Hunting sees 2016 results in line with expectations

FTSE 250 energy services provider Hunting said on Tuesday that results for the full-year 2016 are likely to be in line with expectations, adding that earnings should move into positive territory next year.

In a pre-close trading update ahead of its full-year results in March, the company said it continues to see improving market indicators within US onshore activities, benefiting its perforating business, particularly in West Texas.

Elsewhere, however, the group's operations market conditions remain subdued, especially within deepwater and international drilling.

Hunting said its balance sheet remains strong following the equity placing in October, with net debt at the year-end expected to be broadly neutral.

Chief executive Dennis Proctor said: “2016 has been a tough year for the company. Necessary measures have been taken to address the cost base and strengthen the financial position of the company. Our capability to manufacture and distribute our range of products from our global footprint is retained which will allow us to take advantage of the anticipated market recovery."

Looking ahead to 2017, the group said it expects earnings before interest, taxes, depreciation and amortisation to move into positive territory thanks to the cost-cutting measures implemented over the last two years and improving market indicators.

However, the outcome for the 2017 financial year is highly dependent on the continued and sustained improvement of both North American and international markets.

While Hunting expects a year of growth, it said the scale of that growth remains unclear at present.