Hunting trading in line, tax dispute closed

Energy services group Hunting said it is trading in line with its expectations for the full year but cautioned that the short term outlook is increasingly cautious due to tough market conditions in a number of its operating regions.

Hunting also confirmed that a tax dispute in Canada had been resolved which will provide £25m of cash inflow.

Hunting explained: "The CTA have now ended their enquiry into the larger of the two tax disputes and have dropped their challenge resulting in the release of provisions held in respect of the dispute which at 30 June 2012 amounted to approximately £31m."

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The company said its balance sheet remains strong with net debt at the end of November £205m, not taking account of the cash inflow from resolution of the tax dispute.

Chief Executive Dennis Proctor said the group is continuing with its strategy to globalise its broad portfolio of products and investment in the manufacturing and distribution footprint of the group.

"Global offshore drilling continues to improve with Hunting supplying products to a number of major exploration and development projects which is offsetting some of the US land-based rig reduction," he said.

"The board of Hunting is pleased with progress during 2012 however; the short term outlook is increasingly cautious due to the economic climate seen in a number of our operating regions."

CJ