.0 – – 42.0 EBITDA (NGM C) 103.0 – (0.6) 102.4 Other cash ﬂows from operating activities (53.7) – – (53.7) Share of associates’ and joint venture’s results – – 0.6 0.6 Net cash inﬂow from operating activities 49.3 – – 49.3 Net cash outﬂow from investing activities (32.4) – – (32.4) Net cash ﬂow from ﬁnancing activities – – – – Net increase in cash and cash equivalents 16.9 – – 16.9 Cash and cash equivalents at the beginning of the year 27.3 – – 27.3 Effect of foreign exchange rates (0.1) – – (0.1) Cash and cash equivalents at the end of the year 44.1 – – 44.1 Notes 2024 $m 2023 $m ASSETS Non-current assets Investments in subsidiaries C4 205.3 205.3 Other receivables C5 609.5 599.7 814.8 805.0 Current assets Other receivables C5 0.6 1.4 Current tax asset 0.1 0.5 0.7 1.9 LIABILITIES Current liabilities Other payables C6 (3.4) (2.7) Provisions (0.1) (0.2) (3.5) (2.9) Net current liabilities (2.8) (1.0) Non-current liabilities Provisions (0.7) (0.7) Net assets 811.3 803.3 Equity attributable to owners of the parent Share capital C9 66.5 66.5 Share premium C9 153.1 153.0 Other components of equity C10 4.2 1.5 Retained earnings C11 587.5 582.3 Total equity 811.3 803.3 The Company has elected to take the exemption under Section 408 of the Companies Act 2006 from presenting its own income statement and statement of comprehensive income. Proﬁt and total comprehensive income for the year of $26.9m (2023 – $27.5m) has been accounted for in the ﬁnancial statements of the Company. The notes on pages 248 to 253 are an integral part of these ﬁnancial statements. The ﬁnancial statements on pages 246 and 247 were approved by the Board of Directors on 6 March 2025 and were signed on its behalf by: Jim Johnson Bruce Ferguson Director Director Registered number: 00974568 Company Balance Sheet At 31 December Hunting PLC Annual Report and Accounts 2024 246 Strategic Report Corporate Governance Financial Statements Other Information Notes Year ended 31 December 2024 Share capital $m Share premium $m Other components of equity i $m Retained earnings $m Total equity $m At 1 January 2024 66.5 153.0 1.5 582.3 803.3 Proﬁt for the year and total comprehensive income – – – 26.9 26.9 Dividends paid to Hunting PLC shareholders C12 – – – (16.7) (16.7) Treasury shares: – purchase of treasury shares C11 – – – (14.2) (14.2) – disposal of treasury shares C9, C11 – 0.1 – 0.2 0.3 Share options and awards: – value of employee services C10 – – 12.3 – 12.3 – discharge C10, C11 – – (9.6) 9.0 (0.6) At 31 December 2024 66.5 153.1 4.2 587.5 811.3 Notes Year ended 31 December 2023 Share capital $m Share premium $m Other components of equity i $m Retained earnings $m Total equity $m At 1 January 2023 66.5 153.0 9.3 558.8 787.6 Proﬁt for the year and total comprehensive income – – – 27.5 27.5 Dividends paid to Hunting PLC shareholders C12 – – – (15.0) (15.0) Treasury shares: – purchase of treasury shares C11 – – – (9.0) (9.0) – disposal of treasury shares C11 – – – 0.3 0.3 Share options and awards: – value of employee services C10 – – 12.3 – 12.3 – discharge C10, C11 – – (8.3) 7.9 (0.4) Transfer between reserves C10 – – (11.8) 11.8 – At 31 December 2023 66.5 153.0 1.5 582.3 803.3 i. An analysis of other components of equity is provided in note C10. Company Statement of Changes in Equity For the year ended 31 December Hunting PLC Annual Report and Accounts 2024 247 Strategic Report Corporate Governance Financial Statements Other Information C1. Basis of Preparation Hunting PLC is a public company limited by shares, quoted on the London Stock Exchange in the Equity Shares in Commercial Companies category. Hunting PLC was incorporated in the United Kingdom under the Companies Act and is registered in England and Wales. The address of the Company’s registered ofﬁce is 30 Panton Street, London, SW1Y 4AJ, United Kingdom. The Company acts as a holding company for the Hunting PLC Group. Details of the Company’s associates and joint ventures are given in note C14 and details of subsidiaries are given in note C15. The Company meets the deﬁnition of a qualifying entity under Financial Reporting Standard 100 “Application of Financial Reporting Requirements” (FRS 100). Accordingly, these ﬁnancial statements have been prepared in accordance with FRS 101 “Reduced Disclosure Framework” (FRS 101). In preparing these ﬁnancial statements, the Company applies the recognition and measurement requirements of United Kingdom adopted International Financial Reporting Standards (“IFRS”), with a reduced level of disclosure, but makes amendments where necessary to comply with the Companies Act 2006. For all periods up to and including the year ended 31 December 2023, the Company prepared its ﬁnancial statements in accordance with IFRS. The transition from IFRS to FRS 101 required no adjustments to amounts previously reported in the ﬁnancial statements for the year ended 31 December 2023, and as such no reconciliation of Equity has been presented. As permitted by FRS 101, the Company has taken advantage of the following disclosure exemptions, and not disclosed: • A cash ﬂow statement and related notes; • Disclosures in respect of capital management; • The effects of new but not yet effective IFRS; and • Disclosures in respect of the compensation of key management personnel. As the consolidated ﬁnancial statements include the equivalent disclosures, the Company has also taken the FRS 101 exemptions available for the following disclosures: • IFRS 2 “Share-based Payment” in respect of Group settled share-based payments; and • The disclosures required by IFRS 7 ‘Financial Instruments: Disclosures’ and certain disclosures required by IFRS 13 ‘Fair Value Measurement’. The ﬁnancial statements have been prepared on a going concern basis under the historical cost convention. The Board’s consideration of going concern is detailed further in the Strategic Report on page 111. The ﬁnancial statements are presented in US Dollars, the currency of the primary economic environment in which the Company operates. Notes to the Company Financial Statements From the perspective of the Company, the principal risks and uncertainties are integrated with the principal risks of the Hunting PLC Group and are not managed separately. The principal risks and uncertainties of the Hunting PLC Group, which include those of the Company, are discussed on pages 104 to 109 in the Risk Management section of the Annual Report. The Company’s material accounting policies applied in the preparation of these ﬁnancial statements are the same as those set out in note 40 of the Group’s ﬁnancial statements, except for investments in subsidiaries that are stated at cost, which is the fair value of the consideration paid, less provision for impairment. These policies have been consistently applied to all the years presented. Critical Accounting Judgements and Key Sources of Estimation Uncertainty Critical accounting judgements are those that the Directors have made in the process of applying the Company’s accounting policies and have the most signiﬁcant effect on the amounts recognised in the Company’s ﬁnancial statements. Key estimates are those concerning future expectations and other key sources of estimation uncertainty at the end of the reporting period, that may have a signiﬁcant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next ﬁnancial year. Management believes that there are no critical accounting judgements or key sources of estimation uncertainty applied in the preparation of the Company’s ﬁnancial statements. C2. Employees The Company had no employees during the current or prior year. C3. Auditor’s Remuneration 2024 $m 2023 $m Fees payable to the Company’s independent auditor and its associates are for: The audit of these ﬁnancial statements 0.5 0.5 Hunting PLC Annual Report and Accounts 2024 248 Strategic Report Corporate Governance Financial Statements Other Information C4. Investments in Subsidiaries 2024 $m 2023 $m Cost: At 1 January and 31 December 436.8 436.8 Impairment: At 1 January and 31 December (231.5) (231.5) Net book amount 205.3 205.3 The Company’s subsidiaries are detailed in note C15. Investments in subsidiaries are recorded at cost, which is the fair value of the consideration paid, less impairment. (a) Impairment Tests In respect of the carrying value of the Company’s investments in subsidiaries, assessments are undertaken at least annually to determine whether there have been any events or changes in circumstances that indicate that the carrying value may be impaired. An impairment review is carried out when such indicators are present by comparing the carrying value of a subsidiary to its recoverable amount. The recoverable amount for the investments are determined using a value-in-use method which uses discounted cash ﬂow projections. For the investment in Hunting Energy Holdings Limited, the Company has utilised the recoverable amounts determined by the Group impairment review. The Group impairment testing process and the key assumptions are outlined on page 205. The impairment charge recognised in the Hunting Titan CGU does not impact the Company’s investment in Hunting Energy Holdings Limited, as