UK's Hunting maintains annual forecast despite H1 profit increase
Hunting Plc, a British energy services company, posted a 23% increase in its first-half profits on Thursday. The firm attributed the jump to a robust order book for its oil and subsea businesses. However, it maintained its earnings forecast.
The shares of the company fell up to 7.7% during morning trading, but pared some of their losses by 739 GMT. They were now only down 2.3% at 419 pence each.
Jim Johnson, CEO of the company, said that the OCTG product group, Subsea, and Advanced Manufacturing had all performed well over the past six months. The firm's order book also grew by 32% during this period.
Hunting, whose top clients include Exxon Mobil, Chevron, and others, has maintained its core earnings projection for the year.
Hunting said that a $86 million contract Hunting signed with Kuwait Oil Company would offset the headwinds experienced in the Perforating Systems unit.
Analysts at Jefferies note that "Trading Headwinds Remain in the US Onshore Main for HTG's Titan perforating system business"
Jefferies analysts say that the firm's core profit for the six-month period ended June 30 was $60.3 million, up from $49.1 millions last year. However, this is below expectations set by market analysts.
(source: Reuters)
