(Alliance News) - Hunting PLC on Thursday said it anticipates earnings to be USD10 million lower in 2021 than in the previous year but noted signs for optimism, as the oil and gas industry slowly rebounds from the pandemic's damage.
The London-headquartered oil field services provider posted an Earnings before interest, tax, depreciation and amortisation loss of USD3.6 million for the six months ended June 30, widened from USD2.3 million in the second half of 2020 and swung dramatically from a USD28.4 million profit in the first half of last year.
Management now anticipates 2021 Ebitda to be around USD10 million lower than the 2020 result, given the slower-than-anticipated recovery within core energy markets. Hunting generated underlying Ebitda of USD26.1 million for 2020.
An Ebitda loss was reported in the first quarter, followed by a small profit in the second as trading conditions improved within the US onshore market, Hunting said.
Revenue for the period fell 35% to USD244.4 million from USD377.7 million a year previously. The loss from operations narrowed substantially from a year ago, with a reported USD26.5 million loss cut from USD183.6 million a year earlier.
"The group's results reported today reflect a similar performance when compared to the second half of 2020 as the global oil and gas industry slowly emerges from the impact of the Covid-19 pandemic," commented Chief Executive Jim Johnson.
"The market recovery in the US, while slower than anticipated, shows clear signs of growth, which is projected to accelerate as more global economies reopen and travel increases. The recovery within international markets, while still projected to grow in the second half and into 2022, continues to be hampered by spiking Covid-19 infection rates, leading to ongoing caution within our client base," Johnson added.
An interim dividend of 4.0 cents per share was declared, doubled from 2.0 cents a year prior.
Shares in Hunting were trading 3.9% lower at 199.00 pence in London on Thursday morning.
By Will Paige; willpaige@alliancenews.com
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Hunting (HTG)