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Trading statements

Hunting in line with expectations

13 December 2016 07:33

International energy services group Hunting says management believes the 2016 full year outturn remains in line with expectations.

A trading update says: "Management continues to see improving market indicators within US onshore activities benefiting our Perforating business particularly in West Texas. Elsewhere within the group's operations market conditions, particularly within deepwater and international drilling activities remain subdued." It says that following the company's equity placing, which completed on 31 October with the receipt of net proceeds of US$84m, the group's balance sheet remains strong with net debt at the year end expected to be broadly neutral. Inventory levels continue to reduce and remain on track to be around US$260m by the year end. Looking ahead into 2017, with the benefits of cost cutting measures implemented over the last two years and the improving market indicators, management expects EBITDA to move into positive territory during 2017.

However, as has been the case in recent years the eventual outcome for the 2017 financial year remains highly dependent on the continued and sustained improvement of both North American and international markets.

It says; "While management expects a year of growth, the scale of that growth remains unclear at present. Management will look to update the market regularly on progress made during the course of the financial year."

Chief executive Dennis Proctor said: "2016 has been a tough year for the Company. Necessary measures have been taken to address the cost base and strengthen the financial position of the Company. Our capability to manufacture and distribute our range of products from our global footprint is retained which will allow us to take advantage of the anticipated market recovery."

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Related Company: HTG

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