Hunting says half-year performance has been “ahead of expectations” as activity across international markets remain strong.
In a Wednesday trading update the London-listed oilfield services group (LSE:HTG) said both revenue and operating profit were ahead of targets set at the start of the year.
Results have been “materially ahead” of the same period in 2022 the firm noted, with order books continue sitting at around $530-550 million at the end of June, compared to $473m as at 31 December.
Adjusted profit for full-year 2022 was $14.6 million, according to the company’s most recent results.
EBITDA for the first half of this year is likely to be in the range of $48m-$50m, with similar forecasting for the remainder of 2023, putting full-year EBITDA at around $100m.
Hunting also sees an “improving” outlook for 2024 as its sales increase.
Chief executive Jim Johnson added: “Hunting has delivered a strong performance in H1 2023 as business units across the Group benefit from increased client activity.
“Management remains focused on delivering on market guidance, which is supported by robust international market momentum including South America, the Middle East and Asia Pacific.”
Mr Johnson pointed to a shift in the North America drilling market to focus on oil targets, which he said had provided further opportunities for the company, while its manufacturing businesses reported “good growth” in both energy and non-oil and gas markets.
He noted a positive outlook for further energy transition opportunities following the signing of a strategic alliance with Jiuli, which will provide new technologies and products for the geothermal and carbon capture sectors.
“The outlook for 2023 continues to be strongly positive, with 2024 revenue visibility also improving due to the orders secured during the period,” Mr Johnson added.
Hunting saw “improved revenue” from its EMEA segment too, drawing particular attention to a Tubacex contract in South America, part of which is now being shared with its Aberdeenshire facility in Portlethen.
Mr Johnson said earlier this year that the group had no plans to uproot its Aberdeen operations, despite the “disaster” of new windfall taxes.
The firm also reported “strong interest” in its ‘organic oil recovery’ technology – a microbial waterflood system for boosting oil output – with pilot and field trials now either underway or being planned in the UK, Europe and the Middle East in the second half of the year.
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