Hunting Aktie

And I would like to welcome you to the 2026 Annual General Meeting of Hunting PLC, and I declare the meeting open. My name is Stuart Brightman, and I'm the Hunting's Non-Executive Company Chair. This is my second AGM as Chair, and I'm delighted to report that 2025 saw a further year of strong financial performance by the company.

Increased shareholder distributions, further delay of our long-term 2030 growth initiatives, Jim Johnson, our Chief Executive, will outline these strategic milestones in his presentation, and I'm very proud of the achievements of the company over the past 12 months, which we've seen a continued share increase, which I know makes everybody happier. So a great year by the management. The executive management team is supported by a strong, experienced Board of Directors, and I'm going to introduce those.

Seated on my far right is Paula Harris, who's a Non-Executive Director and has the wonderful task of being the Chair of the Remuneration Committee, which she does very well. Besides Paula is Cathy Krajicek, who joined us last year as a Non-Executive Director. Besides Cathy is Keith Lough, who is Hunting's Senior Independent Director and a wonderful resource to me as Chair. Besides Keith is Jim Johnson, our Chief Executive.

Seated on my far left is Carol Chesney, a Non-Executive Director and Chair of the Audit and Risk Committee. Next to her is Margaret Amos, a Non-Executive Director and Chair of the Ethics and Sustainability Committee. Beside Margaret is Bruce Ferguson, our Finance Director. And finally, next to Bruce is Ben Willey, our Company Secretary, who again, at the Board, we are all grateful for his ongoing assistance in keeping us very organized. In advance of this meeting, shareholders were invited to submit questions in writing. We will continue to take questions from shareholders during the AGM. These can be submitted to the e-mail address, which is shown on the bottom of most of the slides contained in the presentation.

The next slide shows the agenda for the meeting outlined there. In a few minutes, I will comment on the quarter that we just posted this morning on the trading update. Following that, Jim will provide a presentation on the 2025 annual report and accounts. After Jim's presentation, there will be an opportunity to take questions from the floor with respect to the trading update and the 2025 annual report. Following the question-and-answer session, we will then move to the main business of the AGM, which will include a poll. The poll will close at the conclusion of the meeting. Refreshments will be served following the conclusion of the meeting, and we look forward as directors to be available to further talk, answer questions and socialize.

So I will now provide commentary on the trading statement, which was issued at 7:00 a.m. this morning. The group has delivered a solid performance during Q1 with Hunting delivering an EBITDA of $23 million at a margin of 10% during the quarter. As is typical for this time of year, the group has invested in working capital in the period to satisfy committed orders, which has led to a net cash outflow in the quarter and coupled with the ongoing share buyback program has led to a quarter end cash and bank position of $8 million, all fairly typical of our first quarter, no surprises from our end.

All product groups have traded as expected with perforating systems sales in North America reporting a performance ahead of expectations as higher quality revenue and stronger production efficiencies continue to lift profitability. And the group has done a wonderful job taking market share and being a tremendous successful entity in a tough business. Our full year market guidance remains unchanged with an EBITDA range of $145 million to $155 million being maintained. And as indicated at our results, this will be second half weighted with approximately 40% of the earnings being in the first half, 60% being in the second half, again, consistent with what our expectations were for the year.

As of April 14, the group's sales order book stood at $428 million. This compares to $358 million at the end of December 2025. As we announced in early April, the group has secured new orders for its titanium stress joints for its fifth major project in Guyana. Jim will talk about some of the subsea successes and where we're going there. And these orders will be completed through 2026 and into 2027.

With this comment on the Q1 trading statement, I will now hand the meeting over to Jim for a review of 2025. Thank you.

Thanks, Stu. Okay. Good morning, everybody. I appreciate you taking the time to be here and listen to our results and our story and what we're thinking about the future. I think before I get started, I just want to again thank the Board for their support over the year. We're very fortunate because I see some of the Boards for some of our peers, but we're very fortunate with the depth of talent we have in this Board and how they contribute to the success of the company. And on top of that, I would really be remiss if I didn't thank all the employees globally that have made Hunting a great story and a great success over the years.

So your company has a very dedicated workforce and they are very proud of the fact that they work for Hunting. So I just wanted to pass that on. Starting off, again, we're going to talk about some of the different business units. The operational highlights are there. I'm horrible at reading PowerPoint presentation, so I'm just going to talk about it. But going into this presentation right now, I think one of the key takeaways needs to be the fact that there's probably never been a better time to be an investor at Hunting -- in Hunting. The fact that world events have once again shined a light on the fact that energy security matters and that the age of hydrocarbons is not disappearing anytime soon. So obviously, we're big believers of that.

We want to continue to focus on that core part of our business, but yet look at other areas such as our AMG business where we can diversify. Going forward, last year, I thought was a very, very good year of performance from the group. We were able to tick the box on a number of things that we had planned to accomplish in our 2030 strategy that we laid out. Amongst that was getting 2 acquisitions completed. And as you all know, I've talked a long time about getting acquisitions, how we need to build out product lines. We further expanded our footprint in the Subsea business with the acquisition of FES. We're very pleased with how that integration has gone.

Organic oil recovery, which I know is a big topic of discussion around the world right now, is really something that we were able to get a hold of, bring that all in-house and really put the Hunting emphasis on the business because in case you don't know, it was one where we didn't own that technology. We were basically a licensee, and we were limited geographically as far as what we could do. So the chains are off. Right now, we're going full speed ahead on that, and we're excited that we were able to complete that acquisition. Throughout the rest of the year, we completed a number of orders for KOC. Those were the biggest orders in the company's history for OCTG. It's a very unique client.

And again, with the Middle East turmoil that's going on, we are anticipating more orders this year, but the timing is not as certain as what we would normally like to see. And those are things out of our control, but we're constantly in contact with KOC, and we have the products in the supply chain to hopefully be successful with them for a long time to come. We opened up our new Dubai facility. That's kind of a good news, bad news story. It's good because we needed to be in that market where the activity is at. The bad part was it was partly driven by our need to downsize our European operation. And I won't bore you all with my thoughts about U.K. energy policy today. You can ask me that afterwards. But it's part of that move that we've made to the Middle East to be closer to our client base.

We were able to dispose of Rival. For some of you that have been around a long time that know it, we were in the drilling tools business for many years. It was a very cash-intensive business. It was one where there were a number of players in the business that we needed to consolidate. We did it with a company called Rival. And last year, we were able to crystallize that investment, sell it and exit the drilling tools business in total. Revenue numbers, cash flow, those numbers are all there. One of the things that's been very different in the last 12-plus months has been our capital allocation model that we've chosen to put in place, and that's been with the share buybacks. And you can see the data up there right now. We've done -- for last year, we did the [ $40 million ] and then the [ $20 million ].

And the share buyback, I think, has been a successful event for the company as far as showing the investors out there, there is a buyer in the marketplace for our shares as well. Just moving on, OCTG over the year, really proud of what the team has done globally, whether it's Daniel Tan and his group out of Asia Pac or Travis Kelley in the U.S. team heading up the engineering-wise. Our products are definitely world-class. We have really done a good job of growing in some very, very harsh application needs for OCTG. That was some of the testing that we did for the KOC business. But it's been amazing to me to see the market share gains that we've made in North America.

And as clients are continuing to go with longer and longer laterals, some of them -- one of our clients is actually one of the ones doing these U-shape wells, you can't have a failure. And so customers continue to rely on Hunting for our reliability and quality and product. Our completion and accessory business remains strong. It has been really benefited a lot from the work in Guyana through other service companies such as Schlumberger and Halliburton and some of the other international locations. So that business has continued or performed well last year. And our Indian JV continues to remain busy and contributed to our earnings in the past year. Subsea, as everybody knows, it's been one of our strategic pivots when we looked at our portfolio to not be so focused on North America land to how do we play more globally.

And that is what you've seen us put in place with all the acquisitions we made really since 2019 in the Subsea business. But we continue to win new orders. We continue to look at synergies within the product line. So we're doing more bundling in front of clients out there, and we're excited about the future. Again, Enpro business has seen an uptick in abandonment work in the North Sea, but most of the other work is all new development going on globally and especially driven by all the activities in Guyana right now. Titan has been one of the best stories in the last 12 months. Adam Dyess, who runs that business, has done an amazing job, and that team has done -- has delivered a stellar performance in my opinion. And I can say that with all clarity looking at the performance of my peers that are publicly traded.

So we've done a great job there. It's been one where in a market that hasn't grown, we have actually grown our market share in North America. And again, it gets down to dependability and the quality of the product and our technology, and that's really been driving the upside of the Titan business as well as the fact that we have seen nice steady growth in the international business, which I'll show you a little bit about that later. Advanced Manufacturing, one of those areas that is very focused on the non-oil and gas side. We saw a great uptick last year in areas like the nuclear business, which is something we have legacy work with for decades ago that we're starting to see that come back into play now. But also the traditional aerospace business continues to be strong for us there with more opportunities coming out daily with new part numbers we can make.

And I think one of the other exciting things is we're a player in this natural gas-fired generation play, thanks to our customer, Caterpillar. So as you read about the data centers and the like and the need for more electricity generation, we're actually a player and a supplier to Caterpillar making the products to generate that electricity. Other manufacturing, we talk about there. It's been a year where things like our trenchless business had a good year, our well testing business that we have in Dubai, improving is what I would say right now. But we really, on this slide, highlight the 2 new areas, which is the FES. Again, order book-wise, there are orders in place. We have a big tender pipeline, and we're expecting some good awards to come in Q2.

Organic oil recovery, I talked about. I'd like to say that Bruce's baby, so after the meeting, please hit Bruce if he has more details on it than I do. But it's something that we're very, very excited about. We're getting more exposure to large clients globally. And I'm just really excited about the future potential of that business and what the earnings for that can be as far as it relates to Hunting. Looking at our 2030 scorecard quickly. Again, we talked about one of the things we never do. I mentioned to people a while back, we're in the 17th year of our lean manufacturing journey within the organization. We continue to look throughout our company on how to do things quicker, faster and better. And so that's a journey that never ends.

But we continue also to focus on other areas on how do we reduce our cost basis to be more competitive in the marketplace and deliver more earnings back to you, our owners. We've been able to improve our EBITDA cash flow conversion. Our EBITDA margin last year ended at 13% on our journey to get to 15%. We've got some that are up, some that are down. But overall, we're confident we're going to continue to drive that in the right direction. I've already talked about the acquisitions. And again, our dividend plan is to continue to raise that dividend payment and make those earnings generated back to you as shareholders to show you, hopefully, in a cyclical business, there will always be a return being a shareholder of Hunting.

Other strategic steps, new technology, I'll show you a little bit on another slide about that, but we continue to focus on developing new products with a big emphasis on the development of new premium connections. And you would think after all these years, the world is done with that, but it's really not. There's constant changes in metallurgy that people are requiring for well designs. We're in the forefront of that, working with suppliers globally to make sure we have the right products. But it's also developments and things -- modifications we're doing with products in Subsea. The Titan business continues to look at how to have the best-in-class perforating technology and charge technology. So it's really a corporate-wide view that we're looking at everything to make sure that we are a leader in technology. I mentioned earlier about the growth at Titan internationally.

There's a slide coming up. We'll talk more about that. But those are some of the key areas that we're looking at to deliver on our ambitions for 2030. Subsea bundling, I mentioned earlier, now we have more to bundle, thanks to FES, thanks to OOR. And even some of our recent OOR candidates that we're working with came about because of work that we did for this client in areas like titanium stress joints and the like. So it's a case of having your resume established and then being able to crystallize that with new opportunities that come forward. Some of the new technology is listed up there. On the subsea side, the bottom one I'll talk most about is the stack FAM unit, or flow access module. The key to that is some of these you've seen in the past, but that one is really key for brownfield developments and tiebacks.

And as the industry looks to do more with less as far as infrastructure for subsea platforms and offshore platforms and just working with existing pipeline capacity and things like that, it becomes a really good economical decision to do more tiebacks. And that is what that product is developed for to allow that to happen easier. I talked about OCTG and the new products or the products we continue to test there. Well intervention is one that is very focused on business in the Middle East. And so those are some of the tools there to advance business in that market. There should be opportunities there with wells having to start back up. You all know that there's a lot of activity shut in right now in the Middle East. So that should have a good opportunity for some wireline activity once this clears up, and it should play well into our Well Intervention business.

And then the perforating side, always working on some new tools there based on what the client tells us. One of the things I will say is when we look at all new technology, we don't do a lot of science projects. So what we do is talk to our clients, stay intimate with our client base and what are their problems and how can we solve it. So that's how we come up with all these different things. International sales, we have there the Titan business, just kind of an overview on where we've come in that business over the last couple of years and where we think it's going. And as I like to tell people or remind people, there are unconventional shale resources globally. I'm talking Algeria, Libya, Mexico, Australia is now a new market for us growing.

So we see the international marketplace continuing to expand as the world needs more hydrocarbons. And in areas like Argentina and Saudi Arabia, where we've already seen significant growth, we see that going to continue to accelerate for years to come. OCTG, again, a great business for us. I would say that we probably have some of the highest margins in the industry when it comes to the whole OCTG platform that we have. We're starting to see even some of our TEC-LOCK product. We had a client. I don't want to say their names because I don't want my competitors there. But we've had business already with our TEC-LOCK product line in the Middle East and the Gulf region for unconventional applications. We see that growing as the years go on, as I mentioned recently about the Titan business.

But again, our infrastructure in Asia Pac is driving a lot of our ability to deliver product to customers globally, as you've seen with the KOC orders recently. Non-oil and gas, there's a number of things up there. I mentioned earlier about the nuclear business. We're excited about that. We think that, that's going to be a continued growing area of interest for us in the years to come. Power generation always has been a big deal. Caterpillar through their solar division has been a client of ours for decades. They rely on Hunting for our deliveries, our quality that we put into the products. And if you've read anything about Caterpillar, they're just going crazy with orders for power-gen equipment, and we're playing a part of that. There's a couple of things there about some of the defense opportunities in aerospace that we're working on.

But we're -- again, we're happy to be in that business. We're excited to be in that business. We see margin improvement going on in that business. And really, it's been the Dearborn side driving most of that. The Electronics business didn't have such a great year last year, and that's primarily because it is still more heavily oil and gas focused. But the team in our Electronics business is changing that, and we've recently won some business for some space work out of our Electronics business unit. Subsea bundling, I mentioned -- again, I'm not going to spend a lot of time talking about this because I already have, but it just highlights some of the projects. The nice thing is to be able to go into a client and say, here's a broad suite of opportunities or things we can supply to you.

One of the real keys in the bundling was the fact with FES, we literally told the potential, I call it the potential cash register ringing on a per FPSO basis of now exceeding $100 million for each one of those. So between titanium stress joints, between the connectors that we make at FES and all the rest of the gear that we can provide, we see that as a big potential marketplace for us. And again, we're going in, we're talking to the engineers and bundling all these opportunities together.

Order book is up, thanks to our recent orders that we announced with Longtail down in South America. We see that continuing to expand this year. What you need to remember with that order book is it does not include basically much, if anything, from Titan because it's a very short-cycle business. So as Titan continues to remain busy, I will say we had a great March. But anyhow, we're expecting that order book to continue, and we await some things from KOC, hopefully, this year that will even add further to that and more subsea, excuse me.

So in summary, I think we had a very strong year last year. I like to tell people, hey, today, the shares are on sale, so it's time to buy. I think that it is a great company that you are the owners of, and we're thankful for your support and all that you guys do. But I think our story is yet to really play out. And as I mentioned, it's early days. We've transformed a lot of the business with our bigger focus on areas like subsea, the organic oil recovery. So I'm very thankful to be here in this position and visiting with all of you.

And with that, I think we're going to go to questions and answers. So if anybody has a question, I'm going to sit down and thanks.

Thanks, Jim. Very well done. We now have time for questions on the trading update and Jim's presentation. If you have any questions, please raise your hand, state your name and the shareholder you represent.

I'm Richard Morris. I'm the son of the late Derek Morris, who used to be Managing Director of Hunting Geology and Geophysics until he was made redundant as you shifted your view into -- from what I can say, you've gone very much into just the oil industry. I'm kind of worried about the very long-term future, like 50 years in the future. If by what I just heard, you seem to think the oil industry is carrying on just as it is. If that is the case, the world will be a very much worse place. So my question for you is, one, how do you see the oil industry in 50 years' time? And how do you see Hunting's position in that -- in a very long-term schedule?

Good question. Not an easy one either. I'll give you my thoughts, and Jim, feel free to expand it. I think we will continue to see the oil and gas business being very important, in my opinion, all the way through that time period. Certainly, 25, 30, 40 years, 50, I still expect it. I think the events of the last few years have certainly heightened the energy security issue. We've seen that in the war with Russia and Ukraine. We've seen it in some of the current activities in the straight and what's going on in the Middle East. And I do think access to reliable, dependable oil and gas, and I also think the energy transition and alternative energies will continue to be very important.

So I look at it in the medium, long term is all of the above. I think there's got to be thoughts of where that -- the supply from the Middle East comes from in the short and intermediate term, if that type of bottleneck continues or something similar happens again. I think Hunting will continue beyond our 2030 stated objectives to be very focused on technology, R&D, being the leader, having higher margins using the global footprint, bundling the products that we have, focused on how do we operate in the lowest cost environment with the capabilities we have, getting into digital, AI, technology and look at how that permeates across the organization. And as Jim showed in his presentation, we've got a lot of focus on non-oil and gas.

We think that's a very important part of that. Organically, there's a lot of stuff going on, a lot of expansion, some new customers, some new markets. A little more challenging for us, quite honestly, on non-oil and gas M&A than it is on oil and gas just because of the connectivity we have to that asset base, but time being spent and looking at that. So that non-oil and gas piece, I think geothermal will be part of that for us. And as the energy transition, nuclear will have some opportunities on. So I think it's the best of both worlds, all of the above, doing what we're doing. I think there's going to be those type of opportunities over that time period and the alternative will continue to develop. We'll play in it, leverage our footprint, technology, manufacturing, engineering expertise. So I'm bullish over all terms as well, far out as 50.

I think you said it well, Stu, nothing else to add.

Thanks. Yes. The next question, I would request be a little easier, please.

Lindsay Hunting from Hunting Investments Limited. Really a question for Bruce, just 2 points. First one being the trading statement this morning. You guys mentioned a figure of 10% margin, which feels like a bit of a miss given recent quarters. So first of all, I could just ask some narrative around that. And then the second question, which Jim touched upon is really, could we get some further analysis or explanation from yourself around OOR and how we see that playing out in full year '26?

Sure. I think, well, on the first one, the margin was -- the blended was 10% for quarter 1. Part of that is seasonal and product mix, Lindsay. Good to see that March was a strong month. We got up to 15% EBITDA margin. So that's where we want to be. So we see that momentum strengthening. We see that continuing throughout the year. So I think we will be above budget and close to that 15% EBITDA margin target for the year. So that's the first thing. In terms of OOR, we continue to be very excited about the opportunities within OOR. We've done a lot of work with customers. The customer engagement we're seeing is huge, and that's all around the world. We saw Buccaneer in the U.S., some fantastic results coming through and still coming through after that first treatment, we doubled production.

So that was a U.S. land well. Other customers, we're getting great engagement in the Middle East, Oman, we're also in Pakistan, some high-profile customers in North Sea as well. We mentioned Harbour. Those trials have been ongoing for 6 to 9 months. We had 2 treatments. We're now observing the well production, and we are seeing that breakthrough in terms of the microbial breakthrough, which is good to see. So we're all in target in terms of what we want to see. The next stage on that one, we'll be seeing that translate into increased production, reduced water cuts. So that will be happening over the next few weeks. Again, other customers out of West Africa, Brazil, more on U.S. as well. So we're really at that stage.

We're getting real traction from our customer base and real good technical results coming through as well. So that will translate. It does take time. The science would love to hurry up and we're getting patient. But we'll see that play out throughout '26, certainly in '27 and beyond. So we will see -- in our budget, we're looking at around about $20 million for '26. We're confident we'll get there, but we do see an exponential growth going through '27 and beyond. As we mentioned a target of $100 million revenue by the end of 2030, I think that's what we're seeing now is very deliverable. So very excited. We'll see a tangible benefit in '26 and real uptake from '27 and beyond.

Other questions, please? Okay. With no further questions, I can confirm that no additional questions have been submitted ahead of the AGM. And therefore, I would like to begin the formal business of the 2026 Annual General Meeting.

I can confirm that a quorum is present. As the notice calling the meeting has been available to all members, I propose it be taken as read. Thank you. As we stated in the notice of meeting, voting on all resolutions will be on a poll rather than a show of hands. On a poll, each shareholder has one vote for every share held. Voting on a poll ensures that the votes of the shareholders are counted, including the majority of our institutional shareholders who cannot attend the meeting but have submitted a form of proxy.

Before describing the procedure that will be adopted in taking the poll, I'd like to appoint Equiniti, our registrars, the poll scrutineer. Equiniti will collate all the votes received during the meeting. Those of you who are entitled to vote will have been given a poll card at registration. If you do not have a poll card or if you need additional poll cards, please raise your hand now and someone will come and hand those out.

Seeing none, we'll continue. If you've already voted by proxy and you do not wish to change your votes, then you do not need to complete the poll card. Your vote will be taken into account automatically. If you have voted by proxy and wish to change your vote, you can now complete the poll card and new voting instructions will be taken into account. Please complete the poll card by inserting your full name, address and signature. If you are a proxy or a corporate representative, please insert your full name and the full name and address of the shareholder you are representing.

Please ensure that your poll card is signed and handed to our registrars at the exit as you leave the room. I now propose formally that each of the resolutions set out in the notice of meeting and also numbered on the poll card are put to the meeting. Resolutions 1 to 14 are ordinary resolutions and require a simple majority of the votes cast to be in favor to be passed. Resolutions 15 to 18 require 75% of the votes cast to be in favor to be passed. I now declare the poll formally open. The poll will close 10 minutes after the end of the meeting. If you have any questions about the filling in the poll card or if you require any assistance, please speak to the registrar. The registrar will calculate the results at the close of the poll. These will be announced to the stock exchange later today and will also be published on the company's website.

That concludes the formal business of the 2026 Annual General Meeting. And on behalf of the Board, I would like to thank everyone for attending, everybody's ongoing support, which we greatly appreciate and now declare the meeting closed. Please can I remind you to hand your poll card to one of the representatives from Equiniti as you exit the room. Thank you all again.

Okay. All right. I think we've got everybody. Welcome again. A few just administrative points. First, this presentation is being recorded, so you can watch it again. And we will try and deal with all your questions after Jim has done his formal presentation. So please submit any inquiries you might have via the question button on your screen. And the company will be talking to a slide deck that is already on the Hunting website, Investor Relations page, along with many other useful materials.

Right. We're very pleased to welcome back Jim Johnson, the CEO. And I'm now going to hand over to you, Jim, to start proceedings.

Okay. Thanks, Andy. I want to thank Andy Edmond and the Equity Development team for putting this together for us, and hello to everybody that is logging on and listening to this. Exciting times for the company right now. We're going to give this little presentation to go over the key points on where we've come from in the last year and more importantly, where we think we're going to be going in the future.

So if we turn to the next slide, Andy. There's all the disclaimers. If you need to go to sleep some night, you can take a look at that and get some sleep. And Slide 2, we're going to talk about the investment proposition. So I'm sitting here right now with a very unique company that I'm very proud to be associated with. It's one that brings a lot of talent to our oilfield service industry with all the skills that we have. We are known for our leadership in manufacturing and system design, our proprietary technology.

Our strategic position is very unique, whereas we are not just a North American play, but literally globally, we sell products around the world, onshore, offshore, even areas like space, defense and aviation. The graph on the bottom left shows our financial performance coming out of COVID. I'd like to show that the EBITDA percentage continues to rise. Our share price is up right now, but it's all based on the fact that we have a very solid business plan and are delivering excellent results to all of our shareholders.

Next slide. Just kind of a breakdown to show everybody just what we do and where we play in the world right now that we're part of. I'll talk first about our perforating system business, otherwise known as Titan, and we are one of the leading independent suppliers of perforating guns and explosives globally. It's a business that obviously benefits from the work being done in the shale fields for oil and natural gas extraction, but it has a long history of also being involved in conventional work around the globe.

The business operates with most of its manufacturing done in Texas here in the U.S.A., but a global reach in supplying the markets everywhere. Subsea is our fastest-growing part of the company from an acquisition point of view. We have a number of product lines. If you go back prior to 2018, we had one business that was involved in the Subsea side. Now that we've added many, many more, we can focus on areas like the installation of FPSOs globally as well as the subsea environment that goes on for all the components around the subsea tree that get production off to the shore. On OCTG, it's a business that the company first started in and has its legacy in going clear back to the 1960s when we initially were in the business supporting the North Sea. Today, our OCTG business has a global reach.

