29th Oct 2019 08:33
(Alliance News) - Hunting PLC said Tuesday it expects full-year earnings to be at the lower end of market expectations due to challenging trading conditions and a slowdown in US onshore completions.
The energy services firm said profit declined in the third quarter compared to both the first and second quarters of 2019. As a result, earnings before interest, tax, depreciation and amortisation for 2019 is expected at the lower end of market expectations.
Hunting did not give a consensus range for 2019 Ebitda. In 2018, Ebitda came in at USD141.3 million.
"As anticipated, challenging markets continue to be a feature of our industry, negatively impacting trading conditions and results in September," said Hunting.
"In particular, a slow down within US onshore completions has continued which has been partially countered by ongoing improvements within our offshore and international operations, resulting in a net overall decline for the group profit in the quarter compared to first and second quarters 2019."
Hunting said the core Titan business also delivered lower revenue and operating profit in the third quarter of 2019. Second-half results for the unit will be hit, Hunting said, by a slowing in drilling in North America in the last quarter.
Revenue in the US were "generally stable" during the third quarter due to higher offshore and international market demand, the company said.
Hunting shares were down 3.2% in London at 406.73 pence each early on Tuesday, one of the FTSE 250's worst performers.
By Loreta Juodagalvyte; [email protected]
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