Hunting PLC expects EBITDA within guidance

LONDON – Precision engineering group Hunting PLC (LON:HTG) has today provided a trading update confirming that its 2023 financial results are in line with previous guidance and market expectations. The company expects EBITDA of $96 million to $100 million, with group revenue expected to be $925 million to $930 million.

This EBITDA reflects an increase in margins from 7% in 2022 to about 10.5% over the past year, towards the 14-16% target set for 2025. Hunting’s sales order book has grown significantly and is currently worth approximately $575 million, up 12% since the end of the third quarter of 2023 and 21% from the end of 2022.

The company’s balance sheet shows strong cash generation in the fourth quarter of 2023, with expected cash and bank balances totaling equal to borrowings and a net debt position close to zero, in line with the outlook given in October 2023. Additionally, Hunting completed the disposal of its remaining oil and gas production assets last quarter in an effort to further streamline its operations.

In terms of product lines, Hunting’s OCTG (Oil Country Tubular Goods) products, including Premium Connections and Accessories, are expected to increase revenue by approximately 53% compared with 2022. However, Perforating Systems expects revenue to decline slightly by 3-4% due to a roughly 20% reduction in the North American rig count. On the other hand, the subsea and advanced manufacturing product lines grew strongly, with revenue increasing by approximately 40% and 45% respectively.

The North American operating segment achieved significant EBITDA growth, driven by demand for quality connections and accessories. Titan’s operating segments delivered solid results despite a decline in the U.S. onshore rig count, while its newly formed subsea technology division benefited from increased investment in offshore drilling.

Hunting maintained its 2024 EBITDA forecast of $125 million to $135 million, supported by strong sales orders. This outlook is in line with current market expectations.

Founded in 1874 and headquartered in London, with corporate offices in Houston, Hunting operates in the United Kingdom, China, Indonesia, Mexico, the Netherlands, Norway, Saudi Arabia, Singapore, the United Arab Emirates and the United States. Financial statements are denominated in U.S. dollars across the company’s five segments: Hunting Titan, North America, Subsea Technologies, EMEA, and Asia Pacific.

This article is based on a press release from Hunting PLC.

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