A very big presence in North America, where we benefit again from all of the work being done in the onshore shale plays, but also providing the highest spec premium connections in areas like Kuwait, deepwaters Gulf of America and other challenging environments. The business also is complemented by our accessory business, where we manufacture a lot of the completion tools that go in the tubing strings that are then working in conjunction with people like Schlumberger and Halliburton, where they're doing the completion contracts in areas like Brazil or Guyana. Advanced manufacturing is the one area we have an extensive exposure to non-oil and gas.

As a matter of fact, our largest non-oil and gas exposure. It consists of 2 facilities, one in Fryeburg, Maine, which is our advanced machine technology facility. And there, about 80% of our business is focused on defense, aviation, power generation. And recently, we've seen an uptick in our nuclear business. The other part of that business is based in Houston, Texas, where we manufacture electronic components and PCB boards for high-end equipment primarily that goes downhole, like MWD equipment that has to withstand severe environmental shocks, whether it be temperature or shaking from the -- just the actions related to drilling.

Along with that, we've also added some medical and defense customers to that as well. And then in energy transition, it's an area which has been slower to go more because of just the government's uncertainty over plans for things like geothermal and carbon capture, but it is one in which we have invested heavily.

We have relationships with mills such as Jiuli which provides high-end nickel-based materials for the most corrosive geothermal and carbon capture applications. So we're working that now, and we see that as being a growing part of the business over the next decade.

Next slide, please. I wouldn't be here today without this board showing all the key customers that we have, and we're very proud to add all these clients as customer customers to us. Some of these customers like the Chevrons and the Halliburton, literally my whole career with Hunting, they've been a key customer of ours. But we enjoy the fact that we work with a Blue [indiscernible] group of clients worldwide.

Next slide. Operational highlights, just talk about what we did for 2025, which we view as a very, very successful year. We completed 2 acquisitions, part of our strategy for Hunting 2030, where we want to grow some of the company organically as well as through acquisitions. We purchased Flexible Engineered Solutions based in Northern England for $64.8 million, which allowed us to benefit more from additional growth in the offshore market space.

Organic Oil Recovery, which has been in the press a lot lately, we took control of that, bought that business. We now have the handcuffs basically off us. We had issues where we were, for example, unable to do sales work in the Western Hemisphere or really invest in what we saw as needed things for the growth of that business. So that's gone and totally under our control right now. We completed the big KOC order. That went through successfully and thanks to our crew out of Southeast Asia and our Houston team that did the engineering on the premium connections. The Perforating System, the Titan business, one of the best stories of the year, had a significant turnaround in profitability.

I take my hat off to the management team there that's focused on the new technology we have as well as focusing on clients that value our technology and the dependability that those products bring to them in their daily operations. In other businesses that we -- when we looked at our portfolio, we sold off and disposed of our Rival Downhole Tools joint venture for $13 million and used that cash to recycle it back into the organization and make other acquisitions. We continue to focus on the cost side. We're continuing to work on our EMEA restructuring. That should be completed by the end of June, a saving of $11 million captured in that. We've also then announced a further $15 million of cost savings planned over the next 2 years.

And one of the thing that I think has been very attractive as an investment to outsiders has been our revised capital allocation plan. We've completed a number of tranches of our share buyback. We're now in the fact of finishing up the last one, which will be a total of $60 million sometime in March. And now we're guiding to a further $40 million over the next 2 years. So all in all, we're looking at growth in the dividend, buying back shares and of course, increasing our earnings to give a better return for our shareholders.

Next slide. This one is just kind of a quick snapshot. Obviously, the WTI crude oil price on the upper right, that's going to be changing based on where we're at today. But the real highlight was the nice generation of cash that we did last year, the EBITDA number of $135.7 million. Sales order book sitting slightly under $400 million right now. We anticipate that ramping up significantly in Q2 due to our tender outlook for OCTG as well as in Subsea. And I remind people that are tuning in for the first time that, that order book typically doesn't include much or anything from Titan due to the short nature of the cycles that we sell into that.

Next slide. Scorecard, a number of points, some of them I've already talked about. I think the one that's most important or one of the key ones that I like to talk about is the one in the upper right-hand corner, where we talk about the total cash generation, where we ended up with $63 million of cash, but that's after an impressive $145 million spent on M&A, dividends and share buybacks. The rest of it I've talked about already. EBITDA margins are important that we continue to see that going in the right direction. Our goal is to get to 15% or higher. We're at 13% now, and we think we're making continuing progress to have that growth forward.

Next slide. Next slide is basically our EBITDA growth and delivery over the year. It shows you the areas where we're above plan and some where we're below plan, all of them being a work in progress to increase as we go on. OCTG at 19% is historically a very high number.

Credit to our team globally, both in the connection business and the accessory business for delivering those numbers. Subsea at 17% was a good number. We anticipate that going significantly higher as we have the FES business come online for the full year and the opportunities we see expanding in international markets for offshore activity. Advanced manufacturing, as I mentioned earlier, has a little work to do. Dearborn performance was good. The electronics business is what dragged down below the goals that we've set, primarily due to a slowdown in capital equipment purchases from the major OEMs. And then there's Titan there going in the right direction. The year before, it was at 0. So a nice progress there in a very, very competitive marketplace, but we're very optimistic that number will also accelerate in the year forward.

Next slide. Briefly on the 2 acquisitions that we made, Flexible Engineered Solutions. The picture that you see there on the left is an FPSO and all those red items are what we manufacture, the Diverless Bend Stiffener Connections. When we looked at the global offshore marketplace, we have a very strong presence in some FPSO work with our Titanium Stress Joint offering.

However, not every FPSO in the world is going to use a Titanium Stress Joint. It depends on the water depth, different issues that come up to the operation. With the acquisition of Flexible Engineered Solutions, we now can play and have a market space in every FPSO globally. And we look at that potential market of exceeding $100 billion on every FPSO that's under construction in the world today. So that, along with other opportunities in things like floating offshore wind and some of the down subsea environment around the wellhead and the tree will again provide us more opportunities there.

Organic Oil Recovery, I mentioned earlier, we wanted to bring this in-house, so we had control of it. Some of you may have seen the recent press release from Buccaneer Energy, one of our new customers in East Texas, in which they were able to double their production and take their water cut basically to 0. It's a great advertisement for us, a great piece of success, especially when you consider there are hundreds of thousands of wells in North America that produce less than 15 barrels a day, and this could be a way to really jump up production.

Additionally, it can delay because of the success of this product, delay the cost of decommissioning in areas like the North Sea or the Gulf of America because the production can be enhanced, they can to say bluntly kick the can down the road to keep those operations more profitable. Today, we're waiting on the results from Harbor for the Catcher development, but we have interesting pilots going on right now with ExxonMobil in Angola and in Brazil and other areas around the world.

Next slide. OCTG, another great year of delivery. TEC-LOCK product line, you'll see in the upper left. It's really a product line that continues to go from strength to strength. It's a product that literally didn't exist before 2018, designed specifically for the applications on the shale operations. What we have seen and why we've driven the growth of this is really because, again, customers trust in the technology of the product as lateral lengths continue to get longer and more challenging.

Today, in North America, upwards of 40% of all shale wells drilled today extend 3 miles or longer in their lateral length, some of them even doing U-shaped wells, and the cost of failure is too high not to have a good technology attached to that product, hence, our growth in North America. Accessory business I showed on the bottom, doing well last year, even with a tepid offshore Gulf of America market, but really a lot of activity in places like Brazil and Guyana.

Our KOC business, I talked about a couple of slides ago. That's completed. Fortunately, we don't have any pipe on the water waiting to get through the straight moves, but we're anticipating further upside in '26 with more business with Kuwait. And our Jindal, our Hunting joint venture in India continues to perform very, very well, adding some good earnings to the bottom line.

Next slide. Non-oil and gas shows you the progression there, going in the right direction, actually up 10% year-over-year on revenue, most of it driven by our business at Dearborn due to the increase in the aviation, defense, power gen and now nuclear business.

Next slide. Cost reduction and restructuring we talked about. We announced today $15 million of savings planned over the next 2 years. A lot of that has to do with a lot of moving pieces from shared services globally that we're looking on to be more efficient, looking at our footprint. As I mentioned, we're in the process of winding down our EMEA European business, which will have more cost savings. And then I always like to highlight that our lean manufacturing program entered its 17th year. And historically, that business has delivered 7 figures worth of savings every year. And so my hats off to that manufacturing team globally that seeks to do things quicker, faster, better at the highest quality level every day.

Next slide. The balance sheet, again, good returns back to our shareholders, talks about the free cash flow. Some of that was down over the year just due to the change in the winding down of the KOC orders, but you'll see the dividend continuing to rise, inventory turns going in the right direction. So we think we're managing the business very well from a cash flow point of view.

Next slide. Product group review, I'll talk a little bit about this. The connection business, as I mentioned earlier, had a great year. We see no downside going forward. The order book, you'll see in the far right is down. A lot of that is due to the extraordinary size of the KOC order, which was our biggest order in the company's history. Right now, there were tenders supposed to be out in -- they were out that supposed to be submitted in February. Those were delayed until March, now the end of March. So right now, with all that's going on in the Middle East, it's kind of unclear exactly when the delivery dates will occur. Fortunately, for our outlook in '26, we don't have a lot of that planned for our guidance.

But the good news is there's lots of opportunities globally in other areas. Completion accessory work continues to pick up in the Gulf of America and in South America. We see continued market share gains onshore in our TEC-LOCK product line. And we see a lot of opportunities in other international markets such as Indonesia, which looks to be rising and getting busier this year.

Next slide. Subsea, I mentioned a good bit about that to start with. Enpro business performing well. FES now under our wing. The integration of that business has gone very, very well. The sales order book up in '25. It was an interesting year in '25. It was actually a down year globally for subsea tree awards. But we're seeing that resurge right now. And we've actually seen in areas such as our Stafford, Texas business, where we make components for subsea trees for clients such as FMC, we've seen our backlog there double year-over-year.

So we're very optimistic that we have the right products, and we're in the right geographies to benefit from further growth in Subsea. We've opened up an office in Kuala Lumpur to expand our presence in Southeast Asia, and we continue to see a bright future.

Next slide. Titan perforating systems, it's really, to me, part of our AI story. And I say that with all seriousness that if you look at our commanding position in the natural gas markets in the Marcellus, Utica and the Haynesville from a sales point of view, and you look at the incredible demand being put on the electrical industry for generation, it's going to have to be solved and sourced through natural gas. We're seeing data centers being starting out or plan on a daily basis around the country.

And the electricity demands, we think are just going to drive further and further exploitation of the shale resources that were plentiful in North America, along with increased LNG with things like the -- what's going on in the Middle East right now being a factor. So for us, it's a very strong story going ahead for Titan. Additionally, I tell everybody that shale rocks are the most common sedimentary rock in the world, and they're all over the place.

They're extensive, obviously, in North America, but they're also in Mexico, Argentina, Saudi Arabia, Algeria, Turkey, literally everywhere around the globe. Australia is a new hot place right now and most exciting. And where those places get -- when they get developed, we will be there with our Titan product line to service our clients.

Next slide, please. This is our AMG business that I talked about between Dearborn up in Maine and our Houston Electronics facility. It was nice to see some other new clients come on board last year. For example, Dearborn a couple of decades ago was a big supplier in the nuclear industry.

And we've seen those first orders come back to us last year, and we expect further orders in the future as there will probably be a resurgence in nuclear demand, again, driven by the demand for electricity. Defense and aviation, 2 strong areas when we're already manufacturing product for power generation with natural gas-fired turbines. So a good portfolio. One of the things we've had to do, and if you went back 10 years ago, our Dearborn business was 80% oil and gas, 20% non-oil and gas. We've totally flipped that.

So it's almost like we're having a reinvention of our assets in Maine to make sure we can take on the new business. And also satellite business has been exciting for us supplying to both SpaceX and Blue Origin. On the electronics business, as I mentioned, we have some work to do, but that's one where we have landed a couple of defense contractors. We've had a long relationship with the client with medical supplies, medical components, and we hope to grow that. And we anticipate a resurgence in the CapEx cycle of the OEM oilfield service customers we have as tools wear out and sooner or later, they have to be replaced.

Next slide. Other manufacturing, I won't spend too much time on this, but it's one of the things we did highlight was part of our EMEA restructuring. We closed 2 facilities in the Netherlands, relocated equipment and personnel to our new shop in Dubai. Part of that is in our well testing business, where we make these components that people like Schlumberger buy from us for well testing, for stand filtering and the like.

Now we're closer to the clients of where the orders were actually at, which is in the international, Southeast Asia, Middle East market, but it also allowed us to reduce our costs and make us more competitive in that offering. OOR, the Organic Oil Recovery business, starting in January, that will be moved to the subsea and all those numbers will be recorded there. But we're excited that, that happened. And then our Trenchless business had a nice performance in the year, which is driven by things like fiber optic installation in North America, where people have to do industrial drilling to put in things like water lines, fiber optics and things like that. Next slide. Finance report.

Next slide, there you go. I've talked about this already to a big degree. So I'm not going to spend a lot more time on it. We talked about dividends, return on capital of 10% normalized -- a normalized backlog that we intend to build up. We've extended the maturity of our RCF by 12 months. So we have a lot of firepower if needed for further acquisitions. But the key is we basically are sitting with cash in the balance sheet, and that gives us a lot of flexibility when looking at other M&A deals. Working capital to revenue ratio of 33% continues to get better, but a lot of work done on that finance team.

Next slide. And this right here, revenue by product line. You can see the huge amount of OCTG we had. Again, a lot of that driven by KOC, Titan # 2, and there's a further breakdown of Subsea and advanced manufacturing.

Next slide. Earnings and profitability for the year. There's all the numbers. I'm not going to repeat them. I've already hit the high points of those, but the key was our $135.7 million of EBITDA that we generated in the year and the 13% EBITDA margins, up year-over-year and one that we're going to continue to work on going forward to have it even better. The dividend has increased, and our goal is to increase that 13% a year from here on going forward.

Next slide. There's just a breakdown if anybody wants to take a deeper dive into it by segments and by area. I'm not going to let a lot of comments on that, and it is what it is. It was a good year, but it shows where everything was at in the company.

Next slide. Balance sheet. One of the keys of being a successful oilfield service company is managing your balance sheet well. In this industry, I mean, I've been in it all my career, but it's one that is in a cyclical industry. And one of the things you need to do is make sure your balance sheet is secure that you're not overloaded with debt. We're in a good position, as I mentioned right now. We're good stewards of the capital that our shareholders have trusted us with, and we continue to see that as one of the core things that we do. Working capital to revenue numbers are highlighted out there, but I think our finance team has done a great job. And again, the operational team delivered the results to do that.

Next slide. Working capital improvements. You can see all that on there. Bruce Ferguson, our CFO, can go into a lot more detail on that, but the bottom line is it's better. We continue to work on our inventory, our turns, our DPOs, DSOs, not much else I can say about that except it's improving year-over-year.

Next slide. There's kind of a waterfall or whatever you have that talks about where the cash came in, where the cash came out, how we ended up with the $62.9 million at the end of the year after the $145 million of outflows that I talked about earlier.

And next slide. Order book visibility. As I mentioned, we have some work to do to really crystallize the quotation work that we've done in the past few months. We're anticipating Q2 to be a strong bookings period, primarily for OCTG and for Subsea. Our Dearborn operation right now has a backlog in the $100 million range. That should continue to grow based on our strong presence in natural gas-fired power generation and our good relationship with people like Pratt & Whitney for defense and aviation business.

Next slide. Our guidance right now remains unchanged. We're guiding to $145 million to $155 million of EBITDA -- you see CapEx of about $40 million to $50 million. No huge projects going on. A lot of it is replacement equipment to make sure our people have the best tools to do the job and do it right. EBITDA margin, we're wanting to progress that from the 13% up to 14% ultimately to our target of 15% or more and free cash flow conversion of 50% or we're hoping greater.

Next slide. So strategic steps. I mean, I've talked a lot about this, but it's just kind of some pointers. One of the things we focus on is new technology. Even in a cyclical business, I think we've been a good stewards of working to make sure we have the latest products and technology that our customers are asking for. I'll show a little bit more about that later. International growth in Titan is a key part of what we think will be a continuous transformational story of the Titan business is profitability.

As I mentioned earlier, there's lots of unconventional resources around the world. And if anything, energy security is even more important today than it was 9 or 10 days ago. OCTG, same story unconventionals, actually because of the lengths of laterals and what has to go on there, technology is more required for those products, and we have them to satisfy our clients' need. And additionally, we also supply OCTG products in some of the most challenging deepwater wells in the world. So it's a product line that's not limited by geography or by well operating needs. Non-oil and gas, as mentioned earlier, we continue to grow that, pretty bright outlook for things like nuclear, aviation, defense and power gen.

And then subsea, one of the things we're really focusing on is being able to bundle all the products that we have right now to sit in front of our clients and show them a list of things we can do, whether it's an FPSO development or construction coming on or a subsea development on the ocean floor where we can be a component supplier.

Next slide. On the new technology, we broke it down into a couple of areas. On the subsea, the FAM is part of the Enpro product line. The one on the bottom, the stack FAM is really a new product, which is a variation of our flow access module, and it allows for faster development at brownfield sites where they can then implement tiebacks quicker, which should again reduce the operator's cost and bring oil -- first oil market quicker.

OCTG remains a constant work in progress. Our testing facility in Houston literally is working around the clock, continuing to design new products because operators have new grades of steel that they're using, new diameters of pipe that they're using, and we want to make sure that we're able to play in the field when the tenders become available. Well intervention is kind of a focus more on the smart side of tolls, having more precision and more feedback to the operators, whether it's a slick line operator or somebody doing a -- running a string of guns and perforating guns.

And things like the Opti-TEK, it allows for a smaller footprint, which enhances safety on the rig floor, the operating floor. Perforating systems, examples there are 2 tools that we are in the rental business on. We have designed them to, a, provide the top technology and information back to the operators. But b, they've also been designed with some of the lean initiatives we had to make sure from a rental point of view, that it's cost effective for us to be able to repair these, get them back in the shop -- get them back in the field in a quick time period.

Next slide. International sales, I've talked about this a little bit more. Just below shows just Argentina and Saudi Arabia, but there's a bigger world out there that's developing in unconventionals. And as I mentioned, we've seen business in Turkiye. We've seen business in Indonesia. We just see this as being a trend that's going to continue to enhance our business for a long time to come.

Next slide. OCTG, lots of areas where we continue to supply product into. I want to take my hat off, I didn't mention much to our Canadian team, which also had an excellent year. Again, lots of unconventional work going up there, especially for natural gas, but also in areas like heavy oil, where we supply products to. And then the map kind of speaks for itself and shows you where we're playing out right now. Our new -- our joint venture is now a couple of years old in India continues to perform well. All of the product that we manufacture in India stays in India because people like ONGC and the like need to have domestic energy sources. And so we see that as a very good growth area for us. Areas like the Philippines, that's driving our non-oil and gas business when we're looking at things like geothermal for our OCTG business.

Next slide. Some more opportunities listed on non-oil and gas. Some of it I think I've already talked about, so I'm not going to spend a lot more time on it. But we are engaged with a number of companies that we're supplying parts to for aviation and defense. The addition of FES brought us into the floating wind market. It's some of the same connector technology that we use for FPSOs is utilized on wind projects. Right now, it's a small part of our business, but it's one that we see probably growing in international markets in the years ahead. And as I mentioned, I'm also excited about the nuclear business. It's small today, but it's one where everything that you read and talk to people on nuclear is going to be part of the energy supply story over the next decade or 2. And we have the reputation and the track record of supplying components to the nuclear industry.

Next slide. Subsea bundling, I mentioned about earlier. Again, it's taking a lot of new products together and being able to go into the client and talk about opportunities. We have a lot of work right now focused on the FPSO market, but we're also with beefing up our presence in Southeast Asia, expanding more into areas like Indonesia, offshore Malaysia in those areas. OOR, the Organic Oil Recovery product line, we think has huge upside for the company, and I list there talking about ExxonMobil in Angola and Brava in Brazil. And just -- and the nice thing is the fact that you're in talking to Exxon about FPSOs and Titanium Stress Joints opens up the door for things like OOR.

So in summary, I'm proud of what the team has been able to do in 2025. I think we delivered strong results in line with what we stated in our goals for our 2030 outlook and strategy. Our EBITDA margin continues to increase. I think we've been a great stewards of our capital and our capital allocation policy benefited shareholders if you love dividends or if you like the share back story. It's kind of the best of both worlds, and we continue to see that going. And then again, our guidance, right now, there's lots of uncertainty in the world, but what's not uncertain is the dependability of Hunting products, the relationships we have with clients, our desire to grow our business globally and bring those more of these products to the marketplace. So we're sitting in a good place. And even at a time of lots of uncertainty, I'm very uncertain that hunting -- I'm very certain that Hunting is a great investment going forward.

And with that, I think we're done. And back to you, Andy.

Yes. Thank you very much, Jim. A lot to talk about, a very good year and a very, very comprehensive presentation. And I encourage people to keep putting questions through. We've got a lot. So let's dive straight in.

We have a couple of questions about your acquisitions last year. Firstly, on Organic Oil Recovery. Can you just go into a little more detail as to how you think its scale will grow? And specifically, what is needed for it to win a full-scale field deployment contract and roughly when that might that happen to match your ambitions?

Well, that can happen any day right now. So one of the things we're waiting on is the test results back from Harbor for the Catcher development in the North Sea. Typically, these treatments can take anywhere from a month to 9 months to work through the system as we inject our nutrient packages into these fields and then they have to progress through the reservoir and then the results are finally shown.

So I think the key is in some areas like with Exxon and like Brava, they bypass the initial pilots and are into it right now to see without doing much testing, but let's just get on with it and see what happens. So right now, I think it's one of those stay tuned. We have beefed up our sales force. We have beefed up the human capital in our laboratory response. Those are things that we were hindered with prior to the acquisition. We've beefed up the tools that we use to analyze the fluids and put this product to work. So I think, again, it's one of these works in progress. We have Blue [indiscernible] customers now using it. And I'm sure that there will be press releases when the successes are confirmed and rolled out.

Great. We look forward to that. And then on FES, could you say what you have learned about the business since the acquisition? And are you already seeing any evidence of how its order winning potential has improved since it became part of the much wider Hunting group?

Well, I'd like to say that we did a lot of extensive due diligence. It took us 9 months basically to get that deal done. So I don't think I learned anything today that I didn't know 6 months ago. So it's been one of those cases that from a reputation point of view, we very much admired the owners of that business and what they had built over the time frame. We went into the acquisition very conscious of what they could bring to the table and how important it was for us to be able to enhance our bundling to our offshore clients.

So I don't think there's any real surprises. I think as I mentioned, a lot is planned for Q2, a lot of tender activity, specifically in Brazil, but it's also in Guyana, Gulf of America, literally globally wherever the deepwater going on. So it's one we're a good buyer. We did our due diligence properly, and we're excited about the upside in the future for FES with Hunting.

Thank you. And a follow-up question, you pointed out the pleasantly large uptick in the Subsea order book. Can you say vague how much of that is down to FES contributing this year?

Not a lot. Most of it is with the titanium especially in the staff and the Enpro businesses. So most of the upside for FES -- I mean, we have the FES business, correct. But really, the big tenders are a second quarter event we're counting on.

Got it. Your results statement made the -- well, encouraging point that in the context of the group, the Middle East is not at the moment a source of material exposure. And you did during your presentation comment about further extended delays in KOC follow-on orders. But can you go into a bit more detail about where other significant OCTG tenders on the horizon may be coming up in the next few months?

Sure. We've recently seen an increase in OCTG tenders more in Central Asia. We've seen an increase in West Africa. We've seen an increase in completion work in the Guyana, Brazil area, and we've seen a steady tender turn in North America. Nothing out there to match the tenders proposed for Kuwait right now. But it's a pretty steady -- it's pretty much what I would say, normalized that we've seen most of our time in the OCTG business.

Prior to KOC, our typical OCTG business order was in this $10 million to $20 million range. And for those, just as a summary, in North America, we don't sell pipe. So we rely on our great distribution partners that hold the pipe, buy the pipe and source that from the mill. Internationally, we own the pipe, and that's where we go to trusted suppliers that we have alliances with, and we bundle that pipe with our premium connections at our manufacturing sites and take them to the marketplace. So one of the keys that I should have probably stressed more is we really sell ourselves as being the virtual mill. So we're not relying on any one skill source. But really, the story on tender activity is global.