the recoverable amount of the US Group is greater than the investment carrying value. In the opinion of the Directors, following the impairment review, the recoverable amount of the investment held in Hunting Energy Holdings Limited is in excess of the carry value and, as a result, no impairment charge has been recognised in 2024. There was no impairment charge in 2023. (b) Sensitivities Management has reviewed various downside sensitivities versus the base case assumptions used in the projections. These covered revenue growth rates, terminal revenue growth rates, discount rates and foreign exchange rates. Management has concluded that there are no reasonably foreseeable changes in key assumptions that would give rise to an impairment charge. C5. Other Receivables 2024 $m 2023 $m Non-current: Loans receivable from a subsidiary – interest-bearing 609.4 599.6 Prepayments 0.1 0.1 609.5 599.7 Current: Receivables from subsidiaries 0.1 0.1 Prepayments 0.4 1.2 Other receivables 0.1 0.1 0.6 1.4 Receivables from subsidiaries’ current accounts are unsecured, interest free and repayable on demand. The Company does not hold any collateral as security and no assets have been acquired through the exercise of any collateral previously held. (a) Impairment of Receivables Default on a ﬁnancial asset is usually considered to have occurred when any contractual payments under the terms of the debt are more than 90 days overdue. Receivables are written off when there is no reasonable expectation of recovery. Indicators that receivables are generally not recoverable include the failure of the debtor to engage in a repayment plan, failure to make contractual payments for a period greater than 180 days past due and the debtor being placed in administration. Where receivables have been written off, the entity will continue to try to recover the outstanding receivable. (b) Impairment of Loan Receivable The Company assesses on a forward-looking basis the expected credit losses (“ECLs”) at each balance sheet date associated with its loan receivable from a subsidiary company carried at amortised cost. The impairment methodology applied, following the adoption of the general model under IFRS 9, will depend upon whether there has been a signiﬁcant increase in credit risk. To assess whether there has been a signiﬁcant increase in credit risk, the risk of default occurring as at 31 December 2024 is compared with the risk of default occurring at the date of initial recognition. Indicators of a signiﬁcant increase in credit risk include events that have a negative impact on the estimated future cash ﬂows and if any payments under the terms of the debt are more than 30 days overdue. Macro-economic information is also considered. At 31 December 2024, the Company’s loan receivable was not overdue and the Company does not consider it necessary to provide for any impairment. The loan receivable is expected to be fully recovered, as there is no recent history of default or any indications that the contractual payments will not be made. The Company’s maximum exposure to credit risk is the fair value of the loan receivable. Notes to the Company Financial Statements continued Hunting PLC Annual Report and Accounts 2024 249 Strategic Report Corporate Governance Financial Statements Other Information (c) Impairment of Receivables from Subsidiaries and Other Receivables None of the Company’s receivables from subsidiaries and other receivables (2023 – none) were overdue at the year-end and the Company does not consider it necessary to provide for any impairments as there is no recent history of default or any indications that the contractual payments will not be made. The Company’s maximum exposure to credit risk is the fair value of each class of receivable. C6. Other Payables 2024 $m 2023 $m Current: Payables to subsidiaries 2.0 1.3 Accruals 1.2 1.1 Other payables 0.2 0.3 3.4 2.7 Current payables due to subsidiaries are unsecured, interest free and repayable on demand. C7. Derivatives and Hedging The Company has used forward foreign exchange contracts to hedge its exposure to exchange rate movements during the year. At 31 December 2024, the Company had no outstanding forward foreign exchange contracts (2023 – none). Gains and losses on contracts that are not designated in a hedge relationship are taken directly to the income statement. Changes in the fair value of currency derivatives not designated in a hedge relationship amounting to $nil (2023 – $0.1m net loss) were recognised in the income statement during the year. C8. Post-employment Beneﬁts The Company has no employees and therefore does not participate in any of the post-employment beneﬁt schemes shown in note 32 of the Group’s ﬁnancial statements, although it does guarantee the contributions due by the participating employers. C9. Share Capital and Share Premium Please see note 33 of the Group’s ﬁnancial statements. C10. Other Components of Equity 2024 Merger reserve $m Share-based payments reserve $m Currency translation reserve $m Capital redemption reserve $m Total $m At 1 January 2024 – 19.9 (19.2) 0.8 1.5 Share options and awards: – value of employee services – 12.3 – – 12.3 – discharge – (9.6) – – (9.6) At 31 December 2024 – 22.6 (19.2) 0.8 4.2 2023 Merger reserve $m Share-based payments reserve $m Currency translation reserve $m Capital redemption reserve $m Total $m At 1 January 2023 11.8 15.9 (19.2) 0.8 9.3 Share options and awards: – value of employee services – 12.3 – – 12.3 – discharge – (8.3) – – (8.3) Transfer between reserves (11.8) – – – (11.8) At 31 December 2023 – 19.9 (19.2) 0.8 1.5 The merger reserve comprises the proceeds received, net of transaction costs, in excess of the nominal value of the Ordinary shares issued by way of the share placing completed on 31 October 2016. In accordance with section 612 of the Companies Act 2006, the premium was credited to the merger reserve, instead of to the share premium account, because the share placing was pursuant to the Company securing over 90% of another entity. The proceeds were used to pay down the Group’s borrowings at that time. The reserve is currently non-distributable and is transferred to distributable retained earnings when the proceeds meet the deﬁnition of a qualifying consideration. In 2023, $11.8m was transferred from the merger reserve to retained earnings. This portion of the reserve was considered to be realised, as the equivalent amount of the proceeds from the share placing in 2016 met the deﬁnition of qualifying consideration. The share-based payments reserve represents the Company’s obligation to settle share-based awards issued to employees of the Hunting PLC Group. When employees exercise their awards, the portion of the share-based payments reserve which represents the share-based payment charge for those awards is transferred to retained earnings and the Group discharges its obligation. Notes to the Company Financial Statements continued C5. Other Receivables continued Hunting PLC Annual Report and Accounts 2024 250 Strategic Report Corporate Governance Financial Statements Other Information The currency translation reserve contains the accumulated foreign exchange differences arising on foreign currency loans used to ﬁnance foreign currency net investments and also foreign exchange differences arising on the Company’s change in presentational currency from Sterling to US Dollars on 1 January 2013. The capital redemption reserve is a statutory, non-distributable reserve into which amounts are transferred following the purchase of the Company’s own shares out of distributable proﬁts. C11. Retained Earnings 2024 $m 2023 $m At 1 January 582.3 558.8 Proﬁt for the year 26.9 27.5 Dividends paid to Hunting PLC shareholders (note C12) (16.7) (15.0) Treasury shares: – purchase of treasury shares (14.2) (9.0) – proceeds on disposal of treasury shares 0.2 0.3 Share options and awards: – discharge 9.0 7.9 Transfer between reserves – 11.8 At 31 December 587.5 582.3 Retained earnings include the following amounts in respect of the carrying amount of treasury shares: 2024 $m 2023 $m Cost: At 1 January (22.2) (19.2) Purchase of treasury shares (14.2) (9.0) Cost of treasury shares disposed 7.9 6.0 At 31 December (28.5) (22.2) At 31 December 2024, 7,191,845 Ordinary shares were held by the Employee Beneﬁt Trust (2023 – 6,591,918). The Company purchased 2,917,742 (2023 – 2,935,096) additional treasury shares during the year for $14.2m (2023 – $9.0m). The loss on disposal of treasury shares during the year, which is recognised in retained earnings, was $7.7m (2023 – $5.7m). C12. Dividends Paid to Hunting PLC Shareholders Please see note 36 of the Group’s ﬁnancial statements. C13. Related-party Transactions The following related-party transactions took place between the Company and subsidiaries of the Group during the year: 2024 $m 2023 $m Transactions: Royalties receivable 10.0 12.6 Management fees payable (11.2) (11.0) Recharges of share options and awards and administrative expenses 14.5 15.8 Loans to subsidiary (10.0) (18.2) Interest receivable on intercompany loans 43.6 40.2 Year-end balances: Payables to subsidiaries (2.0) (1.3) Receivables from subsidiaries 0.1 0.1 Loans owed by subsidiaries 609.4 599.6 All balances between the Company and its subsidiaries are unsecured. The Company serves as the intermediary for certain Group insurances and is also the head of the VAT group for the UK central companies and Enpro Subsea Limited, which joined in 2024. Hunting PLC is the parent company of the Hunting PLC Group. The Company is listed on the London Stock Exchange, with none of the shareholders owning more than 20% of the issued share capital of the Company (see page 169). Accordingly, the Directors do not consider there to be an ultimate controlling party. Notes to the Company Financial Statements continued C10. Other Components of Equity continued Hunting PLC Annual Report and Accounts 2024 251 Strategic Report Corporate Governance Financial Statements Other Information Hunting PLC 252 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Company Financial Statements continued C14. Associates and Joint Ventures Associates are entities over which the Group has signiﬁcant inﬂuence but not control or joint control. This is generally the case where the Group holds between 20% and 50% of the voting rights. Joint ventures are entities where the Group has joint control over the entity. Changes during the year (a) Hunting Airtrust Tubulars Pte. Ltd Hunting Airtrust Tubulars Pte. Ltd, in which the Company held a 50% interest, was dissolved in February 2024. (b) Cumberland Additive The Group increased its investment in Cumberland Additive Holdings LLC during the year by $0.9m. The Group’s effective shareholding has increased to 30.7% as a result of the additional investment. Associates and joint ventures i/ii Registered address iii Rival Downhole Tools LC iv (23.0%) 5535 Brystone Drive, Houston, Texas, 77041- 7013, USA Cumberland Additive Holdings LLC (30.7%) 3813 Helios Way, Suite B200, Pﬂugerville, Texas, 78660, USA Jindal Hunting Energy Services Limited (49.0%) A-1, UPSIDC Industrial Area, Nand Gaon Road, Kosi Kalan, Mathura, Uttar Pradesh, 281403 India i. All interests are in the Ordinary equity shares of those companies. ii. Interest in company is held indirectly by Hunting PLC. iii. Associates and joint ventures are incorporated and operate in the countries indicated. iv. The Group divested of its investment in Rival Downhole Tools on 3 March 2025. C15. Subsidiaries Changes to the Group (a) Hunting Energy Services (Thailand) Limited Hunting Energy Services (Thailand) Limited, in which the Company had a 49% interest, was dissolved in April 2024. (b) Hunting Energy Services Production Technology, Inc. Hunting Energy Services Production Technology, Inc. was incorporated in January 2025. All companies listed below are wholly owned by the Group, except where otherwise indicated. Subsidiaries i/ii Registered address Operating activities Hunting Energy Services (Australia) Pty Ltd Level 40, Governor Macquarie Tower, 1 Farrer Place, Sydney, NSW, 2000, Australia Hunting Energy Services (Canada) Ltd. 5550 Skyline Way NE, Calgary, Alberta, T2E 7Z7, Canada Hunting Energy Services (Wuxi) Co., Ltd (70%) Plot 48, Phase 5, Shuofang Industrial Park, Wuxi New District, Jiangsu Province, China 214142 Hunting Energy Completion Equipment (Wuxi) Plot 48, Phase 5, Shuofang Industrial Park, Wuxi Co., Ltd. New District, Jiangsu Province, China 214142 Hunting Energy Services (UK) Limited iv 30 Panton Street, London SW1Y 4AJ, England Enpro Subsea Limited Badentoy Avenue, Badentoy Industrial Estate, Portlethen, Aberdeen, AB12 4YB, Scotland Enpro Subsea Operations Limited iv Badentoy Avenue, Badentoy Industrial Estate, Portlethen, Aberdeen, AB12 4YB, Scotland Enpro Subsea Group Limited iv Badentoy Avenue, Badentoy Industrial Estate, Portlethen, Aberdeen, AB12 4YB, Scotland Enpro Subsea Ghana Ltd (83%) House No. F676/1, Angola Road, Kuku Hill, Osu, Accra, Ghana Enpro Subsea Group Ghana Limited House No. F676/1, Angola Road, Kuku Hill, Osu, Accra, Ghana PT Hunting Energy Asia Complex Dragon Industrial Park, Block D, Jalan Pattimura, Kabil Batam, 29467, Indonesia Hunting Alpha (EPZ) Limited (60%) v Block XLVIII/150, Off Mbaraki Road, P.O. Box 83344-80100, Mombasa, Kenya Hunting Energy de Mexico Avenida Los Olmos #105, Parque Industrial El Sabinal, Apodaca, Nuevo Leon, Monterrey, Mexico Hunting Energy Services B.V. Olieweg 10, 1951 NH Velsen-Noord, Netherlands Hunting Energy Services (Norway) AS Arabergveien 6, 4050 Sola, Norway Hunting Energy Saudi Arabia LLC (65%) Dhahran, Building No: 7612, P.O. Box: 3104, Zip Code: 34521, Saudi Arabia Hunting Energy Services Limited Badentoy Avenue, Badentoy Park, Portlethen, Aberdeen, AB12 4YB, Scotland Hunting Energy Services Pte. Ltd 16E Tuas Avenue 1, #01-61 Singapore 639537 Hunting Energy Services (China) Pte. Ltd. (70%) 16E Tuas Avenue 1, #01-61 Singapore 639537 Hunting Energy Services India Private Limited 602, Block A, Naurang House, 21 KG Marg, Canaught Place, New Delhi, Central Delhi 110001, India Hunting Energy Services FZE S40432, Jebel Ali Freezone, Dubai, UAE Hunting PLC 253 Strategic Report Corporate Governance Financial Statements Other Information Annual Report and Accounts 2024 Notes to the Company Financial Statements continued C15. Subsidiaries continued Subsidiaries i/ii Registered address National Coupling Company, Inc. 1316 Staffordshire Road, Staffordshire, Texas, 77477, USA Hunting Energy Services, LLC 16825 Northchase Drive, Suite 600, Houston, Texas, 77060, USA Premium Finishes, Inc. 16825 Northchase Drive, Suite 600, Houston, Texas, 77060, USA Hunting Dearborn, Inc. 6 Dearborn Drive, Fryeburg, Maine, 04037, USA Hunting Energy Services (Drilling Tools), Inc. 16825 Northchase Drive, Suite 600, Houston, Texas, 77060, USA Hunting Innova, Inc. 8383 North Sam Houston Parkway West, Houston, Texas, 77064, USA Hunting Specialty Supply, Inc. 100 E. Wally Wilkerson Parkway, Conroe, Texas, 77303, USA Hunting Titan, Inc. 16825 Northchase Drive, Suite 600, Houston, Texas, 77060, USA Tenkay Resources, Inc. 16825 Northchase Drive, Suite 600, Houston, Texas, 77060, USA Corporate activities Hunting Energy Holdings Limited iii 30 Panton Street, London SW1Y 4AJ, England Hunting Energy Services (International) Limited iv 30 Panton Street, London SW1Y 4AJ, England Hunting Energy Services Overseas Holdings 30 Panton Street, London SW1Y 4AJ, England Limited iv Hunting Oil Holdings Limited iii/iv 30 Panton Street, London SW1Y 4AJ, England Hunting Knightsbridge Holdings Limited 30 Panton Street, London SW1Y 4AJ, England Huntaven Properties Limited iv 30 Panton Street, London SW1Y 4AJ, England HG Management Services Ltd 30 Panton Street, London SW1Y 4AJ, England Huntﬁeld Trust Limited iv 30 Panton Street, London SW1Y 4AJ, England Stag Line Limited iv 30 Panton Street, London SW1Y 4AJ, England Hunting U.S. Holdings, Inc. 16825 Northchase Drive, Suite 600, Houston, Texas, 77060, USA i. Except where otherwise stated, companies are wholly owned, being incorporated and operating in the countries indicated. All subsidiary undertakings have been included in the consolidated ﬁnancial statements. ii. All interests in subsidiaries are in the Ordinary equity shares of those companies. The proportion of voting rights is represented by the interest in the Ordinary equity shares of those companies. iii. Interest in company is held directly by Hunting PLC. iv. Hunting Energy Services (UK) Limited (registered number 00908371), Enpro Subsea Operations Limited (registered number SC563049), Enpro Subsea Group Limited (registered number SC592391), Hunting Energy Services (International) Limited (registered number 01678668), Hunting Energy Services Overseas Holdings Limited (registered number 03532045), Hunting Oil Holdings Limited (registered number 01103530), Huntaven Properties Limited (registered number 00841865), Huntﬁeld Trust Limited (registered number 00372215) and Stag Line Limited (registered number 00151320) are dormant companies that are exempt from being audited, are exempt from the requirements to prepare individual accounts under section 394A of the Companies Act 2006 and are exempt from ﬁling individual accounts under section 448A of the Companies Act 2006. v. Hunting Alpha (EPZ) Limited is in liquidation. Hunting PLC Annual Report and Accounts 2024 254 Strategic Report Corporate Governance Financial Statements Other Information Other Information Non-GAAP Measures 255 Financial Record 263 Shareholder and Statutory Information 264 Glossary 266 Professional Advisers 270 The performance of the Group is assessed by the Directors using a number of measures, which are not deﬁned under IFRS, and are therefore considered to be non-GAAP measures (“NGMs”). The measures used by the Group may not be comparable with similarly described measures presented by other businesses. The Group presents adjusted proﬁtability measures below, which exclude adjusting items (see NGM A). The adjusted results, when considered together with results reported under IFRS, provide investors, analysts and other stakeholders with complementary information which aids comparison of the Group’s ﬁnancial performance from one period to the next. These adjusted measures are used by management for planning, reporting and performance management purposes. The adjusted proﬁtability measures are reconciled to unadjusted IFRS results presented on the face of the income statement, with details of the adjusting items provided in NGM A. Adjusted results can be higher or lower than the IFRS results as they often exclude signiﬁcant items and should not be regarded as a complete picture of the Group’s ﬁnancial performance, which is presented by the IFRS results in the income statement. In addition, the Group’s results and ﬁnancial position are analysed using certain other measures that are not deﬁned under IFRS and are, therefore, considered to be NGMs. These measures are used by management to monitor ongoing business performance. This section provides a deﬁnition of each NGM presented in this report, the purpose for which the measure is used and a reconciliation of the NGM to the reported IFRS numbers. The auditors are required to consider whether these non-GAAP measures are prepared consistently with the ﬁnancial statements. Income Statement Non-GAAP Measures A. Adjusting Items Due to their size and nature, the following items are considered to be adjusting items and have been presented separately. 