AGM and Q1 2023 Trading Update

Hunting PLC (LSE:HTG), the international energy services group, issues the following Trading Update for Q1 2023, ahead of its Annual General Meeting that will take place today at 10:30a.m. BST in London.


  • Strong start to the year with EBITDA of $22.6 million during Q1 2023.

  • Sales order book remaining strong at c.$0.5 billion.

  • North America reports a strong performance, driven by domestic and international orders completed.

Commenting on Q1 2023 trading and the market outlook, Hunting’s Chief Executive, Jim Johnson said:

“Hunting has begun 2023 strongly with an EBITDA ahead of management’s expectations. March 2023 was a particularly strong month as international orders were completed within the US Manufacturing business unit. Activity across the global energy industry is robust with opportunities in oil and gas, carbon capture and geothermal developments accelerating as post-COVID growth, energy security requirements and energy transition legislation is announced."

“The Group’s strong sales order book remains materially unchanged at c.$0.5 billion, as new orders have been secured in the period."

“In summary, at this point in the year, the Board is comfortable with market expectations, and reiterates its expectations for continued growth in year-on-year revenue and EBITDA, as previously indicated at the Group’s 2022 full year results.”

Trading Statement

EBITDA in Q1 2023 was $22.6 million, which compares to $6.7 million in Q1 2022 and $15.8 million in Q4 2022. EBITDA margin has strengthened in the reporting period driven by higher facility utilisation and some improvements to pricing, and is in line with market guidance of c.10% for the year as a whole.

As previously indicated, working capital has increased in the quarter consistent with the ramp up in activity, with the Group moving into a net debt position in the period. Working capital is expected to peak during H1 2023, with net debt in the range $30m - $50m targeted by the end of June 2023, followed by cash generation in H2 2023, with management targeting positive cash and bank by year-end. The final dividend recommended for 2022 of 4.5 cents per share is due for payment on 12 May 2023, which will absorb c.$7.2 million.

Hunting Titan has traded in line with expectations during the quarter, driven by North American and international demand, despite the marginally lower US onshore rig count since the year-end. Adoption of the H-3 Perforating System has continued to increase within the US market, which has supported margin improvement within the segment. International sales, which include individual components and systems, continue to accelerate as US drilling techniques are adopted globally, in particular in areas such as South America and the Middle East.

The North America operating segment, which now excludes the Group’s Subsea Technologies interests, has reported a particularly strong start to the year as new orders for premium connections and accessories have been secured. Orders received have been for both the domestic US and Canada markets as well as international activity, including South America where offshore drilling developments in Brazil and Guyana are expanding. The Group’s Advanced Manufacturing businesses report new order wins in both energy and non- oil and gas industries. As part of the Group’s accelerating efforts in the geothermal and carbon capture sub- segments of the global energy industry, testing of the Group’s proprietary connection technology has started, in order to align Hunting’s products with the operating conditions of carbon capture injection projects.

Hunting’s newly formed Subsea Technologies operating segment has traded ahead of management’s expectations as recently secured orders for titanium and steel stress joints for FPSO operations in South America have started to be completed. The segment’s Stafford and Enpro businesses report increased levels of enquiries as momentum in the offshore segment of the global oil and gas industry increases.

The EMEA operating segment has reported a good start to the year, with the Tubacex order continuing in the Netherlands and UK. The segment has reported a broadly break-even result in the year-to-date, reflecting the improving market environment. The Group’s licenced Organic Oil Recovery technology has reported good results from pilot tests being completed by a range of clients. Management believe that sizable orders will be received in 2023 as major field treatments commence.

Hunting’s Asia Pacific operating segment reports strong growth in the year-to-date as activity in the Middle East, Africa and Asia Pacific increases. Tender activity is likely to reach pre-pandemic levels during the year. The segment has continued work on the CNOOC contract in the period, with deliveries expected through to the end of Q3 2023.

Prior Period Financial Information

Year ended 31 December 2022

From 1 January 2023, the Group is now reporting across five operating segments: Hunting Titan, North America, Subsea Technologies, EMEA and Asia Pacific. The following information presents the Group’s prior period results based on this new reporting format.

Hunting Titan

Total Segmental Revenue $m - 266.0
Inter- segment revenue $m - (8.2)
Total external revenue $m - 257.8
EBITDA $m - 24.7
Adjusted result $m - 15.9
Adjusting items $m - (5.6)
Reported result $m - 10.3

North America

Total Segmental Revenue $m - 280.6
Inter- segment revenue $m - (24.5)
Total external revenue $m - 256.1
EBITDA $m - 26.7
Adjusted result $m - 9.2
Adjusting items $m - -
Reported result $m - 9.2

Subsea Technologies

Total Segmental Revenue $m - 69.1
Inter- segment revenue $m - (0.1)
Total external revenue $m - 69.0
EBITDA $m - 3.4
Adjusted result $m - (1.1)
Adjusting items $m - (7.0)
Reported result $m - (8.1)


Total Segmental Revenue $m - 71.5
Inter- segment revenue $m - (2.2)
Total external revenue $m - 69.3
EBITDA $m - (2.1)
Adjusted result $m - (6.0)
Adjusting items $m - -
Reported result $m - (6.0)

Asia Pacific

Total Segmental Revenue $m - 80.4
Inter- segment revenue $m - (6.8)
Total external revenue $m - 73.6
EBITDA $m - (0.7)
Adjusted result $m - (3.4)
Adjusting items $m - -
Reported result $m - (3.4)

Total from operations

Total Segmental Revenue $m - 767.6
Inter- segment revenue $m - (41.8)
Total external revenue $m - 725.8
EBITDA $m - 52.0
Adjusted result $m - 14.6
Adjusting items $m - (12.6)
Reported result $m - 2.0

Date of H1 2023 Trading Statement

Hunting PLC’s next Trading Statement will be announced on Thursday 6 July 2023.

Get in touch

For further information please contact:

  • Hunting PLC

    Jim Johnson, Chief Executive Bruce Ferguson, Finance Director Tel: +44 (0) 20 7321 0123

  • Buchanan

    Ben Romney Jon Krinks Tel: +44 (0) 20 7466 5000

Notes to Editors:

About Hunting PLC

Hunting PLC is an international energy services provider to the world's leading upstream oil and gas companies. Established in 1874, it is a premium listed public company traded on the London Stock Exchange. The Company maintains a corporate office in Houston and is headquartered in London. As well as the United Kingdom, the Company has operations in Canada, China, Indonesia, Mexico, Netherlands, Norway, Saudi Arabia, Singapore, United Arab Emirates and the United States of America.

The Group reports in US dollars across five segments: Hunting Titan; North America; Subsea Technologies; Europe, Middle East and Africa (“EMEA”) and Asia Pacific.

Hunting PLC’s Legal Entity Identifier is 2138008S5FL78ITZRN66.