The Oil Man: Hunting

Just a quick comment on Hunting today following its trading statement, which reads as well as can be expected under the circumstances. 2016 will finish in line with expectations; the market is improving, with conditions particularly benefiting the perforating business in West Texas.

Elsewhere, conditions remain "subdued", but with the money from the recent raise supporting the balance sheet and my expectations that the recent OPEC deal helping the rig count, I remain positive.

It may be too early to suggest that the worst is behind Hunting, but I would still back the firm, even after the strong recent share price performance - particularly as the company is tentatively predicting a return to growth and for earnings before interest, tax, depreciation and amortisation (EBITDA) to move into positive territory in 2017.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.