Yes. That makes a lot of sense. Advanced manufacturing, as you seek to grow non-oil and gas revenues, can you tell us a little bit more about the medium and longer-term prospects for the electronics and the Dearborn businesses?

Well, I think both of them sit in pretty sweet spots right now. I think when you look at the U.S. government and tariff issues and wanting to onshore more manufacturing and the fact that our key customers are people like Caterpillar and Pratt & Whitney, for example, 2 blue-chip clients, there's a lot of growth upside available for us at Dearborn.

We -- that business got started decades ago servicing the U.S. naval program, making submarine components. So it's a wide list of things that we can make there. And we would never have envisioned 20 years ago, we'd be supplying components to Elon Musk. So there's lots of growth opportunities there. Electronics, we're one of the few people that can make the mission-critical hard environmentally challenging electronics. When you think about these going -- these boards and components going into drilling tools that are 25,000 feet in the ground with high temperatures and shaken night, we don't have a lot of people that do that.

The key is really getting to the point where there is a resurgence in the capital equipment buying cycle. And that's kind of what we're waiting for, but we're just not waiting. We're also, again, trying to grow those areas with military and defense. In the last year or 2, people like Textron and Cubic have come on board as a component where we supply components to as good customers. So again, both of them, I think, are growth stories.

Yes. And following on from that, there's a question of whether advanced manufacturing because it's not in oil and gas might not be seen as a long-term core business. And I don't want to answer it for you, but I presume a degree of diversity is good for balance in the group. And any business that is generating attractive margins and return on capital is a good business to have.

No, you're right. As far as I'm concerned, they are a core part of the company's portfolio. We had a goal in our 2030 strategy to have about 25% of our revenue being non-oil and gas. And as far as being a career oilfield service guy, I know that there are cycles that you have. So we're counting on some of that to really balance things out when times are -- when the cycle is moving right now. But for us, it's a core part of our business.

Good to hear. A question on capital allocation. Cash flow has been a great strength for Hunting. But can you talk a little bit more about the financial headroom for potential M&A deals given the new share back that you've announced? And conversely, if you, as a group, didn't do any deals in the next coming year or so, would the Board have in their minds, a net funds threshold, which could trigger further shareholder distributions?

Yes. So I mean, we're very fortunate to have the balance sheet that we do right now. We generated a lot of cash. We have over $200 million of available borrowing with no hindrance to the company's operations with our financial availability. Plus, again, we finished with $63 million in the bank last year. So plenty of firepower to go do M&A.

The issue on M&A is something we look at literally every month we look at a deal. And we've had cases where I've mentioned we've had our heart broken a couple of times, getting deep into due diligence. And because we do an excellent job on due diligence, we found things that stopped us from making a transaction. So whatever we buy, it's going to strategically fit the company and the growth plans that we've laid out, and it's going to also fit the financial metrics that we put in place. And that's really all I can say right now.

As far as the Board and accumulating more cash, I think that our investors should have seen with our recent announcement of another $45 million projected on buybacks over the next 2 years that we're going to always look at that real time. I'm not a big fan of debt, especially in this industry. And so it will all be a balanced scenario we look at to what we think makes best for all stakeholders in the long term.

Got it. A question on, first of all, raw material input pricing. Can you give a general idea of the current mix? And are there any areas given the political stress that we've talked about, where there might be any supply chain bottlenecks if the strike continues in the Middle East and other areas?

Yes. Well, first of all, right now, I'm not seeing or don't know of any bottlenecks. And we don't really rely on the Middle East for any of our main supplies. I mean the biggest thing that we buy is steel. And I like to tell the story about kind of like the 2 -- the guys in a race and 2 of them and it's like, I don't have to be -- I just have to run faster than you.

So if I look at our business and I look at the competitive landscape, everybody is in the same boat that I am. So as long as I can be more nimble and stay ahead, I don't worry about it too much. If you look at things like OCTG prices in the States, those pipe prices are like at a 12-month low right now. And while we don't buy the pipe, we do buy a lot of the mechanical tubing and things like that for our accessory business and for our perforating guns. So I would say right now, we're used to handling inflation. It's one of these things that comes and goes, but it's not anything that I'm concerned about at the moment.

Great. M&A, the other side of the balance sheet strength. Are you pleased with the pipeline that you're looking at, at the moment? And in a perfect world, which we definitely don't live in, in what divisions or which regions would you most like to buy?

Well, we've stated that our #1 area we're looking at is more Subsea. And the reason is we like the margin profile, and we like the fact that it's an international story. Other things that we've looked at would be things that we could tie and enhance the Titan business. And then we also look at non-oil and gas.

I'm not real happy with what's out there. It's been a really challenging couple of years. I think coming out of COVID and earnings, a lot of people pulled back saying, well, tomorrow will be a better day and multiples will be higher and I'll get a better price. And a lot of things that we looked at that were brought to us really strategically made no sense and didn't fit for the long-term growth of the company. So it is a challenging marketplace, but there are things that we're looking at literally every month.

Great. And you mentioned that you are a very international business, and we've got a couple of questions on South America. What we have here. Venezuela has been replaced on the front pages of the newspapers by Iran. But do you see good opportunities there for Hunting in the future as U.S. oil majors start reinvesting in the country?

Yes, but that's not going to be in my budget for '26 or '27. I mean at one time, Hunting had facilities in Venezuela. We got out of those years ago before Chavez grew in the country. It's one of those areas that the first uptick we will see will most likely be business supporting our larger OEM clients like Schlumberger, Halliburton, Baker, Weatherford, people like that. But I think it's going to be a long road to go. And in the previous times where we did business there, it was also a fairly low tech market. So the oil production, it wasn't that challenging from a technical point of view as far as OCTG and things like that.

Yes. It will not be a quick journey, as you say. And related -- well, bordering, I suppose, we have a question whether there are any implications positive, if possible, for your work in Guyana. Now that Venezuela is moving in a slightly different direction, whereas previously, of course, it was making territorial claims against Guyana. No change or a slight positive.

No change. I don't think Exxon had any change in plans on their 10-year strategy down there based on the rumblings that we had in Venezuela a while back. So no, there's been no change there. If anything, some new areas, I mean, we're excited about Exxon going into Trinidad.

We view that as being a mirror of what's in Guyana, and they're going to start a drilling program down there. So I think there will be more activity down there. Suriname is another place with the Total Apache discovery down there. So I think it's going to be a great basin for long-term growth for Hunting.

Good to hear. And just time, I think, for a final question. We have one. Your business seems to be a mini conglomerate of oil services. Is this an optimal business structure with synergies across segments? Or is it more to enable you to manage the unpredictable cycles in oil and gas?

Well, I think I don't like to view it as being a conglomerate because I go back to that we are Hunting in one team. I think we just want to make sure that any place in the world where there's going to be exploration and production for hydrocarbons, we can play. In some areas, it's going to be onshore, like we've seen in the U.S. and Canada or in Argentina.

Offshore, we want to have that flexibility to supply products globally. So I'm really happy with our portfolio. I think our team does a very good job of working cross-selling, synergizing. So no, I'm pleased with the setup and the way it is now. I think we're in a great position.

Excellent. Good note on which to finish. I'd like to thank our audience for their attention and their questions. You will get some feedback questions, which the company would be very interested in what your replies are. Enormous thanks to Jim at what must be one of the busiest weeks in his career, I would think, ongoing to make time for shareholders and stakeholders. And perhaps I can just pass over to you, Jim, for a few closing remarks.

Well, thanks for taking the time. It's good seeing you again. I appreciate being able to do this. And I'm going to say what I said last week, I think our shares are on sale. So buy now while you can. It's a good buy, it's a good return.

I think the upside is very, very strong, and we've got the assets in place to really benefit from a good future in the extraction of hydrocarbons and what we do on the non-oil and gas side. So again, thanks for your time. Thanks for everybody for taking part in this.

And thank you. Thank you very much, Jim.

Thanks, Andy. I hope that sounded okay. You never know [indiscernible] I don't like reading PowerPoint.

I shall cut you off just whilst it's still live. So best of luck with the rest of this busy week.

All right. Take care yourself. Thanks.

Speak soon.

Bye.

Good morning, everybody. I appreciate you taking the time to be here today as we talk about our results for 2025. And I want to thank everybody also online that will be tuning in to listen and watch this. The timing today is very, very interesting. And I thought before I got into the presentation, I'd just make a few comments and updates on what's going on.

Our -- we have people in Saudi Arabia. We have people in Dubai, where they're all safe right now. We've been checking on them on a regular basis. I think that trying to predict what's going to happen with that situation in the next couple of weeks is kind of a crazy guess right now. Nobody knows. We don't know. But it is one that definitely has the world focused on energy.

And I think if there's one takeaway as we start this out for Hunting's -- what we did in '25 and what the future holds for us, I think it highlights again the importance of energy security and the fact that when you look at our clients' reserve life as far as people like Shell saying 6 years in a row, the reserve life has declined. I think it only points to a long-term bright outlook for the oilfield service industry and for Hunting in particular.

So as we start this presentation, I always want to reach out and thank the team at Hunting. There's a tremendous amount of talent within our organization and a great team that delivers these results. And I'm just very privileged to work with this group of people every day. So I want to thank them first and foremost, for all of their support and what they do. Operational highlights.

2025 was a great year for us. I don't think you're going to see a whole lot of changes from what we kind of preannounced back in January. We had a lot of highlights for the year, a lot of hard work done and a lot of good execution took place.

The 2 acquisitions we were able to add into the group with Flexible Engineering Solutions and also the Organic Oil Recovery position us well to continue to diversify our client base and to be more global in all that we need to do from a revenue point of view. We executed a good bit of the KOC orders. Those are done. Fortunately, I don't have any boats full of pipe waiting to get through the Strait of Hormuz right now. So that's part of the good story that that's done. We opened up a new facility in Dubai. It was kind of the cornerstone for the move out of Europe, where we had to close 2 facilities in the Netherlands. Further restructuring, obviously going on in our European business, but we're excited about the opportunities to be closer to the customer and have a better cost basis in Dubai.

We were able to finally dispose of our interest in Rival Downhole. So we're now totally out of the downhole drilling tools side of the business. wish our ex-employees and joint venture partners great success in that, but it was a good way to generate cash to be put to other acquisitions that made more sense for us for the long term. We continue to focus, as I mentioned, on our efficiencies. We've announced today an additional $15 million cost savings plan.

There's a lot of moving pieces to that, everything from more efficiency on the shop floor to organizational changes, shared service issues that we're going to address, and that will play out over the next 12 to 18 months or so. Capital allocation has been a different story for us in the last year or so with the share buybacks. We've announced a couple of them, obviously. We are about done with the $60 million first 2 tranches, and we've announced today our intention is to do another $40 million to be completed by March of '28.

I don't want anybody reading into this, and I've talked to some people earlier. We still intend to be very acquisitive and focusing on M&A. So I don't want anybody to take a signal that, oh, we can't find anything to do with our money.

We just feel that with our outlook for profitability and the cash generation that we have the potential to do, we want to make sure we're giving returns back to our shareholders. Financial highlights. The key one was the EBITDA number of $135.7 million. The rest of the things, oil price-wise and that that you all know, share buyback that I already talked about. Sales order book down from last year, but it's really a more normalized level. And I always like to highlight that really doesn't include much at all for Titan because of the short-cycle nature of the Titan business.

We anticipate that sales order book number accelerating substantially through and into Q2. The scorecard for our 2030 strategy, a lot of boxes ticked. I think of all of them, when we talked about the cash flow generation. The 2, I think, maybe most important to me or to highlight was the fact that we continue to move our EBITDA margins higher. We're still striving to get to that 15% number. Hopefully, maybe that will happen this year.

But I mean, our plans are that we've got the products and we've got the geographic reach to continue to grow and go after high-margin business. Cash generation was a real big deal for us in the past year. I'd like to highlight that we generated the $63 million in cash, but that's after also doing all the acquisitions, increasing the dividend and doing the share buyback. So the company, to me, financially, we're in a very, very healthy place and a good place to be to in order to fund our growth going forward.

This chart here just shows you some of the stats on where we're at with our EBITDA growth for the year. OCTG, to me, it's probably industry-leading EBITDA margins for what we do in that area of the business, very strong performance, some of the strongest margins in the company's history in OCTG, thanks to the effort of our teams in North America and in Southeast Asia.

Subsea business going in the right direction. It was a business where we had some good results in the year. Some of those segments of business like our coupling business at our Stafford location are really just accelerating now as it's a follow-up to the subsea tree awards and then how we receive the orders for those components going forward.

Advanced Manufacturing, it was really a 2-part story for the year. Some good results in Dearborn, great traction on the non-oil and gas side. The electronics business has lagged, and I'll talk a little bit about that in more detail later. And then one of the happiest parts of the story for Hunting in 2025 has really been the improvement on the Titan business. So the number isn't at our 15% range.

But when I look at our results there compared to our peers, especially over the last half year plus, we've definitely done better from an earnings and margin point of view, and I think that, that will continue.

The acquisition update, Flexible Engineered Solutions, our integration plans have all come together well. There's been no hiccups, no hurdles. We didn't find anything unfortunate. So everything we thought we had is there. Opportunities are very large part of the big second quarter upside we're anticipating has to do with Brazil and Guyana.

The picture you see there is one of the Guyana FPSOs with the DBSCs attached to them. It's one of those developments with Exxon where titanium stress joints were not going to be used. But as I talked about when we made this acquisition, we wanted to be able to play on every FPSO opportunity out there as we see that a growing market. And this is a case where the DBSCs are being purchased and used to help that installation on that FPSO.

Organic oil recovery. We're getting a lot of good traction on that right now. Everybody or a lot of people have seen the announcement from our client Buccaneer, for their East Texas operation that they had. Considering the hundreds of thousands of conventional wells in North America, that to us was a really great sales point with what they talked about, the water cut being reduced and the production doubling. We anticipate that as a good start for our North American business.

And if you all remember, before we made the acquisition, we did not have the rights in the Western Hemisphere. So we're excited about that. We've got trials going on right now in Brazil. And one big one we've got in Angola with a major oil company down there. So I think there's really good upside with OOR.

The OCTG business talks there about some of our progress there. TEC-LOCK, Travis Kelley, who leads that business for us in Houston and his team have done a great job. We continue to gain market share on that. And it kind of aligns with our story we have with Titan right now in North America. As clients have more challenging wells, and I think the last number that I heard was 40% of all shale wells in the U.S. right now are 3 miles long or longer.

And in the case of some of our clients even doing these U-shaped wells, failure is just not an option when you're 2 miles from the wellhead or further. So the TEC-LOCK product line is trusted for its performance and its integrity downhole, and that has driven a lot of that growth there. Plus again, it's also the fact that we highlight our virtual mill concept. So whether it's in North America, whether it's in the Middle East, whether it's in West Africa, -- we're not tied to one steel supply, which gives our clients a lot of flexibility.

The accessory business was very strong last year, driven by a lot of work in South America and a bit of a resurgence on recompletions and workovers in the Gulf of America. We see the upside there being very, very bright. We've also picked up more of the subsea work for -- not for our own product line, but doing work for people like FMC and OneSubsea, which has helped that business out as well. Our joint venture in India is performing as planned, delivering good contribution of earnings. The outlook continues to be bright.

The shop is busy. India, if anything, and talk about energy security, they're the ones that need to build up their own domestic source of hydrocarbons, hydrocarbon production, and we're well placed in that operation there to see that grow.

And then there's just a note about KOC there. Right now, just everybody has asked me 100 times, KOC tenders have been delayed. And so right now, our anticipation is that those will go out in the next week or so, but that could change tomorrow. But if that happens, the award dates would probably not be until April.

Fortunately, for our plan this year, we don't have much in the guidance planned for KOC because even if we had the orders today, you have to make the steel, it's 6 months to do that, you have to thread it, the shipping and the like so. That was not planned on being a big part of this year's business.

Non-oil and gas, there you see it broken down by different product segments. Again, Dearborn has really been the star on the non-oil and gas side with space, nuclear, power gen. We're seeing -- there's some new jet engine business that we're doing first articles on and working on now. We're not going to tell you the client yet, but I see a big upside to that.

And as I've mentioned earlier, it's been kind of a reinvention of the capacities at that facility in Maine, where it was very focused on oil and gas product lines. Now the focus is on non-oil and gas, primarily, again, aerospace and defense, and we want to make sure we have the kit and the tools in place to capture that business.

Electronics is a bit of a different story, mainly because while we've worked hard to diversify the product -- client base there, we're still very, very reliant on oil and gas. We have had an uptick in the medical side. We have captured a couple of new clients on the defense side, but it still is more focused towards oil and gas. And with rig counts down, especially in North America, the CapEx purchases that our client -- our big OEM customers would make has just been lagging.

We announced also today $5 million cost savings plan. That has many, many moving pieces to it. It's some sensitive when it talks about people and things like that. So I'm not going to have a lot of detail about that to pass on to you today. But I think the key message is it's an ongoing process. I highlight up there that in the past year, for example, we generated some meaningful cost savings from our lean manufacturing focus. We've been doing that for 17 years now.

I started that program a long time ago, and my favorite line is that I remember as a salesman sitting in a drilling engineer's office, and I never had any one of them ever tell me they drilled a well fast enough and they were done. So that's kind of the same with our manufacturing operations. It can always be better, and we get bright minds in there. We start looking at things like AI and the likes. So we're going to continue to focus on making sure we do things quicker, faster and better.

Balance sheet efficiency, good numbers there. Bruce and the team have done a super job there. Inventory turns are much better than they have been over the last couple of years, free cash flow, nice generation. And well, especially today, share price is up. So way to go, team. I mean, I'd like to see that reaction today.

Dividends, as we said, continuing to grow as well. And let's see. Precision Engineering. Talking about product lines right now, again, a little bit more detail. OCTG, I talked a bit about. We see, again, strong market opportunities throughout North America due to the complexity of what's going on there. We have not seen much of a rig count response yet on natural gas. We think that could be a very nice driver in the second half of the year. But right now, the business is performing very well, and there's the statistics for that.

Subsea, I guess I talked about that a bit earlier. The key is really the awards that we anticipate receiving in Q2. So that's an area where the tender activity right now is very, very high. Our total order -- total inquiry base right now is over $1 billion. A big part of that is on the subsea side, both with the FES, the EnPro product line as well as the titanium stress joint business.

We're seeing more decommissioning opportunities in the North Sea that's going to benefit the EnPro product line. But all in all, I think things are all going in the right direction. It's a substantial business we have now with our ability to bundle a lot of these products to people. I think it's going to make our ability to enhance sales even greater. We have a new office opening up in Kuala Lumpur this year to have more exposure in the Asian market.

So all speed -- full speed ahead for our Subsea business. And then the Titan business, which, again, Adam Dice and the team have done an amazing job. I was just out in Tampa about 1.5 weeks ago with the team out there. We've made great improvements on efficiencies. I saw some new laser equipment out there that we're using for gun manufacturing performing extremely well.

But the key is it's coming down to a point where I would say that 2 years ago, it was a lot of 3 bids in a buy by clients in the North American marketplace. We're seeing -- I'll say the pricing pressures are still there, but to a lesser extent because clients are realizing they just can't have failures downhole with these shale wells becoming longer and longer and the fact that you need dependability and you need dependability in supply. And that's where our distribution centers are a nice part of what our sales offering is to our client base.

But I'm very happy with the turnaround and improvement in earnings that we've seen at Titan. International activity remains strong, and we think the international business will continue to grow.

And I'm a big believer that the most common sedimentary rocks in the world are shale and they're all over the place. And again, with energy security being an important factor, we're already seeing talks about places like Algeria, in Libya, in Turkey, in Australia as potential growing markets for unconventionals, and we want to and will be a big part of that whenever it happens.

Again, advanced manufacturing, I've already talked a good bit about that. Order book is there. I'm not going to go through all the numbers right now. Interestingly, the nuclear business, which if you went 20 years ago back, that was a big part of the Dearborn business is now starting to come back.

And again, we're a company that is known with our reputation as being a high provider of products, small business now that has great upside, and we continue to work the power gen and the aerospace and defense business as well.

On electronics, it's again trying to get that diversification. But sooner or later, with these wells, with the drilling intensity going on, there needs to be a CapEx cycle that will increase purchase of drilling tools, such as -- excuse me, such as MWD equipment and the like.

And when that happens, it will benefit our electronics business as well. And then just some other manufacturing talks about some of the few areas. The key is we're moving OOR into the subsea business with the numbers starting in January.

We had a good year with our trenchless business. And we also -- we talk about what we've done in Dubai, which part of that manufacturing is based on our well testing equipment that we manufacture, which now we're closer to the client and closer to where the applications are going to be.

And with that, I'm turning it over to Bruce.

Thanks, Jim. Good morning, everyone. Delighted to present a strong set of results this morning. Jim has covered a number of these key points, but just to wrap up on the numbers, they're fairly similar to what we presented back in January, okay, -- good set of solid numbers despite that challenging market conditions as well.

We've got EBITDA up 7% to 13%. So that's the focus on the higher-margin product lines like a subsea, like OCTG. The restructure of EMEA is coming through as well. We'll get the full benefit coming through '27 of those savings. Titan recovery is helping those margins going from 0% up to 7% for Titan. So that's feeding through to that recovery as well. We want to get that to 15%, and that's a key target.

Oil and gas, we still want to do a measured diversification. in terms of moving into businesses that are non-oil and gas, but we can still hit the right margins. So that's up 10%. You can see that growth. EPS up 9%. We're not seeing the full benefit of the share buyback yet coming through EPS. We'll see that more in '27. It's good to see that's up 9% to $0.341. Jim talked about the order book. It's normalized in the sense that KOC is no longer in there, near $358.

Quarter 2 is going to be a big quarter for us. We've got a big tender pipeline of north of $1 billion. So a lot of that is coming through Subsea, OCTG, the new FES acquisition has got a really strong tender pipeline. So we're looking for a big conversion in quarter 2 into orders, and we'll see that order book increase by the end of quarter 2.

Return on capital up to 10% in double figures. We're almost at 11%. I mean that's a key target for us. We want to get that to 15%. That's probably -- we're probably 18 months 24 months away from that. But again, it's focusing on that higher return businesses and diluting the capital employed on the balance sheet where we can as well, exiting product lines that are not getting there.

Dividend growth, alongside the share buyback, we want to get that dividend back to -- increase that to shareholders as well. We've got 13% per annum from 2025 onwards to the end of the decade. Part of the reason we can do that is our working capital efficiency. We're seeing that now back in 2020, that was over 70% working capital to sales. We're now at 33%. So that's given us more cash to play with, and that's going back to shareholders in the form of buybacks and dividends as well.

And we also took the opportunity to extend the RCF, the $200 million RCF by 12 months out to 2029, gives us that good option for further optionality there as well. One of the key features and really promising performance has been OCTG in '25 and '24. And that is over 46% of our sales is OCTG. And that's really from 3 pillars. It's coming from our development of our virtual mill, and that allows us to bid for the huge tenders we're seeing in the Middle East and elsewhere.

We're seeing some really good performance in U.S. land and TEC-LOCK with the longer laterals. We're also getting good performance coming from India as well and some good packages coming through from completion accessories. It's a real success story on OCTG. And it's that pivot into that offshore international visit business that's allowed us to do that.

In terms of our P&L, just picking off some of the key highlights there. There's our turnover, which is flat year-on-year it just over $1 billion. Good to see that our gross profit, EBITDA and operating profit margins have improved by 1 point each, again, reflecting that push to take costs out to focus on the higher-margin businesses as well. We've got our profit after tax of $58, gives an EPS of $0.34.1, and we've got that total dividend declared of $0.13 for the year, again, showing that increase.

A little bit more detail about our product lines and operating segments. You see the good in terms of the external metric of 15% OCTG, Subsea well over the 15%, good to see. Perforating Systems is a recovery story. That was at 0% last year, now up to 6%. We think we can get that up to double digits for the end of '26, those cost efficiencies come through international business picking up as well.

Advanced manufacturing, that's some electronics division has been softer with less CapEx coming through. It's been at 9%. Again, there's restructuring going on there to address the electronics division.

Other manufacturing, that's basically 0. That's been caught up in the real storm of all the restructuring, the well intervention, the well testing business in EMEA. So all that equipment has been getting moved from Aberdeen down, into Dubai. We've got closure of 4 facilities. So we're seeing a much better improvement coming through in '26. If you look at the segments, you've got Titan there coming down the way the verticals at 6% margin.

North America, very good performance at 19%. Subsea at 17%. EMEA has been the big struggle, that's had everything. A weak market, all the restructuring going on, all the disruption coming through there as well. We will get the benefit of that full year of $11 million cost savings coming through 2026, and that will see an improvement going through there.

