Hunting lowers guidance again as Middle East war weighs on trading

Hunting PLC on Wednesday lowered full-year guidance for the second time in just over two months as it said the Middle East conflict has hurt trading in the second half of the year.

In response, shares in the London-based supplier of equipment to the oil and gas industry slumped 11% to 377.00 pence each in London on Tuesday. The stock has risen 8.5% in the past 12 months but is down sharply from a high of 553p reached in March.

Chief Executive Jim Johnson said: "Whilst the long-term fundamentals of our end-markets remain robust, which includes ongoing strong trading results within our Subsea-focused businesses, the protracted and deepening nature of the conflict in the Middle East has impacted our overall results in Q3 and into Q4, with a deterioration in the short-term trading outlook seen in recent weeks."

As a result, Hunting cut its full-year 2026 adjusted earnings before interest, tax, depreciation and amortisation guidance to USD128 million to USD133 million from USD138.0 million to USD141.0 million previously. In August, Hunting reduced Ebitda guidance from USD145.0 million to USD155.0 million.

At the mid-point of the new guidance, Ebitda would be down 3.4% from USD135.1 million in 2025.

Year-to-date, Ebitda is around USD89 million, representing a margin of around 12%, Hunting said.

In addition to the disruption from the Middle East conflict, Hunting noted slowing activity in North America and supply chain issues which affected its Advanced Manufacturing business.

In the Middle East, Hunting said activity across the region remains "challenged" at present by logistical issues and continued attacks on shipping and regional infrastructure. Rig activity in Saudi Arabia has declined, reducing activity levels in the Jafurah unconventional development, affecting trading within Hunting Titan, it added.

Cost reduction plans and restructuring continues, Hunting said, with a number of initiatives ongoing, including the combination of the Europe, Middle East & Africa and Asia Pacific operating segments, the disposal of non-core businesses, and a review of cost overheads.

Hunting said it has reduced its net borrowings to around USD11 million at September 30 from USD19 million at June 30.

The company expects full-year capital expenditure of USD35 million to USD45 million and anticipates a decision on the Kuwait Oil Co re-tender before year-end, with shipments expected to begin in the second half of 2027.

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