Hunting (LON:HTG), the oil and gas supplier, has announced it will undergo a restructuring that threatens the jobs of 200 people across the UK.
It is understood that the firm employs around 200 people across its three UK sites. Hunting operates a base in Altens, known as Badentoy, as well as the Scottish village of Fordoun and its corporate headquarters in London.
The firm says that restructuring seven sites in the UK, the Netherlands, Norway, Saudi Arabia, and the UAE will save around $10 million (£8.21m) as its business servicing clients in the North Sea declines.
The firm cannot confirm how its UK headcount will be impacted following the restructuring; however, it expects to provide an update in its full year results which are set to be published in March.
Hunting has previously rallied against the UK’s controversial oil and gas taxation policy and the most recent update comes after the firm reviewed the impacts of levies across the Europe, the Middle East and Africa (EMEA) region.
The firm wrote in a stock market update: “As noted in today’s trading update, which has been released separately, the directors announce that a major restructuring of Hunting’s operating presence across the EMEA operating segment has commenced following a detailed review of the outlook for the group’s European operations, which has taken into account the confirmation of the tax regime of the UK North Sea oil and gas industry and the parallel strategy of the UK government to decarbonise its energy supply.”
© Supplied by Hunting PLCFollowing the firm’s update, stock prices jumped by more than 11% on Tuesday.
Previously, Hunting chief executive officer Jim Johnson told Energy Voice that he believes the UK is “committing suicide economically” due to its tax regime.
Last year Keir Starmer’s government delivered the first Labour budget in 14 years which increased the headline rate of tax imposed on UK operators to 75% as investment allowances, which were previously outlined under the energy profits levy (EPL), were removed.
One of Hunting’s biggest customers in the UK has been Apache (NYSE:APA), however, last year the North Sea operator detailed plans to upsticks and leave the country.
The New York-listed oil and gas giant announced plans to cease operations in the UK by the end of 2029 in November as it also blamed the UK’s EPL, or windfall tax.
“One of our biggest customers for the last ten years has been Apache, and they decided they’re not spending any new money [in the UK],” Johnson said in August.
Hunting looks forward to ‘further year of growth’ amid restructuring
Despite the firm’s restructuring, its global forecast is strong. It is on track to meet full year 2024 targets.
In its latest trading update, Hunting said that it had a “strong sales order book”.
Johnson wrote: “2025 should, therefore, deliver a further year of growth and with strong acquisition opportunities, a healthy balance sheet, and a robust cost cutting programme that includes the consolidation of our EMEA operations, our profits and returns should continue to advance in the year ahead.”
The Hunting boss explained that forecasted increased drilling activity in the US and Canada is set to boost its books, “which will be further supported by the new US administration.”
Hunting has been approached for comment.
