New record for Hunting after £70m order from Kuwait Oil Company
Oil and gas engineering group Hunting has received an order from Kuwait Oil Company valued at $86m (£67.5m).
The oil country tubular goods (OCTG) deal is the group’s second from Kuwait Oil Company and is expected to be delivered in 2025.
As a result, Hunting said its group sales order book has increased to a record of around $751m (£590m).
In a statement issued to the London Stock Exchange, Hunting said: “This second order continues to strengthen Hunting’s relationship with KOC and supports key initiatives in-country by KOC to increase annual hydrocarbon production, in addition to further developing natural gas output.
“With this order, Hunting has now been awarded contracts with a total value of $231m from KOC for OCTG casing and its premium connections.”
Hunting said that the deal extends its revenue visibility into 2025 and 2026.
The group’s chief executive Jim Johnson said: “We would again like to thank KOC for this order and the confidence shown in Hunting’s proprietary premium connection technologies and strategic OCTG supply chains.
“The order supports our improving outlook for 2025, as international and offshore activity continue to accelerate.”
Hunting said that its half-year results trading statement on July 9 will provide more details on its revenue and working capital guidance for the current and next year.
The group was established in 1874 and is headquartered in London.
It also has operations in China, Indonesia, Mexico, Netherlands, Norway, Saudi Arabia, Singapore, United Arab Emirates and the United States of America.
In February, Hunting said it had ridden the wave of continued oil and gas drive from supermajors to a near 30 per cent revenue uplift.
The group posted a return of $929m (£733.4m), a 28 per cent uptick on last year, underpinned by a 19 per cent growth in orders.
Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) soared by 98 per cent to $103m (£81.3m) and the group declared $81m (£63.9m) in previously unrecognised deferred tax assets.
Gross margins for the firm improved to 25 per cent from 24 per cent while total dividends rose to 10 cents (8p) from 9 cents (7p) the year prior.