Hunting predicts stronger 2021

Hunting said it expected a stronger performance in 2021 after the price of oil improved in the fourth quarter and activity started to ramp up again.

Updating on trading ahead of publishing full-year results, the energy services firm said the WTI oil price, onshore rig count and number of active frac crews in the US had all shown "modest increases" over the last three months, which would support activity in the new year.

Chief executive Jim Johnson said: "With this market backdrop, coupled with a significantly lower cost base, where around $81m in annualised savings have been achieved in the year-to-date, management anticipates an improving performance for the year ahead.

"The group’s actions to restructure our global businesses during 2020 will also lead to further efficiencies being recognised as activity levels ramp up."

During the year, Hunting - which manufactures a wide range of tools and solutions used in oil and gas exploration - closed its Canadian manufacturing operation and partially divested its drilling tools business. In October, it confirmed it had reduced its global workforce by 30% during the year in response to weak demand and the falling oil price.

During the half year, sales at its biggest unit, Hunting Titan, slumped early 40% because of a slide in US onshore activity levels.

The firm said Hunting Titan’s trading results had improved since the half year, with increasing revenue and a "broadly break-even result in November, supported by an improving product mix and lower cost base".

Shares in Hunting were off 2% at 206.2p as at 0930 GMT.

Hunting is scheduled to publish 2020 annual numbers on 4 March 2021.