(Sharecast News) - Shares in Hunting jumped on Tuesday after the oilfield services group said it met market forecasts in 2024 and pointed to further profit growth this year, helped by the planned consolidation of its operations across the EMEA region.
The engineering firm announced a "major restructuring" across EMEA, where it currently operates from seven operating sites in the UK, the Netherlands, Norway, Saudi Arabia and the UAE.
In light of low levels of future drilling activity expected in the North Sea, the company is shifting its operating footprint to focus on North and South America, the Middle East, Africa and Asia Pacific out to 2030. Hunting had already announced a consolidation in the Netherlands where its well testing manufacturing and assembly business is being transferred to Dubai.
Total cost savings from the restructuring are expected to be in the region of $10m.
Ahead of the company's annual results in March, it announced that trading over the final quarter of 2024 was in line with guidance, with EBITDA in the range of $123-$126m at an EBITDA margin of 12%.
For 2025, Hunting is pointing to EBITDA of $135-145m driven by a strong order book of $500m and positive market conditions in North America.
Chief executive Jim Johnson said the industry environment was "challenging" in 2024, particularly in North America, which saw lower-than-expected activity due to depressed gas prices.
"Pleasingly, these challenges are beginning to subside with the natural gas price in the US ending the year strongly, which will likely lead to more drilling in the US and Canada, which will be further supported by the new US administration," he said.
The stock was up 12% at 342.4p by 0946 GMT.
Hunting (HTG)
