Hunting PLC (LSE:HTG) has announced a major restructuring of its well-testing services and the sale of its last stake in an oil field.
Manufacturing and assembly operations of the group's main well testing site are to be transferred from the Netherlands to Dubai, said the engineer, which will lead to the closure of a facility at Velsen-Noord.
Hunting's Dubai operations are to be relocated to a larger, higher efficiency facility in the UAE, while its Oklahoma City site in the US is also being closed.
“Management is making good progress in delivering key initiatives in support of the Hunting 2030 strategy, which includes locating manufacturing facilities in areas of high growth and merging operations to enhance returns and lower the cost base," said Jim Johnson, chief executive,
Hunting made the announcement alongside interim figures that confirmed a strong first half with revenues up 42% to US$478 million and pre-tax profit of US$23.1mln against a loss of US$0.5 million a year ago.
In May, Hunting raised its forecast for the year to between US$92-94 million and said today orders now stand at US$529 million, up 63%, which it added is a good indicator of the trading outlook.
Johnson said the results and orders confirmed a positive trend of increased investment in the oil and gas industry following years of underinvestment, driven by global energy demand and increased focus on energy security
"We believe that the sector is in the early days of a long-term growth cycle which, coupled with our non-energy businesses, positions the company for increased revenue and earnings going forward."
The interim dividend rises to 5c (4.5c).