Hunting's Q1 results outperform amid US onshore softness
Hunting's first-quarter earnings beat expectations, defying sluggish US onshore market conditions.
Oil and gas technology firm Hunting (LSE: HTG) announced its first-quarter results, which exceeded management's projections despite facing headwinds in the US onshore market.
The company reported earnings before interest, tax, depreciation, and amortisation (EBITDA) of $28.9 million, a 29% year-over-year increase from $22.4 million in the same period last year.
While maintaining its full-year EBITDA guidance range of $125 million to $135 million, representing a potential 31% rise from the previous year's $103.0 million, Hunting's revenue for the first quarter climbed 16% to $244.9 million, up from $211.5 million in Q1 2023.
The company's sales order book also witnessed a 10% increase compared to the first quarter of 2023, reaching $544.0 million from $492.9 million. Hunting attributed the robust performance to the strong demand for its titanium and steel stress joints, hydraulic valves, couplings, and flow access modules, driven by the thriving offshore drilling environment.
However, the US onshore market remained "less resilient," impacted by low natural gas activity levels and subdued pricing. Hunting expects this situation to improve in the second half of the year as new liquefied natural gas (LNG) export capacity comes online, supporting higher export volumes.
Despite the positive results, Hunting's shares saw a 1.5% decline on Wednesday morning.
Hunting is scheduled to release its next trading statement on July 8.
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