It’s been a rough few years for oil services companies and Hunting is no exception. The share price of the London-based maker of drilling tools, subsea equipment and valves has plummeted from 900p in August 2014 to below 250p in January.
Yesterday it produced a grisly set of results, including an underlying loss of $50.8 million for the six months to June 30, down from a $20.4 million profit a year ago. The size of Hunting’s debt facility also has been nearly halved to $200 million, with dividends suspended to 2018.
Oil services companies have borne the brunt of the downturn, as customers have cancelled projects and slashed spending. Where contracts have continued, those companies have had to accept far less lucrative terms than before.