2024 $m Restated i 2023 $m Impairment of goodwill (109.1) – Import tax provision – (8.9) Total adjustments to operating proﬁt (109.1) (8.9) Tax impact of adjusting items (note 5) 27.8 2.1 Recognition of US deferred tax assets – 83.1 Adjusting items after tax (81.3) 76.3 Adjusting items after tax attributable to owners of the parent (81.3) 76.3 Adjusting items after tax attributable to non-controlling interests – – (81.3) 76.3 i. Comparative balances have been restated, see note 1 of the consolidated ﬁnancial statements. Non-GAAP Measures Hunting PLC Annual Report and Accounts 2024 255 Strategic Report Corporate Governance Financial Statements Other Information B. Adjusted Proﬁtability Measures Certain reported proﬁt and loss measures are adjusted for the items described in NGM A. This is the basis used by the Directors in assessing performance. 2024 $m Restated i 2023 $m Operating (loss)/proﬁt – consolidated income statement (21.1) 51.5 Add back adjusting items (NGM A) 109.1 8.9 Adjusted operating proﬁt 88.0 60.4 (Loss)/proﬁt before tax – consolidated income statement (33.5) 41.1 Add back adjusting items (NGM A) 109.1 8.9 Adjusted proﬁt before tax 75.6 50.0 (Loss)/proﬁt for the year attributable to owners of the parent – consolidated income statement (28.0) 110.3 Add back/(deduct) adjusting items after tax attributable to owners of the parent (NGM A) 81.3 (76.3) Adjusted proﬁt for the year attributable to owners of the parent 53.3 34.0 cents cents Adjusted earnings per share: Adjusted basic EPS 33.5 21.4 Adjusted diluted EPS 31.4 20.3 i. Comparative balances have been restated, see note 1 of the consolidated ﬁnancial statements. Non-GAAP Measures continued Income Statement Non-GAAP Measures continued C. EBITDA Purpose: This proﬁt measure is used as a simple proxy for pre-tax cash ﬂows from operating activities. EBITDA is frequently used by analysts, investors and other interested parties. Calculation deﬁnition: Adjusted results before interest, tax, depreciation, impairment of non-current assets and amortisation. 2024 $m Restated i 2023 $m Operating (loss)/proﬁt – consolidated income statement (21.1) 51.5 Add back adjusting items (NGM A) 109.1 8.9 Adjusted operating proﬁt (NGM B) 88.0 60.4 Add back: Depreciation of property, plant and equipment (note 11) 25.2 27.2 Depreciation of right-of-use assets (note 12) 7.2 6.6 Amortisation of other intangible assets (note 14) 5.9 6.6 Impairment of right-of-use assets (note 12) – 0.2 Impairment of goodwill (note 13) – 1.4 38.3 42.0 EBITDA 126.3 102.4 i. Comparative balances have been restated, see note 1 of the consolidated ﬁnancial statements. Hunting PLC Annual Report and Accounts 2024 256 Strategic Report Corporate Governance Financial Statements Other Information C. EBITDA continued EBITDA by Operating Segment 2024 Hunting Titan $m North America $m Subsea Technologies $m EMEA $m Asia Paciﬁc $m Total $m Operating (loss)/proﬁt (note 2) (117.4) 45.5 25.6 (12.4) 37.6 (21.1) Add back adjusting items (NGM A) 109.1 – – – – 109.1 Adjusted operating (loss)/proﬁt (NGM B) (8.3) 45.5 25.6 (12.4) 37.6 88.0 Add back: Depreciation of property, plant and equipment and right-of-use assets (note 2) 7.2 15.7 2.3 3.9 3.3 32.4 Amortisation of other intangible assets (note 2) 1.7 1.0 2.1 0.6 0.5 5.9 8.9 16.7 4.4 4.5 3.8 38.3 EBITDA 0.6 62.2 30.0 (7.9) 41.4 126.3 Restated i 2023 Hunting Titan $m North America $m Subsea Technologies $m EMEA $m Asia Paciﬁc $m Total $m Operating proﬁt/(loss) (note 2) 12.7 33.7 8.0 (11.2) 8.3 51.5 Add back adjusting items (NGM A) – – – 8.9 – 8.9 Adjusted operating proﬁt/(loss) (NGM B) 12.7 33.7 8.0 (2.3) 8.3 60.4 Add back: Depreciation of property, plant and equipment and right-of-use assets (note 2) 7.5 17.9 2.4 3.4 2.6 33.8 Amortisation of other intangible assets (note 2) 1.7 2.0 1.9 0.6 0.4 6.6 Impairment of non-current assets (note 2) – 0.2 1.4 – – 1.6 9.2 20.1 5.7 4.0 3.0 42.0 EBITDA 21.9 53.8 13.7 1.7 11.3 102.4 i. Comparative balances have been restated, see note 1 of the consolidated ﬁnancial statements. Non-GAAP Measures continued Income Statement Non-GAAP Measures continued Hunting PLC Annual Report and Accounts 2024 257 Strategic Report Corporate Governance Financial Statements Other Information D. Adjusted Tax Charge and Effective Tax Rate Purpose: The weighted average effective tax rate represents the level of tax, both current and deferred, being borne by operations on an adjusted basis. Calculation deﬁnition: The adjusted taxation charge divided by adjusted proﬁt before tax, expressed as a percentage. 2024 $m Restated i 2023 $m Taxation credit – consolidated income statement 8.0 71.1 Deduct tax impact of adjusting items (NGM A) (27.8) (2.1) Deduct recognition of US deferred tax assets (NGM A) – (83.1) Adjusted taxation charge (19.8) (14.1) Adjusted proﬁt before tax for the year (NGM B) 75.6 50.0 Adjusted effective tax rate 26% 28% i. Comparative balances have been restated, see note 1 of the consolidated ﬁnancial statements. Adjusting items are taxed on an item-by-item basis as shown in NGM A. Balance Sheet Non-GAAP Measures E. Working Capital Purpose: Working capital is a measure of the Group’s liquidity identifying whether the Group has sufﬁcient assets to cover liabilities as they fall due. Calculation deﬁnition: Trade, contract and other receivables excluding receivables from associates and joint ventures, derivative ﬁnancial assets not in a hedge and deferred bank fees, plus inventories less trade, contract and other payables excluding payables due to associates and joint ventures, derivative ﬁnancial liabilities not in a hedge and retirement plan obligations. 2024 $m 2023 $m Trade, contract and other receivables – non-current (note 18) 5.4 1.8 Trade, contract and other receivables – current (note 18) 261.5 251.4 Inventories (note 20) 303.3 328.4 Trade, contract and other payables – current (note 22) (208.5) (163.4) Trade, contract and other payables – non-current (note 22) (5.5) (3.7) Add: non-working capital US deferred compensation plan obligation (note 22) 2.6 2.2 Less: non-working capital current other receivables and other payables (3.3) (0.8) Working capital 355.5 415.9 Revenue for the last three months of the year 301.8 228.2 Working capital as a percentage of annualised revenue 29% 46% For the purposes of the above calculation, annualised revenue is calculated as revenue for the last three months of the year multiplied by four. F. Inventory Days Purpose: This is a working capital efﬁciency ratio that measures inventory balances relative to business activity levels. Calculation deﬁnition: Inventory at the year-end divided by cost of sales for the last three months of the year multiplied by the number of days in the last quarter, adjusted for the impact of acquisitions and disposals when applicable. 2024 $m 2023 $m Inventories (note 20) 303.3 328.4 Cost of sales for the last three months of the year 227.1 172.7 Inventory days 123 days 175 days Non-GAAP Measures continued Income Statement Non-GAAP Measures continued Hunting PLC Annual Report and Accounts 2024 258 Strategic Report Corporate Governance Financial Statements Other Information G. Trade Receivables Days Purpose: This is a working capital efﬁciency ratio that measures receivable balances relative to business activity levels. Calculation deﬁnition: Trade receivables, accrued revenue and contract assets at the year-end, less provisions for impairment, divided by revenue for the last three months of the year multiplied by the number of days in the last quarter, adjusted for the impact of acquisitions and disposals when applicable. 