Hunting warns on profits, shares slump

Hunting shares slumped on Thursday after the energy services group warned over its full-year earnings due to a slower-than-expected recovery in core energy markets.

In results for the six months to 30 June, Hunting reported an EBITDA loss of $3.6m, versus a loss of $2.3m in the second half of 2020 and a profit of £28.4m in the first half of 2020. Revenue came in at $244.4m, down from $248.3m in the second half of 2020 and $377.7m in the first half.

Chief executive Jim Johnson said: "The group's results reported today reflect a similar performance when compared to H2 2020 as the global oil and gas industry slowly emerges from the impact of the Covid-19 pandemic.

"The market recovery in the US, while slower than anticipated, shows clear signs of growth, which is projected to accelerate as more global economies reopen and travel increases. The recovery within international markets, while still projected to grow in H2 2021 and into 2022, continues to be hampered by spiking Covid-19 infection rates, leading to ongoing caution within our client base."

Hunting said that given the overall trading seen in the current quarter and likely EBITDA run rate for the balance of the year, it now expects the full-year EBITDA outturn to be around $10m lower than in 2020, "given the slower-than-anticipated recovery within our core energy markets".

At 1105 BST, the shares were down 4% at 198.80p.