Oilfield services company Hunting said on Thursday that it swung to a loss in the first half following a slump in oil prices.
In the six months to the end of June, the company swung to a reported loss from operations of $183.6m from a profit of $41.1m in the first half of last year, while underlying earnings before interest, tax, depreciation and amortisation fell to $28.4m from $77.4m.
Revenue declined to $377.7m from $508.9m and Hunting said its financial performance was dented by the coronavirus pandemic and the consequent decline in West Texas Intermediate oil prices, which has led to operating restrictions and reduced activity during the period.
Chief executive Jim Johnson said that company’s performance in the first quarter was in line with management’s expectations.
“The impact of Covid-19 and the actions of the OPEC+ group in late Q1 2020 led to the material decline in the global oil price, which has devastated the industry, firstly within the US onshore market, but followed by the weakening of US offshore and international markets,” he said.
Johnson said the outlook for the rest of the year remains uncertain as Covid prevention measures continue to change daily.
“However, enquiry levels have improved with the increasing average oil price and areas of the US onshore market indicate that the mid-point of the year could have been the bottom of the cycle, with cautious steps being taken by our clients to incrementally restart operations.
“Management anticipates an improving Q4 2020, subject to the impact of the pandemic remaining materially unchanged from the current position.”
At 0855 BST, the shares were up 11.3% at 193.60p.