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Investing.com -- Shares of Hunting PLC (LON:HTG) fell 1.7% on Wednesday after the company released its first quarter 2025 update ahead of its Annual General Meeting (AGM), despite strong performance on its Kuwait Oil Company (KOC) contracts and progress toward its 2030 goals.
Concerns over seasonally lower net cash, a reduced order book, and uncertainty for the second half of the year led to a neutral market response, while the company reported an EBITDA of approximately $38.7 million, reflecting a 14% margin, up from 12% in Q1 and the full year of 2024.
This increase reflects the company’s continued strong execution on the KOC orders, with just one of the eight shipments remaining for delivery in the second quarter. All product groups traded in line with management expectations for the first quarter, with the Titan division showing improvements due to cost-saving measures.
However, Hunting’s net cash (excluding leases) decreased to $58 million at the end of the first quarter, down from $104.7 million at the end of the previous fiscal year.
The company believes that the ongoing effect of tariffs on its trading is immaterial, assuming international supply chains stabilize, and has not observed any adverse response to lower oil prices.
"We remain positive on the outlook for Hunting, particularly in the OCTG and Subsea businesses which have performed above management’s 15% EBITDA target and see tendering opportunities in 2025 to boost the order book, in geographies with strong breakeven economics at or below $40/bbl," according to RBC analysts.
RBC maintained its Outperform rating on Hunting with a 480p price target.