In This Article:
LONDON, May 15, 2024--(BUSINESS WIRE)--Hunting secures record $145 million OCTG order from Middle East National Oil Company.
Highlights
-
Record $145 million OCTG order received from Middle East NOC.
-
Revenue expected to be recognised from late Q4 2024 and into 2025.
-
Group sales order book has increased to a record c.$665 million (including this new order).
-
Supports Hunting’s 2030 Strategy to deliver revenue and profit growth through OCTG and in geographies such as the Middle East.
-
Given the quantum of this order, management now expects EBITDA to be towards the top end of its current guidance of $125-135 million for 2024.
Hunting PLC (LSE:HTG), the global engineering group, is delighted to announce that it has secured a $145 million OCTG order with a Middle East National Oil Company through our distributor in-country.
The order comprises a large quantity of premium OCTG casing, to be supplied by Hunting via its end-to-end integrated OCTG supply chain in Asia Pacific. The casing will be threaded with Hunting’s proprietary SEAL-LOCK premium connection technology at its facilities across Asia Pacific, with revenue expected to be recognised from late Q4 2024 and into 2025.
Hunting has leading-edge manufacturing capabilities across Asia Pacific, India and the Middle East and since 2019 has invested to establish a leading strategic supply chain, manufacturing capacity and connection technology offering to support the Group’s international OCTG growth ambitions and to support this and other key customers’ operational needs across this important region. Delivering the highest quality OCTG products on time together with Hunting’s unsurpassed service offering remains key to the Group’s success.
Including this new order, the Group’s sales order book has increased to c.$665 million, which is the highest in the Company’s history and provides strong earnings visibility for the Group’s Asia Pacific operating segment and OCTG product group into 2025.
Given the quantum of this order, management now expects EBITDA to be towards the top end of its current guidance of $125-135m for 2024. Given the timing of revenue recognition and working capital movements, more detailed guidance for full year 2024 will be provided in the Company’s H1 2024 Trading Statement.
The order supports the Hunting 2030 Strategy to deliver revenue and profit growth through its OCTG product line, particularly in geographies such as the Middle East where drilling activity continues to be strong and is likely to be so to the end of the decade.
The order will be funded from the Group’s existing $150 million Asset Based Lending facility and, in addition, accelerated receivable solutions and bank acceptance bonds are also being put in place to shorten the overall cash conversion cycle. Previous guidance on working capital efficiency targets remains unchanged.