Hunting delivers 'strong' FY performance

Energy services group Hunting said on Thursday that it had delivered a "strong performance" in 2022, adding that it was also "well positioned" for 2023 as demand continues to improve across all segments.

Hunting stated that its order book had increased 124% to $473.0m and revenues rose 39% to $725.8m, helping the group return to profitability with underlying earnings of $52.0m and adjusted profits from operations of $14.6m.

Net assets slipped $25.1m to $846.2m and total cash and bank tumbled from $114.2m to $24.5m.

Separately, Hunting launched its 2030 strategy, a broad-based effort to "grow and evolve" through the remainder of the decade and beyond.

Hunting stated it had set a targeted medium-term strategy that derives revenue from a wider range of sectors including oil and gas, as well as the wider energy industry and other sectors requiring precision engineering and systems design.

The FTSE 250-listed firm highlighted that its strategy will stimulate new growth and rebuild a baseload of earnings to establish "greater resilience" to the cyclicality of the oil and gas industry, which it said will in turn lead to "more stable earnings and increased investment returns" in the medium term.

Chief executive Jim Johnson said: "Whilst certain challenges remain, we are confident that we will deliver a strong performance in the year ahead, with Hunting exceptionally well positioned to benefit from increased investment in energy security and higher demand for energy as China continues to re-open post Covid.

"Whilst our commitment to our growth plans in oilfield services remains rock solid, I am delighted to be launching our Hunting 2030 Strategy today that includes increased investment to enhance our growth in other complementary markets, including the energy transition."

As of 0925 GMT, Hunting shares were down 1.05% at 330.50p.

Reporting by Iain Gilbert at Sharecast.com