Half-year returns from Hunting (HTG) were slightly better than expected. Underlying cash profits came in at $121m (£72.9m), a 4 per cent increase over the 2013 interim. Strengthening demand for Hunting’s specialist perforating and subsea equipment outweighed problems linked to the polar vortex that plunged parts of North America into Arctic conditions. The deep freeze halted drilling at several oilfields in the early part of this year, but industry demand rebounded strongly in the second quarter.
Underlying profits at Hunting’s Well Completion unit were down on the 2013 interim, as US demand for drilling tools was held in check until the spring thaw. Nevertheless, the division continues to benefit from offshore activity in the Gulf of Mexico, while a step-up in the international rig count helped bump up profits by 77 per cent at Hunting's Well Intervention business.
Net debt has risen by 11 per cent since the year-end as capital has been drawn down to expand the group's manufacturing capacity at facilities in Louisiana, Texas and Maine. Completion of the work "can’t come soon enough", says Hunting’s chief executive Dennis Proctor, stressing that the momentum established since April has continued into the second half.
Investec predicts adjusted full-year EPS of 99.3¢, rising to 108¢ in 2015.
| HUNTING (HTG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 917p | MARKET VALUE: | £1.4bn | |
| TOUCH: | 915-919p | 12-MONTH HIGH: | 920p | LOW: 719p |
| DIVIDEND YIELD: | 2.0% | PE RATIO: | 20 | |
| NET ASSET VALUE: | 953¢* | NET DEBT: | 16% | |
| Half-year to 30 June | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2013 (restated) | 656 | 60.0 | 29.3 | 7.7 |
| 2014 | 688 | 69.1 | 35.6 | 8.1 |
| % change | +5 | +15 | +22 | +5 |
Ex-div: 6 Nov Payment: 26 Nov £1 = $1.66 *Includes intangible assets of $739m, or 498¢ a share | ||||
