Hunting shares slide as cuts earnings guidance on Kuwait delay

Hunting on Friday reported a decline in half-year revenue and cut its 2026 guidance, as the Middle East conflict "caused some delays to tendering".

The London-based supplier of equipment to the oil and gas industry warned that annual earnings will be weaker than previously anticipated. Trading in the Middle East has been hurt by the conflict, but Hunting said activity in the East region would "rapidly recover once stability returns".

Shares in Hunting slumped 12% to 418.50 pence Friday morning in London.

Pretax profit in the half-year to June 30 rose 12% to USD34.2 million from USD30.6 million a year ago. In the first half of 2025, Hunting booked USD13.1 million in adjusting items, including restructuring and acquisition-related costs.

Revenue in the first half of 2026 fell 6.0% to USD497.0 million from USD528.6 million a year prior.

Earnings before interest, tax, depreciation and amortisation fell 12% to USD62.1 million from USD70.2 million.

"This was due to the absence of orders completed for Kuwait Oil Co in H1 2025, which did not recur in H1 2026, together with slower activity in the Advanced Manufacturing product group," the company said.

Hunting noted that the ongoing conflict in the Middle East had delayed KOC's procurement process, with the re-tendering of its oil country tubular goods contract pushing potential new orders from Hunting into 2027.

Hunting said it expects KOC to re-issue its oil country tubular goods tender in the third quarter, with any new contracts contributing from 2027.

As a result of the delay, the company has cut its 2026 Ebitda guidance to USD138.0 million to USD141.0 million from USD145.0 million to USD155.0 million.

It said it remains confident of securing further KOC orders.

The company lifted its interim dividend to 7.0 cents per share from 6.2 cents, in line with its target of an annual increase of at least 10%, the company said.

Chief Executive Jim Johnson said: "Hunting remains well positioned to capture the growth opportunities emerging across the energy industry around the world. Whilst current instability in the Middle East has caused some delays to tendering, we expect activity in the region to rapidly recover once stability returns, supporting our confidence in our medium-term growth prospects for the region. Elsewhere, AI-driven investment is driving power demand growth in North America, while activity is rising across South America and West Africa as governments around the world increasingly focus on energy security and sovereign capabilities."

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