Hunting shares soar as FY guidance lifted on new £91m order

Shares in Hunting surged on Tuesday as the international energy services group lifted guidance for 2023 after winning a new contract worth up to £91m with Cairn Oil and Gas, Vedanta.

The company on Tuesday said it expected full-year core earnings to be in the range of $92-$94m, a further increase to the guidance issued at its 2022 results in March. Shares were up 14% in London trade.

With the latest deal, Hunting's sales order book now is $575m, “which represents a material increase since the year-end”, it added.

The new contract will see Hunting supply Oil Country Tubular Goods (OCTG) for Cairn’s operations in Rajasthan, India over three years at around 100 wells.

“This order, again, breaks Hunting's record for the largest single order received for the Group's OCTG and premium connections and supports management's belief that international market sentiment remains extremely strong as governments and countries address the challenges of energy security, the development of domestic supply and post-Covid economic recovery,” said chief executive Jim Johnson.

Reporting by Frank Prenesti for Sharecast.com