Major OCTG order & revised 2023 full year guidance
For Immediate Release
30 May 2023
("Hunting" or "the Company" or "the Group")
Major OCTG order and revised 2023 full year guidance
Hunting secures $91 million OCTG order from Cairn Oil and Gas, Vedanta Limited
Sales order book now c. $575 million
2023 full year EBITDA revised up to $92-$94 million
Hunting PLC (LSE: HTG), the international energy services group, today announces that its Asia Pacific operating segment has won a new, significant Oil Country Tubular Goods ("OCTG") contract that management estimates to be worth up to $91 million with Cairn Oil and Gas, Vedanta Limited, for its operations in Rajasthan, India. The contract is for an estimated 100 wells and is to extend up to three years. The OCTG will be supplied with Hunting's proprietary SEAL-LOCK XDTM premium connection.
This order, again, breaks Hunting's record for the largest single order received for the Group's OCTG and premium connections and supports management's belief that international market sentiment remains extremely strong as governments and countries address the challenges of energy security, the development of domestic supply and post-COVID economic recovery.
With this order, Hunting's sales order book now is c.$575 million, which represents a material increase since the year-end.
2023 Full Year Guidance
Based on the timing of the first deliveries of this order, management now believes that 2023 full year EBITDA will be in the range of $92-$94 million, which represents a further increase to the guidance issued at its 2022 full year results in March 2023. Management also believes that the year-end guidance for cash and bank remains unchanged.
Commenting on trading, Jim Johnson, Chief Executive, said:
"Hunting's successful run of significant OCTG and Subsea orders since H2 2022 demonstrates that our technology and global footprint is well positioned to deliver significant growth in the medium term. US market activity remains stable and with the orders received for China, Guyana, Brazil and now India, Hunting continues to see a strong growth profile given our standing and recognition with major energy companies, coupled with the strong international market sentiment being reported in many regions."
For further information please contact:
Jim Johnson, Chief Executive
Bruce Ferguson, Finance Director
Tel: +44 (0) 20 7321 0123
Tel: +44 (0) 20 7466 5000
Notes to Editors:
About Hunting PLC
Hunting PLC is an international energy services provider to the world's leading upstream oil and gas companies. Established in 1874, it is a premium listed public company traded on the London Stock Exchange. The Company maintains a corporate office in Houston and is headquartered in London. As well as the United Kingdom, the Company has operations in Canada, China, Indonesia, Mexico, Netherlands, Norway, Saudi Arabia, Singapore, United Arab Emirates and the United States of America.
The Group reports in US dollars across five segments: Hunting Titan, North America, Subsea Technologies, EMEA and Asia Pacific.
Hunting PLC's Legal Entity Identifier is 2138008S5FL78ITZRN66.