Oil services group Hunting Plc (LON:HTG) said it delivered a solid performance in the third quarter but warned that the US offshore and international markets remain slow.
The oil services group on Tuesday said revenues during the third quarter remained steady in North America as activity within the onshore shale basins continued, with good demand for its perforating products and accessories. It added that it was on track to hit full-year targets.
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Hunting said US revenues and operating profits continue to show modest improvement, with most businesses turning a profit during the quarter. Demand for the Group's TEC-LOCK semi-premium connection continues to gain market acceptance for application within the US onshore basins, it added.
Demand within the advanced manufacturing group also increased during the quarter as new orders for drilling and completions-related capital equipment, as well as non-oil and gas products, have been received, it said, though sounded a note of caution on its prospects for the rest of the year.
“While the US onshore market environment remains relatively firm, the US offshore and international markets remain slow as geopolitical tensions and the lack of confidence in commodity prices due to the recent downturn continue to weigh on sentiment and capital investment planning,” CEO Jim Johnson said in a statement.
“A seasonal slowdown in North American drilling during November and December remains predicted due to public holidays, along with the potential exhaustion of our clients' drilling and completion budgets. Overall, trading for the full year remains in line with expectations, with management remaining comfortable with current market consensus.”
Hunting said general market improvement and the continuing production of perforating guns for Hunting Titan has allowed losses to narrow in its Canadian unit and that in Europe, low activity levels in the North Sea continue to lead to operating losses.
In Asia Pacific, the segment's operating losses continue to reduce, despite a more volatile market environment and within the Middle East, initiatives to contain costs have helped reduce losses, it added.