Acquisitions drive revenue growth at energy services group Hunting

Group revenues increased 36 per cent to 825.8m pounds in the year ended December 31st at at international energy services group Hunting.

Group revenues increased 36 per cent to 825.8m pounds in the year ended December 31st at at international energy services group Hunting.

The group reported that the year-on-year effect of acquisitions made in the latter part of 2011 added £155.2m to revenue, while the remaining £61.8m of revenue growth from existing businesses came from like-for-like growth of 11%.

Well Construction was the strongest performing division, with revenue up 44% to £279.3m.

The division benefited from a full year contribution from the Hunting Dearborn, Hunting Doffing and Hunting Specialty acquisitions which collectively added £49.1m of revenue growth, the group reported.

Well Completion revenue was up 40% to £457.4m with the full year impact of the group's Hunting Titan acquisition adding £106.1m of revenue.

Base businesses also performed well with like-for-like revenue up 9.0%.

Reported diluted earnings per share rose 97% to 40p and the final dividend of 14p, proposed to be paid on July 1st to shareholders, represented a 27% increase year-on-year.

Outlook: Satisfactory year expectedIn its outlook for 2013, the group predicted a slow start with an improving second half.

It said that the expectation was derived from discussions with major oil and gas companies, independents and clients.

"Further, order intake in the fourth quarter 2012, current backlogs, facility expansions, product introductions and inquiry levels are blended to conclude that 2013 will be a year of progress," the outlook statement continued.

Dennis Proctor, Chief Executive Officer of Hunting, commented on the results, saying: "The group has commenced 2013 steadily, with current backlogs, facility expansions, product introductions and inquiry levels indicating that this will be another year of progress.

"In North America, market sentiment is indicating that onshore drilling will show a modest increase throughout the year, with offshore drilling remaining strong, as activity in the Gulf of Mexico increases in momentum.

"In Europe, current rig activity levels are providing a positive outlook for the year, while in the Middle East and Asia Pacific, our facilities are well positioned to increase their contribution to the group's performance.

"While the board is mindful of the current geopolitical and economic issues which prevail, it is confident of delivering a further satisfactory year."

Hunting's share price was down 3.86% to 895p at 09:55 on Thursday.

MF

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