27th Feb 2020 10:23
(Alliance News) - Hunting PLC on Thursday announced its first share buyback programme and said the outlook for 2020 remains uncertain due to commodity prices.
Hunting, which makes tools and equipment for use in the global upstream oil and gas industry, said 2019 pretax profit declined 10% to USD93.1 million from USD104.0 million.
Underlying earning before interest, tax, depreciation and amortization slipped 1.8% to USD139.7 million from USD142.3 million in 2018.
Revenue was USD960.0 million, a 5.4% increase from USD911.4 million in 2018.
The company declared final dividend of 6 cents per share, up 20% compared to 5 cents per share a year ago.
Hunting's core business, Hunting Titan, reported lower 2019 results as performance was "adversely impacted by lower US onshore completion expenditure".
The company said good growth was reported within the US, Europe, Middle East & Africa, and Asia-Pacific regional operating segments, "as offshore and international market activity improved".
The company announced what it said will be its first ever share buyback programme, of 2 million shares at an approximate cost of USD8 million. This implies a price of USD4 per share, or about 311 pence.
Hunting shares were trading 3.4% higher in London at 302.20 pence each on Thursday. The buyback begins on Thursday.
Jim Johnson, chief executive officer, said: "Our results announced today reflect the group's commitment to capital discipline, retaining a strong balance sheet while delivering a solid performance in difficult market conditions.
"For the first time in the history of the company we are initiating a share buyback programme, as the board considers the current share price highly undervalues the group," Johnson said.
Looking ahead, the company warned that outlook for 2020 remains uncertain, "as over half of all operators have yet to publish budget spend guidance due to continued uncertainty over commodity prices."
By Loreta Juodagalvyte; [email protected]
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