Hunting returns to profit and reinstates dividend

Hunting swung back into profit in the first half and reinstated its dividend as the energy services group gained from a revival in US shale activity.

Underlying profit from operations in the six months to the end of June was $53.5m (£41m) compared with a $9.3m loss a year earlier. Revenue increased to $442.8m from $318.1m.

The FTSE 250 company declared an interim dividend of 4 cents a share, versus no dividend a year earlier.

Hunting’s shares rose 10% to 836.5p at 0825 BST.

The company said its volume of manufactured goods rose strongly, reflecting more drilling and completion activity in US onshore markets and a more stable global environment.

Hunting and other companies serving the oil and gas industry suffered when the oil price collapsed from 2014 to 2016. Oil producers reduced exploring efforts and cut costs, putting pressure on its operations, which include making tools for production.

The price of Brent crude has more than doubled since falling below $35 a barrel in early 2016, sparking a revival in activity, especially in the US shale market.

Jim Johnson, Hunting’s chief executive, said: "The group's results for the first half of the year are underpinned by a strong market environment within US onshore completion.

"Outside the US, Hunting's other reporting segments are seeing improving markets … Given the interim financial results reported today and the more stable outlook, the board is pleased to be re-instating dividend distributions to shareholders."

Johnson added a note of caution, warning that the introduction of trading tariffs for steel and the uncertain geopolitical environment were potential problems.