15th Apr 2020 11:01
(Alliance News) - Hunting PLC on Wednesday said it is implementing cost-cutting measures due to the fall in oil prices.
Shares in the company were 8.3% lower at 176.70 pence each in London on Wednesday morning.
Ahead of its annual general meeting on Wednesday, the oil & gas industry services provider said it has put the brakes on all non-essential capital expenditure and has frozen hiring.
"Our industry is currently experiencing an unprecedented demand and supply shock following the collapse in oil prices and as the effect of the coronavirus is felt across global economies, along with the decline in domestic and international trade," Hunting said.
Trading in the first quarter of 2020 "was broadly in line with management's expectations". The crash in oil prices however, hurt demand at Hunting's US onshore division.
Hunting added: "Other segments are likely to see declines towards the end of the second quarter, given that orders are continuing to be completed across all of Hunting's operating regions for a variety of offshore and international projects.
"With this market backdrop and trading outlook, the board will continue to regularly update investors as and when appropriate, but at this time has decided to withdraw 2020 full year guidance given the limited visibility due to the global impact on sentiment and volatility seen across all markets since the middle of March 2020."
By Eric Cunha; [email protected]
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