Balance sheet is strong. We've got net assets of $900 million. Not much movement there in terms of our depreciation and CapEx more or less cancel each other out, a bit more in terms of $80 million onto the goodwill and other intangibles, that's the FES and OOR acquisitions going on there. And still despite -- we talked about all the returns to shareholders, and we'll talk about that in a little bit more detail, we're still sitting with cash of $63 million as well.

A little bit of the working capital revenue, a key metric for us as well, keeping that below the 35% mark. And that is key for us when we look at cash flow, and that helps us to keep that cash balance on the balance sheet. In terms of working capital improvements, you can see from 2020, that's when we we're at 75% of working capital, of set to revenue. We've now got that down to 33%. If you look at our inventory balance for the year, a lot of good work being done there. We've reduced that inventory balance by $65 million over the year. Good to see there.

We've been smart in terms of we did exit since 2020, a number of our higher capital businesses like OCTG and Aberdeen, also OCTG in Canada as well. Smart use of working capital instruments to finance our KOC orders. That's helped with the discount letter of credits and advance payments to the mills as well. So that has allowed us to at least a lot more cash, and that's allowed us to make the shareholder returns.

And again, this shows where that cash is coming from and how we've used that over the last period. We've got that at the end of 2024, we had $104 million of cash on the balance sheet. We added $135 million of EBITDA for the year. We have controlled our -- we had inflow from working capital. That gave us as we go through those -- the year to $201 million of cash.

This is where we've used it, $73 million in net disposals, $33 million of share buyback, that equates to about 7.2 million of shares we bought back, dividend payments of $19 million and treasury shares, employment share scheme of $18 million, okay? And we're still left with $63 million on the balance sheet. So that's a really pleasing position to be in.

In terms of order book, there's a little bit more color around $358 million. That has -- that is 20% lower than we were at the end of December '24. That does reflect the fact we've completed through KOC. We do see that being replenished through Subsea through OCTG awards, hopefully, some OOR awards coming through there as well.

And we'll have a figure approaching with the $500 million we get to quarter 3. But that tender pipeline is strong. It's over $1 billion. It's good to see that coming through. That does tie into what we're seeing in -- especially in the subsea space and the big awards coming out for OCTG as well.

So in terms of guidance, I think in terms of the phasing for the year, we're definitely looking at a back-end loaded year in terms of the big awards coming through quarter 2 and then that recognition being more into the second half of '26. And that's how we modeled and budgeted the year. So that's consistent with that.

Obviously, a lot of uncertainty out there just now, but there's nothing that we're going to change at the moment. This stays totally the same as what we announced back in January. EBITDA growth of between $145 million and $155 million, that EBITDA margin improving between 13% and 14%.

Effective tax rate, depending on deferred tax assets, jurisdictions should be between 25% and 28%. CapEx a little bit higher than what we saw this year, we're around the $30 million mark for '25. I think that's going up to $40 million, $50 million. We're doing a little bit more automation work, some robotics, replacement of CapEx, a bit more capacity into our Chinese facility as well to allow us to thread for the KOC and likes. And we're still confident we can achieve that 50% free cash flow conversion as well. Okay.

With that, Jim, I'll hand back to you.

Thanks, Bruce. Anyhow, we're laying out here where we're at '25, '26 targets. Those are some of the areas that we're focused on. I'll get into some more detail here in a little bit. But highlights, again, we always consider ourselves a technology company. So we continue to focus on developing new products, whether it's in premium connections, subsea applications, well intervention, Titan, it's pretty much nonstop.

It goes part into the lean philosophy we've had on operations, and it has to do with making sure that we're relevant in the market for the days ahead. OCTG, Bruce and I have already talked a good bit about that. We're well placed for that cycle that we're in right now. We see it as being one that's going to continue to grow, especially in the international markets year-over-year.

I've talked already a little bit about non-oil and gas and the subsea bundling that we have, our opportunities there. Just a topic on new technology. Subsea, I'll point you to the one on the bottom, the stack FAM. You've heard us talk about our FAM application before that fits and works with the subsea tree to allow a variable operations performed on a standard subsea tree.

The stack FAM, the whole goal of it is really to accelerate tieback opportunities in brownfield sites. So if you look at even places like the U.K. where nobody apparently wants to drill anymore, you've still got areas where you can tie back to infrastructure that's there. And this is an opportunity with this new product line to perhaps grow business there as well as a lot of more mature areas like the Gulf of America, for example.

OCTG, the WEDGE-LOCK product line, we continue to look at new applications, but it's also new diameters of pipe, new grades of material, things like that, that we're constantly testing at our testing facility in Houston as well as using some third-party facilities in Texas.

The well intervention business is one where we've tried to get smarter tools, some smart tools. Our Opti-TEK Tubing Cutter is almost CNC in precision as far as what it can do in cutting product for cutting tubing, downhole. Opti-TEK Data Stem again, it's a smart tool for more advanced downhole measurements on slick line applications.

And then the Opti-TEK valves are really more of a lean manufacturing effort to try to make things more lightweight to reduce the floor space at the well site, and that's what that is right there. Perforating systems, again, our ballistic release tools, our gyro tools, those are things that we actually rent.

Some of the new developments we've put in there is for our benefit from a cost point of view for refurbishment and the like, but they're also -- they also have the technology that customers are asking for today.

Titan growth, I mentioned earlier, you see the numbers there that we've shown the growth and anticipated growth, but there's a lot more of a market potential out there than even the Saudi Arabia and Argentina. I mean I'm excited about the opportunities in Australia. You've seen people like Liberty make moves into Australia. They have a huge resource down there for unconventionals, Mexico, unconventionals, Algeria and Libya, big unconventional markets.

And the thing with the opportunities and even in the U.S., we talk international here, -- but domestically, today, the average well in big parts of the Permian is actually producing about 20% less oil per foot of completion than what it was doing 3 years ago.

So as the sweet spots get used up, the Tier 1 acreage becomes less and less part of the portfolio, the operators are going to have to just drill more. They're going to have to drill longer wells, drill more to hold production at levels that are going to maintain their profitability and tighten and our premium connection business will be a key part of that deliverable part.

OCTG, there's lots of nice colored parts there of where we do business at. It's an international business. We have the technology and the virtual mill concept that allows us to compete on an even playing field with our much, much bigger competitors out there.

The customers trust Hunting and trust the value we bring to the table and the dependability that we have with our broad suite of connections and our excellent manufacturing capabilities in places like Houma, Louisiana and Houston, Texas and in Singapore to provide the completion accessories to put all this stuff together for an operator downhole.

Non-oil and gas, we've identified more areas. I talked a bit earlier about nuclear. I've talked about some new things going on, on the jet engine side, some customers other than Pratt & Whitney that we're talking to right now. The power gen to me is a big, big growth story. We're actually getting overflow work from our big power gen customer that we're actually putting also in one of our facilities in Houston now.

We see that as growing as data centers become more demanding on where they're going to get their electricity from. A lot of it is going to have to be from natural gas-fired generation that will supply, hopefully, components for the turbine shafts as well as that's going to be a driver for the tighten in the premium connection business.

And then with the addition of FES, we now do have more opportunities in the offshore wind market as the FES team has a long track record of supplying connectors for some of that. And while it's probably not a huge growth area in the U.S. right now, there's still a lot of progress being made in European markets for offshore floating wind and the like.

Subsea bundling, just a slide here. We're now -- I look back to 2018 when we had OneSubsea business. Now we've got a multiple grouping of product lines that gives us the ability to have huge geographic reach.

But the key is to go in at a customer and be more relevant. And the more things you can put in front of them as far as we can do this, the more opportunities you're going to have from a tender basis and I think a success basis to also win business.

So we're excited about what we've done so far. I mean if you look at, for example, our titanium stress joint business was 0 when we bought this. It was one of those cases where we knew we were on to something when we bought it. If you looked at the numbers at that time, it's like, why did you do this? Well, it became the anchor of what has built the subsea business.

So it's a great -- there's great opportunities for us and having people like ExxonMobil being a star client of ours is a good housekeeping seal of approval like we would say in the States for the things that we do in the subsea marketplace.

So in summary, we had a very, very good year. We're going to continue to focus on our capital allocation plans, which are going to benefit shareholders. We're maintaining our guidance. Again, I started the whole meeting off talking about where I see this business going. And I'd like to say we're not here. I'm not focused on what's going on in the next 3 months.

I'm looking at where we're going to be in the next 3 years, 5 years, where is the growth of the business. That's why we're doing the things that we are, why we're investing in our people. We're investing in the CapEx. We're adding new product lines because I truly believe as you look at the, again, reserve life of our clients. I mean, other than Saudi Aramco, most of them are down, down, down every year.

And the world is not going to use less hydrocarbons over the next decade. It's going to be more. Natural gas, people are worried about oil prices. I think the recent events in the Middle East, they're forgetting about gutter shutting down their LNG trains and not being able to ship LNG.

And that's going to be affecting markets globally, but it also brings that energy security picture back in play more. And I just think that we're a company that's essential to the world prospering as far as a contributor to the oilfield service industry.

So with that, that's kind of where we're at. I hope you've enjoyed the presentation and had a lot of detail. I'm excited about the year ahead, and I'm excited that I get to work with a great bunch of people that make it happen. So we'll open it up to questions. Okay. No, I'm just kidding. Go ahead.

Alex Smith from Berenberg. Just good to touch on the subsea business, potentially exciting year for growth. You mentioned Q2, potentially some big tenders. Any kind of color you can give on where those tenders are, location? And then just on the bundling, do you have like a dedicated sales team that are now going to go in and start selling that bundled product? And is that the kind of key driver for growth for that pipeline?

And lastly, just on M&A, still a big part of the business kind of strategy, subsea in particular. What does the competitive market look like? Any other color?

Okay. I'll try to remember the answer all this. So on the sales side, yes, we have dedicated teams working on that. We've integrated the sales process. At FES, they really they were -- it was owned by 2 gentlemen. It was a reputation that they sold the product on, really not a very sales-focused organization. They didn't have to be.

And so now with the bundling, like I mentioned, we relocated demand from Houston to KL to be working with our Singapore team because a lot of the shipbuilding FPSO construction is done in Asia. So it's good to be there integrating with those offices for opportunities. So yes, we are doing that bundling. The first question was, again, repeat that one.

Just on where the...

Where it's at? All the places you would expect. There's a heavy load of tenders in Brazil right now, but it's in the Gulf of America, it's in West Africa, it's in Suriname, it's in Guyana. It's all those places that are wet that you would think about. And then as far as -- the last question was.

M&A.

M&A. So M&A is one that you can never predict. I'd like to say our heart was broken a couple of times over the last couple of years because one thing that Hunting does well is go into due diligence very strongly. So we don't want to -- we want to make sure we know what we know. And in cases in the past, we had too specific where once we started getting into due diligence, we had to drop pencils and say time out because of certain things we found out.

So we will always be very prudent on how we approach that. It also has to fit our strategy. We don't want to get into things that are not tangential to what we do as a company. For example, I'm not going to go and buy a company that makes windows and doors tomorrow, right, or something like -- I mean, it's going to have to fit technology and what we want to do. The market out there right now, it's -- I don't think it's really any different than it's been a year or 2 ago.

I think that will this make a pause in opportunities? Perhaps. But we are screening things on a steady basis, and it's just finding -- it's kind of like getting married. You got to find the right partner and make sure the union is going to work. And we're focused on growing our business through M&A and haven't let up on that.

Toby Thorrington from Equity Development. I have 3. I think -- so first of all, North American division appeared to have a very good second half of last year as far as I can see, perhaps a bit more insight into why that was the case and your expectations for '26, expecting year-on-year improvement in North America?

Yes. I think if you look -- I think it's been as long as I've been in this job. I think every year, things have always been back-end loaded, at least through Q3. What we saw this year, and it matches the dialogue you've probably heard from Halliburton and people like that, we did not have the budget exhaustion issues, and we did not have too many weather issues as far as the holiday issues post mid-November.

So that was a big positive for Titan for our connection business, we could get orders out for threading. Rigs were still running and putting pipe in the ground. So I think it was just the fact that it was a pretty good year from a, a number of factors, whether it's weather budgets and the like. I think that, again, the year 4, we're expecting better things and continued growth in North America in '26 through a number of different product lines.

That leads into the second question. Guidance for FY '26 EBITDA margin is 13% to 14%. Can I test your sort of confidence in that figure given that OCTG looks like it's going to have a weaker year this year?

Yes. I don't know -- well, it will maybe from a top line number, but from a margin -- it has nothing to do with pricing. It's not a margin perspective there. So margins, if anything, I think, will enhance because we're seeing more premium applications even on the shale plays. We're anticipating an improvement in the Gulf of America. And if you look at the margin profile for OCTG, that's really the best margin products or the offshore stuff, right, not the land.

But with the benefit that we did have a very successful Gulf lease that the Trump administration put through, that won't really probably pay into holes in the ground until '27, but that foundation is there, we think, driving it forward.

So yes, it's going to be an area -- we're not cutting prices. We see areas where we can improve our margins. Part of that's in the $15 million of cost savings. Part of it's in the lean initiatives that we've had. But the market is pretty steady as far as pricing goes. Not a lot of pressures.

I'm hearing very confident in group 13% to 14% EBITDA...

Yes, I am. And I think overall for the group, one of the big drivers is going to be the Subsea business. We've had a lag in our Stafford business the last year or 2, as I mentioned. You saw subsea tree awards took a big fall in '25. They're coming back now. We're starting to get those orders in.

And as I mentioned, the backlog at our Stafford business is double what it was this time a year ago. So those are all -- again, it hits efficiencies, hits throughput in the facilities. I think Titan is going to again overperform based on even where we're at today, and that's going to be a plus for the company's overall margin as well.

Okay. That leads into the third question, subsea related. FES, if I saw the notes correctly, the contribution in the year was about $10 million revenue a small loss, I think. Pre-acquisition, the run rate -- revenue run rate of that business was near to $40 million, I think. So that probably requires a bit more...

No. I mean, I think it's, again, it's a lumpy business. It's where we could reduce revenue recognition in '25, getting them all into our proper accounting systems and the like. But the business -- the opportunities are still there. I mean that's where a big chunk of the pipeline that we see in '26 is sitting in FES.

And so I think it will never be a straight line in that business just because of the project nature of it, but we haven't changed our optimism or our thoughts on that business one bit.

Okay. Could you quantify the FES contribution to the order book at the year-end? Do you have that number?

Do you know what it was, Bruce, off the top of your head?

I don't have that, actually. It's a big chunk of the pipeline.

Alex Brooks at Canaccord. I'm actually going to ask some sort of return on capital and balance sheet-related questions, if you don't mind. Yes, it's Bruce. So firstly, of the $15 million new cost savings program announced today, does that include some balance sheet work as well?

That could be part of that, yes, our own facilities, et cetera. So there could be an element of that coming off balance sheet, yes.

At year-end, obviously, you had a significant reduction in payables, even though it was overall good working capital performance. Is that kind of roughly where you normalized at? Or sort of what's the -- was there anything exceptional in that year-end position?

That was the reversal of the KOC. So that was a big -- we use the bank acceptance bonds to defer payment to the Chinese mills. So once that is paid off, that is a more it's a more normalized position. But it will flow with the big orders as they come through in the timing of the orders down the line, Alex.

And in terms of pushing return on capital up towards 15%, if we just take the guidance, you'll achieve a little bit more this year than you did last year because -- but is there scope for capital employed improvement as well as...

Well, we're always looking at that similar to what we did back in the 4, 5 years ago with some of the low-return product lines facilities, OCG in Aberdeen, OCG in Canada, that the benefit of less capital that came off the balance sheet, improved the operating profit as well.

So all I can say is we're always looking at some of the product lines that aren't hit the mark. They're always under constant review, what we can do there on both sides, capital employed and getting that operating profit up as well.

And then just finally, because I'm looking at the slide in front of me, I've got nearly $200 million of dividends and over a similar period, a little bit more than $100 million of share buyback if it stays at the same rate. Is that something which you think is a reasonable split of return to shareholders, somewhere in the sort of 50-50, 40-60 range?

Yes, I think it's a good balance. It's something for everyone from that side in terms of buybacks. That's something we think is working. We're still confident in terms of -- we still believe we're undervalued even though we're above net asset value.

I think there's still value to be had in there. And yes, that constant return, that 13% increase in share -- the dividends as well. So I think it's a good balanced return, and that's probably where we're going to be at over the rest of the decade, yes.

And then I've got one final question, which is one of the things that really shines out to me from the presentation is how much of the business is new. So, is it possible to quantify because the chemical industry does this as they kind of talk about X percent of revenue is products introduced in the last 5 years. Do you think you'd have a number for that?

Not standing right here now, but we can get that for you. I mean it is fair, true. I mean, I was thinking this morning coming into here. We're now working on what, year 152 of Hunting, and it's been in a company that has constantly evolved to the times, right?

And I think what we've done in the last 5 years even has been that evolution, becoming more of a subsea company, adding things and taking on some risk. I mean, OOR, there were times when Bruce and I were like, is this going to work? We know it is. And that's why we spent the money to get control of it.

But it's looking at the -- again, it's like the old Wayne Gretzky thing, right? Skate to where the puck is going, not where it's at today. And that's what we're trying to do when we look at our business -- and yes, I'm very, very pleased with how the team has put.

I mean there was no TEC-LOCK a few years ago. There was a small subsea business, no OOR. We were stuck with pipe all over the place that was really bad return on capital employed. So I think we've evolved like Hunting's tradition has shown that they do.

It's Mick from Barclays. A couple of questions, if I may. Can I just go back to that tender pipeline you talked for a big Q2. You said it's subsea and OCTG. Obviously, subsea, your positions are pretty strong with OCTG, there's some big 800-pound gorillas in the world. So could you just split that between subsea and OCTG, just so we get an idea of confidence on that?

And what the split is? I mean, right now, I would say the split is over $100 million on just the Dearborn side on future business going forward. And then the bulk of it is split. I would say there's a couple of hundred million that we know of that I can remember off the top of my head in the subsea side and then the bulk of it is OCTG.

So we're seeing some OCTG tenders in places like Turkmenistan. We're seeing more in Indonesia is actually a growing market right now. We had some nice business in already the start of this year in that market. So it's all over the place, Nick. But I mean those are the 3 areas where the main drivers are. I mean the FES -- talk about the FES pipeline alone is nine-figure pipeline.

Okay. And then kind of be greedy. Obviously, you've highlighted a lot of new places you've gone to. If I look at the OCTG world, one of the big players did a big pull out in its results on geothermal, saying that's the next big thing, and you were the first to talk about that at your Capital Markets Day a few years ago.

So what you're seeing of that? And every major bank, I'm sure at the moment has got some junior wanting to become the space analyst given IPOs coming down the route. Obviously, you've got exposure there. So can you talk about what you're seeing in that?

So in the geothermal side, most of what we've seen activity-wise has actually been in the international market. So it's been -- Philippines was a good market for us and Indonesia. We haven't seen a lot in the U.S. because the geothermal -- typically, where we played with things like titanium tubulars or very high chrome areas.

If it's a commodity L80-grade material going into some of this geothermal stuff, I think Vallourec's done some of that business, captured some of that, but it's not just hasn't been an area for growth for us in North America.

On the aerospace side, we're really excited about that. And it's almost part of following up on the last question. We've almost had to reinvent Dearborn because it was so focused equipment-wise and asset-wise on the oilfield side of the business. And it's a business that started years ago in defense and aviation, then went in the oilfield, and now it's going back to more aerospace. So we're excited about the rocket business.

Actually, Blue Origin is a bigger customer for us than is SpaceX, while we do business with both. But we see some really good things happening there. One of the other small parts of our story is our investment in Cumberland, the third -- the 3D printing company.

That company is in the black now. They're seeing growth. One of their big customers, we're making -- I say we because we own 1/3 of the company. One of their big customers is Firefly, which is the ones that another space company that put -- I think they put a product on the moon. And so we see growth in a couple of areas on that, that I think is going to benefit us in the years ahead. Is there anything online? Any questions from online?

So the webcast questions have been answered in this Q&A. I'll pass back to you for some closing remarks.

Okay. Well, I just want to thank you all for your time and for being here and your support. Again, I want to thank all of our -- I want to thank our customers out there, all of our employees for what they do, our investors for being with us for the ride.

Again, I've talked about we want -- we don't want renters. I mean we really want investors that see our vision and what we're trying to do for the long term to drive value into this company. So on for a good '26. Thanks again. I think we're done.

Good afternoon. Happy New Year. Glad you're all here today. It's a pleasure to stand in front of you today and talk about our Subsea technology business today. We -- getting before that is all of you. We talked to -- I've talked to a lot of you already today. We ended up 2025 with a very, very good performance. I'm very happy with what the team did.

I'll talk a little bit about that, but really the experts are sitting here beside me, and they're going to go into a deep dive so you know more about our Subsea business. But I'm excited for the outlook for 2026. And when I think about Subsea, I think about Wayne Gretzby. Anybody know who he is? Hockey guy, right? I knew Stu would know that. And he had a famous thing, and it was that part of his success was he skated to where the puck was going, not where the puck is.

And I think when you look at our thoughts on our Subsea business, that's really what we've tried to do. And I'm going to show out today a time line on how we came to where we're at today, but it's really one of those things that Hunting has always been, I think, vision a visionary company looking at the future, how do we grow our business? Where -- what market should we be in? And this is one that didn't happen by accident. A lot of hard work, a lot of looking at the dynamics on where we think the market is going to be. And so that's where we're at today. And on top of that, I'm very, very fortunate, and I say this all the time to work with an amazing group of people.

So you all know Bruce. Dane Tipton, some of you haven't met yet. Dane heads up all the subsea operations, been with us a long time, great background, FMC, BP, knows the offshore subsea business like the back of his hand. Mark Stokes, the recent addition to the company, the family. He is with us from the FES acquisition, very involved on the operational side. I give him a lot of credit because the integration has been flawless in making that acquisition.

And lastly, our guy from South Africa that's traveling the world right now, Chris Venske, who heads up our organic oil recovery business that we now have full ownership of, and we're excited about for the future. Laying out the agenda, you guys have that in the books. You'll see the order that we're going to talk about things. I'm fortunate I don't have to talk a whole lot today. These guys have to do the hard lifting. Key takeaways, as I mentioned, we've now looked at our 2030 strategy.

The target is to get the Subsea revenue to $470 million. The graph on the right shows what the progression is and how we think that, that's going to happen. We have not raised the overall targets for 2030, but I just want to remind everybody that when we came out with our 2030 strategy 3 years ago, the oil price for WTI was at $83 at the time of that announcement. And I guess my message is things change. And what we've seen is we've seen weakness in the long-term projections in Titan, but I'm going to talk about that in a minute.

And we've seen the hopes and dreams in things like carbon capture fade away. But fortunately, as I said, we're pretty flexible. We're pretty on our feet looking for opportunities. Subsea is going to fill the hole plus deliver excellent margins to us. Looking at our product offering, why are we in here? We like to be able to touch our customer throughout the whole life of the well cycle. And the bottom line for offshore products is it's higher risk, but it's also high reward.

So this is where IP matters more than any place else in the oilfield service sector. And you'll see through the details these gentlemen are going to talk about that we own this IP now. And in certain things like titanium stress joints, there's nobody else in the world that makes that product. So we think that we've got a good collection of IP. We've added some more things like organic oil recovery because traditionally, the big focus on that is in offshore.

And if you're looking at things like the U.K. where people want to postpone decommissioning, I think this is just going to be a home run, especially in that market there. So again, it kind of shows you where we're at 2020, you'll see the revenue numbers there on the bottom. Group portfolio, again, serving the well life. Everything under yellow the subsea, I'm not going to talk about, but you'll see it's quite broad and quite a depth -- great depth of technology right now.

I'm going to take a minute to talk about the other 3 core components of our business and where we're at and where they stand today. OCTG business. So half of you have already asked me the question about where is KOC. I'll answer that now to cut it short. So right now, we ended up having, by the way, a great year in 2025 with a performance exceptional around the block. Our North American OCTG business far outperformed what was going on in rig activity and maintained excellent margins. Our completion accessory business in South America remained strong, driven by Exxon and driven by working primarily with Schlumberger.

In Asia Pac area, Daniel Tan and his team have done a fabulous job basically delivering product to clients we historically and have done in the past. So I'm talking the $5 million to $10 million OCTG orders going to people like Perenco in West Africa, a number of different clients throughout Thailand, Middle East, places like that. KOC tender is out right now. It's many hundreds of millions of dollars. It was supposed to be submitted at the end of this month to KOC. We're hearing now they've delayed that a month.

