North Sea oil engineering firm Hunting PLC has stated that it expects the impact of recently proposed US tariffs on its business to be “immaterial,” as the company reported quarterly trading in line with expectations.
In a trading update ahead of its annual general meeting, the London-listed energy services group said it had reviewed the potential effects of US administration tariffs and concluded that the ongoing impact on its prospects and trading would be minimal. This assessment, however, does not account for any indirect effects of commodity pricing on the global economy, which the company said it would continue to monitor closely.
Hunting highlighted that its North American operations, including its Hunting Titan unit, are expected to face only a “minimal impact” from the tariffs since the majority of revenue and costs are derived from US-based supply chains. The company also noted its Subsea Technologies business is unlikely to be significantly affected, as most of its revenue comes from non-tariffed countries such as Guyana.
The group reported first quarter EBITDA of approximately $38.7 million, up from $28.9 million in the same quarter last year, at a margin of 14%. Its sales order book stood at $439.3 million, down from $506.8 million the previous quarter, but included a significant $38 million in new subsea orders. Around 77% of the current order book is expected to be traded within the financial year, with ongoing work for major clients such as Kuwait Oil Company and ExxonMobil.
Hunting also addressed the recent decline in commodity prices, noting that the WTI crude oil price was trading at around $61 per barrel as of mid-April. The company said, “to date, we have not seen any negative response to the lower pricing environment from our client base, but management continues to monitor the situation closely and will provide a further update in the H1 2025 trading update.”
The company emphasised its strong balance sheet and ongoing efforts to reduce working capital and increase cash generation. It also confirmed that plans to restructure its EMEA operations, targeting $10 million in annual cost savings, are progressing, and that it continues to assess potential bolt-on acquisitions, particularly in subsea and intelligent well completion businesses.
Hunting’s next trading update is scheduled for July 16, 2025.
