Energy services group Hunting saw full-year profits rise for 2013 – despite being hit by a slowdown in North Sea projects.
The group said project deferrals and a lower rig count in the North Sea had subdued its European results, although increased profit from its US operations had made up for the decline.
The London-based firm, which makes and distributes oil and gas extraction tools and products, saw pre-tax profits rise from £76million in 2012 to £80.7million for last year.
Revenues also rose slightly, up 2% to £797million, but revenues for European projects were down 18% as rig maintenance programmes and deferred project spend into 2014 hit contracts.
Rig activity more than halved for the firm, which started 2013 with 22 rigs.
“With contracts to provide support for nine of these rigs, the facilities were prepared for high production levels and supported by higher inventories,” the company noted.
“The rig activity declined to 10, with exploration wells drilled at the lowest level since 1965, and profits fell to half of expectations.
“Drilling activity levels have recovered and expectations are for a return to 2012 results.”
The company said it now expected single-digit growth for North Sea projects over the next year, with new sales appointments for Europe to try and drive further opportunities for the region.
However increased activity in the Gulf of Mexico and an stronger move into the US shale gas market offered better results for the company.
“While the group experienced a number of trading disappointments during 2013, including customers unwinding inventories and project deferrals, other areas of the Group delivered an excellent performance,” said chief executive Dennis Proctor.
“Looking forward we anticipate a stable commodity price and investment environment within the industry, with early indications of continued growth in capital expenditures within our customer base, which should support further growth during 2014.
“2013 has seen a year of continued internal investment, which will ensure Hunting is well positioned in the medium term to serve both existing and emerging market growth for our product lines.”
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