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Hunting cautious on 2019 performance amid lower oil price, Permian pipeline bottlenecks

Monday, 17th December 2018
Energy services group Hunting said Monday performance to the end of November remained in line management's expectations, but the company cut a cautious tone ahead of the upcoming year on expectations that customers may delay orders.

The Hunting Titan division had continued to deliver record results in 2018 due to US onshore completion activity, the company said.

But fourth quarter operating profits were likely to record a marginal decline compared to the previous two quarters, owing to increased competition and market softness in its US onshore businesses as public holidays and the exhaustion of clients' budgets weighed on daily sales run-rates, the company said.

The company anticipated that capital expenditure for the full year 2018 will be about $30m.

The group's Canada, Europe, Middle East and Asia Pacific segments, reported a similar performance in fourth quarter compared to third quarter, with cost containment initiatives continuing to narrow losses, the company said.

The company was less optimistic about 2019 performance, citing clients were indicating caution on committed spend for the early part of 2019 as the lower oil price and pipeline bottlenecks in the Permian basin indicate a short term slowing in completion activity.

'Given the current volatile market environment, management anticipate these market conditions will impact short term budgetary decision making by our customers with possible deferrals of work. Management enter 2019 with a cautious outlook, but believe that Hunting is in a robust position to manage these challenging market conditions,' the company said.

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