Source - Alliance News

Hunting PLC on Thursday said it ‘remains comfortable’ with full-year earnings expectations and reported a contract win.

Hunting, however, said its order book shrunk in its third-quarter, but has since picked up. It also said it has seen some ‘softness’ in the North America onshore space.

Shares in the company traded 7.4% lower at 286.00 pence each in London on Thursday morning, the worst FTSE 250-listed performer.

The maker of parts and technology systems for the oil and gas sector said ‘positive momentum’ continued in the third-quarter of 2023.

‘Activity in South America, the Middle East and Asia Pacific markets continues to be high, offsetting some softness seen within the North American onshore market,’ the London-based firm added.

Year-to-date, it has achieved earnings before interest, tax, depreciation and amortisation of $75 million, up almost double year-on-year. It left its full-year Ebitda outlook unmoved at $96 to $100 million, which at best would be a 92% rise from $52.0 million.

Chief Executive Jim Johnson said: ‘The performance of the group has been encouraging in the period driven by strong international demand for oil and gas, underpinned by an increasing global focus on energy security and continued economic growth.

‘We are also pleased to note that commodity prices are showing resilience. This strength will continue to deliver commitments to new drilling and completion activity as we enter 2024 and positions the group strongly going forward.’

Hunting said its order book at the end of September stood at $511 million, down from $529.7 million at the end of June.

A new pact has lifted Hunting’s order book from the September level, however.

Hunting secured a ‘further large order’from a client operating in South America for its titanium stress joints.

The company added: ‘The $59 million order will be completed over the next 28 months with revenue being recognised over this timescale. With this new order, the group’s total sales order book has increased from the position reported at quarter end.’

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