Hunting, the international energy service company, said yesterday that after making three small acquisitions in 2009 it still had net cash of £365million and was continuing to look for further buys.
The company said it intended to acquire those that improved its global footprint, product offering and technology base to create value, adding that the timing of potential deals was the only uncertainty.
The three acquisitions completed last year were for a total of £47.3million.
Hunting paid £9.2million for Welltonic, a provider of well-intervention products and services with bases in Aberdeen, Singapore and Dubai; £31.8million for National Coupling Company, in Texas, a developer and manufacturer of subsea hydraulic equipment, and £6.3million for PT SMB Industri, a tubular threading operation in Indonesia.
Hunting chief executive Dennis Proctor said after the group announced results: “Against the backdrop of the severe economic environment and challenging market conditions in the oil and gas industry, Hunting has delivered a robust performance during 2009.
“The group continues to show good growth in its Asia-Pacific markets, an area where further expansion is planned in 2010, as our other core markets recover in line with global demand for our products and services.
“We look to the coming year with confidence.”
Mr Proctor said much of the company’s progress this year would be weighted towards the second half as operators committed to further drilling programmes, new Hunting facilities were completed and acquisitions were fully integrated. He said the level of progress would depend on regional activity and commodity prices driving the rig count.
He added: “Oil and gas reserves are depleting and production for most companies is declining. The world is still gaining around 200,000 people every day and a large middle class is leading to new levels of energy demand.
“The company is poised to capitalise on any future upturn in its markets and benefit from industry fundamentals that hold great promise for the future.”
Hunting, based in London with manufacturing sites worldwide, reported pre-tax profits of £38.5million yesterday, down from £56.6million in 2008. Revenue for the year was £359.9million, compared with £418.5million the year before.
The group has a significant presence in the north-east through tubular operations at Portlethen and Montrose, and at the Hunting Cromar wireline and pressure-control business and Welltonic, both in Aberdeen.