Hunting PLC Meets 2023 Financial Forecasts, Plans for Robust EBITDA Growth in 2024

Summary

  • Hunting PLC (LSE: HTG), a UK-based precision engineering group, anticipates an EBITDA between $96 million and $100 million for 2023, in line with market expectations.
  • Sales order book for Hunting has surged, currently valued at around $575 million, a substantial rise from the past quarters.
  • Hunting’s OCTG (Oil Country Tubular Goods) products are expected to report a substantial revenue increase of about 53% compared to 2022.
  • For 2024, Hunting forecasts an EBITDA of $125 million to $135 million, backed by a robust sales order book.
  • Hunting operates across several international markets including United Kingdom, China, Indonesia, Mexico, Netherlands, Norway, Saudi Arabia, Singapore, United Arab Emirates, and the United States.

Company Performance

Hunting PLC, an LSE-listed precision engineering firm, released a trading update today, confirming that its financial performance for 2023 aligns with previous forecasts and market projections. The company expects to register an EBITDA between $96 million and $100 million, with a predicted group revenue ranging between $925 million and $930 million.

Financial Overview

Highlighting the company’s performance, the anticipated EBITDA showing a rise from a 7% margin in 2022 to about 10.5% for the last year, moving towards the 14-16% target set for 2025. Moreover, Hunting’s order book has experienced a prominent surge, now valued at about $575 million, showing a 12% increased since the Q3 2023 closure, and a 21% rise from 2022’s year-end.

Cash Generation and Disposal

Hunting’s Q4 2023 balance sheet reveals robust cash generation, with borrowings expected to be equivalent to total cash and bank balances, indicating a net debt position of roughly zero. This is in line with the outlook provided in October 2023. Further, Hunting has streamlined its operations through the disposal of its remaining oil and gas production assets.

Product Lines Performance

As for product lines, Hunting’s OCTG (Oil Country Tubular Goods) products have seen a projected 53% revenue increase compared to 2022. However, Perforating Systems might record a slight revenue decrease of 3-4% due to a fall in the North American rig count by about 20%. On the contrary, Subsea product lines and Advanced Manufacturing have displayed significant growth, with approximately 40% and 45% revenue increases respectively.

Operating Segment Performance and Outlook

North America’s operating segment exhibited significant EBITDA growth, driven predominantly by the demand for Premium Connections and Accessories. The Titan operating segment delivered stable results despite a declining US rig count, while the formation of the Subsea Technologies segment has benefited from increased offshore drilling investments. Looking forward to 2024, Hunting stands by its EBITDA prediction of $125 million to $135 million, reflecting current market expectations.

Company’s Global Reach

Founded in 1874 and with its head office in London and a corporate branch in Houston, Hunting operates in various worldwide markets, with financial reporting in US dollars across five segments: Hunting Titan, North America, Subsea Technologies, EMEA, and Asia Pacific.

This financial news piece was based on an official press release from Hunting PLC. Content is supported by AI and reviewed by an editor.

All these financial growth reports and future predictions for Hunting PLC can potentially impact forex trading and market positions for assets in the precision engineering sector.

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