And with that, that probably means any successful purchase orders would not fall in until late March or April, which then really puts the timing for possibly one shipment at the end of the year if we're successful. But we have the technology, our connections are approved. We have the mill source behind us. So we're on pins and needles and hoping that we pull that off. Advanced Manufacturing had a decent year.

Again, to remind everybody, our electronics business, not so good. It was a business that really relies on the capital equipment purchases of our customers like Schlumberger, Halliburton and Baker. Rig counts go down. People don't need to spend CapEx. It's not rocket science. And so we've seen that fall down or be flat. And it has a diversification plan, but it hasn't crystallized as much as what we've seen in Dearborn.

Dearborn, I think the story is much, much better. We're almost in a reinvention mode in Dearborn right now through some of the CapEx we've spent last year, we'll spend next year. Today, that business is 80% non-oil and gas. One of the main drivers for that is the 20-plus year long relationship we've had with Caterpillar, supplying shafts to the geothermal market or natural gas generation business out there. So a very good client base on top of nuclear, on top of Pratt & Whitney, on top of a lot of other people.

Perforating. It used to be when I'd have these presentations, that's all anybody wanted to talk about was Titan. Well, I want to talk you a little bit about Titan. So I want to tell you that results were up significantly year-over-year. Adam Dice, the gentleman that's running that, I think, has done an amazing job in that business unit the past year. We've improved margins significantly from where they were. We actually had the best month of the year in December, driven by strong activity in North America and an uptick in the international market.

So if you look at North America, typically, it's flip a coin. It could be down 50%. You just don't know what the effect of holidays and budget exhaustion. But the good news is the core customers that we have stayed busy. The activity was strong. And we think that the big driver next year is going to be increased activity in places like Argentina and Saudi Arabia, where we're already in grain right now. So that kind of talks through that type of the business.

We spent a lot of money, acquisition time line here. It all started off with -- originally with the Stafford business that we bought, I think it was in 2009, Ben, that got us into the subsea coupling business that goes on subsea trees. But then we followed that up with -- again, I'm not going to read this, you guys can read it, but you can see the acquisition trail that we've done. This year was a busy year with organic oil recovery and getting FES. We also -- we're not blind to the fact that maybe some things their sell by date has occurred.

And if you look at drilling tools, that was a case in point. So we put it into a joint venture. We were able to crystallize that joint venture and sell that business. this year as well to put cash back in to recycle into the more growth-oriented sides of the business that we have. Again, I'd like to highlight Indian joint venture. A lot of you have asked me about that, doing extremely well, booked out. All that product is staying in India. Cumberland is actually operating in the black, working in that 3D printing additive manufacturing side of the business.

Further targets, we still want to spend some more money. On one of the earlier slides that I showed you, we talked about how we want to build the step up to grow revenue in the next couple of years to 2030. We're anticipating making acquisitions that will add $150 million a year of revenue by 2030. EBITDA margins, that's what we're looking for. But an interesting story was that if you went by a strict guideline of what's the EBITDA performance, we would never have bought RTI because it had not.

So why I'm saying that is when we look at our businesses and the opportunities out there, we really take the market intelligence, our relationship with the clients and what we see in the industry, and that really becomes the formula for whether we want to make an investment or not. Deal size for us, perfect deal size is actually $75 million to $100 million is perfect. It allows us to absorb the culture to keep the Hunting way with things.

And typically, it's just -- it becomes a nice tuck-in to what we're looking for, for our business. And again, the focus is on primary #1 focus is on the subsea marketplace. 2030, just kind of highlighting there, what hasn't changed was what our goals were on the revenue side. What has changed is maybe the mix on where we think that's going to come from, as I talked earlier about subsea, the Subsea revenue increase.

Bruce is going to go into some more details on the financial side. But we have been, I think, very open to saying how do we get shareholder returns up. So as you all know, we've announced increased dividend payments, and we just announced another $20 million on top of the $40 million. So we're going to continue to do the share buyback. So I think we're being good holders of the company's business to the investors out there.

And with that, I'm turning it over to Bruce.

Good afternoon, everyone. Great to be here. I'm going to take a few slides just to go through our year-end trading results. These are our provisional results. coming through. Again, I'm very happy to report a good solid performance. We had a record quarter to finish the year, which is always good. We had $35 million in quarter 4. We had a record year, record month in terms of December trading as well. That was a combination of really strong trading across all our product lines.

We also saw the benefit of the cost reductions we saw in restructures in EMEA and also Titan, we had cuts of $20 million of cost take out there, and that was starting to come through. That helped on the operating margins we saw in Titan and also narrowing the losses and a small profit coming through in December as well for EMEA.

I think one of the key highlights is the cash. We've been generating a lot of cash. We talked a lot about that in the Capital Markets Day. And the cash generation has been excellent. If you look at that cash figure of $60 million, the main inflow coming through quarter 4 was on the working capital.

So items such as inventory is 20% down year-on-year. We're seeing a real benefit there as well. Our working capital metrics, we talked about at the Capital Markets Day in terms of free cash flow generation, that's in excess -- well in excess of 60%. That will be the same for '25. And also our sales to working capital metric is down towards the 35% mark, which is ahead of the target we talked about at Capital Markets Day. So all those components are coming together. Great to see that cash generation.

We're consistently generating cash now, and that allows us that option to go and do things like share buybacks, extending that to $60 million. We're ending the year with $60 million, and that's after our 2 acquisitions. It's after the increase in dividends. It's after our treasury shares we buy for our LTIP program. And it's a really strong platform for us to look at things such as further share returns, capital returns and also acquisitions for next year.

We'll touch on the guidance here. Again, a lot of uncertainty going into '26, but we're showing good double-digit growth. The guidance there is $145 million to $155 million. That's -- we've got strong opportunities. We'll talk around in Subsea, good solid performance across other product lines as well. And we'll see that benefit of the cost takeout as well play through the year. We want to walk that EBITDA margin up to 15% and beyond. We're seeing a 1 point uplift in '26. We'll keep working on that on all areas, whether that's on the margin, on cost to get up towards the 15%.

Effective tax rate stabilized now for the various models that are going there, 25% to 28%. CapEx, a little bit higher. We've allocated some CapEx for our Asia Pac business and the China facility. And that's allowed that additional CapEx and capacity for KOC 3, depending on the size of that award. Free cash flow conversion, again, at 50%. Traditionally, that's been higher over the last 2 years, but again, showing good cash flow generation over the period.

Just got 2 slides left. This is really the -- just to set the context, and Dane will talk more about this in terms of demand. But we've got the -- this is Wood Mackenzie in terms of the modeling out the delayed transition. You've got this bottom figure looking at the oil demands between now and 2050. We have this net transition story that [ Mr. Milleran ] would be buying into. We don't believe in that.

The commentary is now coming around to the fact that we are. This slide is showing that we are going to have demand of over 100 million barrels for a long time to come yet. That's going to play into our strategy in terms of why we've accelerated and pivoted into the offshore and subsea. That's where a lot of these barrels will come from. That's where the long-term projects are. That's a lower lifting cost. That's got more robustness when it comes to -- in terms of sensitivity to oil price as well. So that's where we're going to target, and that's where we believe there's a good genuine outlook for the industry going forward.

And just to finish in terms of the Subsea technology, it's a little bit of a history lesson there in terms of how the subsea has really evolved over the last 6 years. In 2019, you see revenue over $40 million. This year, we'll finish over $136 -- good margins, the highest EBITDA margins of the group. We're just under that 20% mark with the latest acquisitions in terms of FES of OR, we're looking to go north of 20% there as well. But really, that is going to be the engine for our growth. It's going to be the engine for us achieving those Capital Market Day targets that Jim is talking around for 2030. And it really is a key -- and Dane will talk to this in more detail about the bridge from now until we get to 2030 targets. Okay.

And with that, it's my pleasure in handing this to Dane.

We got a brief video that we'll start with.

[Presentation]

Well, good afternoon. Thank you for taking the time today. Thank you for being willing to invest not just in this afternoon, but in Hunting's forward plan. My goal is very simple. We've had a couple of fundamental yet very strategic step changes over the past couple of years. Things like we've grown from this Tier 2 component supplier into a life of field technology partner. We've added 2 brand-new acquisitions that we'll give you some exposure to. And I hope by the end of today that you can see within this team, the passion and the focus for just building an extraordinary company.

I'm Dane Tipton, Managing Director of our Subsea Technologies business. Now we take a look at a couple of the macro trends that exist out there today. Bruce put a chart up that showed strong oil and gas demand well out into 2050. This demand is the fuel. That's the fuel driving the subsea market. We couple this with the exploration success that we're seeing out there. You're not going to be surprised. Guyana, the Black Sea. These are areas where we're seeing a tremendous amount of success, and they're accelerating their development plans. They're pulling 10- to 15-year programs down to 5 to 8. Then we couple this with the operator workforce has continued to shrink since COVID.

Well, this little business shift has created the EPCI, which is engineering, procurement, construction and installation. That business model that's always been there, but has really evolved now. And this specific business chain has created this window of opportunity for our Hunting strategy that will be evident by the end of today. We couple this also with the growing interest in EOR. Now Chris will talk in more detail later about this, but EOR is enhanced oil recovery, and it's really about increasing the recoverable reserves out of legacy fields.

So when you take these strong tailwinds that we're seeing, these advanced accelerated development plans that exist out there and the shift in a couple of these different business trends, the alignment and timing with our Hunting strategy couldn't be more perfect. Then we dive in a little deeper to some very specific market drivers, offshore EPC awards. We're not surprised by that. That's a financial investment into our sector.

Now you can see the pullback in '25, right? What happened here? The fear of the unknown. That's when we saw tariffs kick in, and it took a little time as an industry for us to get our hands wrapped around what was going on. But as evident by the $14.3 billion landed in Q4 as well as the strong foundation in '26, we see that the investment in our sector is strong. It's not going away. It's a great foundation for us.

Bottom left-hand corner, you see subsea tree awards. This has always been a leading indicator for us is because the subsea tree awards really set the tone and the pace for everything in the whole subsea field distribution area. As expected, the pullback in '25, very similar to the EPC awards, right? We're not shocked by that. But from '25 to '26, we're seeing an 82% increase. Look from '26 out through the rest of the decade, strong, strong inbound that's already laid out there of work set ahead in this area.

Right-hand side of the screen, FPSOs. As Mark presents a little bit later on the FES transaction, you'll see today that a strong part of our technology platform is built around the SURF arena. Now again, that's subsea umbilical risers and flow lines. So think about the floating facility, the ocean floor, the hardware between the 2, that's the sector that I'm talking about. Upper right-hand corner, growth, investment in that area from 25% to 30% is 51%. Really post-COVID, this has been the fastest-growing sector in the offshore arena.

Bottom right-hand corner, today, we see 42 FPSOs on order right now. This is a massive opportunity for Hunting. I'll give you a data point. The last 3 transactions we did in terms of FPSOs down in Guyana, those projects were worth $45 million to $70 million each, huge opportunity ahead with 42 of them in the pipeline.

Now let's talk a little bit about our Subsea growth strategy. And I've just picked out 3 key things here to focus on for you today. But really, I'd like to start back prior to 2019. Victoria, a couple of us were talking upstairs earlier about when we first started chatting probably 10, 12 years ago and all the way to 2019, we had just 3 components. Today, we have a global commercial group that sits on top of all 5 business units with access to hundreds of products and services.

We're talking about system-level bundling. What you'll hear me refer to is about a platform of integrated products and services. Then when it comes to exponential material growth, without a doubt, we have a very active M&A strategy. Our M&A strategy, as you would expect, is focused on expanding in this technology platform, and it's really from -- throughout the entire life of the field. But the glue that holds it all together is the customer alignment. Now I mentioned in capital markets back in 2023, right? I mentioned back then that the Tier 1 OEMs were growing into these big EPCI contractors. And we could see a technology gap was forming. And that's exactly what happened. And Hunting is a technology company. We have become that technology partner, right? If you look at our presence that we did in Brazil a couple of years ago, you'll see that we are mirroring that in KL this year. The goal there is just to put ourselves where the customers need us, right? Again, customer alignment.

So our goal is helping EPCIs and end users drive success on these multiphase projects. Now that was the goal back in '23, and that's what you're seeing us actually do today. So the platform we have today will start in the upper left-hand corner, spring. Their primary product line, titanium stress joints. Now just for a little clarity, you have the floating production facility, you have a rigid riser -- the titanium stress joint is the very top joint, usually anywhere from 25 to 50 feet long, huge piece of titanium that takes all of the bending loads due to the dynamic motions of that facility. So it is the most critical part of that assembly.

Below that is just carbon steel. Today, we are the only suppliers in the world, titanium stress joints. We have over 200 installed 0 field failures. The product line, the company is a huge, huge success. Bottom left-hand corner, the Enpro business unit. 3 primary product lines there. The FAM, which stands for Flow access module. This is really an access point for the end user. It gives them full life of field flexibility in their subsea distribution. We also have a 10,000 and 15,000 hydraulic intervention system as well in the Dom services, that's all about pulling oil and gas reserves out of facilities before they can be deconstructed.

We shift up to the Stafford business unit, primary product line, metal seal couplings, right? The company has been around over 50 years, over 2 million installations, 0 field failures. These are all the connections down on the ocean floor. So when you have your subsea tree, your manifolds tying everything together, that's the connection point right there. Then we get to our new toys here on the right-hand side. FES, flexible engineered solutions.

Now Mark will talk a little bit more in detail in the next presentation, but they are the market leader in DBSCs.

Now you're going to be tested on this before we go upstairs, right? So diverless bend stiffener connectors. So think in terms of you have the floating facility, I talked about the stress joints already. But for all the flexible lines, whether they're flexible risers, umbilicals, electrical lines, the top of all those flexible lines is this DBSC, and that's what they make. They are the #1 supplier of that in the world.

We shift to our OR business unit, organic oil recovery. This is a microbial enhanced oil recovery for both surface and subsea applications. So really what we're talking about, and Chris is going to give you a lot of great details on this, is this is all about increasing recoverable reserves. And when we do that, we know we're going to be driving positive balance sheet results for the end user.

It also allows you to kick the can to the right. And what we're talking about is all of your intervention, P&A and decommissioning costs on a declining field, you're able to push that into the future. A common thread that you can see right here in the middle on the bottom, the foundation of intellectual property. Hunting is a technology company. So all the things I'm going to cover today, there are 2 main things I really want you to take away. And this slide is the first one.

Putting it all together, 6 years ago, we had 3 products. The bottom 3 right here. That's all we had. Look at the incredible portfolio that we have built. It's probably one of the things I'm most proud of truthfully. You see in the upper left-hand corner, the puzzle pieces. We've taken these 5 companies as well as our presence down in Brazil, and soon, you'll see KL. And we've linked them all together, integrated them like a puzzle. We've drastically transformed the Subsea Technologies business.

Today, you see a technology platform in fluid handling and marine, a technology platform in SURF, subsea production distribution, our service offering, organic oil recovery. And then with our latest acquisition of FES, we also have an offshore floating wind portfolio, platform of integrated services in each of these 6 sectors. We have drastically increased the scope and scale. We've materially increased our revenue and EBITDA. And ultimately, what that's all driven towards is we have increased our share of the wallet.

So with this increased scope and scale, as expected, you can see we have a vast installed base across the globe. But what I want to point out here is notice in the lower left-hand corner, you see the business names disappearing, Stafford, Spring, Enpro, FES. They're replaced now with Subsea production and distribution, SURF, our intervention and decommissioning offering, right? Fluid handling and marine, organic oil recovery. We are Hunting Subsea Technologies now, and that's the brand that's exactly because of the integration that we're doing with the customer.

Now as expected, you can see we're in all major deepwater basins. And you'll notice a couple of the basic land hotspots that you see, those are specific to Chris' OOR business. And I mentioned earlier our role as a technology partner. And the goal is simple: cross-sell and bundle at all levels of the supply chain. It diversifies our customer portfolio. It reduces our risk. It helps us level out some of the lumpiness that we see with project-based businesses.

When we talk about our customers, and I'll just mention a few on the major side, and you all aren't going to be shocked by this, the success that we're having with ExxonMobil down in Guyana, with Shell in the North Sea and Petrobras down outside of Brazil. On the independent side of things in the Gulf of America, [ Bell Log ] and Beacon, I mean, we're house accounts for them. We do a lot of work with them, especially on the R&D side also. Creo down in South America, Tier 1 OEMs, they're all over the map. You've got Baker Hughes, you've got Schlumberger's OneSubsea version, Oceaneering, Aker. We are integrated and we work consistently with all these companies.

And I'm definitely not going to leave the big boys out, the big EPCIs. And just to mention 2 of them, I mean, we're completely integrated with them, and it's one of the things that I'm so proud about how we watch our teams work together, Subsea 7 and TechnipFMC. Multiple touch points from the initial sale all the way through the life of the field.

Now the second major takeaway that I really want to drive home to you, and I hope it sticks is the next 2 slides. Now I showed this slide to you at Capital Markets 2023. And for a quick review, the lifetime value opportunity, what we're really talking about here is positioning for more than just the initial sale, right? We're talking about multiple phases of the project, cross-selling potential, be that technology partner for the entire life of the field. Then just simply duplicate the process. It's all it is, right? I presented this to you, again, CMD 2023 as theory.

Now I'd like to show you a theory in action, right? Now I know this is a busy slide. Let's focus just on the center part of it, the actual project plot map, and that is of Guyana. Now you notice right in the middle, the Liza project. In 2018, we had a $1.5 million order for hydraulic couplings. Today, we have an incredible portfolio throughout Yellowtail, Wallu, Whiptail, Hammerhead, and we've fired off on Longtail already. Multiple projects, multiple platforms of technology.

You'll notice the pictures on the left and right side of the project plot map, tremendous installed base down in Guyana. We are that technology partner, right, eliminating risk, driving lessons learned back into the next projects. We've created efficiencies and then ultimately, what that does is that drives margin growth. An interesting data point down here in the bottom right-hand corner, those are 3 of the joints slated to go out for the Yellowtail project. And just to give you a little bit of background on this, one of the big advantages to a titanium stress joint is when it's taken out to the field, it can be wet parked.

So it's laid down on the ocean floor that decouples that installation from the FPSO facility. Big advantage to the titanium stress joint. They don't have to put everything together on one schedule. When the facility shows up, the operator just pulls that titanium stress joint with the riser up and hooks it up. Now Exxon planned on that taking 12 hours for each of the joints for Yellowtail. Our aftermarket services team, obviously working with them offshore, that entire job for each joint was done in 90 minutes, 90 minutes, first 12 hours.

Just on this project alone, that was an operational savings of over $1 million, huge advantage to titanium stress joint. That sells itself right there. Also, another very unique little interesting data point is on the end of each of these is assembled what we call PLR, and that's a pig launcher receiver and a pulling head. Our new friends at FES, they were the engineering, manufacturing and designing and installation of all of that. And now you see the integration directly with the customer on it.

Now I'm going to go back to Liza in the middle. Again, $1.5 million opportunity. Long tail this year, spanning into next year, I expect that opportunity across all the business units to be between $90 million and $95 million. We have drastically, drastically increased our scope and scale from $1.5 million to $90 million, and that's just the initial phase. Liza is a good example. Last year, Exxon called us, they utilized our 15K intervention system on the Liza field just for some regular maintenance work that had to be done. That's what we call life of field in action. So as you see at the top, the $475 million revenue target.

Personally, I feel like that's very conservative for the Guyana area. I really do. But my goal on this slide, what I want you to take away is that this is very in action. Now early on, I talked about the tailwinds driving our market, and it's really evident in our pipeline. This year alone, '26, we have 58 active projects that we are pursuing, roughly worth about $300 million.

If you look out to 2030, that pipeline is a 10-figure number in our space. So we have an incredible, incredible pipeline in front of us. Strong tailwinds driving the market, strong tender pipeline, I know will yield excellent results for our Subsea Technologies business. Now let's talk about revenue. We closed out '25 at $138 million with a full year contribution from OOR and FES, I expect us to land right around $200 million this year. 8% growth. By the time we close out '28, we should surpass $50 million in EBITDA. And that's north of -- just north of 20% margins.

So tying it all together, strong tailwinds have given us this growing market. and very evident strong pipeline out through 2030. We've transitioned from this Tier 2 component supplier that had just 3 offerings out there into a platform of integrated products and services. Our core customers, we've seen them grow now into this EPCI business model. There was a technology gap that we filled. We today are that technology partner for these large multiphase opportunities, full life of field offering.

In the Guyana example, I want to go back to that again one more time. Liza, $1.5 million opportunity, long tail, $90 million to $95 million. We've drastically increased our share of the wallet. The theory presented at CMD, I hope you see now, this is action with material results. We actually did what we said we were going to do. And with that, I'd just like to say I thoroughly enjoyed this opportunity. I couldn't be more proud about what we're building and what it's grown from over the last couple of years. I hope you do see the passion that we have about building something special.

And with that, I'm going to turn it over to Mark Stokes. He is the GM of our latest acquisition, FES, and he'll kick it off with a new video.

Right. Let's get the VT rolling.

[Presentation]

Good afternoon, ladies and gentlemen. I must say it's a real pleasure to be able to stand here today and speak to you all. And I just want to thank you for taking the time out of your busy agendas to be here. You've heard Dane talk about Hunting Subsea Technologies strategy and growth plans to 2030.

What I want to do now is give you a bit of an insight into Hunting's latest acquisition, which is Flexible Engineered Solutions or FES for short. With over 40 years of combined experience, FES based in the Northeast of England, not Aberdeen as some people think. We've been there and supplied a lot of products. And what I would say is we are the preferred supplier of choice to a lot of customers in the subsea arena. We really do have a first-class reputation, and you're going to hear me say this a lot this afternoon for solving clients' problems. That's what we're all about.

I think the other thing I want to really say is it's very much an exciting time for FES because combining Hunting Subsea technologies with FES' capabilities really does create a business that is going to meet the industry trends as we move forward. I think what's evident from the start is we've got a complementary set of products and a crossover in clients as well, which really does allow us to simplify the supply chain interactions for our customers and also expand our market share as we move forward. We have a very low-cost business model with really low levels of inventory and really strong cash conversion.

And that is funded by our customers through agreed payment milestones at the start of the project throughout the life cycle of the project. To give you some recent examples of where we've supplied products, you may have heard some of these names. We've supplied equipment into the Agogo field in West Africa for Azul Energy, also for the Scarborough project for Woodside of Western Australia and also in Guyana as well. Yes, we're there as well, supplying equipment on Yellowtail for Exxon. We have a really high skilled workforce of only 50 FTEs with the latest design tools and test equipment.

And the test equipment really is state-of-the-art because what we do is we put the equipment through its paces to simulate the offshore loads before we deliver it to the customer. And that gives the customer the confidence that the equipment is going to be able to meet its requirements when it's deployed in the field. We draw on the Northeast industrial heritage and the established supply chain channels that exist in the Northeast of England to allow us to run that business. And the future expansion is also possible now that we're part of funding if we decide to increase our capabilities with available land on the existing site of about 5 or 6 acres.

We have 3 divisions within FES, offering a broad range of products. I would say we very much are the one-stop shop for subsea fluid transfer equipment, whether that be disconnectable turrets, marine breakaway couplings, in-line swivels, hot stabs and receptacles or diverless bend stiffener connectors. We've got it all. The analogy I would use is I would say we're a subsea engineered suite shop. When you open the door to us, people are blown away by the products and the complexity of the equipment that we're able to deliver. We have really strong in-house design capabilities, and that's where I come back to the point I made before about solving client problems.

We can design any of these equipments to the very stringent client specifications and design requirements. But we also, on occasion, take on bespoke design requirements that our customers come to us. with, for example, we're working on a new breakaway coupling at the moment just off the back of an inquiry from a customer. And it doesn't require a lot when you've got your own in-house capability to be able to do that in terms of investment.

I think for me, the customers come to FES because of our flexibility, our responsiveness and our willingness to solve their problems with a can-do attitude. We've got a significant market presence because of the product offering. And we have created quite -- really quite high inherent barriers to entry for some of the products.

And Dane has already mentioned the DBSC. I want to test anybody for what it stands for. Can you remember? It's a diverless bend stiffener connector, right? So that is a patented design. We are the world's #1 supplier of that equipment. We've deployed over 700 of these units globally without any infield failures. And very similar to the TSG, the reason they're so popular is it reduces the cycle time for installation. Before this technology was available, it used to take an operator probably about 12 hours to make a subsea connection at the FPSO. With this technology, DBSE, we can do it in about 10 minutes. It's a huge advantage offshore.

