30th Aug 2018 09:19
LONDON (Alliance News) - Energy services firm Hunting PLC on Thursday reinstated dividend payments as it reported a swing to profit in the first half of the year as a result of improved drilling activity in the US.
Shares in Hunting were up 11% at 839.50 pence early Thursday following the announcement, the best performing stock in the FTSE 250 index of London mid-caps.
Hunting's pretax profit from operations totalled USD38.0 million in the six months to June 30, a sharp swing from a USD25.5 million loss a year before.
Hunting saw revenue increase 39% to USD442.8 million from USD318.1 million previously, with a particularly strong performance from its Hunting Titan business in the US. Hunting Titan manufactures perforating guns for use in mining and recorded a revenue jump of 62% to USD216.7 million from USD133.4 million.
Hunting declared a per share interim dividend of 4.0 cents, having made no interim payout in 2017.
"Given the interim financial results reported today and the more stable outlook, the board is pleased to be re-instating dividend distributions to shareholders," said Hunting Chief Executive Jim Johnson.
Nonetheless, while optimistic about its outlook, the company remained cautious in its approach to the future.
"Outside the US, Hunting's other reporting segments are seeing improving markets. However, there are headwinds given the introduction of trading tariffs for steel and the continuing volatile geopolitical environment," said Johnson.
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