2024 $m 2023 $m Trade receivables (note 18) 195.0 204.7 Accrued revenue (note 18) 3.2 2.5 Contract assets (note 18) 23.7 17.5 Less: provisions for impairment (note 18) (3.7) (3.5) Trade and contract receivables 218.2 221.2 Revenue for the last three months of the year 301.8 228.2 Trade receivables days 67 days 89 days H. Trade Payables Days Purpose: This is a working capital efﬁciency ratio that measures payables balances relative to business activity levels. Calculation deﬁnition: Trade payables, bank acceptance drafts and accrued goods received not invoiced (“accrued GRN”) at the year-end divided by purchased materials and cash costs for the last three months of the year multiplied by the number of days in the last quarter, adjusted for the impact of acquisitions and disposals when applicable. 2024 $m 2023 $m Trade payables (note 22) 41.4 62.5 Bank acceptance drafts (note 22) 92.4 – Accrued GRN 6.9 6.3 Total payables 140.7 68.8 Purchased materials and cash costs for the last three months of the year 159.4 128.5 Trade payables days 81 days 49 days I. Other Net Assets Purpose: Provides an analysis of other net assets in the Summary Group Balance Sheet in the Strategic Report. 2024 $m 2023 $m Non-current investments (note 17) 4.8 4.4 Non-working capital US deferred compensation plan obligation (NGM E) (2.6) (2.2) Non-working capital current other receivables and other payables (NGM E) 3.3 0.8 5.5 3.0 J. Capital Employed Purpose: Used in the calculation of the return on average capital employed (see NGM S). Calculation deﬁnition: Capital employed is total equity excluding net (cash)/debt as applicable. The Group’s capital comprised: 2024 $m Restated i 2023 $m Total equity – consolidated balance sheet 902.3 950.1 Net (cash)/debt (note 26) (70.7) 33.4 831.6 983.5 i. Comparative balances have been restated, see note 1 of the consolidated ﬁnancial statements. Non-GAAP Measures continued Balance Sheet Non-GAAP Measures continued Hunting PLC Annual Report and Accounts 2024 259 Strategic Report Corporate Governance Financial Statements Other Information K. Total Cash and Bank/(Borrowings) Purpose: Total cash and bank/(borrowings) is a key metric for management and for the Group treasury function, which monitors this balance on a daily basis and reviews weekly forecasts to ensure there is sufﬁcient liquidity to meet business requirements. As the Group manages funding on a total cash and bank/(borrowings) basis, internal reporting focuses on changes in total cash and bank/(borrowings) and this is presented in the Strategic Report. Calculation deﬁnition: Cash and cash equivalents, comprising cash at bank and in hand, short-term deposits of less than three months to maturity from the date of deposit and money market funds; and short-term deposits of more than three months to maturity from the date of deposit; less bank overdrafts and bank borrowings. The Group’s total cash and bank/(borrowings) comprised: 2024 $m 2023 $m Cash and cash equivalents (note 21) 206.6 45.5 Bank overdrafts secured – current borrowings (note 25) (1.5) (1.4) Cash and cash equivalents – consolidated statement of cash ﬂows 205.1 44.1 Bank borrowings – current borrowings (note 25) (9.8) (44.9) Bank borrowings – non-current borrowings (note 25) (90.6) – 104.7 (0.8) L. Net Cash/(Debt) Purpose: Net cash/(debt) is a measure of the Group’s liquidity and reﬂects the Group’s cash and liquid assets that would remain if all of its debts were to be immediately paid off. Calculation deﬁnition: Net cash/(debt) comprises total cash and bank/(borrowings) (NGM K) less total lease liabilities and the shareholder loan from a non-controlling interest. The Group’s net cash/(debt) comprised: 2024 $m 2023 $m Total cash and bank/(borrowings) (NGM K) 104.7 (0.8) Total lease liabilities (note 24) (30.1) (28.7) Shareholder loan from non-controlling interests – non-current borrowings (note 25) (3.9) (3.9) 70.7 (33.4) Cash Flow Non-GAAP Measures M. Cash Flow Working Capital Movements Purpose: Reconciles the working capital movements in the Summary Group Cash Flow in the Strategic Report. 2024 $m 2023 $m Working capital – opening balance 415.9 362.8 Foreign exchange (1.7) 1.7 Adjustments: Transfer to property, plant and equipment (note 11) (1.7) (1.5) Capital investment receivables/payables cash ﬂows 0.1 0.6 Asset disposals receivables/payables cash ﬂows 2.1 (1.5) Other non-cash ﬂow movements 0.3 (1.5) Other cash ﬂow movement (6.2) 0.3 Working capital – closing balance (NGM E) (355.5) (415.9) Cash ﬂow 53.3 (55.0) Non-GAAP Measures continued Balance Sheet Non-GAAP Measures continued Hunting PLC Annual Report and Accounts 2024 260 Strategic Report Corporate Governance Financial Statements Other Information N. Capital Investment Purpose: Capital investment identiﬁes the cash resources being absorbed organically within the business to maintain or enhance operating activity levels. Calculation deﬁnition: Capital investment is the cash paid on tangible non-current assets to maintain existing levels of operating activity and to grow the business from current operating levels and enhance operating activity. 2024 $m 2023 $m Property, plant and equipment additions (note 11) 25.2 23.1 Capital investment receivables/payables cash ﬂows (NGM M) 0.1 0.6 Cash ﬂow 25.3 23.7 Per the consolidated statement of cash ﬂows: Purchase of property, plant and equipment held for rental – operating activities 1.7 0.6 Purchase of property, plant and equipment – investing activities 23.6 23.1 Cash ﬂow 25.3 23.7 Capital investment by operating segment: Hunting Titan 3.3 3.1 North America 10.3 14.5 Subsea Technologies 4.3 1.2 EMEA 2.0 2.4 Asia Paciﬁc 4.7 2.2 Central 0.7 0.3 Cash ﬂow 25.3 23.7 O. Other Operating Cash and Non-cash Movements Purpose: Reconciles other operating cash and non-cash movements in the Summary Group Cash Flow in the Strategic Report. 2024 $m 2023 $m (Decrease)/increase in provisions – consolidated statement of cash ﬂows (2.0) 0.5 Share of associates’ and joint venture’s results 0.1 0.6 Payment of US pension scheme liabilities (0.2) – Other non-cash ﬂow items 2.7 (1.3) 0.6 (0.2) P. Free Cash Flow Purpose: Free cash ﬂow is a measure of ﬁnancial performance and represents the cash that the Group is able to generate. Free cash ﬂow represents the amount of cash the Group has available to either retain for investment, or to return to shareholders and is a KPI used by management. Calculation deﬁnition: All cash ﬂows before transactions with shareholders and investment by way of acquisition. All the below items appear in the consolidated statement of cash ﬂows, unless stated. 2024 $m Restated i 2023 $m EBITDA (NGM C) 126.3 102.4 Add: share-based payment charge (note 37) 14.1 13.5 140.4 115.9 Working capital movements (NGM M) 53.3 (55.0) Payment of lease liabilities, principal and interest (8.9) (10.4) Net interest and bank fees paid (12.9) (7.3) Net taxation paid (3.5) (9.1) Purchase of property, plant and equipment (23.6) (23.1) Purchase of property, plant and equipment held for rental (1.7) (0.6) Purchase of intangible assets (4.8) (10.9) Proceeds from asset disposals 1.7 1.9 Net gains on asset and investment disposals (0.9) (1.7) Other operating cash and non-cash movements (NGM O) 0.6 (0.2) Free cash ﬂow 139.7 (0.5) Reconciliation to the consolidated statement of cash ﬂows: Net cash inﬂow from operating activities 188.5 49.3 Net interest and bank fees paid (12.9) (7.3) Proceeds from disposal of property, plant and equipment 1.2 1.9 Proceeds from disposal of investments 0.2 – Purchase of property, plant and equipment (23.6) (23.1) Purchase of intangible assets (4.8) (10.9) Payment of lease liabilities, principal and interest (8.9) (10.4) Free cash ﬂow 139.7 (0.5) i. Comparative balances have been restated, see note 1 of the consolidated ﬁnancial statements. Non-GAAP Measures continued Cash Flow Non-GAAP Measures continued Hunting PLC Annual Report and Accounts 2024 261 Strategic Report Corporate Governance Financial Statements Other Information Other Non-GAAP Measures Q. Dividend Per Share Declared Purpose: Identiﬁes the total amount of dividend declared in respect of a period. This is also used in the calculation of dividend cover (see NGM R). Calculation deﬁnition: The amount in cents returned to Ordinary shareholders. 2024 cents 2023 cents Interim dividend 5.5 5.0 Final dividend 6.0 5.0 11.5 10.0 R. Dividend Cover Purpose: An indication of the Company’s ability to maintain the level of its dividend and indicates the proportion of earnings being retained in the business for future investment versus that returned to shareholders. Calculation deﬁnition: Earnings/(loss) per share attributable to Ordinary shareholders divided by the cash dividend per share to be returned to Ordinary shareholders, on an accruals basis. 