The other thing I want to say on that equipment is we're actually starting to see that, that design is getting written in client specifications as well, which is a fantastic place to be when you open the client spec and you can see the drawings and the concepts are based around the FES design. So here, we see how the -- it's a similar graphic to Dane. But here, you can see how the FES equipment offering fits into the subsea arena from seabed to surface. I think the integration of the FAS products with the Hunting portfolio will really simplify the interfaces for the clients during project execution, so during procurement phase, installation, operation, maintenance.

Increased connectivity of the equipment allows a platform of integrated services, as Dane has already alluded to this afternoon. It's a true full value stream that we see. Now FES has been around for quite a long time, and we've created some fantastic relationships with our customers. Some of them you can see on the screen in the circle there. And some of these relationships have been in place for over 20 years. And I would say it's not a typical client vendor relationship. It's more of a partnering and a collaboration. That's the reason why FES has been so successful in the past.

I think with the strong market fundamentals that we've spoken about this afternoon and now that we're part of Hunting Subsea Technologies, I really do see that FES is positioned better than ever before to be able to serve our customers' demands. Through an expanded product offering, we're increasing the vendor touch points that we have with our clients, whilst we simplify the supply chain and the contracting arrangements on projects for our customers. The other exciting spin-off on this is combining the expertise of FES and Hunting Subsea Technologies will probably allow us to start to develop new disruptive technology in the marketplace. Who knows what's down the pipeline, but I'm sure with the combined minds of the 2 organizations as we integrate more and more, we're going to come up with some disruptive technology.

In Dane's earlier presentation, he spoke about the yellow tail TSJs or titanium stress strains for Guyana. Well, in this slide here and the image that you can see, this is another example of Hunting technologies and some FES equipment coming together. What you've got there is offshore Brazil in the [ Bacalhau ] field and 2,500 meter water depth with a titanium stress joint and FES supplied pig launch and receivable handling head.

And this is what we're talking about when we talk about integrating the products. I think the FES acquisition will definitely accelerate the strategic bundling as we increase the touch points between our customers and all of our equipment offerings through the full cycle. I think it's going to allow customer pain points to be resolved all under one roof, and that's Hunting roof. The come to for us to solve the problems.

And by packaging an integrated service, what am I talking about? I'm talking about turnkey equipment, all from under one roof, the operational efficiencies that brings with the aftersales support, the maintenance and the warranties that all come together under one bundled package. I think this really does represent a true platform of integrated services as we move forward. I think the confidence of FES to support Hunting Subsea Technologies growth is exemplified by our track record.

And here on the screen, you can see a perfect example of that. FES, we're the world's first supplier of what's called the Dess Unified Support tube or a TSUDL. When this contract was awarded on P82, the design was a conceptual mid-scale design, and we took FES' expertise and turned this into a working solution. I'm pleased to say that on the P80 contract, which was in excess of $20 million for FES, this particular contract, we were able to supply 15 of these TSUDL units.

And in the images on the bottom of the slide, you can see the size of the units, the scale of the FES operation and also on the right-hand picture, that's the actual TSUDL units installed. The beauty about this design is it allows steel catenaries and flexibles to be pulled through in the same connector. I'm also going to briefly touch on the fact that FES is at the forefront of the floating offshore wind market as well. We've had some recent success in this field by supplying some pilot projects in the south of France.

On the Gusan field and the PGL or the province Grand large projects. And what we've done is we've taken our existing ABSC technology, simplified the design, taken cost out, ready to access this market. So we haven't had to do any R&D. We haven't had to spend any CapEx. We're just ready to position ourselves in that market. And most recently, on the Kalan field, which is operated predominantly by Total, they took the decision to install a floating offshore wind turbine to provide the electrical power to the platform.

The interesting story there is the original Kalan platform was installed with FES Connectors some years ago, and we've now provided a connector with the new technology on the floating offshore wind turbine to connect the power. And the other thing here is we're actively engaged with a lot of the cable manufacturers globally. And as an example, we're actually talking to Prysmian at the moment on the Greenville project, where we expect that if this goes live, this field will probably demand 100-plus connectors just for one project in one field.

Integration. I've already had a couple of questions this afternoon on the integration. What I will say is we're on plan, and it's going really well. I must say that. And I think that's predominantly down to the fantastic engagements between the 2 companies. For me, the cultural alignment between the 2 organizations is evident from the start. And I really think that this integration set the turbocharge FES as we move forward.

So what am I talking about there? I'm really talking about the established supply chain channels that Hunting has the economies of scale that we'll get from that, the enhanced branding credibility that is in the industry, I think is more widely known than FES, leveraging the larger sales team with their global reach. In fact, we're already talking as a combined team to Technip and Subsea 7 in Guyana about bundling the package.

Where do I start with that? So titanium stress joints, dversenfite connectors, big launches in receivers, hot stubs and reptls, suction pile ventatches, the list goes on. And this is what we're talking about when we're trying to combine that solution. The other thing, simpler things, not always quite simple when you execute it though, but it is an ERP implementation. A lot of what we do today at FES is on a spreadsheet, very 1990s, 1980s, the introduction of Hunting, bringing in an ERP system is going to allow us to improve the efficiencies of our day-to-day operations. We get the financial stability from Hunting and also the opportunity, as I already mentioned, to develop new disruptive technologies by bringing the combined horsepower of the 2 businesses together.

So in summary, the key takeaways with FES as part of Hunting Subsea Technologies, we offer a broader product range to the SURF and STS markets. We know we will create a simplified supply chain for our clients, providing efficient vendor dialogues and building higher value relationships, making the interfaces easier for our clients when they execute these multimillion pound projects. There's also the opportunity to tap into the non-oil and gas revenues of floating offshore wind for the wider Hunting group as floating offshore wind continues to develop. And all of this is supported by the backdrop of both oil and gas and renewables markets.

That's all I've got to say today. I just want to take the opportunity to say thank you for listening. And with that, I'm going to hand you over to Chris Venske, the oil product leader. Thanks, Chris.

Right. Good afternoon. My favorite thing to talk about is organic oil recovery. I wouldn't stop if you let me. So naturally, it's a pleasure to be here today to speak to you all.

You've already heard from Jim, Bruce and Dane about the direction the group is taking and the strategy involved in achieving it. I intend to explain to you how organic oil recovery is shaping up to be a material part of this growth story. It is true that we've had access to the technology since 2018 through a partnership agreement in the Eastern Hemisphere. But along that journey, it became evident that we needed to own the IP to invest in underlying technology and to access Hunting's regional capabilities.

Now I intend to also explain to you how we're going to accelerate the growth of this product line to reach our targets of $100 million per annum by 2030. I'd like to start with a simple picture, one I'm sure you all will be very familiar with, the life cycle and the value cycle of a conventional oil field, right? We start off with primary production, where we drill wells and the pressure of the reservoir does the work for you in producing the fluids to surface. When pressure depletes, you move on to something called secondary recovery, which primarily involves water flooding and artificial lift to improve pressure in the reservoir and get fluids flowing through the rock. And once that's depleted and water cuts get too high, operators look to tertiary recovery.

Now this is what most people mean by enhanced oil recovery, but it includes methods like chemical OOR, which is like polymer, surfactant, alkali injection, right? Thermal methods, which include steam and hot water flooding and gas injection, which we reinject gas to improve the pressure in the reservoir to then produce further fluids. Now these methods are powerful and they work, but they're expensive. They're very capital intensive, especially upfront for modifications and changes to topsides and also they demand a very large volume of product.

Now OOR sits differently. We can get the same response in tertiary recovery, the same response as any other traditional OOR technologies at a fraction of the cost and a fraction of the cost using what's already existing in the reservoir, already existing on the platform. So they're already working water injection systems. Now zooming out to the macro context, you can see the numbers that are being involved in terms of the investment in this area, right? Now these numbers don't relate to the exact value pool that we can access. This is the wider OOR ecosystem. So the investment in changes to the topsides, infrastructure, engineering design, logistics and also the product themselves. But it gives you an understanding of the amount of money going into this space. And that's because of 2 structural forces. Number one, operators are increasingly keen to make use of what they already have, improve recovery from assets they already own rather than going and look for expensive greenfield opportunities.

And number two, as time passes, these reservoirs age, right? Production goes down, water cuts go up. So the spend to get more recovery from these fields needs to go up. I'm going to use a -- for scale, I'm going to use that average oil field size. This is an average offshore field size of about 350 million barrels of oil originally in place, right? Now organic oil recovery can get about 10% to 15% incremental recovery on top of what they would normally get, which translates to a field that size of around 30 million to 50 million barrels of incremental recovery. For the customer, that means an incremental value of about $3 billion.

And importantly, along with increasing production and increasing ultimate recovery, we also extend the field life, right? Like Dane said, we're kicking the can down the road. Decommissioning spend can be delayed and they can spend money where they get higher returns in the meantime. So the technology. At its heart, organic oil recovery is a biotechnology. We utilize microbes that already exist in the reservoir, right? It's an important distinction. We don't inject anything foreign. So we use only what's there. We inject biodegradable, specifically tailored nutrients to activate a process that's actually already happening in the reservoir, okay? The problem is that this process takes thousands of years, okay? We don't have that long.

So the IP revolves around speeding up that process that may take 2,000 years into 7 days. When we activate this process, the specific gene that we're looking for in certain species of microbes that exist in the reservoir, they change their morphology, they move out of the water into the oil water interface and they break up those big oil droplets that are ordinarily trapped to much smaller droplets, which naturally increases the mobility and the flow through the reservoir, which now you can recover oil that would otherwise have been trapped forever, right? And that's where the incremental recovery comes from.

For customers, the value is obvious, right, lower water cut. It means for the same energy that you would normally use to produce, you're producing more oil, less water, better ultimate recovery, reduced H2S and the most important one, improved economic return using the assets that they currently own. So nothing needs to change and increase the ultimate recovery using what they already have.

Now the implementation of enhanced oil recovery typically comes with 2 main barriers, right? Number one is the upfront capital expenditure. Is it going to cost more than I'm actually going to make or the volume of product injected. Now the CapEx barrier usually involves changing topside infrastructure, adding new space, adding storage, pumps, compression units. And the volume barrier is fairly obvious operating burden, right? If you have a platform that was designed in the field development phase to not have OOR or not have tertiary recovery, you're going to find it very difficult to find space for 500 million kilograms of product that needs to be injected every year, right? So OOR avoids both of these.

We inject in batch treatments. So that means that each injection lasts about 2 to 3 hours up to 2 days for very big injections, and we use orders of magnitude less volume, right? So through those batch treatments, it means that there's no permanent installation changes that needs to happen, no permanent storage, no permanent injection facilities required. And these barriers matter, especially on platforms that are marginal, so small offshore platforms, FPSOs and subsea tiebacks. For customers, that means lower CapEx, right, and lower and operating simplicity. And for Hunting, it means a scalable delivery system that will be underpinned and you'll see in the next few slides, and it's a scalable recurring revenue model.

So the challenge is not whether more oil exists in these oil fields, right? The challenge is, can you access this oil that you wouldn't ordinarily get to without adding new steel, adding new space or complicated logistics. As you can see here, this is a real-world result, right? So it's a combination of 2 oil fields just for anonymity. It's one field in the North Sea and one field in Oman. This is the baseline decline, and these dotted lines vertical are where we injected nutrients into the reservoir, right? So OR treatment begins there. You see a sharp increase in production and then a stabilization from about 2024 onwards. That stabilization is 75% above the baseline decline.

Now this directly translates into a higher net present value for the customer, extended field life, right? So that extra 3, 10 years. If you're producing profitably, continue to do so as long as these injections are continued in a regular manner. So this isn't a commercial decision. The science is what defines how often we inject. It is usually 3 to 4x per year. What that means for our customers is consistent increased production, improved free cash flow, extended field life. And for us -- and for Hunting, it signifies consistent recurring revenue over the field life, right?

And one important thing to note is if we're extending field life, and we've seen an increase in this production, to maintain that increase in production, you need to continue using the technology. right? If you stop using the technology, those ecologies just go back to where they were before, and it will fall back to that baseline, right? So to increase -- to maintain that free cash flow for the customer, they need to continue to use it, and that helps with that scalable recurring revenue model. Another key benefit that this technology delivers and something that our customers care very deeply about is H2S, right?

So the majority of H2S offshore, especially for mature fields is generated by microbes, right, sulfate-reducing bacteria that exists in the reservoir. And this often takes the shape of an exponential increase over time. Now H2S, if it's too high in reservoirs, it starts chewing up the wells, right, topsides and wells. It's an extremely poisonous gas. It's unsafe if it's any leaks on the surface.

Now with organic oil recovery, it isn't a different technology. By using the technology to increase oil production, you're naturally going to be reducing H2S as a side benefit, right? And that's good, obviously, for safety. It's good for the longevity of the field and asset integrity, but also customers cannot export oil gas with H2S in it, right? They can't hit the refineries with any H2S. So they spend a lot of money on chemical intervention or chemical mitigation through H2S scavengers to reduce that down so they can export it.

And so not only are we increasing production, but we're also saving customers significant amounts of money on chemical mitigation spends. Now I've spoken about the benefits and how it's implemented, but I'd like to reiterate that our main advantage against traditional OOR is twofold. Really, number one is it's very low risk to prove the concept. To validate a reservoir, it's very low risk and fairly quick. But once it's validated, the real key and the real driver for us is that once we move to the full field application, it's on-demand scalability.

You don't have to wait for any engineering, for any manufacturing, any changes, any topside modifications. If the reservoir is working and it's ready to go, we can scale within weeks. Now the typical application of OOR occurs in 2 phases, right? The first phase is proving it. So validating the reservoir, right? We first take a sample -- well, no, first, we do the field screening.

So initially, what we're looking for is whether the reservoir is likely to have the microbes that we need for this function to happen, right, for this change in morphology to be performed. If we're happy with it and likely the reservoir does have the microbes that we need, we then move to a sample. We take a sample of the reservoir fluid. We do the analysis in our laboratory to understand, first of all, yes, the microbes exist and they undergo that morphological change at reservoir conditions.

From there, we move on to pilot testing and targeted waterflood implementation, which is -- at this point, we inject nutrient into the producer or an injector to prove that the response that we're getting in the lab is also happening in the field and to prove the economics for the customer. From there, we scale. into full field application. What we're looking to do there is access as much of the volume of the reservoir as possible, right? So we're injecting into injectors to get it into as much of the reservoir as possible to increase ultimate recovery as much as we can over time.

Now again, to put some scale and back to that average oilfield example. The average oil field around 350 million barrels of oil originally in place would attract the revenue for organic oil recovery of around $20 million to $25 million per annum, right? And again, extending that field life, if they want to continue increasing production, they need to continue using the technology, right? So year after year, as we add fields and move into that full field application, revenue begins to compound, right? So we're using technology.

In some cases, we can extend field up for 10 years. That means we're getting $20 million to $25 million every year for 10 years plus. And as we add fields, that compounds. So the next slide is understanding of our reach right now, right? Each of these dots represent the singular reservoir that we're working on that is in the proof-of-concept stage. That means from the sample -- not from the screening from sampling to proving the economics and doing injections, right? And it's important to say we're across the whole operating basin across the world here.

We're in every oil-producing continent and working with a wide variety of customers. And since the acquisition, we've seen some significant improvement in adoption in regions like the U.S. and Brazil, and that's a direct reflection of moving under the subsea banner. So we've had access to customers that they have had access to for a long time. But now with those relationships and that strong commercial delivery over the last few years or last decade or so, we have access to that market now.

We have trust in the technology, trust in the company, which has been shown -- has paid dividends already in the Brazil work we've been doing. We picked up 11 reservoirs in Brazil and 16 reservoirs in California and a few in Texas within just the last 9 months. Another example I'd like to give is how we're speeding up application of the technology is just yesterday, we actually had our first injection in the U.S.A. since we purchased the technology, right? And we had our first conversation with this customer less than 6 months ago, right?

So we're talking previously a few years to get going. We're now within 6 months proving the economics in the field with the customer due to the investment we've done in the lab and increasing our sales cycle time or improving our sales cycle time using the relationships that we have through Subsea.

One last thing I'd like to say here is that what we take away from this is that this just isn't reach, isn't breadth of adoption across the world. Each of these dots and what we have here is a strong conversion funnel, which underpins our confidence in the recurring scaling revenue over the next few years. So since the acquisition, my main focus and our main focus has been removing friction in the sales cycle. We're doing that through 3 main things: people, platform and pace.

So we've hired key strategic hires in North America and South America to accelerate that commercial execution, but we've also significantly strengthened our knowledge base and our talent pool in the scientific -- underlying scientific part of the business in our primary laboratory in California. Platform. We've also invested significantly into our technology. So we've brought critical capability in-house into our primary laboratory, right, which is speeding up analysis times and getting us to market and getting us to that proof of concept and improving the economics, the pilot testing quicker.

And that's what we've already done. What's next and what I think truly is the most important part of this is pace. We've invested in in-house metagenomic analysis, which is DNA analysis, DNA and RNA analysis. This is really the part of the analysis in the lab that tells us whether and validates whether the reservoir actually has the microbes we need. Currently and previously, prior to the acquisition, we were about 4 to 5 months on average to validate a reservoir. Bringing this technology in-house will give us an answer within a week. So we have answers for our customers.

We can start planning logistics, start planning what the next steps are through improving the economics and injection and fulfill applications much quicker. In parallel, we're also expanding our blending capabilities, right? We're bringing the nutrient blending closer to where it's needed, right, in Brazil, Canada, North America and Asia as well, Southeast Asia. This obviously reduces logistics times and gets us into our customers' operations quicker. And on top of that, we're also adding regional laboratory capability.

So again, similar to the blending, if we have analysis closer to where it's being -- the solves are being taken, we can get answers to our customers quicker, get answers to our scientists quicker and get things moving through that sales cycle much faster. So in summary, and one thing I'd like all of you to take away today is that we didn't buy a science project, right? We bought a scalable platform, right? There's strong potential for scalable recurring revenue.

I have been personally involved in the origination and execution of every project we've had for organic oil recovery since it's come into Hunting. I've seen our customers delight when we've increased production from anywhere from 20%, which is still good, but up to over 1,000%. I've seen the material benefits this has on their balance sheets and the excitement, the true excitement they have once it starts working, how can we expand this? How can we use this in all of our portfolio across geographies and also across different reservoir types.

However, along that road, when we've proven the technology, yes, it works. It became evident that if we wanted to scale this, truly scale this, get it into the right regions around the world, get into the Hunting network, we would need to purchase the IP, right? So we did. And it's for that reason and everything I spoke about today that we are confident in our goals that we've set for the scaling of this technology. And I think it will become apparent to you over the next few years through 2027 in the strong news flow that is -- that will be put out.

And with that, I'd like to say thank you very much for your time, and I'll hand it over to Jim to wrap up. Thank you very much.

Thanks, Chris. Okay. So I hope you all enjoyed that you're all experts now on much of our product lines and all that we have to offer. And I hope -- like I said, I hope you walk away from this seeing that the scale of what we have added over the last couple of years has really transformed Hunting's place in the market, the oilfield service market.

The other thing that I always highlight, and it's just because my -- I guess, my history, but when you look at -- one of the things about that last video was comments about working with Hunting. And I think every product line we have, I will bet my reputation, everything on the fact that all things being equal, people would rather buy from Hunting. We have great people. We go the extra mile service-wise, and we're out there again, solving problems.

So the summary today, again, we see lots of upside from a ring the cash register point of view on our Subsea product line. It allows us to touch so many parts within the life cycle of those oil and gas fields out there, and we're going to continue to look for more M&A to even add on to that. We like the margin profile. We want to get paid for what we're doing. We don't want to make dumb iron. We don't want to be in commodity businesses.

And what you saw today elevates us as far as our margin profile goes in our sector. And again, we specialize on patented technology, solving customers' problems. And I think we have a blue-chip customer base that recognizes the talent and the technology of our organization.

So with that, I am ready for question and answers if you have any more. Again, you've got experts here. Good job, guys. I appreciate it. If any questions, feel free to ask. Mick, I knew you'd be first. Go ahead.

Yes, I'll be quick. A couple of questions, if I may. First to Chris. So I think you mentioned a riser balcony. There's a picture of Brazil there with 15 of your tubes on. Obviously, the trend has been to go less risers connected to the FPSO. And if we go back to West Africa, we've probably got to riser towers with only one connected. So are there regional differences? And is that trend continuing with fewer -- I remember going to being 40 risers coming up, and now we're at 15. So what's that trend as the first question.

Yes. So Brazil is Petrobras love flexibles and umbilables. So that is very much their model. So they build large FPSOs and build all the infrastructure on the seabed and then bring everything up to the FPSO with multiple numbers of risers and umbilicals. So that's what you see in Brazil. In the other parts of the world, it's down to the individual operator when they do their assessments of the field, what they think is the right way to install the technology to be able to extract the oil from the seabed.

So if you look at people like Baker Hughes, Technip and NOV who are manufacturing flexibles, if you look at their workload at the moment, those 2 -- those 3 or 4 factories globally are full for the next 24 to 36 months. So that tells me that they're still working that way, and they will continue to do that because they're still looking for new technology in that arena as well with composites, heated flow lines, all of that kind of stuff.

Okay. And if it goes to hybrid risers that Petrobras are talking about, which are lighter, does that mean less spec for you on the joint?

I used to work for Straum in the Netherlands. a TCP manufacturer. And it's a different product for a different purpose. So they've been working on the hybrid riser for a long time. Technip have tried, have failed. Baker Hughes have tried and failed. I think Straum will probably get there. But again, our technology interfaces with that technology. So I'm waiting to pick up the phone and speak to my ex colleagues at Straum once they qualify that product because the opportunities are exactly the same.

If I may, a question for Chris. You can add 10% to 15% to a field and make somebody $25 million a year. What's your share? And why is it not very big?

That $20 million to $25 million was the Hunting share, right? That's the revenue to Hunting. The revenue to customer is just whatever those incremental barrels or tones, whatever they're selling the well for. But no, it is, but scale is where we're moving towards, and that's what we need to continue that compounding effect, right? So that's where we're going to. I'm pretty happy with where we've come from, where we are now since the acquisition just in 9 months.

The reason I suppose it's not kicked on is we didn't really know what we didn't know, right? So we needed to -- to understand how we need to scale, we need to understand the IP. But understanding the IP, we didn't know how to scale. So a little bit chicken and egg, but now that we have purchased the IP, we know how to scale. We're setting up fairly well, and we're accelerating as you saw through Western Hemisphere. So...

You know what, Mick, I think it has aligned the same story with RTI. We bought RTI, showed you had no EBITDA, basically had no business and it was shut down. So the titanium stress lines we sell today, let's just say they are very significantly higher priced than the first ones went out the door. I think we're in very early, early days in OOR. We need to get more of these projects off from the first phase into the second and get that going.

And it's a matter then right now, you're competing against do they want to do more water injection, do they want traditional things. I think the big benefit that maybe we don't talk about enough with OOR is the fact that -- by themselves, it was difficult to get an audience to go into an oil company. I think they go in now with Hunting's name, doors open up and people say this isn't like black magic or something. This is a real deal. So I get where you're coming from. We are watching the margin profile closely, and it should accelerate with success.

If we can continue on OOR. There's lots of dots on the map that you showed us and then you showed how the revenue build to the 2030 target. What are you seeing as the rate of adoption so far? How successful -- what's the chance of success on the pilot tests? And is there any further CapEx that's required in order to have that volume increase as the rate of adoption increases?

Yes. So the rate of adoption certainly has increased since the acquisition, right? We're picking up new customers on a monthly basis, I would say, as news goes through in different regions, customers talk, as you saw in the video, it's a lot of recommendation. The chance of success through that proof-of-concept stage as we get to the targeted waterflood implementation at that point is well over 98% that it's going to work, right? The fact is that doesn't always work on certain field developments.

And when you move back into the pilot test, that drops down to 75%. But remember, that 2-year proof-of-concept time line, right? That's for us. That's the time line it takes us to go from the screening to proving the economics. That's excluding travel time in between injectors and producers, which could be 2.5 kilometers away. That in itself could be 2 years' worth of travel and also contracting and things like that. So we're at the cusp for a lot of projects. And as I said, we should see some good news for through '27.

And maybe Bruce, on the CapEx side, as the sort of, I guess, looking at the cumulative effect of additional customers and additional fields, what additional CapEx is required. Can you remind us what you said?

Very little. The scalability is very good. We just -- we've done some work on the lab in California. We'll do some work on the lab in Dubai, but you're talking a few hundred thousand dollars. So scalability, a lot of this is sub out to the blender. We've got the labs now, some microscopes. It's not big capital equipment. It's a matter of small few hundred thousand dollars to get that global reach really, and that's part of the traction.

