(Reuters) – British energy services firm Hunting Plc slashed its annual profit outlook on Tuesday, partly hurt by prospective lower client activity for the rest of the year due to a decline in oil prices and renewed falls in U.S. natural gas pricing.
“Whilst the outlook for the international and offshore subsectors of the industry continues to remain firm, the slower than anticipated improvement within the U.S. onshore has led to a deterioration in our short-term trading expectations,” CEO Jim Johnson said in a statement.
Hunting, which reported a 16% rise in third-quarter core profit in line with its expectations, but flagged break-even trading in its Hunting Titan operating segment due to subdued U.S. onshore market and low natural gas pricing.
The London-listed company said it was planning cost-cutting initiatives in the Titan business in tune with the prevailing market conditions.
The company now expects its 2024 group core profit between $123 million and $126 million, compared with its previous forecast range of $134 million to $138 million.
Hunting also said it has entered into $300 million of new committed borrowing facilities, comprising a $200 million revolving credit facility and a $100 million term loan.
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Abinaya Vijayaraghavan and Mrigank Dhaniwala)
