Energy services group Hunting Plc. (HTG.L) Monday said it remains confident of trading in line with expectations and that the firm is well positioned to capture growth opportunities as investment in oil and gas exploration continues onshore and offshore. The stock is gaining close to 5 percent in early morning trading.
In a trading statement ahead of its first-half results slated to be announced on August 29, the firm said trading has been supported by increasing activity in the Gulf of Mexico and continued investment in the oil-focused shale basins.
Dennis Proctor, Hunting's CEO, said, '' While global rig counts remain generally flat since the start of the year, Hunting's broad portfolio of products provides the opportunity to capture a significant proportion of revenue for every well drilled, whether onshore or offshore. As a consequence of this, the Board remains confident of trading in line with expectations.''
In Well Construction, Hunting's Premium Connection business benefited from strong offshore activity in the Gulf of Mexico and globally, along with sustained activity in the oil-focused shale basins. Activity within the Electronics division, previously known as Innova, has been subdued in the early part of the year as customers work off existing inventory.
In Well Completion, Hunting Titan continued to deliver results in line with management's expectations. It also benefited from improved efficiencies as lean manufacturing practices were implemented across all its facilities.
Within the Well Intervention business, the Subsea platform at Stafford, Texas delivered improved performance, and sales presence has now been established in Europe. Hunting's pressure control and other well intervention product lines also reported good growth as the business increased its presence in North America.
Overall, Hunting said it is well positioned to capture growth as investment continues globally in oil and gas exploration, both onshore and offshore. The outlook remains positive for the Group for the rest of the year, it added.
HTG.L is gaining 4.6 percent in early trading on Monday at 765.50 pence.
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