Hunting reveals closure of distribution centre in Montrose

International oilfield service firm Hunting closed one of its distribution centres in Scotland in the first half of 2017.

The London-based company said shuttering the base in Montrose move was part of an “ongoing rationalisation” programme.

Hunting said the impact on staffing levels was “negligible”, but refused to give an exact number.

As of last September, the business employed about 210 people across four locations in the Aberdeen area: Altens, Dyce, Portlethen and Fordoun.

Hunting made the announcement in its first-half results package.

First-half revenues rose 40% to £250million thanks to an upturn in US onshore shael drilling activity, which increased demand for its perforating systems.

Pre-tax losses narrowed to £19.8million from a deficit of £60.8million in the same period last year.

Hunting recently announced that chief executive Dennis Proctor would retire at the end of this month and be replaced by chief operating officer Jim Johnson.

Mr Proctor said today: “We are pleased to report a positive EBITDA, indicating profitability within certain businesses. Results from Hunting’s Perforating Systems business have exceeded management’s expectations by some margin, thanks to the buoyant US onshore drilling market and a portfolio of industry leading products, which enables cost efficiencies to be captured by operators.

“International drilling activity is now anticipating modest improvements during H2 2017 which provide cautious optimism about the Group’s performance in the final months of the year.  Management remain disciplined on all costs across the business to ensure that Hunting exits this market downturn, a leaner and more profitable Group, while retaining its experienced workforce.

“Despite trading momentum and order book levels within most businesses improving, the outlook for the full year remains dependent on the oil price.”

 

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