Maybe a question, Dane, for you. When we talk about the $230 million of revenue guidance for 2018, how much of that do you have line of sight on today, so either in the backlog or in that pipeline and sort of the $300 million?

In our backlog today, it stretches out to the beginning of '28. So -- but as far as the pipeline, we've got a very good snapshot and vision of what's out there. I would say really even -- I mean, as you start to get out to 29 and 30 on the SURF side of things because these projects are planned so far in advance, the line sight of them is strong.

And maybe, Bruce, one for you as well. When we look at the margins, so 18% to 22%, sort of quite a big sort of wide range there. But when we look back historically, Subsea did sort of 20% plus in 2024. You then added on FS, which is margin accretive. OOR continues to build. I mean the talks to maybe 50% and you're getting more scale through the subsea business just as the volumes pick up. So is it conservative to say that 20% is sort of...

It's on the conservative side. Yes, it's on the conservative side with the additions of the acquisitions with OOR coming through with that level of margins. So that blended margin, we hope will be higher. And that's going to help us in terms of reaching those 2030 targets. So yes, it's on the conservative side.

Can I ask a question for Mark. You present the business as a sweet shop. But everyone who wants a sweet shop knows that they only sell a small number of suites really, and there's a lot of other things that look lovely, but no one really buys them. And then you've gone on and talked about DBSCs, which I might remember what it stands for and another product line. Can you give me a sort of slightly better -- is that where the business is right now and there's a whole lot of other suites that you might sell one day? Or sort of what's the -- or are you an engineering shop?

We have a really good product mix at the moment, and it's not just all about the DBSCs. Yes, the DBSC is probably the #1 product, I would say, but things like in-line swivels, marine breakaway couplings, all the hot stabs and the receptacles, suction pile batches. If I look at the active projects today, we're supplying to a range of different customers, all of those products. So they're on the bench in terms of the design tools. Our engineering team and our technicians can turn their hands to any of that equipment at any time because they're multiskilled.

So if a client comes in and asks for an in-line swivel, which we haven't supplied in 12 months, it's not a problem. We know how to do it. And we build off that because the engineering know-how of our design team, like I said in the presentation, we very often take on board a problem that nobody else can solve and take our expertise and try and solve it for the clients. Even if it just be a small problem, which is causing them a big problem offshore, the value of that relationship further down the line creates opportunities for us.

And then to pick up on Jim's point about sales, have you -- so is one of the attractions of the Hunting FES just that reach that you haven't been able to have and sort of what -- is that a sales force that you really just kind of haven't had or it's been pretty limited? Yes, absolutely. to do.

I mean FES had a great reputation, but it was really -- I'm not saying this in a bad way, but I was waiting for the phone to ring, right? So now with what Dane is doing, the leadership of the team, going out there, bundling opportunities, knocking on doors, using offices opening up in KL in Brazil, in Houston, Texas, it's just going to enhance that business a lot more.

And again, this whole thing with the FES, my eyes lit up because I wanted to be able to play on every FPSO that's coming down the track. You've talked about 42 of them. I mean, in theory, it's not unreasonable to think that every one of those is a $100 million revenue opportunity. And certain operators are not going to use titanium risers, right? They're going to use flexibles. -- they're going to use other things. This is where FPS allows us to be in all of those opportunities.

Just some technical questions on the OOR. So forgive me if I misunderstood. But just in terms of the -- on the sampling, you say you take the sample from reservoir, you then prove the microbes that would allow you to use that OOR technology. So what's the chance of the variance in terms of the fields that you do? Is it luck in terms of the fields that would have that microbes? Or is it in terms of proceeding through to being able to deploy OOR? Is that pretty -- what's the kind of probabilities based on the resource?

And I guess the second thing is just on the use case. Obviously, to your point, you save because you don't need to do the expensive topside modification for chemical recovery or for gas injection. Is there substitutability? So if could an operator move from doing that to OR if you've committed to chemical, is it very difficult then to go and use OR? What's the kind of substitutability to that? And then sorry, a final one on OR. For recovery rates on the video, there was anecdotal evidence in terms of the recovery for OIP. Do you have any more data points I could just benchmark in terms of how it compares to chemical or gas or thermal and what the actual demonstrated recovery rates are for that?

Yes. On the last question first, we do have -- we have certain amount of SP papers that we're writing, technical papers that we can afford to you. The fact is that we haven't reached the end of any of these projects. It's still early days. So any deduction we make now will just be inference, right? But we do have some of those numbers that we can -- that are public through those papers. In terms of how easy it is to add OR to the existing system, that's fairly simple, right? If you've got a system that can inject a chemical, you have a system that can use OR. OR, the actual application in the field is quite simply as easy as injecting water, the same consistency broadly as water. We just need any pump that can displace water. Sorry, can you repeat the first question?

Yes. Sorry, just on the sampling and the probability that it has the microbes to.

That isn't luck, right? So we have a very defined criteria, and that's based mostly on temperature and salinity, right? Our base is fairly high. So we need anything below 121 degrees Celsius, which pretty much puts every oil field that uses water injection into play, right? Then salinity is also very high, 240,000 ppm. Really, the only -- there's a handful of oil fields in the Middle East that are fairly salty, right? Their water, the hacker for water is really salty and might not have the microbes we need. So that's the temperature and salinity are the 2 things we're looking for, right?

Microbes can't exist in things that are boiling and too hot or too salty. So that -- what we found is the vast majority of oil fields in all the basins that we've been working in that fall into that criteria have to some level, the microbes that we require. From there, it's really how good are they and how good is the quality and abundance of these microbes in comparison to the others that are in the field. But the operating envelope is huge, right? There's very, very few of the hundreds of oil fields we've screened so far that wouldn't be applicable to organic oil recovery. And we screen that out pretty early, right? So we're not going down a path that's unlikely.

One more question. And then like I said, we're around for others so we can go ahead and start. Anybody have anything else they want to ask?

Okay. Thanks for all your time. I'm glad you're all here today. So it's been a pleasure being in front of you. Again, we thank you for your support, and I keep writing those good analyst papers, right? So buy, buy, buy and raise the share price up. So that's all I got to say. Thanks.

Good morning, everybody. Thank you for taking time to be here today and for those online and listening through other mediums. So we appreciate your time and attention to our results and our progress on our strategic plan and the summary of what we're going to do.

As I always do, I just want to start this presentation by a special thanks to the team at Hunting. I'm very fortunate. I say this all the time. I wake up every day, just very thankful for the people I get to work with, the brilliant minds in this organization. And today, we're going to highlight the accomplishments we made on our strategic path and the trail that we're going down right now and talk about the results that we delivered.

So I'm very excited to say that today, I think we delivered excellent results for the first half of the year. The numbers there speak for themselves. Revenue up 7% year-over-year. EBITDA strong, up 16% year-over-year. But there were a lot of things that we were able to accomplish, and it wasn't done by accident.

I want to remind everybody, and many of you in this room were at our strategic plan announcement when we rolled out Hunting 2030. And in that, we listed a number of things that we wanted to do, whether it was M&A, whether it was cost reduction, whether it was expanding the profile and the margin profile of the products we have with our IP as well as focusing on the cost within the organization, which is a never-ending exercise that we do daily.

And so the results today that we've announced, I think, highlight a lot of this and the hard work that went into this from the group. I mean, first and foremost, we ended up -- again, I mentioned some of the financial results, but we were finally able -- I know many of you like, finally we've talked about acquisitions for a long time, but we delivered two acquisitions in the first half of the year, both of which are key to the future growth of the company and the expanded margin profile that we will have in the years ahead. And we'll talk some more about that later.

Subsea orders continue to accelerate. I'm very proud of the fact that if you go back just 5 years ago, our Subsea footprint was very, very small. And strategically, as we laid out Hunting 2030 and how we wanted to grow, this was an area we want to put our cash to, and we did that. And you can see some of the results with the upside we've seen with orders with the titanium stress joints in the Gulf of America and Black Sea, continued deliveries in Guyana and upside in places like West Africa for the future.

We continue to see a very strong performance in OCTG. Again, one of those things, number is quite different today than what they were 4 or 5 years ago. But our team in Asia Pac did an absolute amazing job delivering the final parts of the KOC contract. I'll remind people, it was the biggest contract in the company's history at over $230 million. We executed that flawlessly. And again, our team in Spring, Texas executing as well the titanium stress joint orders in Guyana.

One of the things that I also want to highlight is, we do look at our portfolio of businesses constantly and how they're going to play into the longer game and story that we want to tell as an organization. Part of it, we talked about was the reduction of the footprint in Europe.

Another recent announcement about further reducing that. Again, economic issues that are out of our control really driving why we're having to make those decisions. Again, there was also issues related to joint venture windups and things like that. But we've laid out a plan, and we're executing that now with significant cost savings for our company and to get that business performing better.

The Rival Downhole divestment is one that's an interesting story. And just as a reminder of how we view things, and we look at all of our businesses like this, Rival was a business that we took our drilling tools business back in, I believe it was 2021, and we put it into a joint venture, because we saw a business that was commoditized. We saw a business that was an extensive cash with -- extensive cash requirement. It was one of those cases where the industry needed consolidation there. It was U.S. land-based only. We put it in this joint venture with Rival.

We literally have saved over $40 million of CapEx in that time period that we would have spent had we kept that business on our own. And the fortunate thing was we were able to crystallize that investment here recently and put $13 million back in the company's coffers to be used in share buybacks, dividend expansion and M&A. So just some points on that.

Again, on the 2030 strategy, we're fortunate that we had very strong activity in the industry. Because at the end of the day, like it or not, we are an oilfield service company. It is tied to what the commodity prices are. And those commodity prices have led to people spending a lot of money. Everybody has read the stories about what's going on in Guyana. It seems like the endless drilling that never finds a dry hole down there.

We are so well placed down there, not only with the titanium stress joint orders where we talk about $143 million of product delivered. But that's also been a significant part of our OCTG story with the accessory work going on down there from our U.S. manufacturing group.

KOC business, I recently talked about, but that tells you the scale and the size of tender activity that you see in big areas such as the Middle East, and we expect more of that to happen.

Acquisitions, I'm going to keep on about that because I think they're great stories. But we took a lot of cash, we spent that. We were able to have the flexibility to go ahead and do that and put those in place. Two acquisitions that fit not only the product offering we're looking for, but also match the culture of the company, which is important, I know to me and to the long-term shareholders of the organization.

You don't want to go down that road where I think many of you know a lot of mergers and acquisitions fail, and it's the cultural issues that cause those failures. And it's one thing that Hunting has been good about when we go down this path and make these new additions.

Non-oil and gas sales, we continue to work on that. Dearborn business has been stronger than our electronics business. We did have some impacts because of strike issues at Pratt & Whitney here a few months ago. Those are behind us now. Very, very upbeat on the Dearborn business, because if you went back just a few years ago, that business was probably 70% oil and gas. It was higher than that even when we made that acquisition. That has totally flipped to non-oil and gas, primarily defense aviation.

And one of the biggest new areas for us that we're seeing an uptick is in the nuclear side of the business. The order book in carbon capture and geothermal has been kind of steady on the geothermal side. Carbon capture, to be honest, has really not went anywhere as far as applications that fit around our product offering related to OCTG.

And I think with the tax changes in the U.S., it's not going to be a great outlook for carbon capture. However, we're extremely bullish on the geothermal side, especially in international markets like Indonesia and the Philippines, where we are seeing orders and where we have the technology for the high-end products that go into that.

Financial performance, again, we focus a lot on the cost savings, the closing of facilities in EMEA is unfortunately, I'd like to say the EMEA, the next time you see that might be a small "e" in EMEA. So it's just how we've had to downsize and look at that business for the macro issues in that marketplace.

And then lastly, I think it's important to note that we plan to distribute $200 million of dividends by 2030. We're well on the way to doing that. We've looked at our forecast. We've looked at our cost base, the cost savings that we've had, the money and cash we needed for M&A and possibly future M&A, and we have the ability to, again, give more shareholder returns.

One of the things we realize every day is when investors are looking to put their money in someplace, where are they going to get their return. And I'm almost -- you almost get tired of hearing about the magnificent 7 every day, but those are the companies that are drawing attention. And what we have to do is make sure there's going to be returns for the long run, for those investing in the company. And like I said, I'm looking for owners, not renters. And that's what the plan is to do this business.

The strong financial performance, again, I think we did very, very well this first half of the year. I'd highlight the free cash flow improvement. Bruce will be talking in more detail about that later on in the presentation. The other thing was the working capital ratio, probably maybe the best in the company's history that I've seen as far as that relationship to revenue.

Dividends, we've talked about the $58.2 million already returned since '22 and more on the way. And our EBITDA, I like that graph, lower left, upper right, it's all going in the right direction.

International becomes a continued important part of our business. There, you'll see the breakdown on North America and international work. North America, a big part -- obviously, a big part of our operation just because of the product offerings that we have. But what we're definitely not and kind of separates us from some of our peers is the fact that we do have a strong international footprint that has delivered good returns for us, and that is one of the areas where we see a lot of growth going forward.

I'm going to go over once again the key strategic initiatives in this period because again, none of this came from accidents. These are things that we laid out years and years ago and what we wanted to do. It wasn't something we woke up one morning and said, "Oh, we need to restructure this or we need to dispose of Rival. I mentioned about the Rival story. That's a story that basically 4, 4.5 years in process. I know $13 million might not seem by much. But again, when you look at the CapEx savings over the time, it was a big deal for us to get that going.

The M&A, organic oil recovery is going to be a home run. It's going to be one of those things that enhances the margin profile of the company going forward. It's for conventionals. And if you look even in the U.S., you've got hundreds of thousands of conventional oil wells in the U.S. and Canada. This is a product that up until the acquisition, we were not allowed to talk or touch about in the Western Hemisphere.

So now we've expanded our profile with that. We've upgraded our lab facility. We've hired new technologists in the area of microbiology. The results from the clients that we have seen in places like the U.K. have been very, very positive. And I just think this is a home run. And we're nurturing that and expect big things in the future.

Flexible Engineered Solutions, a fantastic business. What we looked at in that -- and again, I want to tell everybody why haven't done an acquisition. We literally started that process in September of last year, and that's how long it takes.

And when you're buying and dealing with private companies, it's a whole different world than going public to public. So Hunting goes in, we're very efficient and very thorough on our due diligence. We go into some guys that are private operators. They don't run their business that way. And so it's just the time involved to get these deals done and executed. But the two owners that we bought the business from, amazing gentlemen. It is a business that is actually pretty capital light, but very, very heavy on IP. So they're the guys people go to for bespoke products on things like FPSOs. And what we wanted to do was expand our reach into the FPSO market.

And if you look at recent data from Rystad and others, there's something like 40 to 45 FPSOs supposed to be coming online or being built over the next 5 years. And now with the product offering from FES, along with our titanium stress joint business or even the steel riser business, we have now greatly increased the potential marketplace on every FPSO in the world out there.

So very, very excited about that. And even with that area, there is some upside on the wind side of the business. It's not material today. It has been business in the past. It probably won't matter in the U.S. considering the current tax issues, but it's, again, a tool in our tool chest that we can use.

Restructuring, I talked about. One of the areas -- we'll talk a little bit more about this later. We're talking a lot about the U.K. business, the business in Holland, the closure of those facilities. But we continue to look at cost cutting throughout the group. We mentioned here with the slowdown in capital equipment purchases in electronics, for example, we've had headcount reductions, unfortunately, there. We've adjusted our workforce in Asia Pac for the completion of the KOC orders.

We continue to actively like we've done for more than a decade, work on a continuous improvement program throughout the organization. And every day, we look for ways in which we can do things quicker, faster and better.

Annualized savings, again, we talk about the Titan one. I think that graph on the bottom is an amazing outcome compared to where we were. And I want to take my hat off to the Titan team and to Adam Dyess in specifically for the performance that they've had over this year. And it's really been focusing on the cost reduction, focusing on the customers that are worth chasing.

There is a thing in the business of good clients and bad clients. And I think sometimes in the past, worrying about volumes, we chase some bad clients. So if you go through one of the common threads of the company today is focusing on business where people value our technology.

If you look at EMEA, again, it is -- I don't read PowerPoint presentations, but we talk about the closure of sites, two in Holland, one in the U.K., one in Norway, very, very small footprint. Are we abandoning the U.K.? The answer is no. We've picked up significant business in this half of the year from EnPro, and that works on decommissioning. We still have our well intervention product line that will be active in the U.K. And again, OOR is right now very focused on the U.K. as well.

Again, balance sheet efficiency right there. That's a graph where it -- I think, actions speak louder than words, and there's what you have right now. It's a 34% on the cash conversion cycle to revenue, down from not great numbers at the COVID time back in 2020 -- 2000, I'm sorry, but progress being made. I give Bruce and his team all the credit for that.

Return on capital, we're up to 10.5%, 11%. We got to get to 15%. How are we going to do that? We're still planning to do that through things like M&A on product lines that are accretive to the goal of enhancing that. But if you look at the portfolio today, the businesses in Subsea, our OCTG margins are record highs in my career right now. You'll see an increase in things like, more activity that we're picking up in areas in advanced manufacturing, improvements in Titan, which we're already seeing going in the right direction and then the continued focus on cost reduction, which is a never-ending story. But all things going in the right direction.

Capital allocation, something new this time, obviously, is our share buyback. We look at our forecast. It's not something that we just we take [indiscernible] It's like what do we need to do? Where is the cash going to go? We wanted to make sure that we had the capital available to do M&A. So we did that.

We bought -- spent $80-some million on two acquisitions, but we're looking at a breakdown of what we're at right now. I, like Bruce and everybody at Hunting thinks our shares are very, very cheap and undervalued right now.

Long story short, we announced a $40 million share buyback, which is starting today. And we've also announced that we're accelerating the growth in our dividend. And again, it's cash back to shareholders and trying to make an investment case for the long term.

And with that, I'll turn it over to Bruce.

Thanks, Jim. Good morning, everyone. I'm delighted to present our strong set of financial results for the first half.

Just focusing on the order book. That's obviously run down slightly as we've gone through our KOC -- large KOC order through the first half of the year. But behind that, I'd like to talk about the tender pipeline. We've got $1 billion behind that actual order book.

Predominantly, the tender pipeline is related to the OCDG and Subsea business. So we've got some large tenders coming up through quarter 3 and quarter 4, which is good, gives us confidence in the outlook for '26 and '27.

As Jim mentioned, revenue is up 7% year-on-year. That's really led by OCG performance. That was 51% of our sales relate to OCDG. So that's the -- like the KOC order, we saw booked throughout the first half, but also a really good performance by the Connection Group in North America, really sort of bucking the trend there in terms of the growth on the longer laterals across there.

Dropping through to the EPS, up 26% year-on-year. And in terms of really happy with the consistent free cash flow we're getting now. We're at $66 million compared to $2 million this time last year. We've got a working capital inflow of $25 million, which is good to see as we get that working capital efficiency through as well. And that lets us do the things we want to do in terms of capital allocation.

Just some other highlights. EBITDA margin, 13%, making progression towards the 15%. If you think about EMEA, that was a drag, that was a negative 5% as we go through that whole restructure and disruption, the blended margin is getting to where we want to be. But it does help the fact that OCG and Subsea, that's where a lot of the sales are coming from, and that is why we've pivoted there.

That's with a higher margin. It's over 30% gross margins. It's over 15% EBITDA margins as well. Still managed to hold the non-oil and gas despite things slowing down with things like carbon capture. We're flat at $37 million. We're building on that with the order book coming through the AMG Group.

I think a really good step change has been the Perforating Systems. It's still quite a small number in terms of the turnaround, the top line has come off as the onshore U.S. has been slower, but the changes made by Adam and his group in terms of the cost structure, focusing on the higher-margin products. Our international business has probably doubled the margins. So again, that's been a big focus on the Middle East, Argentina and Mexico as well. And as Jim mentioned, operational efficiencies, restructuring continues. We're always looking at taking costs out where we can and addressing that cost base and rightsizing the business.

So in total, over the last 18 months, that's around about $20 million of annualized savings that we'll benefit from the 1st of January '26. EBITDA up 16%, which is good to see in quite a tough market, up to $70 million. Dividend increasing up 13% to 6.2% interim. And return on cap, a key measure for us, now up at 10.5%, so around about our WACC and a good progression from our H1 figures there, up 3 points.

Again, a graphical form just in terms of revenue and EBITDA. You see the blue chart, the blue bar graph there, that's our OCG, the 51%. We take that plus Subsea, that's over 2/3 of our revenue. Again, that's where our good earnings are coming from the quality earnings, margins, EBITDA margins coming through, and that's helped build that EBITDA breakdown there.

So that's what's driving that. That pivot we talked about at the Capital Markets Day about going towards the international offshore Subsea space, that's starting to pay dividends now.

In terms of our income statement, we look at the increase in terms of our revenue at 7% with a $37 million of non-oil and gas. Gross profit, again, progression, good progression from H1 up 1 point to 28%. You're seeing things like even the perforating systems, up from 19% up to 23%. So that 4-point difference in a tough market is good to see, driven again by Subsea and OCG leading the way, U.S. connections and the U.S. onshore, and some great margins coming through there as well. And the cost restructure is starting to play through there as well.

EBITDA, up 13% year-on-year. In terms of the effective tax rate around 30% just based on the regional mix of profit. EPS at 19.6%, a nice improvement there, 26% year-on-year and the interim dividend of 6.2%, talking to that 13% increase. That good cash generation allows us to not just do the share buyback, but also look at increasing dividends as well.

A little bit more detail in terms of the segmental results. You see the Hunting Titan there. Second half of the year, we actually lost $1.4 million EBITDA. That's improved to $5.9 million on a lower top line. So those improvements we're talking about, focus International starting to come through there. Strong North America despite the rig count down 8%. So that's that onshore business we're talking about the lower -- the longer laterals, also good completion work into the offshore Guyana as well.

Subsea, a little bit softer. We've seen the -- we expected the number of subsea trees in '25, right side, we're projecting about 290. That's going to be about 170. So it has been about a softer market. That will recover '26 and beyond back towards over the 300 mark. So that's good to see as well. But it has been a little bit softer. The product mix hasn't been the higher-margin stress joints, et cetera. That is coming back. That's part of the tender pipeline. So we do expect a stronger H2.

EMEA has been tough, closing five facilities going to one disruption, headcount reductions, a tough market. So we expect that second half performance to improve back to a more neutral position there as well. We've seen a brilliant Asia Pac in terms of completing on the KOC order. That was really well received by the customer, thousands of joints delivered on time, and that has been a real big part of the first half story that we can see there.

What we've tried to do, and that was part of the Capital Markets Day was just explain the business more clearly in terms of the segments, but also the product lines as well, our five main product lines.

OCG, again, above our target, I see a 19% EBITDA margins. Perforating Systems improving back to 7%. So that's a really good step change. We see that improving over the second half of the year. The one I'll just pick up on there is Advanced Manufacturing, 5%. We have seen that industrial action from one of the key customers. We have seen less CapEx in terms of some of the oil and gas majors, some of the complicated MWD. So that has been a bit softer, but will pick up in H2 as well.

In terms of the regions along the top, EMEA, again, is the one area that has suffered in terms of the reduction in EBITDA. The actions we are taking, we're confident we'll get back to a neutral position, and we'll kick on to a double-digit EBITDA margin next year.

In terms of free cash flow, it's a good story. We're looking at sort of the working capital movements there. Inflows, nice to report, $26 million inflow. We've got the -- some spend in terms of CapEx. We've got the new Dubai facility of $4.2 million and D365, it's a new ERP system. We'll get efficiencies from there, but that's contributed to $20 million of CapEx and intangible assets.

And in terms of that's all flowing through to our free cash flow of $66 million, which compares favorably to $2 million from last year. We have -- we represent the two acquisitions there, $61 million for FES and $80 million for our OOR flowing through to a $25 million outflow.

That gives us a strong balance sheet despite the $80 million of CapEx on acquisition, sorry, that's given us over $80 million of cash on the balance sheet. We're now representing the goodwill and intangible assets of the new acquisitions coming through.

Working capital coming down. We'll talk about that in a little bit more detail, but that's down 10% as well. So again, working hard on that working capital efficiencies. That figure being well over $400 million in the past, but we have tied up that capital base. We no longer have the North Sea in terms of pipe, Canada in terms of pipe. So that again gives us that lower capital base, and that flows through to our improvements in return on capital at 10.5%.

The metrics we're talking about, we're now targeting that between 30% and 35%. It was 35% by the end of 2025 at our Capital Markets Day, so we're on target to achieve that.

Again, a little bit more on working capital. But again, we're working that in terms of inventories, we're now down to $262 million. I remember that being well over $400 million in the past. So again, more efficient, lighter inventory base.

