Hunting Wins $91 Mln OCTG Order From Cairn Oil And Gas, Vedanta; Lifts FY23 EBITDA View

(RTTNews) - Hunting Plc (HTG.L), a British energy services group, Tuesday said it has revised upward its fiscal 2023 EBITDA view, benefited by a new, significant Oil Country Tubular Goods or OCTG contract from Cairn Oil and Gas, Vedanta Limited.

The company said its Asia Pacific operating segment has won the OCTG contract that management estimates to be worth up to $91 million for Cairn Oil and Gas' operations in Rajasthan, India.

The contract is for an estimated 100 wells and is to extend up to three years. The OCTG will be supplied with Hunting's proprietary SEAL-LOCK XDTM premium connection.

The latest order is the largest single order received for the company's OCTG and premium connections.

With this order, Hunting's sales order book now is around $575 million, which represents a material increase since the year-end.

Based on the timing of the first deliveries of this order, the company now expects fiscal 2023 EBITDA to be in the range of $92 million to $94 million. The outlook represents a further increase from its previous guidance issued at its 2022 full year results in March 2023.

Further, the year-end guidance for cash and bank remains unchanged.

Jim Johnson, Chief Executive, said, "US market activity remains stable and with the orders received for China, Guyana, Brazil and now India, Hunting continues to see a strong growth profile given our standing and recognition with major energy companies, coupled with the strong international market sentiment being reported in many regions."