Hunting Stock: Oil Recovery Technology Acquisition Boosts Growth

Hunting PLC, the London-listed precision engineering company, has acquired Organic Oil Recovery Technology (OOR) for $17.5 million from its founding shareholders. The purchase includes a 15% royalty on generated revenues payable to sellers over 15 years. The acquisition transfers over 25 individual patents, technology distribution rights, and a California laboratory to Hunting, with all technical staff joining either as employees or long-term consultants. This strategic move positions Hunting to accelerate the commercialization of OOR technology, which enhances oil recovery by improving efficiency, reducing capital expenditure, extending field lifespan, and decreasing water content during final production phases. The company has already secured orders worth up to $60 million from North Sea operators and is expanding its presence in the Middle East with a new laboratory in the UAE.

Financial Performance Remains Strong Despite Challenges

Despite posting a statutory pre-tax loss of $33.5 million in 2024 (compared to a $41.1 million profit in 2023) due to a non-cash impairment of $109.1 million in its Titan segment, Hunting's adjusted pre-tax profit increased to $75.6 million. The company reported a 13% revenue growth to $1.05 billion, with EBITDA improving by 23% to $126.3 million. Shareholders will receive an increased total dividend of 11.5 cents per share, up 15% from 2023. Hunting's free cash flow significantly improved to $139.7 million, with a net cash position of $104.7 million, supporting its continued international expansion and restructuring efforts.