Energy services firm Hunting said today it remained confident of reaching stock market expectations despite flat rig counts and subdued activity in its electronics arm.
The company, in a statement ahead of next month’s half-year results, said increased activity in the Gulf of Mexico and continued investment in oil-focused shale basins had supported trading for the first half of 2013.
“While global rig counts remain generally flat since the start of the year, Hunting’s broad portfolio of products provides the opportunity to capture a significant proportion of revenue for every well drilled, whether onshore or offshore,” said chief executive Dennis Proctor.
“As a consequence of this, the board remains confident of trading in line with expectations.
“The group continues to progress geographic expansion, with plans well advanced to establish manufacturing capability in South Africa to capture more opportunities across sub-Sahara Africa.
“Other facility expansion programs within North America are also planned, including a new premium connections threading facility and a new premium connection testing laboratory which will support more rapid product development across a number of key product lines.”
Activity offshore in the Gulf of Mexico and at the basins in Williston, Bakken and Eagle Ford had been sustained in the first half of the year, with increased investment in the facilities.
The electronics division had seen subdued business with customers working off inventory, but the rest of the group had seen improved opportunities.
Net debt for Hunting was approximately £160million, with the company saying it remained well capitalised.