Hunting H1 revenue and profits grow, secures 'significant' North Sea contracts

29th Aug 2024 09:10

(Sharecast News) - Precision engineering firm Hunting said on Thursday that both revenue and profits had grown in the six months ended 30 June as its order book rose to record levels.

Hunting said revenues were up 3% at $493.8m, while gross profits were 18% higher at $135.2m and underlying earnings rose 23% to $60.3m. Gross profit margins improved to 27% from 24% and EBITDA margins moved from 10% to 12%.

The FTSE 250-listed group also highlighted that its order book had increased by 32% to a fresh record level of $699.5m.

Hunting said its diversified portfolio had driven the strong results, particularly in offshore and international markets, and has made notable progress in energy transition markets.

Despite challenges in the US onshore market impacting its perforating systems division, Hunting said the outlook remains positive, with growth expected from strategic initiatives and new technology rollouts.

Separately, Hunting announced it had secured "significant" organic oil recovery contracts totalling up to $60.0m from major North Sea operators, spread over a period of five years.

As of 0910 BST, Hunting shares were down 4.90% at 408.0p.

Reporting by Iain Gilbert at Sharecast.com