(Alliance News) - Hunting PLC on Thursday announced a strong annual performance and outlook, as well as the launch of a new sales group aimed at the energy transition market.
The London-based oil and gas industry services provider said it is trading in line with market expectations for 2022. It expects annual earnings before interest, tax, depreciation and amortisation to be around USD50 million, which would be up from just USD3.1 million in 2021 and also up from USD26.1 million in 2020.
Looking ahead to 2023, Hunting raised guidance for Ebitda to a range of USD85 million to USD90 million from around USD80 million previously.
"2022 has been a year of rebuilding for the industry with 2023 now likely to be a strong year of growth for the group," said Chief Executive Jim Johnson.
Hunting noted a strong sales book, which continues to grow after further orders for its Subsea Technologies business. The total sales order book is approaching USD500 million, the firm said.
"This order book will mainly be delivered during 2023; however, due to the long delivery cycles of certain product lines, a proportion of sales will be recognised in 2024 and 2025," Hunting explained.
The firm noted "steady sales" for Hunting Titan in North America, thanks to continuing levels of client activity, as it explores new opportunities in South America.
"Within the North America operating segment, the Premium Connection, Accessories Manufacturing and Subsea business units continue to report strong momentum," Hunting said.
The firm's Europe, Middle East & North Africa segment is also seeing improved results, with the help of the Tubacex contract for Brazil.
Shares in Hunting were up 3.4% to 273.00 pence in London on Thursday morning.
Hunting also announced the formation of a new Energy Transition global sales group in an attempt to expand its revenue base.
"Hunting is well-placed to capture a meaningful market share in the component supply chain for many low carbon projects, given the alignment of current technologies with the traditional oil and gas industry and the international commitments made by governments to reduce carbon emissions," Chief Executive Johnson said.
By Elizabeth Winter, Alliance News senior markets reporter
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Hunting (HTG)