Hunting lifts profit guidance after strong first half

9th Jul 2024 08:13

(Sharecast News) - Oil and gas services group Hunting said first-half trading was ahead of expectations with profits more than a fifth higher than last year, as it lifted its earnings forecast for the full year.

The company is now guiding to a full-year EBITDA range of $134-138m, up from April's guidance of $125-135m.

Trading over the six months to 30 June has been bolstered by strong performances in the OCTG (oil country tubular goods), Subsea and Advanced Manufacturing product groups.

EBITDA for the first half is expected to be between $59m and $61m, some 22% ahead of the same period last year and 13% higher than the preceding six months, with margins in line with targets at 12%.

The company ended the period with a sales order book of $700m, up from $565m at the start of the year, helped by $231m of orders from Kuwait Oil Company (KOC).

"At c.$700m, our sales order book nears the highest in the company's history, which supports strong revenue and earnings visibility well into 2025," said chief executive Jim Johnson.

"We are delighted to have secured the significant orders from KOC. This achievement is the result of over six years of collaboration with KOC, supported by Hunting's industry leading premium connection technology, our strategic supply chains and our commitment to our clients to deliver value."

The stock was up 0.4% at 430.79p by 0921 BST, having now risen 45% so far this year.