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Hunting's revenues hold steady across first quarter
After a good start to the year in North America, energy services group Hunting saw full year results for 2018 reaching the upper half of previous guidance.
Revenues in the first three months of the year came in at a similar average monthly run rate as they had in the final quarter of 2017 as the FTSE 250 firm continued to benefit from its improved operational leverage, with volumes increasing alongside an already reduced cost base.
Activity levels within Hunting's onshore North American market remained strong, leading it to an underlying EBITDA for the period of approximately $32.7m at the same time that its international and US offshore markets continued to show signs of improvement, with new energy and power projects being considered by multiple global operators.
Activity in the onshore North American shale basins continued to strengthen thanks to sales being supported by a growing demand for its perforating, energetics and instrumentation product lines.
Back in Europe, Hunting's North Sea activity remained generally subdued, contract wins in the Netherlands and the UK were secured early in the year, providing the firm with increased activity into the second half of the year.
In Asia Pacific, activity levels within the region remained mixed, with positive results in China being offset by lower utilisation in Singapore and Indonesia and over in the Middle East and Africa, group operations reported improved activity levels in Saudi Arabia and the UAE.
"The group has started the year well and given that the general market outlook remains steady in North America and Hunting's other regional operations are seeing improved market sentiment, management expectations for the full year have improved. Management therefore currently expect the full year result to be within the upper half of current market consensus," Hunting told investors ahead of its annual general meeting on Wednesday.
As previously announced, John Nicholas will retire from Hunting's board at the conclusion of its AGM.
As of 0930 BST, shares had gained 7.06% to 788.50p.