Activist Investor Demands $145 Million Return From Oil Engineer Hunting

A Hong Kong-based hedge fund has emerged as a significant force in the ongoing shake-up at British oil engineering firm Hunting PLC. Oasis Management, having accumulated more than 5 per cent stake over the past year, is pressing for substantial changes in the company’s financial strategy.

The activist investor, renowned for its successful campaigns against Restaurant Group and Premier Foods, is demanding that Hunting either return $145 million to shareholders through a buyback programme or utilise the funds for strategic acquisitions. The pressure comes as Hunting’s share price has plummeted by nearly a third over the past year.

The company’s troubles stem from multiple sources, including the retreat of energy giants from North Sea operations and declining oil and gas prices affecting its US onshore division, Hunting Titan. To combat these challenges, the organisation has implemented significant restructuring measures, including the closure of its Netherlands facility and workforce reductions, targeting annual savings of £10 million.

Chief Executive Jim Johnson’s promises of merger and acquisition activities over the past 18 months have yet to materialise, fuelling Oasis Management’s aggressive stance. Sources close to the hedge fund suggest that the company’s sluggish approach to strategic deployment of capital has prompted this intervention.

The situation mirrors Oasis’s previous successful campaigns, particularly its 2023 effort at The Restaurant Group, which led to the removal of chairman Ken Hanna and the divestment of major brands. While Hunting maintains it has engaged constructively with Oasis regarding long-term strategy, the mounting pressure for decisive action continues to build ahead of Wednesday’s annual meeting.

Industry observers are closely monitoring this development, as it represents another significant move by activist investors in the UK’s energy sector, potentially catalysing major strategic shifts in the company’s operations and financial management.