Hunting shares soar 24% as first-half performance exceeds expectations

Shares of Hunting (LSE: HTG) rallied to 248.50 pence each in London this morning, following the announcement of its outstanding half-year performance.

The company expects its earnings before interest, tax, depreciation, and amortisation (EBITDA) for the first six months to range between $48 million and $50 million, surpassing its targets. Furthermore, both revenue and operating profit are anticipated to outperform expectations.

Hunting credits its strong sales performance in the first half of the year to the enduring success of its various product lines. Sales orders for the company saw a significant increase, reaching around $530 million to $550 million by the end of June, compared to $473 million at the end of December. The impressive growth was largely due to the outstanding performance of its North American division.

Over the next few months, Hunting is expecting to see a monthly revenue run rate of $76 million to $80 million, which is a big improvement from the previous year’s $56 million. The company is feeling positive about its future and anticipates that its sales order book will keep expanding. As a result, Hunting has increased its full-year EBITDA guidance to a range of $96 million to $100 million, up from the previous forecast of $92 million to $94 million. Looking even further ahead, the company predicts that its 2024 EBITDA will be between $125 million and $134 million.

Jim Johnson, the Chief Executive Officer of Hunting, expressed his satisfaction with the company’s performance during the first half of 2023. He credited the increased client activity across various business units for this strong performance.

Johnson emphasised that Hunting’s management team remains committed to achieving its market guidance, bolstered by the robust momentum observed in international markets, particularly in South America, the Middle East, and the Asia Pacific regions. Moreover, the shift in the North America drilling market toward oil-focused targets presents ample opportunities for growth and expansion.