Global tensions harming intl markets, says Hunting

In a trading update, Hunting said the lack of confidence in commodity prices due to the recent downturn continued to weigh on sentiment and capital investment planning.

It forecast a seasonal slowdown in North American drilling during November and December due to public holidays, along with the potential exhaustion of clients' drilling and completion budgets.

However, the company still expected full year results to be in line with expectations.

In the US, revenues and operating profits continue to reflect modest improvement, with most businesses reporting operating profits during the quarter.

Hunting said demand within its advanced manufacturing group had also increased during the quarter as new orders for drilling and completions-related capital equipment, as well as non-oil and gas products, were received.

In Canada, general market improvement and the continuing production of perforating guns for Hunting Titan allowed losses to narrow.

In Europe, low activity levels in the North Sea continue to lead to operating losses. In Asia Pacific, the segment's operating losses continue to reduce, “despite a more volatile market environment” and within the Middle East, initiatives to contain costs have helped reduce losses, the company added.

Working capital continued to absorb cash in line with activity levels - inventory has increased to approximately $346m compared with $322m at the end of June.

Capital investment mainly reflected manufacturing expansion programmes underway within Hunting Titan with cumulative spend in the nine months to 30 September 2018 at $20.4m.

The net cash positon was approximately $34.9m at October 19 - this was before payment of the $6.6m interim dividend on October 24.