13th Apr 2016 07:16
LONDON (Alliance News) - Hunting PLC Wednesday said trading across all of the company's divisions has been weak in the first quarter of 2016, as expected, with revenue down around half from a year earlier.
The oilfield services company has been battling weaker oil and gas prices which has caused its customers within the industry to delay, defer and cancel projects to rein in costs.
Hunting said revenue in the first quarter of 2015 was around 50% less than the first quarter of 2015. The company does not release quarterly figures, but generated USD463.5 million over the first half of 2015.
The company conceded that trading has been weak across the majority of its divisions, and said although WTI prices have stabilised at around the USD40 per barrel mark since the start of the year, the number of rigs in the US has continued to decline to below 450 active units compared to 1,800 active units at the end of 2015.
WTI was trading at USD41 a barrel on Wednesday whilst Brent crude was trading at USD44 a barrel.
Hunting said it has reduced its workforce by 40.% since the start of 2015, delivering around USD82.0 million worth of annualised cost savings.
The company continues to monitor cash generation and net debt, it said, with net debt standing at USD132.0 million at the end of March.
"Although trading visibility remains very weak, Hunting continues to be focused on maintaining its capability to respond to an improvement in the trading environment, utilising its portfolio of high efficiency manufacturing plants, across the globe, led by an experienced management team," said Hunting.
Hunting shares were trading down 3.2% to 314.50 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Hunting