Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Hunting sees full-year operating profit slump on oil woes

Published 02/07/2015, 08:15
© Reuters. Hunting sees full-year operating profit slump on oil woes
BARC
-
HTG
-
FTMC
-

(Reuters) - Oilfield services company Hunting Plc (L:HTG) said it expected a 50 percent to 75 percent fall in operating profit for the year as it continued to reel under a drop in global rig counts and a weak oil and gas market.

Hunting shares fell more than 7 percent on the London Stock Exchange on Thursday morning. The stock was the top loser on the FTSE-250 midcap index (FTMC).

The company, which provides services and equipment for drilling, completing and maintaining oil and gas wells, said operating profit slumped 76 percent in the first five months of the year.

"The market appears to have deteriorated more and the key continues to be when or indeed if, the U.S. business starts to pick up," analysts at Barclays (LONDON:BARC) wrote in a note.

London-based Hunting said it had cut 25 percent of its workforce since the start of the year, resulting in savings of about $41 million. In some of its divisions, the job cuts were as much as 50 percent, the company said.

Hunting employed about 4,000 people at the end of 2014 and about 60 percent of them were in the United States.

It had warned in February that it expected the impact of weak oil prices to show up from the second quarter.

Hunting said a 56 percent drop in North American rig counts, coupled with a 12 percent fall in international rig counts since the start of the year has heavily impacted historical purchase volumes.

Hunting shares were down 6.8 percent at 559 pence at 0709 GMT.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.