UK's Hunting warns of lower annual profit as Kuwaiti tender delays hit outlook
UK's Hunting warns of lower annual profit as Kuwaiti tender delays hit outlook Aug 21 (Reuters) - British energy services firm Hunting HTG.L lowered its annual core profit forecast on Friday after delays to a major Kuwait Oil Company (KOC) tender process, despite expecting a recovery in the second half of the year.
Here are a few details:
The London-listed company now expects 2026 core profit of $138 million to $141 million, down from previous forecast of $145 million to $155 million.
Shares in Hunting were down about 14.6% at 407 pence in early trading.
The oilfield equipment sector is being pulled in two directions, as the conflict in the Middle East disrupts near-term activity in a lucrative market and drives up costs, while longer-term demand is supported by AI-driven power needs and a wave of new deepwater projects.
The KOC tender delay could reduce 2027 profit by as much as $10 million, the company said. Analysts expect 2027 earnings of $162.04 million, according to LSEG-compiled data.
Hunting also said a planned restructuring of its EMEA operations was nearing completion, with facilities in the Netherlands and Norway already closed and a site in Scotland scheduled to shut in September.
The EMEA site closures have generated about $11 million in annualised savings, which Hunting expects will help return the segment to profitability in the second half of 2026.
The company's first-half core profit fell 11.5% to $62.1 million, reflecting the absence of KOC orders completed a year earlier and weaker Advanced Manufacturing activity.
Hunting'a EMEA and Asia Pacific divisions will be combined into a new International segment from 2027.
(Reporting by Anushka Chourasia and Ankita Bora in Bengaluru; Editing by Harikrishnan Nair and Sherry Jacob-Phillips)
((Anushka.Chourasia@thomsonreuters.com; Ankita.Bora@thomsonreuters.com))