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Hunting PLC on Thursday said it expects to return to bottom-line profitability in the full-year following an in-line-with-expectations performance in the first half but noted heavily impacted operations in the Asia Pacific.
Shares in Hunting were down 17% at 226.50 pence on Thursday mid-morning in London.
Interim earnings before interest, tax, depreciation, and amortization are expected in the range of $16 million to $18 million. The previous year, the company reported an Ebitda loss of $3.6 million.
The London-based energy services provider added that its second half performance continued to indicate a strengthening in revenue-run rate. Third and fourth quarter Ebitda run-rate is expected to increase by 20% against the second quarter, it explained.
Its sales order book at May 31 stood at $313 million, compared to $215 million at December 31.
‘Results in May 2022 confirm the group's return to bottom-line profitability, with further improvements anticipated during the remainder of the year. Clients continue to steadily increase drill spend, supported by the strong commodity price environment, indicating a further improvement in trading momentum in H2 2022, despite the macro-economic and supply chain constraints seen for certain components,’ said Chief Executive Jim Johnson.
Hunting reported improving results for its North America operating segment, noting increases in the sales order books for the Premium Connections, US Manufacturing and Subsea business units.
The company's Asia Pacific operations saw a more challenging environment for the majority of the first half, however. This was as a result of the recurring impact of Covid-19 on supply chains in China.
Hunting expects activity levels to improve during the second half as a consequence of the partial reopening of the port in Shanghai during May.
Hunting's half-year results will be published on August 25.
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