Hunting PLC Boosts Shareholder Returns After Solid H1 Performance

Hunting PLC (LON:HTG) announced a significant increase in shareholder returns following a robust first-half performance.

The energy services group is initiating a $40 million share buyback program and raising its interim dividend by 13% to 6.2 cents per share.

Hunting shares are down 2% so far on Thursday at 325p after initially opening higher at 342p per share.

The company's H1 2025 results showed an operating profit of $36.2 million, compared to $40.1 million in H1 2024.

Profit before tax reached $30.6 million, down from $36.2 million in the prior year. Diluted earnings per share were reported at 12.1 cents, versus 15.5 cents in H1 2024. However, net cash inflow from operating activities surged to $90.8 million, a substantial increase from $24.7 million in the same period last year.

Hunting's EBITDA performance benefited from strong results in its OCTG (Oil Country Tubular Goods) product group and an improved showing from Perforating Systems. Subsea, Advanced Manufacturing, and Other Manufacturing segments experienced declines due to project timelines and revenue recognition patterns.

The share buyback program, commencing immediately, will be executed in three tranches and is expected to conclude during 2026.

The company secured $69 million in new subsea orders during H1 2025, bolstering its sales order book. This includes $46 million in titanium stress joint orders for projects in the Gulf of Mexico and the Black Sea, and $23 million in bespoke orders for Enpro's proprietary equipment in the North Sea.

At the end of the period, Hunting's total cash and bank borrowings stood at $79.3 million, following the deployment of $80.0 million on acquisitions. The company has enhanced its capital allocation policy, increasing dividend distributions to 13% growth per annum from 10%.

Hunting's tender pipeline exceeds $1 billion, with opportunities in OCTG and Subsea being actively pursued. The company is also progressing non-oil and gas sales through its Advanced Manufacturing businesses, as demonstrated by recent orders from Pratt & Whitney.

The company stated: “Reshaped Hunting [is] well-positioned to capture profitable growth through optimising our portfolio and operations.”

Meanwhile, Jim Johnson, Chief Executive, commented that the company “continues to make significant progress executing our Hunting 2030 Strategy.”

“With the recent acquisitions of Flexible Engineered Solutions and the Organic Oil Recovery technology, Hunting has added strong revenue and cash flow opportunities to the Group for the medium-term, as offshore markets continue to demonstrate robust activity, along with the oil and gas industry demanding new technologies to deliver production improvements and efficiencies.”