Hunting Rewards Shareholders With Dividend After Swing To Profit

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Date: 22.03.2019

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Hunting PLC on Thursday decided to bring back its final dividend as it swung to an annual profit on revenue growth.

Shares in the FTSE 250-listed company were trading down 1.4% at 545.50 pence each.

For 2018, the energy services group posted pretax profit of USD74.7 million compared to a USD27.6 million loss a year ago.

Revenue increased 26% to USD911.4 million from USD724.9 million.

The company proposed a final dividend of 5.0 cents per share. A year ago Hunting did not issue a payout to shareholders.

Hunting resumed dividends at the halfway point of 2018, as increased drilling activity in the US boosted its performance. It paid an interim return of 4 cents, taking the 2018 total to 9 cents.

"The group's improved performance in 2018 and into early 2019, has been driven by US onshore-centric drilling activity and investment, while the results of Hunting's international businesses remain dependent on further market improvement," Chief Executive Jim Johnson said.

He added: "Given the ongoing commodity price and geopolitical volatility, the board remains focused on the agility and flexibility of the business to respond to market conditions. Initiatives to further improve profitability and margins, and reduce losses, including in-sourcing of production, facility rationalisation and inter-segment manufacturing, will also continue in the year ahead."

 

Source: morningstar.co.uk

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