---
title: "Hunting reduces profit forecast as oil prices fall"
publisher: "Stockmark.IT"
author: "Stockmark.IT Website"
published: "2024-10-23T04:10:09+00:00"
modified: "2024-10-23T04:10:09+00:00"
date: 2024-10-23
canonical: "https://stockmark.it/hunting-reduces-profit-forecast-as-oil-prices-fall/"
category: "Oil and Gas"
categories: ["Oil and Gas", "US"]
image: "https://i0.wp.com/stockmark.it/wp-content/uploads/2022/11/oilfield-st.jpg?fit=800%2C400&quality=89&ssl=1"
format: "news"
language: "en-GB"
---

# Hunting reduces profit forecast as oil prices fall

**Published:** October 23, 2024
**Author:** Stockmark.IT Website
**Categories:** Oil and Gas, US
**Featured image:** ![An offshore oil drilling platform is illuminated at dusk, surrounded by cranes and industrial structures, with the sea and a darkening sky in the background. @ stockmark.it](https://i0.wp.com/stockmark.it/wp-content/uploads/2022/11/oilfield-st.jpg?fit=800%2C400&quality=89&ssl=1)

---

Hunting has had to reduce its profit forecast for this year due to falling oil and gas prices, and a slowdown on the US Onshore Market.

The FTSE 250 company that provides oil and gas services said it expects its adjusted earnings to be between $123 and $126 millions, compared with the previous guidance of $134 to $138.

The company’s weakness is centered around Titan, which offers services to the American Onshore Market. It has been affected by falling oil prices, the uncertainty surrounding the outcome of US Election, and consolidation in the industry.

In the last 12 months, the price of the Henry Hub contract for one month has dropped by around 20 percent to $2.35 per Million British Thermal Units.

Titan, which had been expected to be profitable, will now likely break even in the third quarter, after the anticipated improvement of trading did not materialize. The poor performance is expected for the remainder of the year.

In response to the current market conditions, the company plans to reduce its sales and administrative costs as well as close some of its 12 North American distribution centers.

The company will provide a profit forecast for the next year when it updates the market in January on its fourth quarter performance. Investec analysts reduced their adjusted earnings projection for next year to $155m, due to the tougher trading environment.

The group’s profit forecast was raised after it received a record order of $145 million from Kuwait Oil Company to provide pipe connection services to oil and gas drilling. The cash generated by this contract will push Hunting’s net cash to $60-70 million at the end of the calendar year, which is double what it was in mid-October.

The share price fell by 67p or 18% to 306p during morning trading. It was the largest faller in the mid-cap index.

Hunting’s other four operating divisions performed in line with market expectations. Earnings adjusted for inflation have increased by 16 percent over the first nine month of the year.

Covid caused a $60 million loss to the group in 2021 and 2022, after oil prices plummeted. It returned to a profit of $50m last year, after revenues rose from $726m to $929m.

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