2024 Restated i 2023 Adjusted cents Reported cents Adjusted cents Reported cents Earnings/(loss) per share Basic (NGM B/note 10) 33.5 (17.6) 21.4 69.5 Diluted (NGM B/note 10) 31.4 (17.6) 20.3 65.9 Dividend (NGM Q) 11.5 11.5 10.0 10.0 Dividend cover Basic 2.9x (1.5)x 2.1x 7.0x Diluted 2.7x (1.5)x 2.0x 6.6x i. Comparative balances have been restated, see note 1 of the consolidated ﬁnancial statements. S. Return on Average Capital Employed (“ROCE”) Purpose: Measures the levels of return the Group is generating from its capital employed. Calculation deﬁnition: Adjusted proﬁt before interest and tax as a percentage of average gross capital employed. Average gross capital employed is a monthly average of capital employed based on 13 balance sheets from the closing December balance in the prior year to the closing December balance in the current year. 2024 $m Restated i 2023 $m Average monthly gross capital employed (13-point average) 992.8 932.8 Adjusted operating proﬁt (NGM B) 88.0 60.4 Return on average capital employed 9% 6% i. Comparative balances have been restated, see note 1 of the consolidated ﬁnancial statements. T. Sales Order Book Purpose: The sales order book comprises the value of all unsatisﬁed orders from customers and is expected to be recognised as revenue in future periods. It is presented by operating segment and product group. Where amounts are not ﬁxed in the contract, the Group exercises judgement on the amount of the order that is booked. Calculation deﬁnition: Opening sales order book, add new orders booked, less amounts recognised as revenue, adjusted for any order modiﬁcations/variations and foreign exchange impacts. 2024 $m Restated i 2023 $m Operating segment Hunting Titan 16.7 17.6 North America 207.3 288.7 Subsea Technologies 72.5 152.2 EMEA 50.2 29.9 Asia Paciﬁc 186.9 115.8 Inter-segment elimination (25.0) (39.0) 508.6 565.2 2024 $m 2023 $m Product group Perforating Systems 16.5 12.7 OCTG 249.7 222.0 Advanced Manufacturing 130.0 161.5 Subsea 72.5 152.2 Other Manufacturing 39.9 16.8 508.6 565.2 i. Comparative balances have been restated to exclude intra-segment sales orders. The sales order book does not agree to the total transaction price allocated to unsatisﬁed and partially satisﬁed performance obligations as deﬁned by IFRS 15, disclosed in note 23(c), due to the practical expedient that was applied and the Group’s assessment of contract enforceability. Non-GAAP Measures continued Hunting PLC Annual Report and Accounts 2024 262 Strategic Report Corporate Governance Financial Statements Other Information Financial Record Income statement line items are presented after the impact of adjusting items. 2024 $m Restated i 2023 $m Restated ii 2022 $m Restated ii 2021 $m 2020 $m Revenue 1,048.9 929.1 725.8 521.6 626.0 EBITDA (NGM C) 126.3 102.4 49.3 (0.4) 26.1 Depreciation and non-adjusting amortisation and impairment (38.3) (42.0) (37.4) (38.2) (42.5) Operating proﬁt/(loss) 88.0 60.4 11.9 (38.6) (16.4) Net ﬁnance expense (12.4) (10.4) (1.7) (2.0) (3.0) Proﬁt/(loss) before tax 75.6 50.0 10.2 (40.6) (19.4) Taxation (charge)/credit (NGM D) (19.8) (14.1) (1.3) (4.9) 0.9 Proﬁt/(loss) for the year 55.8 35.9 8.9 (45.5) (18.5) cents cents cents cents cents Basic earnings/(loss) per share (NGM B) 33.5 21.4 5.0 (27.1) (10.0) Diluted earnings/(loss) per share (NGM B) 31.4 20.3 4.7 (27.1) (10.0) Dividend per share iii 11.5 10.0 9.0 8.0 9.0 $m $m $m $m $m Balance sheet Property, plant and equipment 252.8 254.5 256.7 274.4 307.1 Right-of-use assets 28.3 26.2 26.0 24.7 29.8 Goodwill and other intangible assets 84.5 195.2 191.2 200.3 207.1 Working capital (NGM E) 355.5 415.9 362.8 278.0 358.3 Associates and joint ventures 9.2 20.5 20.1 19.4 18.1 Assets held for sale 12.1 – – – – Taxation (current and deferred) 98.0 84.8 4.0 1.4 6.0 Provisions (14.3) (16.6) (8.9) (8.1) (8.9) Other net assets (NGM I) 5.5 3.0 4.3 2.7 1.6 Capital employed (NGM J) 831.6 983.5 856.2 792.8 919.1 Total cash and bank/(borrowings) (NGM K) 104.7 (0.8) 24.5 114.2 101.7 Lease liabilities (30.1) (28.7) (30.6) (31.8) (40.3) Other borrowings (3.9) (3.9) (3.9) (3.9) (3.9) Net cash/(debt) 70.7 (33.4) (10.0) 78.5 57.5 Net assets 902.3 950.1 846.2 871.3 976.6 Non-controlling interests (5.5) (3.3) (1.6) (1.4) (12.2) Equity attributable to owners of the parent 896.8 946.8 844.6 869.9 964.4 cents cents cents cents cents Net assets per share 547.2 576.2 513.2 528.4 592.2 i. Comparative balances have been restated, see note 1 of the consolidated ﬁnancial statements. ii. Comparative EBITDA balances have been restated to include share of associates’ and joint venture’s results. EBITDA for 2022 has been restated to include a $2.7m loss and 2021 has been restated to include a $3.5m loss. There was no impact in 2020. iii. Dividend per share is stated on a declared basis. Hunting PLC Annual Report and Accounts 2024 263 Strategic Report Corporate Governance Financial Statements Other Information Shareholder and Statutory Information Registered ofﬁce 30 Panton Street London SW1Y 4AJ Company Number: 00974568 (Registered in England and Wales) Telephone: +44 (0)20 7321 0123 Email: [email protected] LinkedIn: https://www.linkedin.com/company/hunting-energy-services/ Financial calendar The Company’s 2025 ﬁnancial calendar is as follows: Date Event 6 March 2025 2024 Full Year Results Announcement 6 March 2025 2024 Final Dividend – Announcement date 18 March 2025 Publication of Annual Report and Notice of AGM 10 April 2025 Final Dividend – Ex-dividend date 11 April 2025 Final Dividend – Record date 16 April 2025 Trading Statement 16 April 2025 AGM and Proxy Voting Results of AGM 9 May 2025 Final Dividend – Payment date 14 July 2025 Trading Statement 28 August 2025 2025 Half Year Results Announcement 28 August 2025 2025 Interim Dividend – Announcement date 25 September 2025 Interim Dividend – Ex-dividend date 26 September 2025 Interim Dividend – Record date 23 October 2025 Trading Statement 24 October 2025 Interim Dividend – Payment date Financial reports The Company’s 2024 Annual Report and Accounts is available on the Company’s website from the date of publication. Shareholders may elect to receive a copy by contacting the Registrar. Copies of previous ﬁnancial reports are available at www.huntingplc.com. In common with many public companies in the UK, the Company no longer publishes a printed version of its half-year report. The half-year report is only available online from the Company’s website at www.huntingplc.com. Registrar The Company’s Registrar, Equiniti, offers a range of shareholder information and dealing services at www.shareview.co.uk. The address and contact details of Equiniti are as follows: Equiniti Limited Aspect House Spencer Road, Lancing West Sussex BN99 6DA Telephone: +44 (0)371 384 2173 Equiniti is also the Company’s single alternative inspection location where, with prior appointment, individuals can inspect the register of members. Analysis of Ordinary shareholders At 31 December 2024, the Company had 1,237 Ordinary shareholders (2023 – 1,263) who held 164.9m (2023 – 164.9m) Ordinary shares analysed as follows: 2024 2023 % of total shareholders % of total shares % of total shareholders % of total shares Size of holdings 1 – 4,000 69.6 0.4 71.3 0.5 4,001 – 20,000 11.3 0.8 10.0 0.7 20,001 – 40,000 3.6 0.7 4.2 0.9 40,001 – 200,000 7.7 5.1 7.4 5.4 200,001 – 500,000 3.5 8.0 2.3 5.4 500,001 and over 4.3 85.0 4.8 87.1 Further information on share capital can be found in note 33. Hunting PLC Annual Report and Accounts 2024 264 Strategic Report Corporate Governance Financial Statements Other Information Annual General Meeting 2025 The AGM of the Company will take place on Wednesday 16 April 2025 at the Royal Automobile Club, 89 Pall Mall, London SW1Y 5HS, commencing at 10.30 a.m. Format and business of meeting The 2025 AGM is planned to be an open meeting, with shareholders welcome to attend. The formal business of the AGM will involve putting to the meeting a number of ordinary and special resolutions. Details of the resolutions will be communicated to shareholders ahead of the meeting in a formal “Notice of AGM”. The Notice will also contain explanatory notes that will provide details to shareholders on how to lodge their vote. Those shareholders who have elected to continue to receive hard copy documentation will also receive a proxy form, which will contain details of how to lodge a vote by proxy. The AGM is to be broadcast via the internet. Details of the web-link will be included in the Notice of AGM. Prior to the formal business of the AGM, a presentation will be delivered by the Chief Executive. The Directors have made available to shareholders the ability to submit questions ahead of the AGM. These questions will be answered during the presentation noted above. Shareholders are therefore asked to submit all questions, in relation to the business to be considered at the AGM, by Monday 14 April 2025, to the Company’s registered ofﬁce, for the attention of the Company Secretary. Alternatively, questions can be submitted via email at [email protected]. Shareholder voting procedures follow the provisions of the Articles of Association of the Company (the “Articles”) and the UK Corporate Governance Code, including a separate resolution on each material item of business, the availability of voting via proxy and the offer of a “vote withheld”. Voting on all resolutions at the AGM will be completed via a poll. Shareholders may submit proxy voting instructions in advance of the meeting by completing a proxy form, alternatively via the internet at www.shareview.co.uk, or, shares held in CREST may be voted through the CREST Proxy Voting Service, or, for Institutional Investors via the Proxymity platform. To be valid, all votes must be received no later than 10:30 a.m. on Monday 14 April 2025. As part of the routine business to be considered at the