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Hunting Titan expects first-half earnings marginally ahead of last year

By BFN News | 07:36 AM | Thursday 27 June, 2019

Energy services group Hunting Titan said it expected first-half earnings to be marginally ahead of last year's, as a rise in oil prices stabilised the US onshore completions market. Hunting Titan said first-half revenues were broadly in line with that of last year, while operating profits and margins in the period were lower compared to the corresponding period, as a result of 'management actions to reduce excess inventories coupled with some price rebasing on certain product lines to maintain market share in the first of quarter of the year. But performance during the second quarter strengthened, supported by the introduction of new technologies, including the H-2 Perforating System, the T-Set One setting tool and a new power charge offering. The group's US segment had traded ahead of expectations during the half, with demand for premium and semi-premium connections and accessories, advanced manufacturing and subsea products all having increased, as broad based market sentiment and demand stabilised in the US and internationally, the company said. In Canada, the operating environment remained challenging, but the company said it had implemented cost cutting initiatives during Q2, 2019, which would help narrow losses going forward. 'The Group continues to trade in line with management's expectations, with the US onshore completions market improving during the first half of the year, following a cautious start due to the volatility in the WTI oil price during fourth quarter of last year,' the company said. '(W)e continue to acknowledge the potential impact of a volatile oil price on markets and activity levels coupled with cash spend disciplines exercised by our clients to stay free cash-flow positive and within budget,' it added. Story provided by

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