North Sea engineering firm Hunting has stated that it anticipates the impact of US tariffs on its business to be "immaterial", as it reported quarterly trading in line with expectations.
The London -listed company warned that this forecast does not take into account "any indirect impact" of commodity pricing on the global economy, as reported by .
Hunting Titan, a subsidiary that manufactures perforating gun systems, and its North American operations are expected to face a "minimal impact" from the levies, given that the majority of their revenue and costs originate from US-based supply chains. The company's Subsea Technologies division is also unlikely to experience a significant hit as it primarily generates revenue from non-tariffed countries such as Guyana.
Hunting has evaluated the impact of falling commodity prices since Donald Trump's liberation day announcement, with the WTI crude oil price currently trading at around $61 per barrel. The firm noted that there has been no "any negative response to the lower pricing environment" from its clients so far, but it will continue to "monitor the situation closely."
Hunting reported first quarter pre-tax earnings (EBITDA) of approximately $38.7m (£29.2m), at a margin of 14 per cent, which aligns with expectations.
The group revealed that its sales order book had reached $439.3m, down from $506.8m the previous year, including a surge of new subsea orders.
Hunting elaborated on the current state of affairs, saying: "The order book also reflects the continued work-off of larger orders for clients including Kuwait Oil Company and ExxonMobil," indicating that about 77% of these orders are projected to be transacted within the current financial year.
Amidst this backdrop, last week saw Hunting facing stress from activist investor Oasis Management, which has demanded the company redistribute £145 million to its shareholders through a buyback scheme or utilise the funds for incremental acquisitions.
To date, Hunting's shares have seen a decline of roughly 12% this year.
