Sector News

Hunting begins programme ‘of headcount reductions’

February 16, 2015
News
Energy services firm Hunting is set to reduce its headcount 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.”
 
The spokesman said: “We expect lower levels of industry activity as global rig counts decline and commodity prices remain subdued which will feed through to the Group’s profitability for the year ahead.
 
“While Hunting anticipates a good performance in the early months of the year, most of our businesses expect the full impact of the lower oil price environment to be felt from Q2 2015.
 
“However, given Hunting’s broad range of products and services and its geographic diversity, it is possible that some businesses will report growth in the year ahead, while others will be affected by the wider sector downturn.
 
“Hunting’s Well Completion and Well Construction businesses are expected to be most affected whilst the impact on Well Intervention will be to a lesser extent.
 
“Corrective cost-actions in response to market conditions across all of Hunting’s operations are underway, including the reduction of operating shifts and hiring freezes, while those businesses which are most impacted by the lower levels of activity anticipated have begun programmes of headcount reductions as and where necessary.
 
“A broader programme to curtail or reduce any non-essential costs is also underway across the Group’s global supply chain. Our balance sheet remains solid with modest levels of net debt and is well placed to support the Group.
 
“While the short term outlook for the industry remains unclear and challenged, we are also mindful of the longer term strategic growth opportunities for Hunting. The Group remains well positioned for any improvement in general market sentiment.”
 
The company will release its 2014 results on Thursday.
 
Source: Energy Voice
 

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