Hunting warns profits down 60% in first quarter as oil industry cuts back

Oil industry services group operating profits were approximately 60% lower during the first quarter of 2015 compared to the same period last year.

The FTSE 250 group has cut employee levels 20% since the beginning of the year to cut costs as US oil inventory growth and rig count decline has slowed.

Only Hunting's subsea, electronics and Dearborn precision products divisions performed above their comparative levels from 2014, but Canada and US drilling tools units have experienced losses during the period.

Management, which assured of their confidence in capital investment and activity levels in the industry recovering "as and when" the industry oversupply issues are resolved, said the year's capital investment plans remained on track, with new facilities construction continuing in Texas and Maine in the US and Cape Town in South Africa.

The balance sheet remained strong, with no significant changes and net debt position at 3 April roughly $164m.