– Hunting Plc’s expectations for full-year core profit on Thursday may fall below analysts’ estimates, although the oilfield services firm forecast improved trading momentum in the second half as drilling activity gains momentum.
Shares in the oil services firm fell more than 8% in morning trade, with analysts at RBC Capital saying that the group’s expected core profit run-rate for the third and fourth quarters implied annual profit below market expectations.
“Hunting expects the Q3 and Q4 EBITDA run-rate to increase about 20% from the second quarter, which implies a full-year EBITDA of about $44 million,” RBC analysts wrote in a note.
Analysts on average are expecting an annual core profit of $60.8 million, according to Eikon Refinitiv data.
Hunting forecast core profit in the range of $16 million to $18 million for the first half ending June 30, adding that it was likely to report a stronger rest of the year.
“With energy security and consumer pricing for fuel now at the top of most political agendas, the outlook for the global oil and gas industry is now extremely positive,” Chief Executive Officer Jim Johnson said in a statement.
The London-headquartered firm said gross margins across most its operating segments also continued to improve amid increased activity levels.