9th Jul 2025 10:12
(Alliance News) - Hunting PLC on Wednesday reiterated guidance after earnings growth in the first half and confirmed share buyback plans for up to USD40 million.
The London-based supplier to the oil and gas industry forecast earnings before interest, tax, depreciation and amortisation of between USD68 million to USD70 million for the first half of 2025, about 16% higher than in 2024.
Full-year Ebitda is expected in line with prior guidance, which is between USD135 million and USD145 million. This will be be up at least 6.9% from USD126.3 million in 2024.
Hunting plans to raise dividends by 13%, up from the previously target of a 10% hike. Hunting paid a total of 11.5 cents per share for 2024, up 15% from 10.0 cents for 2023.
Hunting estimated a GBP450 million value for its sales order book at June 30, up 2.5% from GBP439 million on-year, with an estimated GBP1.1 million tender pipeline.
The company's shares were up 13% to GBP340.50 in London following Wednesday morning's update.
Hunting noted that acquisitions cost about GBP69 million in the first half. It bought technology from Organic Oil Recovery Inc back in March, and in June, took over Flexible Engineered Solutions Group Holdings Ltd, a Northumberland, England-based fluid transfer company.
According to Chief Executive Jim Johnson, both acquisitions "demonstrate strong margin profiles" that exceed Hunting's 15% long-range target.
Restructuring of Hunting's Europe, Middle East & Africa division is expected to save the company about USD10 million on an annualised basis, it said.
Half-year results will be published on August 28.
Following this, Hunting will plans to launch a share buyback programme for up to USD40 million, expected to complete within 12 months.
Johnson added: "The first half of 2025 has seen strong trading for the group. Hunting's robust cash generation and significant financial flexibility enables us to commence a share buyback and increase our targeted annual dividend distributions. We also continue to actively monitor further bolt-on M&A opportunities."
By Holly Munks, Alliance News reporter
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