Hunting has received a record US$145m OCTG order with shipments to the Kuwait Oil Company expected to start toward the end of 2024. As a result, following an in-line Q1 update, EBITDA guidance has now firmed towards the upper end of the company’s existing US$125m-135m range. We have raised our current year EBITDA estimate to US$131m (+c.7%) and by c.14% for FY25 due to this new business win. This contract follows significant OCTG (Oil Country Tubular Goods) orders in H2'22 (US$80m+ offshore Ch...
Commentary and financial metrics in Hunting’s AGM/Q1 update confirm that the company has progressed in line with its FY24 targets thus far in year-to-date trading. Q124 EBITDA was well ahead year-on-year. This represents a good step towards the flagged US$125m-135m range for the year, with ongoing momentum in the strongest market segments. Group revenue has continued to grow well, being up c.16% year-on-year in Q1 and c.7% ahead compared to Q423, a strong quarterly close to FY23. Shipments agai...
In this audio note, Zeus’ Daniel Slater summarises the recent news flow for Hunting. Hunting has released its full year 2023 results. These were guided to in the trading statement in January, though EBITDA has now come out ahead of this, and overall the results demonstrate a year of very significant growth. Listen to the audio note below, and read the full research here.
Hunting delivered EBITDA of US$103m, ahead of revised guidance and the inferred year-end expectation, representing a 98% y-o-y uplift (and 11.1% margin, +380bp). Major contract awards boosted Subsea and OCTG activities in particular, but top line progress was also accompanied by good cost control to deliver the full year outturn. A record year-end order book position leaves the company well-placed to deliver further progress in FY24, where guidance is unchanged. At the headline level, Hunting ...
Good revenue progress, a strong EBITDA uplift (and margin expansion), an ungeared year-end balance sheet and the in-year launch of an ambitious 2030 strategy represents a healthy FY23 scorecard for Hunting. Furthermore, additional order book growth and unchanged management guidance positions the company well to achieve further progress. A number of large contract awards announced at the end of FY22 and as FY23 progressed contributed meaningfully to the FY23 outturn. In addition, Hunting ended ...
Hunting has released its full year 2023 trading statement, reiterating guidance of US$96-100m of 2023 EBITDA (10.5% margin) and a flat end 2023 net debt position, driven by a strong performance from its OCTG and Subsea business units, and backed up by a steady performance from Perforating Systems.
The front of this note takes a look at the UK oil and gas sector, why domestic production is advantageous, what the main political parties think, and what could happen going forward. The latter part contains a review of the companies in our coverage – some that are UK centric, which give exposure to the note’s wider theme, and others that are focused elsewhere.
With positive trading momentum and order book development continuing, Hunting has outlined a clear growth strategy for the remainder of this decade. This is predicated upon further progress in traditional markets amplified by deeper penetration of newer adjacent ones and other non-oil & gas industries. In share price terms, only partial credit has been given for an improving financial performance. Yet, at current levels it is effectively discounting no growth beyond a return to pre-Covid levels ...
Statement ahead of capital markets day sets strong growth ambitions. Hunting has released a statement in advance of its capital markets day later today. On the numbers side, this includes further details of the company’s targets, including achieving revenue of c.US$1.3bn and an EBITDA margin of c.15%, both by 2025, which would imply an EBITDA number of US$195m for 2025. Hunting reported US$52.0m of EBITDA for 2022, and today reiterates guidance of US$96-100m for 2023 and US$125-135m for 2024. As...
Forecasts for 2023 remain unchanged, a little behind consensus. We have now updated our Hunting model for the recent full year 2022 results. For 2023 we continue to leave our forecasts unchanged, with our numbers remaining a little below guidance. Hunting guided to 2023 EBITDA of c.US$85-90m in December, and maintained this at the results in March, while current consensus is US$86m. The results also included guidance of an EBITDA margin for 2023 of c.10% (7.2% was achieved in 2022), with a longe...
Full year results report a strong year of recovery. Hunting has released its full year 2022 results. Revenues are reported at US$725.8m, compared with our US$695.7m forecast and consensus of US$710m (2% beat). EBITDA is then reported at US$52.0m, against guidance in December of c.US$50m, our forecast of US$50.2m and consensus of US$51m (2% beat). As such, this is minor outperformance versus expectations.
HUNTING (GB), a company active in the Oil Equipment & Services industry, is favoured by a more supportive environment. The independent financial analyst theScreener has confirmed the fundamental rating of the title, which shows 4 out of 4 stars, as well as its unchanged, moderately risky market behaviour. The title leverages a more favourable environment and raises its general evaluation to Slightly Positive. As of the analysis date January 7, 2022, the closing price was GBp 186.80 and its poten...
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