Hunting trades in line as rising oil prices aid US market

The WTI oil price was volatile during the fourth quarter of the energy services group's 2018 financial year, the company said, but has since increased from $45 to $58 per barrel, aiding its US segment in trading ahead of expectations while the Asia Pacific and EMEA businesses also improved.

The group's US segment landed "strong period-on-period profit growth" due to increased demand for premium and semi-premium connections and accessories, advanced manufacturing and subsea products, as broad based market sentiment and demand stabilised in the US and internationally.

Hunting's newly formed EMEA segment narrowed its operating losses following activity in the North Sea and the Middle East, while the Asia Pacific segment returned to operating profit following strong domestic demand in China.

However, the Canadian market remained "challenging" due to oil and gas production offtake constraints in Alberta coupled with extreme weather in January and February, and government-mandated production slow down for oil and gas companies in the early months of the year.

Those factors impacted overall activity and resulted in the segment reporting an operating loss for the period.

The FTSE 250-traded company said it remained comfortable with the current market consensus for the full year but acknowledged the potential impact of a volatile oil price on markets and activity levels coupled with cash spend disciplines exercised by clients.