London-headquartered Hunting (LON: HTG) is charting a plan for major growth with the launch of a “broad-based” 2030 strategy.
Up to the end of the decade and beyond, the energy services firm plans to capitalise on its present capabilities to stimulate expansion, rebuild baseload earning and stabilise profitability.
That will be underpinned by the strong outlook for global oil and gas sales in North America, Europe, Middle East and Asia Pacific.
Hunting, which has a North Sea base in Portlethen, near Aberdeen, also intends to diversify its operations across non-oil and gas sub-sectors, where it “can leverage existing expertise”.
Delivered through both organic and inorganic growth opportunities, the aim for the group is a long-term EBITDA margin target of 15%.
The company also intends to grow its dividend by an average of around 10% per year until the end of 2030.
Hunting chief executive Jim Johnson, said: “The Board has set a targeted medium-term strategy that derives revenue from a wider range of sectors including oil and gas, as well as the wider energy industry and other sectors requiring precision engineering and systems design, supported by the Group’s proprietary technology and sector leading expertise.
“This strategy will stimulate new growth and rebuild a baseload of earnings to establish greater resilience to the cyclicality of the oil and gas industry, which will in turn lead to more stable earnings and increased investment returns in the medium term.
“The evolution of the Group’s strategy is underpinned by its established position as a manufacturer of world-class precision engineered products across multiple sectors and the belief that Hunting can achieve strong organic growth within existing and complementary sectors through an enhanced strategic focus on compelling growth markets that lend themselves to Hunting’s existing expertise.”
The launch of Hunting’s 2030 strategy coincides with the publication of its full-year results for 2022.
Adjusted profit for the year was $14.6 million, reversing losses of $35.1m in 2021, while the group’s order book increased by 124% to $473.0m.
Revenue for 2022 was up 39% to $725.8m, while the company’s gross margin improved to 24% from 12% in 2021.
Mr Johnson said: “I am pleased with the Group’s performance this year, delivering good results in a period of commodity price volatility and macro-economic uncertainty. Whilst certain challenges remain, we are confident that we will deliver a strong performance in the year ahead, with Hunting exceptionally well positioned to benefit from increased investment in energy security and higher demand for energy as China continues to re-open post COVID.
“Whilst our commitment to our growth plans in oilfield services remains rock solid, I am delighted to be launching our Hunting 2030 Strategy today that includes increased investment to enhance our growth in other complementary markets, including the energy transition.”
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