Mid-cap Hunting posts good results, lifting blue-chip peer Petrofac
It's been a good week for oil services companies. Mid-cap player Hunting said this morning the US shale oil market is still booming, as it posted an 18% rise in pre-tax profits. Finance director Peter Rose told Reuters:
"The US will continue to expand its shale oil activities. With shale oil at over $100 a barrel, they're just chasing it."
Results were largely in-line with expectations and Hunting is expensive compared with its peers. But analysts at Oriel Securities said it was still a good bet.
"The company remains well positioned to deliver strong growth with its exposure to an increasingly buoyant drilling market and its increased capacity and service offering. We believe the valuation premium is justified and we reiterate our ADD recommendation."
Pre-tax profits came in at £39m, while revenues shot up 44% to £609m.
That follows news from blue-chip oil services company Petrofac, which beat forecasts with a 25% jump in profits on Monday. Its shares were higher again this morning, up another 59p at £16.50.
Mining stocks also helped drive the market rally, with Vedanta, Kazakhmys, Eurasian, Antofagasta, and Rio Tinto all on the leaderboard. At last count, Vedanta was the top riser among them, up 47p at £13.91.