Hunting gets $59m subsea order, maintains earnings performance

(Sharecast News) - Precision engineering group Hunting announced a substantial subsea order worth $59m for titanium stress joints on Thursday, confirming it maintained its earnings performance through the third quarter. The FTSE 250 company said group EBITDA totalled $75m, consistent with the second quarter, as it maintained full-year guidance for earnings from $96m to $100m.

It recorded a total cash and bank balance of -$68m at the end of the quarter, although it anticipated a year-end position that would be about breakeven.

The board said that Hunting was well-positioned for growth with a sales order book totalling $511m as of 30 September.

It was also kicking off its 'Hunting 2030' strategy alongside opening a joint venture threading facility in Nashik, India.

"We are delighted to have received another major order for Hunting's titanium stress joints," said chief executive officer Jim Johnson.

"The technology is gaining further acceptance for application to offshore production vessels, and we are pleased to be supporting clients with technology which delivers safer and faster cash flows for them.

"The performance of the group has been encouraging in the period driven by strong international demand for oil and gas, underpinned by an increasing global focus on energy security and continued economic growth."

Johnson said each of Hunting's product groups was executing its growth strategy, as outlined at its capital markets day.

"Our diverse product platform plays to the long-term investment themes of the industry, including strong growth in offshore work and international activity levels growing at a robust rate.

"We are also pleased to note that commodity prices are showing resilience.

"This strength will continue to deliver commitments to new drilling and completion activity as we enter 2024 and positions the group strongly going forward."

Reporting by Josh White for Sharecast.com.