2005Interim Statement

2

HALF YEAR HIGHLIGHTSHALF YEAR HIGHLIGHTS

Revenue £668m (2004 £540m)

EBITDA £32.9m (2004 £21.1m)

Operating profit £22.4m (2004 £11.9m)

Profit before tax £19.1m (2004 £10.2m)

Tax charge 35.1% (2004 33.3%)

Basic EPS 10.9p (2004 4.4p)

Interim dividend 2.0p (2004 1.5p)

+ 24%

+ 56%

+ 88%

+ 87%

+ 148%

+ 33%

3

IFRS CONVERSION - POLICIESIFRS CONVERSION - POLICIES

Transition l January 2004

Goodwill not amortised

Dividends recognised when approved

Deferred tax on asset revaluations

Derivatives and hedge accounting (l January 2005)

No off-setting (bank balances, deferred tax, retirement plans, interest)

4

IFRS CONVERSION - RESULTSIFRS CONVERSION - RESULTS

Excluding exceptional items:

June 2004 December 2004

UK GAAP

IFRS

UK GAAP

IFRS

RevenueOperating profitProfit before

taxBasic EPSTotal equity(Shareholders’

funds plus minorities)

Gearing

£581m £12.7m£10.1m

3.7p£163m

61%

£540m

£11.9m

£10.2m

4.4p£156m

64%

£1,255m

£30.8m

£25.2m11.9p

£118m

111%

£1,159m £29.6m £25.3m

13.1p£112m

117%

5

June 2005 June 2004

Operating Profit – Six Months Ended

Others

Gibson Energy

Hunting Energy

OthersHunting Energy

Gibson Energy

6

6 Months Ended

June 2005 June 2004

Revenue

£m

Operating Profit

£m Revenue £m

Operating

Profit£m

Gibson Energy - Marketing

Gibson Energy - OtherHunting EnergyTenkayOthers

443

86876

46225

9

472

- 13

349

70824

35191

4

331

1 8

668 22 540 12

Revenue and Operating ProfitRevenue and Operating Profit

7

FinancialFinancial

June2005

June2004

Year2004

Net borrowings

Gearing

After rights issue and Cromar acquisition*

Interest Cover

£138m

108%

58%

6.8x

£147m

136%

-

3.2x

£131m

117%

-

4.4x

* If rights issue and Cromar acquisition had been completed on 30 June 2005

8

Capital Expenditure

Jan – June2005£m

Jan – June2004£m

Gibson EnergyHunting EnergyTenkayOther activities

663

2

334

1

Split:MaintenanceNew

business

17

8 917

11

7 411

9

Free Cash Flow

June 2005£m

June 2004 £m

Cash from operationsTaxCapital expenditureDividends & interest

24(2)

(17)(7)

7 9

(11)(7)

FREE CASH FLOW

(2) (2)

10

Energy, Marketing & TransportationEnergy, Marketing & Transportation

Gibson Energy

11

Favourable differentials for diluent and all oil grades

Increased capacities for storage and blending of crude oil and diluent

Diversification of wellsite fluid products

Energy, Marketing & TransportationEnergy, Marketing & Transportation

Marketing

Moose Jaw

Production of distillates, diesel and Naptha/gas oil increasing value from TOPS

Facilities operating year round New market for higher specification roof

flux asphalt

12

Increased volume for Husky Oil to 100,000 bpd

Truck trailer utilisation for heavy oil, asphalt and diluent at full capacity

Energy, Marketing & TransportationEnergy, Marketing & Transportation

Truck Transportation

Canwest Propane

New distribution terminal to open in Tacoma Washington

Increase in demand from oilfield activities and Athabasca developments

13

Increased ultra low sulphur diesel handling facilities for Suncor

Rail car loading agreement with Petro Canada

Edmonton North Terminal start up (Q4 2005)

Increased storage and blending facilities

Increased volume from Athabasca pipeline

Hardisty Terminal modification to enhance marketing opportunities

Energy, Marketing & TransportationEnergy, Marketing & Transportation

Terminal Activities

14

Global Oilfield Services

Hunting Energy Services

Tubulars Manufacturing International

US Premium Production Tubing*US Patented Connections

ConnectionsCouplingsPup Joints

OEM Products forHalliburton,

Schlumberger, BakerDrill Stem for

Telecommunications*Casing and Tubing

ThreadingAccessories*

Slickline/Wireline ToolsMud Motors*Shock Tools

N. Sea Carbon & ChromeTubulars*

Patented ConnectionsAccessoriesBlast Joints

SE Asia-Chinese TubularsPerforating Guns

* Market Share Leadership

15

Global Oilfield Services

Hunting Energy Services

Drilling Well Construction Well Completion

Drill Stem forTelecommunications

Mud MotorsShock Tools

Premium ConnectionsManufacturing

Accessories

Premium TubingManufacturing

AccessoriesSlickline/Wireline

ToolsChrome and Carbon

Casing

16

Dominant position in telecommunications market

New mud motor designs and shock tools

Expansion into Grand Junction, Colorado

Global Oilfield Services

Drilling

Well Construction

Continued expansion of APRS

New, high speed machine tools

Development of “Deepwater” facility

17

New facility for Premium Tubing

Co-development of Slickline tools with major oilfield service providers

Global Oilfield Services

Well Completion

Cromar Acquisition

Expansion of our Slickline/Wireline global “Footprint”

Introduction into pressure control market

18

9 out of 12 wells drilling success8 Gas/1 Oil

Gas Production: 1,287,895 mcf

Oil Production: 47,537 bbl

Exploration and Production

Tenkay Resources

19

Encouraging half year figures with tanker and dry cargo fixtures above 2004 levels

Strengthening of the US dollar has benefited margins

International Shipbroking

E A GIBSON SHIPBROKERS

20

Proactive management team

Sourcing new products and pursuing new markets outside France

Good order book positions

Petrochemical Equipment Petrochemical Equipment

HUNTING ENERGY FRANCE

21

Oil DemandOil Demand

20

30

40

50

60

70

80

90

75 85 95 05

Year

mmb/d

Growth trends are likely to continue

• 15% of world (OECD) uses 50 mmb/d• 85% of world (Rest) uses 35 mmb/d

Source: EIA, Simmons & Company

22

Average Oil and Gas Prices Average Oil and Gas Prices

$5.00

$15.00

$25.00

$35.00

$45.00

$55.00

$65.00

2001 2002 2003 2004 2005

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

Avg Oil price

Avg Gas Price

23

Average Rig CountAverage Rig Count

0

200

400

600

800

1000

1200

1400

2001 avg 2002 avg 2003 avg 2004 avg 2005 ytd

US

CAN

Intl

24

Wells DrilledWells Drilled

0

10000

20000

30000

40000

50000

2001 2002 2003 2004 2005

US Canadian International

25

Continued “Cost Efficiency” identification

Niche acquisition opportunities

Benefit from increased operator cap ex

Ongoing investment in “Human Capital”

Debt reduction

OutlookOutlook

26

2005Interim Statement