Hunting this morning said its US shale business was helping compensate for sluggish offshore and international market.
The firm said that despite “sentiment throughout the industry remains fragile, Hunting is well positioned to respond to the stabilising trading environment, utilising its global footprint of high efficiency manufacturing plants, led by an experienced management team”.
The firm reported an underlying EBITDA in the period of approximately $5.5million for the first three months of the year.
A report read: “Of note, Hunting’s Perforating Systems business remains very busy and continues to increase production to meet demand from customers operating in the US shale plays. Other businesses reporting positive EBITDA during the quarter include Hunting’s Premium Connections, Trenchless and Specialty businesses. As noted in the Group’s Full Year Results, Hunting’s European OCTG businesses have also benefited from orders from the US and Middle East, leading to improved activity levels in the period.
“While US onshore activity continues to demonstrate strong momentum, even at current WTI crude oil prices, management note that the US offshore and international operations continue to show weakness, given the lower forecast capital expenditures of the industry and the lower oil price environment.
“Cash generation continues to be closely monitored, with working capital controls still in place across many of the Group’s businesses.”
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