Revenue at Hunting soars on strong drilling activity

International energy services group Hunting saw revenue leap on the back of strong momentum in shale related drilling activity during the half year (H1) to the end of June.

Revenue increased 62% to £406.9m (H1 2011: £251.3m), while earnings before interest, tax, depreciation and amortisation more than doubled to £78.4m (H1 2011: £35.5m). Reported profit from operations came in at £41.0m (H1 2011: £22.1m), with diluted earnings per share of 18.5p, up from 10.5p the same period the previous year.

Revenue was also boosted by the contribution from the four acquisitions completed in the second half of 2011.

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The interim dividend was increased from 4.0p to 4.5p.

Dennis Proctor, Chief Executive, said the company's core businesses benefited from strong momentum in shale related drilling activity and in the international offshore arena, as well as the recovering Gulf of Mexico. The group's 2011 acquisitions are said to be performing well and starting to develop cross selling opportunities.

"The first six months of 2012 have seen good trading across the majority of business units within the enlarged group, with Hunting's core activities reporting a strong result and a satisfactory performance from the new businesses acquired in 2011," Proctor said.

"Across the company, many of our facilities have orders extending into the final quarter of 2012. Therefore, subject to sustained drilling levels and adequate commodity prices, Hunting is well positioned to deliver a further year of strong growth."

Net debt fell to £191.4m (31 December 2011: £218.4m).

The share price rose 0.06% to 780.50p by 09:31.

NR