Oil engineer Hunting says Trump tariff impact will be ‘immaterial’
North Sea engineer Hunting said it expects the impact of US tariffs on the business to be “immaterial” as it reported quarterly trading in line with expectations.
The London-listed firm cautioned its forecast was before taking into account “any indirect impact” of commodity pricing on the global economy.
Hunting Titan, which builds perforating gun systems, and its North American business will face a “minimal impact” from the levies, given the majority of revenue and costs are derived from US-based supply chains, Hunting said.
Its Subsea Technologies business is also unlikely to take a significant hit as it makes most of its money from non-tariffed countries such as Guyana.
Hunting said it had assessed the impact of declining commodity prices since Donald Trump’s liberation day announcement, with the WTI crude oil price currently trading at around $61 per barrel.
It said there had not been “any negative response to the lower pricing environment” from its client base so far, but that it would continue to “monitor the situation closely.”
Hunting reported first quarter pre-tax earnings (EBITDA) of around $38.7m (£29.2m) at a margin of 14 per cent, in line with expectations.
The group said its sales order book had reached $439.3m, down from $506.8m the year prior and including a glut of new subsea orders.
“The order book also reflects the continued work-off of larger orders for clients including Kuwait Oil Company and ExxonMobil,” Hunting added, with around 77 per cent expected to be traded in the current financial year.
Hunting came under pressure last week from activist investor Oasis Management, which has called for it to return 145m to shareholders via a buyback programme or spend the money on bolt-on acquisitions.
Shares are down around 12 per cent this year to date.