🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Hunting PLC expects EBITDA within guidance range

EditorNatashya Angelica
Published 10-01-2024, 12:36 pm
© Reuters.
HTG
-

LONDON - Hunting PLC (LSE: HTG), a precision engineering group, today provided a trading update confirming its 2023 financial performance aligns with previous guidance and market expectations. The company anticipates an EBITDA between $96 million and $100 million, with group revenue estimated to range from $925 million to $930 million.

This EBITDA reflects an increase from the 7% margin in 2022 to approximately 10.5% for the past year, progressing towards the 14-16% target set for 2025. Hunting's sales order book has seen a significant uptick, currently valued at around $575 million, a 12% rise since the end of the third quarter of 2023 and a 21% increase from the year-end of 2022.

The company's balance sheet exhibits robust cash generation in the fourth quarter of 2023, with total cash and bank balances expected to equal borrowings, effectively reaching a net debt position of approximately zero, consistent with the outlook provided in October 2023. Furthermore, Hunting completed the disposal of its remaining oil and gas production assets in the last quarter, aiming to streamline its operations further.

In terms of product lines, Hunting's OCTG (Oil Country Tubular Goods) products, including Premium Connections and Accessories, are projected to see a revenue increase of about 53% compared to 2022. However, Perforating Systems are expected to report a slight revenue decrease of 3-4% due to a roughly 20% drop in the North American rig count. On the other hand, Subsea product lines and Advanced Manufacturing have reported strong growth, with increases of about 40% and 45% in revenue, respectively.

The North America operating segment has experienced substantial EBITDA growth, propelled by demand for Premium Connections and Accessories. The Titan (NS:TITN) operating segment has delivered stable results despite a declining US onshore rig count, while the newly formed Subsea Technologies segment has benefited from increased offshore drilling investments.

For 2024, Hunting maintains its EBITDA forecast of $125 million to $135 million, bolstered by the robust sales order book. This outlook aligns with current market expectations.

Hunting, established in 1874 and headquartered in London with a corporate office in Houston, operates across the United Kingdom, China, Indonesia, Mexico, Netherlands, Norway, Saudi Arabia, Singapore, United Arab Emirates, and the United States. The company's financial reporting is in US dollars across five segments: Hunting Titan, North America, Subsea Technologies, EMEA, and Asia Pacific.

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

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.