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Hunting PLC (LSE:HTG), a global precision engineering group, has released its unaudited half-year results for the period ending June 30, 2024, showcasing robust performance across key metrics:
- Order Book Growth: The company’s order book surged by 32% to a record $699.5 million, underscoring strong demand and a solid pipeline of future projects.
- Revenue Increase: Revenue for the period rose by 3% to $493.8 million, reflecting continued operational strength.
- Gross Profit and Margin: Gross profit climbed 18% to $135.2 million, with the gross margin improving to 27% from 24% in the previous year.
- EBITDA Performance: EBITDA increased by 23% to $60.3 million, boosting the EBITDA margin to 12% from 10% in H1 2023.
- Adjusted Operating Profit: Adjusted operating profit reached $40.1 million, with the margin rising to 8% from 6%.
- Earnings Per Share: Adjusted diluted EPS rose to 15.5 cents, up from 9.6 cents.
- Dividend: An interim dividend of 5.5 cents per share has been declared, up 10% from 5.0 cents in H1 2023.
Outlook Statement
In its July 2024 Trading Update, Hunting PLC raised its full-year EBITDA guidance to approximately $134-138 million. This adjustment reflects the positive impact of Kuwait Oil Company ("KOC") orders expected to be delivered before the year-end, which will help counterbalance trading challenges in the Perforating Systems product group. These KOC orders will continue through H1 2025, contributing to a favorable outlook for the group.
Market and Regional Activity
- International Demand: The Directors highlight strong international and offshore demand, driven by current WTI crude oil prices. Tender activity for Oil Country Tubular Goods (OCTG) product lines remains robust in the Middle East and Asia Pacific regions.
- South America: The South American market continues to show resilience, supporting ongoing operational success.
- Africa: The African market is opening up to long-term growth opportunities, particularly following recent oil and gas discoveries in Namibia and Mozambique.
- Natural Gas Prices: Management anticipates a rise in Henry Hub natural gas prices by 2025, which is expected to support onshore and gas-focused drilling activities in the US and Canada. This will also enhance oil-focused drilling, given stricter flaring regulations in key US basins like the Permian.
