Hunting making steady progress
International energy services group Hunting saw shares fall on Wednesday despite an in-line trading statement.
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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
![https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748-320-80.jpg)
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Regulator moves to protect access to cash amid branch closures and disappearing ATMs
News The Financial Conduct Authority has told banks to start assessing if local communities have adequate cash access from mid-September
By Marc Shoffman Published
-
VAT hike on private school fees could come earlier than previously expected
The government could start charging VAT on private school fees as soon as January 2025, according to the latest reports. What does it mean for parents?
By Katie Williams Published