Hunting Q1 profits up despite lower margins at Titan

Oilfield services firm Hunting on Wednesday said first-quarter core profit was in line with expectations although margins fell at the US Titan unit due to increased competition.

Underlying earnings before interest, tax, depreciation and amortisation was around $35m in the quarter, up from $32.7m year on year and in line with internal targets.

At Titan, which focuses on shale production in the US, margins fell as competition grew with the sector working through excess inventories built up in late 2018.

“In the U.S., results are ahead of expectations, as the group’s business units benefit from improving demand particularly within onshore completions and capital equipment markets,” Hunting said in a trading statement.

The company said the outlook for the rest of the year was positive, given the market backdrop of an improved oil prices, which reports an increase in excess of 40% since the start of the year.

“Market commentators also predict improving market sentiment as US shale plays overcome takeaway capacity issues. Therefore, the group remains well positioned to capture opportunities from this market environment,” the company said in a statement.