Hunting first-quarter profit rises despite lower order book
Hunting PLC on Wednesday said it delivered a first-quarter performance in line with expectations, with earnings and margins improving despite a lower order book and market volatility.
The London-based supplier to the oil and gas industry posted earnings before interest, tax, depreciation and amortisation of around $38.7 million for the three months ended March 31, up from $28.9 million a year earlier. The Ebitda margin rose to 14% from 12%.
Hunting said all product groups traded in line with expectations during the quarter.
The company ended March with a sales order book of $439.3 million, down from $506.8 million at the end of 2024. Management expects around 77% of the order book to convert to revenue this year.
Hunting noted ongoing Europe, Middle East & Africa restructuring, targeting $10 million in annualised cost savings. It also said potential new US trade tariffs would have ‘minimal or no impact’ across its global operating segments, given its limited exposure to affected supply chains.
Cash outflows during the quarter reflected working capital investment, the maturity of bank acceptance drafts, and a $3.4 million share purchase by its employee benefit trust. Cash and equivalents fell to $58.0 million from $104.7 million at year-end.
During the period, Hunting acquired Organic Oil Recovery for $17.5 million and sold its non-core Rival Downhole Tools LC business for $13.1 million. It continues to assess bolt-on deals, focusing on subsea and intelligent well completion firms.
The company said the recent fall in oil prices to around $61 per barrel has not yet affected client behaviour but will be monitored closely. Hunting will release its half-year trading update on July 16.
Shares in the company were down 2.5% at 254.00 pence in London at midday on Wednesday.
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