(Alliance News) - Hunting PLC on Tuesday said it expects 2025 to deliver "a further year of growth" as it reported trading in line with its previous guidance.
The London-based manufacturer of equipment for the energy industry expects revenue for 2024 in the range of USD1.04 billion and USD1.05 billion, up year-on-year from USD929.1 million.
Its shares were up 12% at 342.62 pence on Tuesday morning in London.
In line with its guidance issued in October, Hunting estimates its full-year earnings before interest, tax, depreciation and amortisation to be in the range of USD123 million and USD126 million, up on the previous year's figure of USD103.0 million.
The firm's Ebitda margin is also expected to rise to around 12% for the full-year from 11% in 2023.
As a result of accelerated receivables programmes and discounted letters of credit used in the second half of the year, Hunting upgraded its year-end cash and bank /(borrowings) guidance for 2024 to between USD100 million and USD105 million. In October the firm guided between USD60 million and USD70 million.
The firm's order book closed the year at around USD500 million, down from USD565.2 million realised in 2023 and despite a "record order book in H1 2024".
For 2025, Hunting guided between USD135 million and USD145 million for Ebitda and it targeted Year-end total cash and bank / (borrowings) in the range of USD135 million and USD145 million.
The firm also said it has decided to restructure its Europe, Middle East and Africa operating segment owing to the low levels of future drilling activity anticipated in the North Sea.
Hunting said this decision followed a detailed review of its European operations looking at both "the tax regime of the UK North Sea oil and gas industry" and the "strategy of the UK government to decarbonise its energy supply.
It added that a review of sales, general and administration costs is also underway, with management seeking to remove around USD10 million in costs per annum, the majority of which is anticipated to be removed through the restructuring.
Hunting Chief Executive Jim Johnson said: "This growth has been delivered against a challenging industry backdrop through 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...2025 should, therefore, deliver a further year of growth and with strong acquisition opportunities, a healthy balance sheet, and a robust cost cutting programme that includes the consolidation of our EMEA operations, our profits and returns should continue to advance in the year ahead."
By Christopher Ward, Alliance News reporter
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Hunting (HTG)
