Hunting making steady progress

International energy services group Hunting saw shares fall on Wednesday despite an in-line trading statement.

Hunting says its facilities in Conroe, Latrobe and Casper, commissioned in early 2011, are now capturing business in the US shale market.

The firm's manufacturing side has also been lifted by increased demand from the Gulf of Mexico, which is picking up following the BP oil spill.

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Dennis Proctor, Hunting's Chief Executive, said: "Trading in the first six months of the year has been underpinned by an adequate oil price, a year-on-year increase in the worldwide rig count and strong shale-related drilling activity within North America."

According to analysts at Investec, "Today's trading update shows steady progress in 1H12 in line with expectations. The contribution from businesses acquired in 2011 is more than offsetting the volatility in the US shale drilling market. We make no change to our forecasts or recommendation."

While the broker maintained its 'buy' rating on the stock, it cut its target price from 1,050p to 950p to reflect the de-rating of the sector.

By 14:46, shares were trading 1.56% lower at 755p.

BS