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Hunting PLC reported increased revenue but lower profit in the first half of 2025 against a ‘volatile’ market backdrop, and said a solid tender pipeline underpins confidence for the medium-term. The London-based supplier of equipment to the oil and gas industry said pretax profit fell 15% to $30.6 million in the six months to June from $36.2 million a year prior, but rose 21% to $43.7 million from $36.2 million on an adjusted basis. Earnings before interest, tax, depreciation and amortisation increased 16% to $70.2 million from £60.3 million and revenue grew 7.0% to $528.6 million from $493.8 million. Hunting’s Ebitda result was driven by strong results from the oil country tubular goods product group, and an improving Perforating Systems result, while the Subsea, Advanced Manufacturing and Other Manufacturing businesses reported declines on a year before, due to contract timings and revenue recognition, the firm said. Chief Executive Jim Johnson said it was a ‘strong set’ of results, in ‘what has been a volatile macro-economic backdrop’. ‘Our successful delivery of orders with the Kuwait Oil Co has supported these results, and our outlook remains positive given the tender pipeline of new orders available to the group,’ he added. Shares in Hunting were down 3.9% at 318.92 pence each in London on Thursday morning. They have fallen 26% in the last 12 months. Looking ahead, Hunting said oil and gas demand has remained ‘steady and is likely to remain at a consistent level in the medium to long term’. The firm pointed to a tender pipeline that remains in excess of $1 billion, with opportunities for new OCTG and Subsea being pursued. But in the near term, the geopolitical and macro-economic outlook remains ‘choppy’, it added. Hunting reiterated annual guidance for Ebitda between $135 million and $145 million, which at the midpoint would be up 11% from $126.3 million in 2024. ‘While there is a level of market uncertainty that may impact the group’s full year outturn, the directors reiterate current guidance, underpinned by the efficiencies achieved as part of the group’s ongoing restructuring programme,’ supported by a ‘strong balance sheet and net cash,’ the company said. The dividend was boosted 13% to 6.2 US cents per share from 5.5 cents. Hunting intends to increase its dividend growth to 13% per annum from 10%, after reviewing capital allocation priorities and following discussion with major shareholders. In addition, Hunting announced a $40 million share buyback to be conducted through three phases, of $15 million, $15 million and $10 million respectively. The first tranche starts Thursday and is anticipated to end during the fourth quarter of calendar 2025. The third tranche is expected to be completed during the second quarter of 2026. The first tranche of the buyback will be run by RBC Europe Ltd, the second by Canaccord Genuity Ltd, and the third by Joh Berenberg, Gossler & Co KG. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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