Hunting shares surge despite earnings slip
Engineering group Hunting saw its shares jump almost 14 per cent to 331p by the close of trading in London this evening after it gave a “cautiously optimistic” lookahead for the year.
The company, which makes equipment for the oil and fracking industry, credits its success with a strong balance sheet containing $40m (£31m) in cash without any debt.
Underlying EBITDA for 2019 fell one per cent on 2018 from $142m to $140.
Boss Jim Johnson said: “Our results announced today reflect the group’s commitment to capital discipline, retaining strong balance sheet while delivering a solid performance in difficult market conditions.”
Revenue increased five per cent to $960m from $911.4m in 2018 and the dividend has been proposed at six cents per share, an annual rise on five.
Although the market for onshore products is going down, he said the offshore market is improving.
South East Asia was cited as a particularly strong market area, in addition to the North Sea.
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Hunting’s portfolio has grown over the last year.
The company purchased included RTI Energy Systems and Enpro Subsea in August 2019 and this month respectively.
Johnson also said the group’s strong financial position means it will keep with its strategy of buying up rivals.
A lack of clarity around commodity prices meant could hinder the company’s performance.
However, Johnson was unable to make any predictions yet.
“If this thing [the coronavirus outbreak] blows up and oil goes to $40 a barrel that blows everything up, but we hope that’s not going to happen” he said.
Fears around the international spread of the virus sent Brent crude down to $51 a barrel earlier today.