Hunting PLC expects EBITDA to be within guidance range By Investing.com

© Reuters.

LONDON – Precision engineering group Hunting PLC (LSE:HTG) today provided a trading update confirming its 2023 financial performance is consistent with previous guidance and market expectations. The company expects EBITDA of between $96 million and $100 million, with group revenue estimated to be between $925 million and $930 million.

This EBITDA reflects an increase from a 7% margin in 2022 to approximately 10.5% over the past year, progressing toward the 14-16% target set for 2025. Hunting’s sales order book has seen a significant uptick, now worth approximately $575 million. This is a 12% increase compared to the end of the third quarter of 2023 and a 21% increase compared to the end of 2022.

The company’s balance sheet shows strong cash generation in the fourth quarter of 2023, with total cash and bank balances expected to be equal to borrowings, reaching virtually zero net debt, consistent with the outlook provided in October 2023. It is expected. Hunting also sold off its remaining oil and gas production assets last quarter, aiming to further streamline its operations.

By product group, Hunting’s OCTG (Oil Country Tubular Goods) products, including premium connections and accessories, are expected to increase sales by about 53% compared to 2022. However, Perforating Systems is expected to see a slight decrease in sales compared to 2022. A roughly 20% decrease in the number of North American leagues resulted in a 3-4% decline. Meanwhile, the Subsea product line and Advanced Manufacturing saw strong growth, with sales increasing approximately 40% and 45%, respectively.

Our North American operations experienced significant EBITDA growth driven by demand for premium connectivity and accessories. Titan’s operating segment delivered stable results despite a decline in U.S. onshore rig counts, while its newly formed Subsea Technologies segment benefited from increased offshore drilling investments.

For 2024, Hunting maintained its EBITDA forecast at $125 million to $135 million, driven by solid sales orders. This outlook is consistent with current market expectations.

Founded in 1874 and headquartered in London and Houston, Hunting operates throughout the United Kingdom, China, Indonesia, Mexico, Netherlands, Norway, Saudi Arabia, Singapore, United Arab Emirates and the United States. The company’s financial reporting is prepared in U.S. dollars across five segments: Hunting Titan, North America, Subsea Technologies, EMEA and Asia Pacific.

This news article is based on a press release from Hunting PLC.

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