LONDON (dpa-AFX) - Hunting PLC (HTG), an international energy services group, on Thursday said that strong progress continues to be made in building its forward sales order book, which provides further visibility on revenue and earnings for the balance of 2022 and into 2023.
Hunting's sales order book now exceeds c.$400 million which represents a near doubling since 31 December 2021.
Hunting's Asia Pacific operating segment recently won an Oil Country Tubular Goods contract that management estimates to be worth up to $86 million with CNOOC for an offshore project in China. The order is expected to be completed by June 2023 and would utilise Hunting's proprietary SEAL-LOCK XD premium connection.
Purchase orders have been received in August, and the OCTG raw material has to be purchased in the second half of 2022 which would increase working capital by c.$30 million. The revenue from this order, which is the largest single order for Hunting's OCTG and premium connections in the Group's recent history, would be recognised in 2023, as shipments commence.
In August 2022, the Subsea Spring business, which forms part of the North America operating segment, also secured further orders for its titanium stress joints for Beacon Offshore Energy's Shenandoah development in the Gulf of Mexico.
Shares of Hunting plc closed Wednesday's trading at 226 pence, down 8.50 pence or 3.62 percent from the previous close.
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