Hunting PLC on Thursday said it swung to a profit in the first half of the year, as revenue grew by a double-digit percentage, while it plans to close some factories in the US and the Netherlands.
The London-based international energy services group swung to a pretax profit of $23.1 million in the six months that ended June 30 from a loss of $500,000 a year before, as revenue grew by 42% to $477.8 million from $336.1 million a year prior.
The improved results reflected ‘the positive trend of increased investment in the oil and gas industry following years of under investment, driven by global energy demand and increased focus on energy security,’ Hunting explained.
The company declared an interim dividend of 5.0 US cents, up 11% from 4.5 a year prior.
Looking ahead, Hunting said it has ‘good momentum’ going into the second half of the year and expects improvements in its working capital.
Chief Executive Jim Johnson said: ‘Alongside our core oil and gas businesses, Hunting has made good progress in positioning itself as a critical provider of technology, as well as a key supplier of important raw materials for the energy transition.’
Hunting also on Thursday said it will transfer the manufacturing and assembly operations of its main well testing site from the Netherlands to Dubai, which will result in the closure of a facility at Velson-Noord.
The Titan division’s operating site in Oklahoma City in the US is being closed down as well, Hunting said, and manufacturing systems will be moved to its Pampa, Texas and Monterrey, Mexico facilities.
Shares in Hunting were down 7.3% at 235.85 pence each in London on Thursday morning.
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