AGM, all Directors’ will submit themselves for reappointment. Documents on display Copies of the executive Directors’ service contracts and letters of appointment of non-executive Directors will be available for inspection at the Company’s registered ofﬁce from the date the Notice of AGM is issued (being 21 clear days’ notice ahead of the meeting) until the time of the AGM and at the Royal Automobile Club, 89 Pall Mall, London SW1Y 5HS from 15 minutes before the AGM starts until it ends. Non-ﬁnancial information and sustainability statement In accordance with section 414CA of the Companies Act 2006, the Company is required to provide a non-ﬁnancial information statement. The Company has chosen to present this information throughout the Strategic Report as follows: • Environmental matters, including the impact of the Company’s business on the environment (pages 31, 73, and 82 to 101); • Employees (pages 27, 28, and 78 to 80); • Social matters (pages 32, and 78 to 80); • Respect for human rights (pages 28 and 77); and • Anti-bribery and corruption matters (pages 27 to 30, 77 and 78). Included within these disclosures are details of policies, outcomes, risk factors and related key performance indicators. A description of the Group’s business model is provided on pages 20 to 32, non-ﬁnancial key performance indicators are on page 19, and the Group’s principal risks can be found on pages 104 to 109. In compliance with The Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022, the Company has disclosed information that covers the eight areas required under section 414CB of the Companies Act 2006. These disclosures form part of the Company’s TCFD reporting for 2024, which can be found on pages 88 to 101 of this report. Hunting has reported against all four pillars and 11 reporting areas as required by TCFD. Shareholder and Statutory Information continued Hunting PLC Annual Report and Accounts 2024 265 Strategic Report Corporate Governance Financial Statements Other Information Glossary A ABC Anti-Bribery and Corruption. ABL Asset Based Lending. ADIPEC Abu Dhabi International Petroleum Exhibition and Conference. Adjusted Results for the year, as reported under IFRS, adjusted for certain items as determined by management, is the basis used by the Directors in assessing performance and aids a more effective comparison of the Group’s ﬁnancial performance from one period to the next. AGM Annual General Meeting. AI Artiﬁcial Intelligence. API Application Programming Interface. B Basic EPS/(LPS) Basic earnings/(loss) per share – calculated by dividing the earnings/(loss) attributable to Ordinary shareholders by the weighted average number of Ordinary shares in issue during the year. bbl Barrel of crude oil – one barrel of oil equals 159 litres or 42 US gallons. BEIS The UK Government’s Department for Business, Energy & Industrial Strategy. bn Billion. bopd Barrels of Oil per Day. C c Cents. c. Circa. °C The degree Celsius is a unit commonly used to measure temperature. The Celsius scale is created by deﬁning 0°C as the freezing point of water and 100°C as the boiling point of water. CAD Canadian dollar. CAGR Compound Annual Growth Rate. Capital employed See NGM J. Capital investment – “Capex” See NGM N. CCUS Carbon Capture, Usage and Storage. CEO Chief Executive Ofﬁcer. CFO Chief Financial Ofﬁcer. CGU Cash-generating unit. CMD Capital Markets Day. CNOOC Chinese National Offshore Oil Corporation. CNY Chinese Yuan Renminbi. CO 2 Carbon dioxide. CO 2 e Carbon dioxide equivalent. CO 2 e intensity factor Scope 1 and 2 carbon dioxide equivalent metric, reported as kilogrammes per $’000 of revenue. CTR Currency Translation Reserve. D DESNZ UK Government’s Department for Energy Security and Net Zero. Diluted EPS/(LPS) Diluted earnings/(loss) per share – calculated by dividing earnings/(loss) attributable to Ordinary shareholders by the weighted average number of Ordinary shares in issue during the year, as adjusted to assume conversion of all dilutive potential Ordinary shares. Dilution arises through the potential issue of shares to satisfy awards made under the Group’s long-term incentive plans. When the effect of dilutive share options and long-term incentive plans is anti-dilutive, they are not included in the calculation of diluted earnings/(loss) per share. Dividend Cover See NGM R. Dividend Per Share Declared See NGM Q. DNS Domain Name System security, this refers to the technique of defending DNS infrastructure from cyber attacks. Downhole Downhole refers to something that is located within the wellbore. DTA Deferred Tax Asset. E E&P Exploration and Production. EBITDA See NGM C. EBITDA margin EBITDA deﬁned in NGM C divided by revenue, expressed as a percentage. Hunting PLC Annual Report and Accounts 2024 266 Strategic Report Corporate Governance Financial Statements Other Information Glossary continued EBT Employee Beneﬁt Trust. ED Executive Director. EMEA Europe, Middle East and Africa. EPS Earnings Per Share. ERP Enterprise Resource Planning. ESCC Equity Shares in Commercial Companies. ESEF European Single Electronic Format. ESG Environmental, Social and Governance. ETP Efﬂuent Treatment Plant. ETR Effective Tax Rate. EUR Euro. Exajoules A unit used to measure energy. 1 exajoule is equivalent to approximately 163.46 million barrels of oil equivalent. ExCo The Hunting Executive Committee. F 5G Fifth generation of cellular network technology. FCA Financial Conduct Authority. FCF Free Cash Flow. FPSO Floating Production, Storage and Ofﬂoading. FRC Financial Reporting Council. Free cash ﬂow See NGM P. FRS Financial Reporting Standard. FTSE 250 The Financial Times Stock Exchange 250 share index is a weighted index of the 250 largest companies by free ﬂoat market capitalisation after the top 100. FVTOCI Fair Value Through Other Comprehensive Income. FVTPL Fair Value Through Proﬁt or Loss. G GAAP Generally Accepted Accounting Principles. GBP British pound sterling. GHG Greenhouse Gas. GRN Goods Received Note. GST Goods and Services Tax. GW Gigawatts. GWh Gigawatt hour – 1 billion watt hours. H H1 The ﬁrst half of the year, comprising the ﬁrst and second quarter. H2 The second half of the year, comprising the third and fourth quarter. HCC Houston Community College. HPSP Hunting Performance Share Plan. HR Human Resources. HRSP Hunting Restricted Share Plan. HSE Health, Safety and Environment. I IAS International Accounting Standards. ICBC Industrial and Commercial Bank of China. IEA International Energy Agency. IFRS International Financial Reporting Standards as adopted by the United Kingdom. Incident rate An OSHA recordable incident rate (or incident rate) is calculated by multiplying the number of recordable incidents by 200,000 and then dividing that number by the number of labour hours worked. Intensity factor The total controlled scope 1 and scope 2 emissions divided by the total revenue of the Group. Internal manufacturing reject rate Percentage of parts rejected during manufacturing processes. Inventory days See NGM F. ISO International Organization for Standardization. IT Information Technology. Hunting PLC Annual Report and Accounts 2024 267 Strategic Report Corporate Governance Financial Statements Other Information J JV Joint Venture. K k Thousand. KOC Kuwait Oil Company. KPI Key Performance Indicator. Kyoto Protocol International agreement between nations to mandate country-by-country reductions in greenhouse gas emissions. L Lean A production practice that eliminates wasteful processes, thereby reducing production time and costs, and improving efﬁciency. LNG Liquiﬁed Natural Gas. LTIP Long-term Incentive Plan. M m Million. m3 Cubic Metre. M&A Mergers and Acquisitions. mft Millions of Feet. mmBtu 1 million British Thermal Units. MW Megawatts. MWD/LWD Measurement-While-Drilling/Logging-While- Drilling. N Net Cash/(Debt) See NGM L. NGM Non-GAAP Measure – see pages 255 to 262. Near-Miss Frequency Rate Near-Miss Frequency Rate is calculated by multiplying the number of near-miss incidents by 200,000 and then dividing that number by the number of labour hours worked. Non-GAAP Measure The performance of the Group is assessed by the Directors using a number of measures, which are not deﬁned under IFRS, and are therefore considered to be non-GAAP measures (see pages 255 to 262). O OCI Other Comprehensive Income. OCTG Oil Country Tubular Goods – pipe and tubular goods and products used in the oil and gas industry, such as drill pipe, pipe casing and production pipes. OEM Original Equipment Manufacturer. OOR Organic Oil Recovery. OPEC The Organization of the Petroleum Exporting Countries. Comprises 12 member countries. OPEC+ Comprises the OPEC 12 member countries plus an additional 10 oil-producing countries. OSHA The US Occupational Safety and Health Administration. P p Pence. p.a. Per Annum. PBT Proﬁt Before Tax. PCB Printed Circuit Board. PPE Property, Plant and Equipment. PSP Performance Share Plan. PSU Performance Stock Unit. Q Q1 The ﬁrst quarter of the year, comprising January, February and March. Q2 The second quarter of the year, comprising April, May and June. Q3 The third quarter of the year, comprising July, August and