Shares in oil and gas services specialist Hunting PLC (LSE:HTG) jumped 12% as it highlighted a strong order book, a restructuring of its activities in the North Sea and a possible boost from Donald Trump becoming US President.
Due to the UK government’s stance on the North Sea and decarbonisation, Hunting said it is now looking at its presence here as well as across all of Europe (EMEA) where it has already proposed shifting one plant from the Netherlands to Dubai.
Total cost savings from the review are expected to be US$10 million and will align “the group's cost base to the medium-term outlook for the region”.
Hunting added that underlying profits in 2024, will be US$123-126 million on revenues between US$1.04-05 billion.
Orders at the year-end totalled US$500 million with Hunting also expecting a boost in demand when the Trump administration takes over.
Based on that order book and a likely Trump bump, profits this year (2025) are forecast to rise to US$135-145 million.
Jim Johnson, chief executive commented: "This growth has been delivered against a challenging industry backdrop through 2024, particularly in North America, which saw lower-than-expected activity due to depressed gas prices.
“Pleasingly, these challenges are beginning to subside with the natural gas price in the US ending the year strongly, which will likely lead to more drilling in the US and Canada, which will be further supported by the new US administration. “
Shares rose 37p to 344p.