Asia Pac, despite all those revenues, they've got $20 million of inventory. So that virtual mill is really working, light capital, high return, and that's driving that return on capital coming through as well.

So again, working hard on that, self-help. The Titan inventory is down from $140 million down to $110 million, and we're going to move that further down as well. So that's helping our metrics in terms of working capital revenue.

In terms of the order book, just a little bit more on that. We are at $451 million. The timing of that, you've got 2/3 of that will be recognized in '25. It doesn't include Titan. The story there is that it's -- you've got OCG, Subsea and AMG making up the bulk of that. It doesn't include Titan. The order book from the AMG point of view, it's good to see over $100 million of non-oil and gas within that as we try and diversify in a measured way into the non-oil and gas.

I finish the slide just on guidance. There's an element of volatility, uncertainty over the second half, but we've done the modeling. We're comfortable in maintaining our guidance at the $135 million to $145 million EBITDA. We have a contribution of $4 million to $5 million in there for FES over the back half of the year.

We're maintaining the EBITDA margins at 12%, 13%, effective tax rates up there as well. CapEx, we think, is going to be around about $35 million to $40 million. That's the run rate just now. Free cash flow, still, we're targeting 50%. I think we can be slightly better than that. And a cash figure at the end of the year, that's pre-share buyback of $65 million to $75 million. After the share buyback, we're probably targeting around that $40 million mark. Okay? So still a very strong balance sheet, strong cash position and strong growth on year-on-year.

And with that, I'll hand back to Jim.

Okay. Thanks, Bruce. I've got a few more comments to make and talk some more about the business here.

Talking about FES, just some more details about that. Again, a great business that we like the technology. We like the people, lots of upside. The key, again, was expanding our addressable market in the FPSO space. And with this acquisition, the integration has gone seamlessly so far from within our systems, the people, the attitude, the engineering. We've already picked up synergies on the sales side in places like Brazil and the Gulf of America.

So I think, we're very well placed to add this to a greater offering that I think customers are going to appreciate. And I believe this will do very, very well. As Bruce mentioned, it is kind of a capital-light operation. It's more on the IP side and on the test and assembly side.

The Newcastle area, there's quite a few manufacturers in that area we use. And so it's not going to be a big use of capital tied up in that. But very, very excited about this, and it fits into what we laid out in 2030.

This map here kind of shows you the places around the world where it's wet and where we have these operations at right now. So you can see, again, it's South America, Gulf of America. We're seeing more improvement in interest in Africa and West Africa. I think that future license deals in the Gulf of America are important. As you all know, we basically had 4 years with nothing happening in that Gulf region because of the administration -- the prior administration's preference not to drill.

The current administration has announced 30 lease rounds that will happen between now and the next 4 years. And while that doesn't immediately start drilling operations, at least it's going to open up a lot of acreage in an area that's got prime opportunities for further oil and gas development.

Organic Oil Recovery, the thing that is, is having it in our control. We have been limited in the past at times on just the speed to market, because of the way the agreement was set up with the previous owners. So we're trying to accelerate this quickly. We will have an international lab in place in '26 because you got to be able to get back to your customers on a timely basis.

And like Bruce had mentioned, we're kind of -- we're getting all the IP. The IP is all in place, but it's that knowledge that we need to make sure we keep throughout the organization. And I think we're well on the way to having this being a major success.

We continue to see a focus from the areas like EMEA to the Middle East. The Middle East is going to be a growing important marketplace for us. A lot of what we do in the Middle East and in our Dubai location is really to support sales globally. For example, all the work with KOC actually comes out of our Asia Pac operation, but we have people and boots on the ground that are there in that time zone and can be there on rig sites and things like that.

But what we do see is the improvement we will have in efficiencies with our well testing business, with our accessory business in Saudi Arabia, there's great upside there. And today, if you're an oilfield service company, you have to be in the Middle East and find a way to grow your footprint there, and that's what we're doing with the new facility.

The Indian joint venture, I haven't talked about that much to date, but that thing has been just a massive home run for us. And I always give Daniel Tan credit for bringing this to us a couple of years ago. Bruce and I will be back in India here in October, right, Bruce, yes, we'll be back there. It's been just a great success.

We have boots on the ground there. The joint venture has worked extremely well. We have a great partner and everything that we do there is staying in India. So the demand for energy is amazing over there, growing by leaps and bounds, and we're a key player with the only premium connections being manufactured in India right now.

The growth in the International markets, we talked about a little bit earlier, but South America is such an important part of our business right now. If you look at -- and there's one of our titanium stress joints on a truck getting ready to head out of our location at Spring. But you just look at the amount of investment that's going into those regions, whether it's Guyana, definitely, Brazil is a 900-pound gorilla. We opened up an office there last year.

We're already seeing upsides on the FES work there, on the titanium opportunities there, as well as Organic Oil Recovery. We talk about the work in new areas like Suriname, that's going to be coming online. In Trinidad, many of you probably saw the announcement that Exxon got new deepwater licenses. They may spend up to $10 billion there over the next 5 years. And that's the same. It fits right into the FPSO market that we're now a key player in providing components to.

And then lastly, there are two other areas in South America that are important. One is the completion accessory business that falls under OCTG, and that is heavily involved in working with a couple of our major service company clients, but it's all the completion work that goes on for these wells down in Guyana and Brazil. And also, what's important is the unconventional play in Argentina, and that has been a significant part of the Titan business.

I think the production is up to 600,000 or 700,000 barrels a day right now in Argentina. That's going to grow, and we think we're well placed with the acceptance of our products down there.

OCTG market, as I talked about earlier, I think that Travis Kelley and the team in our connection business as well as Daniel Tan for Asia Pac, they've done an amazing job with the product line in all areas. But this highlights in North America, where if you look at the graph on the bottom, we've definitely bucked the trend on rig count.

And I get asked all the time, well, how are they doing this with a rig count that's falling down, down, down. And it really comes down to one thing, it's our virtual mill concept. So I'm not tied to any specific mill. And there are some of our competitors, our connections are going on their pipe to clients. Because we rely on the distribution network in Canada and in the U.S. where we don't have the risk of tariffs. We don't have the risk of the cost of inventory for those products and just charge them a service.

The other thing is the technology is speaking loudly right now. When you look in the Permian Basin, something like 35% of all wells drilled in the Permian now have laterals greater than 2 miles. And you really can't afford to have a problem 2 miles down, and you really need to make sure these casing streams can stay together. And the new clients we've picked up, the market share gains have just been, I think, excellent and again, really buck the trend of what you saw with the rig count and what we would have normally seen.

Energy transition, we talk a little bit about there. I mean, one of the reasons I'm so optimistic going forward is going to be in natural gas demand. And we don't talk a lot about this. I haven't talked a lot about this to date. But when you look at the amount of money being poured into data centers for AI and the growth that, that's going to have in places like, for example, my home state of Pennsylvania, they just announced something like $25 billion in AI and data center construction going on.

The key is that today, those aren't using any power, because they're being built. And people need to step back for a second and when does that happen. So '26, '27, as those things come online, they have to have dependable supplies of energy. They're not going to get it from wind and solar. Natural gas will be the driver for that.

And if it's a North America data center using natural gas or nuclear, but specifically natural gas, it's going to be unconventional. And that plays into Titan and plays into future growth in areas like the Marcellus and the Utica, where we're the #1 supplier of product there. So I'm very, very bullish on natural gas. It's going to be unconventional. It's going to be great for our OCTG business as well.

On the other energy transition things, again, I'm not too bullish on carbon capture, but I do think geothermal has a place. They're getting the cost structure down on geothermal. And it's an area where, especially in the area of premium connections, our team is working hard qualifying product. And even in things like the Forge project in Utah, our Titan people have been supplying product out there. So that will be a decent market. It's going to be, I think, stronger internationally.

So again, outlook, we think we've got a challenging period ahead of us. I don't know what the fourth quarter is going to bring. I think that's the big uncertainty in North America right now, because nobody does know. And it's going to depend on what's the macro. And to a degree, we're always held kind of hostage to that. But what I do know is things that I talked about as far as the outlook longer term for natural gas, the unconventional plays, the fact that Subsea business has a very, very strong pathway ahead of it.

As Bruce talked about earlier, we did see a dip in Subsea Tree Awards this year that was really not expected. I think it's just kind of a timing issue. But we're looking at more than 300 trees being awarded from '26 through 2030. And that's an indication of the health of that Subsea market and why we're so bullish on it.

And if you look at adding another 40 or 50 FPSOs around the world, the addressable market for Hunting is now huge. So our outlook for the full year remains unchanged. We're going to work hard to keep focus on our cost basis to make sure that we're good stewards of the company's money and continue to find ways to grow the business, both organically and inorganically. But I think the outlook is brilliant.

So with that, I think my presentation is done, and thank you all, and we'll open it up for questions.

Jamie Franklin from Jefferies. So I just wanted to touch on Subsea margins, please. Obviously, a bit of a step down on the first half. So what is your kind of confidence that they can get back to the 20% plus that you saw in 1H '24? And then it looks like you've got about 90 million backlog for the Subsea business. How much of that is for the second half? And is there much high-margin stress joints within that?

Okay. In terms of the margin, I think there's a couple of things there that we think -- one is volume. So it's volume driven in terms of once those volumes return, we're talking about the Subsea trees coming back. That is driving -- we know the order book is there for the stress joints, which will be recognized more in '26.

But we also got FES coming on board as well, which again is high-margin contribution. The product mix for the first half, we saw, and that's why it was 13% was more about the stab plates. So they tend to be lower product mix and lower contribution. Once we get back to more normalized product mix, we've got FES contribution on there. We definitely see this as a 20% EBITDA margin product line. And the volumes coming back when we talk about FPSOs, in terms of the general market, that is also going to help us get to that range as well.

Okay. Great. And then just on Titan business, what are you seeing in terms of behavior of your peers in terms of pricing?

I think pricing -- I'm not seeing really any changes from 6 months ago. I think everybody needs to make money. I think there's pressures from clients. That's a daily thing on all product lines if you're talking about U.S. land. But I think the good thing from our side is we've held our ground. We're not cutting prices. We think that the leaders in the business are doing the same. And so it's pretty stable right now.

And when you look at some of the components like the steel components and that, most of us are buying the same type of material. So there's not really any difference there either. So we're trying to let the technology speak loud and clear when we're out there with our clients and focus on that.

Richard Dawson from Berenberg. So just picking back up on OCTG. So KOC one is now complete, very strong margins within that contract. So we've had a couple of tenders from KOC sort of across this year, which has gone to competitors. So when you look forward to tenders that are out there, is your bidding strategy changing at all? Are you potentially looking to sacrifice a bit of margin to make sure you win that?

Well, I'm not going to tell you I'm going to sacrifice margin on a tender process, whenever that comes. All I would say is that I think that our entrance into Kuwait kind of stirs some things up as far as our competitors go, and it is what it is. And it's a competitive process.

The key was, first and foremost, being qualified on the connections. So you couldn't even get in the door until you did all that testing. We accomplished all that. Our team in Houston did a brilliant job on that. And then we executed flawlessly. Because we're a virtual mill, a lot of it is going to come down to how competitive also our mill partners are going to be. So I think it's one of those cases we'll evaluate that on the grades and sizes when it's specified and comes out, and we'll put our best foot forward and make sure that whatever sales price it is, it benefits us as a company from a margin perspective.

Okay. And maybe one for Bruce as well, just on the KOC, because there's also a working capital benefit that came through from sort of how KOC was structured. When you look into H2, what's sort of your outlook for working capital on that ratio? Do you see that sort of saying flat?

In terms of the KOC order was very good for us in terms of the discounting on the LCs, in terms of bank acceptance bonds. So with no KOC in H2, we're at 34% just now. So I see that being consistent in H2. I think hopefully, we're successful with a portion of the tender. And when we get to actually recognize that revenue and deal in the working capital, that gives us more scope to probably improve that figure, probably closer to the 30% mark.

It's Mick Pickup here from Barclays. A couple of questions, if I may. Just on the Titan business and unconventionals, I know you mentioned it in the text. Can you talk about opportunities in Saudi and maybe even in Abu Dhabi on the unconventional side for that? And the second question on nuclear. It's not something you've talked about much in the past.

Yes. So on the business in Saudi Arabia, as I think a lot of you know, there's been a pause over there. So the last 2 months or so, it's been very, very quiet in Saudi from some operational issues. All I'm going to say, Mick, without being saying too much is competitive, we feel we're very, very well placed to see that business do dramatic things for us.

So we have a good reputation, a great track record over there, great clients that we work through on the wireline side. So I'm very optimistic on that.

On nuclear, there's been some new business captured out of our Dearborn operation for some fusion work going on as well as traditional new nuclear. One of the things about -- and even when we made the acquisition of Dearborn, they had like zero nuclear business, because of just how that died for decades. But in the early days of that operation, they were very involved in the nuclear power plant construction side of the business with different components.

And it's one of those type of things, whether it's Hitachi or whoever we're working with, it's kind of good to have already been spec-ed in there and have your CV in place that you do this. So I think nuclear is one of those things that I can't put my finger on how big the scale of it is yet because, again, when are they going to build this, when are they going to get the okay, but it could definitely be a significant growth area for the Dearborn operation.

And do you have anything on the OCTG side for nuclear? I know some of the other OCTG names got rid of the nuclear businesses 4 or 5 years ago, just because it's small volumes, very high tech connections needed and very high spec pipe.

Yes. No, we don't have anything OCTG-wise related to nuclear.

It's Alex Brooks, Canaccord. Can I ask a bit on FES because that's quite a different business to what you have historically and you tend to be much more a manufacturing operation, and this is very much kind of pull-through. Can you kind of talk a bit about what the vision is there? Is it that it's pulling through primarily EmPro and -- how does that fit in with that...

So the real vision, if you look at that picture up on the screen, those red things that you see are the patented connections that they make, the diverless stiff bell connections or whatever are used for the umbilicals under the turret and all. And each of those -- they're significantly priced with very good margins on that business. So it really depends on the design of the turret.

But there's a feasibility -- there's a probability, I'm sorry. I mean, you could have a potential market of like $50 million for every FPSO that goes out there. When you look at the titanium stress joints as well as the FES product line, depending on the turret configuration and what they decide to do.

What we said, and a lot of this was going to go in my closing remarks. We don't look at this as like, oh, what's the offshore business or that doing this quarter. We look at the trends and listen to our customers, whether it's at FMC or Exxon. What are you thinking about for the next 5 to 10 years? And honestly, it's going to be FPSO land. I mean that is where the big reserves are. That's where the lowest -- low cost per barrel are over a long period of time, and that is not going to slow down.

And so how do we touch that FPSO market? As I've mentioned in the past, not every FPSO is going to use a titanium stress joint depending on water depth, whatever. There's a big part of it that will. But now with FES, every FPSO is a marketplace regardless of water depth for us.

So the cross-selling and how we view that we can go into these clients, it's always better to have -- more is better. It gives you more leverage, gives you more size. And the people in FES, a lot -- there's a lot of bespoke engineering, that clients around the world know they go to these guys and there's never a problem.

And another highlight that I didn't mention is one of the good things about FES, they're not -- business isn't contingent on the U.K. market. So most of it is outside of Europe, right? It's Brazil, it's Gulf of America. There's some in Norway. It's very, very international, Australia. And so I'm -- just to throw that out there, I'm not concerned about the U.K. business environment for the FES acquisition. But that's kind of the story, just more products to sell and bundling of that kind.

Victoria McCulloch, RBC. Just on EMEA, we're up to $11 million of cost savings you're expecting there. When are you expecting that number to come through? And are the costs associated with delivering that within the number? And then linked to FES, what proportion does that make up within your $1.1 billion tender pipeline?

On the FES, it's quite a small portion at the moment, but it's up towards $100 million mark. There's some really good tenders, quality tenders we're working on there.

In terms of the $11 million, we've been working on the cost reductions for the last 12, 18 months for EMEA. There's a lot of work being done in H2. There'll be some more going through in H1 in terms of just the timing it takes to restructure some of the facilities. But the majority of that $11 million in terms of coming through '26, I would say it's $9 million or $10 million. So we'll get the benefit of those cost savings coming through next year.

And just as a follow-up, OOR. It feels that it's awaiting the results of the recent work ongoing. How do you accelerate that market? Is there results to show clients when you go to pitch the opportunity? You talked about $100 million revenue by 2030. Is there a way to accelerate that? Is there -- could that market be bigger?

The rates what we're doing in terms of restructuring in the labs, more people, the report writing so we can respond to customers quicker will help. But the actual geology reservoir, sometimes it will take from the injection to get to reservoir will take 4 or 5 months. So that's a travel time for the nutrients. So there's nothing you can do to accelerate that.

But we've got good results coming out of already from North Sea, from the Middle East as well. So it's about leveraging those results back to the customers, giving them the comfort, showing them, and it's fantastic results are coming out, whether that's on enhanced recovery, whether that's on H2S reduction. But obviously, a key high-profile treatments are going on just now, and that will probably be -- those results will come out probably quarter 1 next year.

But that doesn't stop us going in. We're in Equatorial Guinea, we're in Azerbaijan, we're in Petronas as well. So it's really partly it's resources and partly it's just using results we have more effectively to really just try and commercialize that product quicker.

Toby Thorrington from Equity Development. I've got three for you, I think, mainly for Jim. So first of all, the tender pipeline still north of $1 billion. I guess there's plenty of moving parts within that. Can you share sort of a bit of insight as to sort of the internal dynamic behind that big number as to if there's any movement in final investment decisions being pushed back, new things coming in and perhaps any tariff impact within that as well?

Okay. So on the tariff side, just to kind of highlight that, we're really -- there's really not a big tariff issue for the company. I mean the areas where there are tariff issues, for example, I mentioned earlier, we manufacture some perforating guns in Mexico. We're now doing -- those are going to Argentina or they're going to Canada. We're not using them in the States. So we're not worrying about tariff issues.

And because we don't buy pipe in the U.S. or in Canada, Canada is not really that an issue. It's just not a meaningful issue for us or an issue that puts us at a disadvantage against any of our competitors, because we buy the same explosive powder or whatever the deal is on that.

Investment decisions are not being changed right now. The outlook is, there's a lot of heavy OCTG tenders coming down the pipeline for this pipeline that we know -- making up the pipeline that's there. And it's really OCTG and Subsea. So we know there's stuff, for example, I don't want to give clients' names, but Gulf of America, there's some projects. Brazil, there's lots of projects.

Whether they go from a 10% probability to a 90%, that's a time issue and what happens with things like that. But overall, we're not -- today, we're not making any capital decisions based on that pipeline. We are looking at further enhancing our cost efficiency by perhaps replacing equipment in China to be more efficient the next time business comes up with KOC and looking at how we can do things, again, quicker, faster, better. We want to make sure our people have the latest state-of-the-art tools, so they're doing their job as efficiently as they can.

Just to backtrack slightly on that tariff point, you commented on Hunting's own position. Are any competitors disadvantaged by tariffs in North American market?

I think that from -- depending on the product line I'll talk about, if you're talking about from a Titan point of view, I think we're all in the same boat there. I don't think -- I think one of the advantages we do have is our switch manufacturing is all done in the U.S. where some aren't. So that's an advantage there on a cost basis tariff-wise. If you look at OCTG, you're better to ask the guys at Tenaris and Vallourec that.

I mean, I think they're happy with the domestic mills. Tenaris has Baytown, Vallourec's in Ohio. I don't know how it's affected the Vallourec material from Brazil coming in, except it's more expensive now. So they can answer that better than me.

Fair answer. Moving on to Advanced Manufacturing. Obviously, the group 2030 aspiration is to generate in the order of $250 million revenue outside the oil and gas industry. OCTG can be part of that. Advanced manufacturing is currently in the Vanguard for the current portfolio. Is there anything in Advanced Manufacturing by way of a step change or a breakthrough that could gap that up in -- or is it progress on a broad range of fronts accumulating programs over time?

It's on a broad range of fronts, as you said. And I mentioned, for example, some recent orders we got on the nuclear side, $8 million worth of business -- nuclear business. One of our big -- this goes back to my comments I made about natural gas. We have a client that I don't want to name right now, but we have a client that's very big in natural gas fired generation equipment for turbines. And where there's actually a meeting with them next week, I believe. They've been a long-term client for 20 years, but their backlog is accelerating dramatically, and we will benefit from that. So there's that part of it.

And then really for -- again, I know you're talking non-oil and gas. But I really think that the investment that we've made on the OCTG side, the relationship with the mill in China called Julie that we're working on, for example, with part of the tender pipeline in Brazil, there's some OCTG right there. I think that's got a good runway ahead of it and will grow, because those products are extremely high dollar and higher margin just because of the fact there's fewer mills in the world that can make the nickel-based materials. So I think we're still steady on holding out for that -- those numbers. And some of it, we hope also comes by way of M&A.

And supplementary for Bruce on AM as well. Can you sort of sketch out a margin path for that business? Obviously, it was impacted in the first half for reasons explained. Is that a sort of return to near normal or path to normal in the second half and then normal in FY '26?

Yes, I think it's been exceptional with the -- there's been industrial disputes. It's been softer in terms of we've had the less CapEx coming through on some of the more complicated oil and gas service parts. So we do see that coming back towards a double-digit EBITDA margin in the second half and building on that going into '26. Some of the efficiencies, some of the higher-margin product mix will come through '26 as well. So we do see that progressing.

Okay. That's clear. And sort of final -- sorry, Jim, final one for me. We skated over India a little bit, but there's reference in the statement to a second facility, which I think you've talked about before really. Can you just remind us what the aspirations are for India?

Yes. It's for the East Coast of India. It will be to service deepwater operations over there, more of an accessory repair shop and probably one production threading line, perhaps to do materials that they don't make in India. There are some of the higher chrome materials they don't make. So they have to be brought in. But it's really to do that and expand our service capabilities in that market for deepwater.

Okay. And indication of revenue aspirations by 2030?

I'm not going to give those numbers. I mean not right now.

Andy Edmond, also Equity Development. Just on FES. Obviously, extensive due diligence done before the transaction, I'm sure. So curious, you've described it as already a seamless integration. Any surprises or pleasant or unpleasant that you've come across?

And then secondly, you produced that excellent video at the time of the transaction with tremendous enthusiasm from within the group. And again, you've mentioned the start of synergies appearing. So just interested how much you're centrally driving that or whether the individual divisions and indeed FES themselves are very keen to talk and share client bases.

I think it has went to plan. I think part of our due diligence for any acquisition is making sure that culturally, things fit because as I had mentioned, we've seen train recs throughout the industry. So it's -- I even made a comment in my latest Board report. It's like dating, right? It really is. There's the relationship side. Does this make sense? I mean they went through a process. But the FES people, what they liked was the fact that we showed a pathway where we're committed to the offshore subsea business.

So this wasn't -- I wasn't some private equity guy showing up and how do I spin this out in 4 years. We're here for the long term. And that -- I think that was the comfort. That was the comfort the owners had in saying Hunting is going to be a good caretaker of this business, because I live in the same town with these people that I've worked with for 30 years. So to say, am I surprised? I'm not surprised, because it's just the way we do things on the acquisition side. And I've literally been involved in every one of them for a couple of decades now. So it went to plan. The people are happy. Dane Tipton, who leads our Subsea business, I think, has laid out an excellent integration program. And so off we go.

Okay. Thank you. We have one question from the webcast. This was asked by [ Roy Adok from Risk. ] With a robust oil demand growth of 4.2 MBd in emerging and developing economies over the period of 2025 to '30, what does the business development strategy look like for MENA, Sub-Saharan Africa and Asian markets?

I think it looks the same as it looks today and only with more product offering for it. So one of the areas on the offshore side, for example, if you're talking North Africa, you got to talk about Egypt, the gas development off of Israel. There's lots of things going on in the Southern Mediterranean that I think will also benefit Hunting from the Subsea side of the business.

The rest of it is what we're already doing. We're already doing tenders and trying to get business in areas like Algeria. Algeria is going to be a growing market over the next 5 years, because of gas. So a lot of it is just being disciplined at what we do now and making sure we're touching every client we can.

Brilliant. Thank you. I'll hand back to you for some closing remarks.

Okay. Yes, I think time is about over. I appreciate everybody taking your time today to come and listen to our story. I'm excited about the future. I think that we've set this company up. Again, we're looking -- we look -- try to look ahead, right? It's that old thing about don't skate to where the puck is at, skate to where it's going to be. And that's what we're trying to do when we look at things like Subsea, whether it's AMG, our connection business, Titan, all of that.

So again, thanks for your time and shares are on sale. So keep buying. Times again. I'm done. Thanks.