September. Q4 The fourth quarter of the year, comprising October, November and December. QAHSE Quality Assurance, Health, Safety and Environment. QMS Quality Management System. R R&D Research and Development. RCF Revolving Credit Facility. Recordable incidents An OSHA recordable incident is recorded if it results in any of the following: death, days away from work, restricted work or transfer to another job, medical treatment beyond ﬁrst aid, or loss of consciousness. Also included are any signiﬁcant injuries or illnesses diagnosed by a physician or other licensed health care professional, even if it does not result in death, days away from work, restricted work or job transfer, medical treatment beyond ﬁrst aid, or loss of consciousness. Glossary continued Hunting PLC Annual Report and Accounts 2024 268 Strategic Report Corporate Governance Financial Statements Other Information ROCE See NGM S. RSU Restricted Stock Unit. S S&P Standard & Poor’s. Sales order book The value of all orders booked and expected to be recognised as revenue in future periods. See NGM T. SASB Sustainability Accounting Standards Board. Scope 1 Scope 1 emissions are direct GHG emissions from sources that are owned or controlled by the entity. Scope 1 emissions include fossil fuels burned on site, emissions from vehicles and other direct sources. Scope 2 Scope 2 emissions are indirect GHG emissions resulting from the generation of electricity, heating and cooling or steam generated off site but purchased by the entity. Scope 3 Scope 3 emissions are all other indirect emissions that are not produced by the entity itself and are not the result of activities from assets owned or controlled by them, but by those that it’s indirectly responsible for up and down its value chain. SDG The United Nations Sustainable Development Goal. SID Senior Independent Director. T 3D Three-dimensional. TCFD Task Force on Climate-related Financial Disclosures. TCT Titanium-lined Carbon Fibre Tubing. TES Total Energy Supply. Total cash and bank/(borrowings) See NGM K. Trade payables days See NGM H. Trade receivables days See NGM G. TSJ Titanium Stress Joint. TSR Total Shareholder Return – the net share price change plus the dividends paid during that period. U UAE United Arab Emirates. UK United Kingdom. UKCFD UK Climate-related Financial Disclosures. US United States. USA United States of America. USD US Dollars. V VAT Value Added Tax. W Well completion Well completion refers to the processes of preparing a well for production. This involves the assembly of downhole tubulars and equipment required to enable safe and efﬁcient production from an oil or gas well. Well construction Well construction refers to the initial drilling and processes of constructing the wellbore in an oil and gas well. These processes typically include drilling and logging the hole; running, cementing and logging the casing; hydraulic fracturing or stimulating the well and monitoring well performance and integrity. Well intervention Well intervention refers to any operation carried out on an oil or gas well that maintains or enhances the production of the well or provides well diagnostics. Wellbore The wellbore refers to the drilled hole. Working capital See NGM E. WTI West Texas Intermediate – the price per barrel of Texas light sweet crude oil. WTW WillisTowersWatson. X XHTML Extensible HyperText Markup Language. *Non-GAAP measure. Glossary continued Hunting PLC Annual Report and Accounts 2024 269 Strategic Report Corporate Governance Financial Statements Other Information Professional Advisers Solicitors CMS Cameron McKenna Nabarro Olswang LLP Independent Auditors Deloitte LLP Joint Corporate Brokers Canaccord Genuity Limited and RBC Capital Markets Financial Advisers DC Advisory Limited Insurance Brokers WillisTowersWatson Pension Advisers and Actuary Lane Clark & Peacock LLP Financial Public Relations Burson Buchanan Limited Registrars and Transfer Ofﬁce Equiniti Limited Aspect House Spencer Road, Lancing West Sussex BN99 6DA Telephone: +44 (0)371 384 2173 Hunting PLC Annual Report and Accounts 2024 270 Strategic Report Corporate Governance Financial Statements Other Information Hunting PLC 30 Panton Street London SW1Y 4AJ United Kingdom Tel: +44 (0)20 7321 0123 Fax: +44 (0)20 7839 2072 www.huntingplc.com Designed and produced by Gather www.gather.london Printed by Park Communications This product is made of material from well-managed, FSC ® -certiﬁed forests and other controlled sources Park Communications is certiﬁed to ISO 14001 Environmental Management System and the EU Eco-Management and Audit Scheme (EMAS) Independent auditor’s reasonable assurance report to the Members of Hunting PLC on the compliance of the Electronic Format Annual Financial Report with Financial Conduct Authority (FCA) Disclosure Guidance and Transparency Rule (DTR) 4.1.15R-DTR 4.1.18R To the Members of Hunting PLC Report on compliance with the requirements for iXBRL mark up (‘tagging’) of consolidated financial statements included in the Electronic Format Annual Financial Report We have undertaken a reasonable assurance engagement on the iXBRL mark up of consolidated financial statements for the year ended 31 st December 2024 of Hunting PLC (the “company”) included in the Electronic Format Annual Financial Report prepared by the company. Opinion In our opinion, the consolidated financial statements for the year ended 31 st December 2024 of the company included in the Electronic Format Annual Financial Report, are marked up, in all material respects, in compliance with DTR 4.1.15R-DTR 4.1.18R. The directors’ responsibility for the Electronic Format Annual Financial Report prepared in compliance with DTR 4.1.15R-DTR 4.1.18R The directors are responsible for preparing the Electronic Format Annual Financial Report. This responsibility includes:  the selection and application of appropriate iXBRL tags using judgement where necessary;  ensuring consistency between digitised information and the consolidated financial statements presented in human-readable format; and  the design, implementation and maintenance of internal control relevant to the application of DTR 4.1.15R-DTR 4.1.18R. Our independence and quality control We have complied with the independence and other ethical requirements of Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard as applied to listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We apply International Standard on Quality Monitoring (ISQM) 1 and, accordingly, maintain a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. Our responsibility Our responsibility is to express an opinion on whether the iXBRL mark up of consolidated financial statements complies in all material respects with DTR 4.1.15R-DTR 4.1.18R based on the evidence we have obtained. We conducted our reasonable assurance engagement in accordance with International Standard on Assurance Engagements (UK) 3000, Assurance Engagements Other than Audits or Reviews of Historical Financial Information (‘ISAE (UK) 3000’) issued by the FRC. A reasonable assurance engagement in accordance with ISAE (UK) 3000 involves performing procedures to obtain reasonable assurance about the compliance of the mark up of the consolidated financial statements with the DTR 4.1.15R-DTR 4.1.18R. The nature, timing and extent of procedures selected depend on the practitioner's judgement, including the assessment of the risks of material departures from the requirements set out in DTR 4.1.15R-DTR 4.1.18R, whether due to fraud or error. Our reasonable assurance engagement consisted primarily of:  obtaining an understanding of the iXBRL mark up process, including internal control over the mark up process relevant to the engagement;  reconciling the marked up data with the audited consolidated financial statements of the company dated 06 th March 2025;  evaluating the appropriateness of the company’s mark up of the consolidated financial statements using the iXBRL mark-up language;  evaluating the appropriateness of the company’s use of iXBRL elements selected from a generally accepted taxonomy and the creation of extension elements where no suitable element in the generally accepted taxonomy has been identified; and  evaluating the use of anchoring in relation to the extension elements. In this report we do not express an audit opinion, review conclusion or any other assurance conclusion on the consolidated financial statements. Our audit opinion relating to the consolidated financial statements of the company for the year ended 31 st December 2024 is set out in our Independent Auditor’s Report dated 06 th March 2025. Use of our report Our report is made solely to the company’s members, as a body, in accordance with ISAE (UK) 3000. Our work has been undertaken so that we might state to the company those matters we are required to state to them in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body for our work, this report, or for the conclusions we have formed. Thomas Murray, ACA (Senior statutory auditor) For and on behalf of Deloitte LLP Statutory Auditor London, UK 29 April 2025

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