Precision engineering group Hunting, which is on the hunt for a new CEO, reported a weaker first half, but increased its interim dividend on confidence of a stronger outlook for the rest of the year.

Revenue, core earnings and adjusted profit all fell year-on-year, but the FTSE 250 firm said a strong performance from its subsea and perforating systems businesses and restructuring savings would support a stronger second half.

Revenue for the six months to 30 June fell 6% to $497m, while core earnings declined 12% to $62.1m and adjusted pre-tax profit fell to $34.5m from $43.7m. The order book dropped to $386.5m from $451.5m a year earlier, while the group moved from net cash of $44.7m to net debt of $51.4m.

Slower activity in advanced manufacturing and delays to Middle East tendering caused by regional instability contributed to the he weaker performance. Subsea and perforating systems performed strongly, delivering significant revenue growth, with perforating systems achieving record international sales. Hunting expects improved results from its OCTG and Advanced Manufacturing businesses in the second half.

Hunting raised its interim dividend by 13% to seven cents per share and maintained its target of increasing dividend distributions by 13% annually through to the end of the decade. Its $40m share buyback programme is also under way and is due to complete by March 2028.

The London-based group’s EMEA restructuring is also nearing completion, with facilities in the Netherlands and Norway closed and its Fordoun, UK facility due to close in September. Hunting said annualised savings of about $11m had been captured and the division was expected to return to profitability in the second half.

The firm added it remained confident in its medium-term prospects, with Middle East activity expected to recover once stability returns, while AI-driven power demand is supporting investment in North America and activity is increasing across South America and West Africa.

Jim Johnson, who is due to retire as CEO, said: "Today's results demonstrate the benefits of the transformation of Hunting's portfolio and our ability to capitalise on the structural growth opportunities in the end-markets we serve. In particular, the strong margins delivered from our Subsea product group, following our strategic repositioning in this area over the past seven years, are strengthening the quality of our earnings into the long-term, a key deliverable of our 2030 strategic ambition.

"The second half of the year will be driven by continued progress in these areas, alongside improved results from our OCTG and Advanced Manufacturing product groups. Hunting remains well positioned to capture the growth opportunities emerging across the energy industry around the world."

An international search is under way for Johnson's successor.

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