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Energy services group Hunting to cut costs amid hit to demand from oil price slump

By BFN News | 09:58 AM | Wednesday 15 April, 2020


Energy services group Hunting said first-quarter performance met its expectations, but unveiled measures to cut costs of offset a fall in demand in the wake of a sharp decline in oil prices. 'Trading in the first quarter was 2020 was broadly in line with management's expectations, however, the impact of the oil price decline has affected demand within the group's segments focused on US onshore completions since the end of March 2020, the company said. 'Other segments were likely to see declines towards the end of second quarter of 2020, given that orders are continuing to be completed across all of Hunting's operating regions for a variety of offshore and international projects,' it added. As a consequence of these factors, the company said it had implemented a programme of measures to contain costs including the curtailment of non-essential capital expenditure and an immediate recruitment freeze. 'With this market backdrop and trading outlook, the board will continue to regularly update investors as and when appropriate, but at this time has decided to withdraw 2020 full year guidance given the limited visibility due to the global impact on sentiment and volatility seen across all markets since the middle of March 2020,' Hunting said. At 9:58am: (LON:HTG) Hunting PLC share price was -16.35p at 176.25p Story provided by StockMarketWire.com

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