6th Mar 2025 12:52
(Alliance News) - Hunting PLC on Thursday said it expected to see steady growth in 2025 although it cautioned tariffs could lead to "unforeseen challenges".
The London-based supplier to the oil and gas industry reported a pretax loss of USD33.5 million in 2024 swung from a USD41.4 million profit a year prior. Adjusted pretax profit increased 51% to USD75.6 million from USD50.0 million.
Hunting shares were down 8.7% to 280.25 pence in London on Thursday afternoon.
Earnings before interest, tax, depreciation and amortisation climbed to USD126.3 million from USD102.4 million.
Revenue grew 13% to USD1.05 billion from USD929.1 billion.
Hunting delivered free cash flow of USD139.7 million in 2024 which is described as "outstanding".
Chief Executive Jim Johnson said Hunting will now look to deploy this to acquisitive growth and investments to enhance productivity and stronger dividend distributions.
Hunting proposed a final dividend of 6.0 US cents per share, up from 5.0 cents on-year, taking the total payout to 11.5 cents, up 15% from 10.0 cents.
Looking ahead, Hunting retained 2025 Ebitda guidance of between USD135 million and USD145 million.
It said 2025 should see steady growth in revenue and adjusted earnings as all market indicators point to further progress due to prevailing energy demand. The firm anticipates an acceleration in activity in the second half of the year and into 2026, as market and geopolitical tail winds increase.
Hunting expects continued activity across North America, but also new opportunities offshore as Gulf of Mexico licensing and liquid natural gas capacity permitting should increase.
Balancing this growth drive, OPEC+ countries will likely unwind their production cuts during 2025, but at a rate which maintains stability across the market. The ongoing conflict in Ukraine and fragile peace across the Middle East will also be key factors in commodity pricing, Hunting added.
Tariffs are a further factor to consider, Hunting said.
"This area is highly dynamic," the firm noted.
"While the directors do not see an impact on our businesses given how our segments and supply channels are structured, the disruption across international markets in general may lead to unforeseen challenges," it added.
By Jeremy Cutler, Alliance News reporter
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