North Sea oilfield service firm Hunting said yesterday it had slashed its workforce by nearly half in the past 18 months.
The oil price rout forced Hunting to lay off “just under 100 workers” in the north-east of Scotland last year, the energy service firm said yesterday. Hunting reduced its global headcount by 30% to 2,784 in 2015 as part of cost-cutting measures which were brought in amid a severe slump in drilling activity. Chief executive Dennis Proctor said the outlook for the industry was “bleak”, adding: “We are in a wilderness without a single path to guide us.”
Hunting today confirmed it had reduced its headcount by 30% and closed four operating sites in the past year.
Oil and gas service company Hunting said it is preparing to make up to a quarter of its staff in Aberdeen redundant as it looks to streamline costs.
Hunting has seen a drop in revenue from $664.1million to $463.6million in the first half of the year. The international energy services group said its operations had been impacted by the downturn in the oil and gas market. The decline has seen a reduction in headcount of 900 employees which has resulted in savings of $41million.
Oilfield services company Hunting said it expected a 50 percent to 75 percent fall in operating profit for the year as it continued to reel under a drop in global rig counts and a weak oil and gas market. Hunting shares fell more than 7 percent on the London Stock Exchange on Thursday morning. The stock was the top loser on the FTSE-250 midcap index.
Oilfield service company Hunting reported a 60% plunge in first quarter operating profits yesterday, blaming falling global rig counts and cost-cutting across the industry. Shares in the company fell 8% to £5.36 in early trading on the London Stock Exchange but later recovered to around £5.88.check market close Hunting, which announced in February it would cut an unspecified number of jobs and realign business units to help counter a drop in drilling activity, said its subsea, electronics and tubular component machining businesses did better in the first three months of 2015, compared with last year, offsetting weakness in its North American drilling tools operation.
An energy service firm shrugged off the oil and gas industry downturn yesterday, reporting record annual results. The company posted an 8% rise in underlying pre-tax profits to £139.5million, while revenue was up by 7% at £910.6million. Hunting, which announced last month it would cut an unspecified number of jobs and realign business units to help counter a drop in drilling activity, said falling oil prices did not affect its business last year.
Energy services firm Hunting is set to reduce its headcount in line with a number of companies following the decline in oil prices. The Aberdeen-based company has also not set a financial target for 2015 ahead of announcing its preliminary results for 2014 later this week. Hunting said expenditure estimates for Hunting’s customers for the year ahead were continuing to evolve rapidly in light of changing oil prices. A spokesman said the company is re-aligning its business units to fit with the new operating environment which included the launch of "programmes of headcount reductions as and where necessary."