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Upstream Oil & Gas services company Hunting is leader of the FTSE350 this morning, its shares up a handsome 10.8% to trade their best since late June.

This comes courtesy of a solid set of H1 financials, the company having benefited from strength in its key Titan/US businesses, especially from shale drilling and higher oil prices, allowing management to offer a positive/stable outlook and reinstate a dividend – a welcome vote of confidence in the oil market’s revival.

H1 revenues +39% was eclipsed by both a five-fold rise in underlying EBITDA and a return to pre-tax profitability.

Even management’s cautious highlighting of “potential headwinds from steel trading tariffs” is doing nothing to dampen investor bullishness, the shares having broken above July/August resistance to test late-June highs of 840p and bulls now eyeing May’s near 6yr ceiling around 930p, which would offer another ~10% upside.

Note peer Petrofac also benefiting (shares +0.6%, albeit off its best levels) from the positive read-across, reversing from a negative sector close yesterday due to a jump in GBP (Brexit deal hope comments from Barnier) depressing the perceived value of largely USD-denominated revenues, profits and of course dividends. Wood Group -1.4% may look to be bucking the trend, but this is almost entirely attributable to it trading ex-dividend, implying it is still holding roughly net flat on what is a clear down day for UK equities, the GBP jump holding its ground.

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Mike Van Dulken

Mike van Dulken

Accendo Markets’ Mike van Dulken has worked in the City since 2002, with some of the biggest names in the City. His career kicked off at Jefferies as an equity analyst before a 2007 move to Société Générale saw him help service hedge funds with short-term trade ideas during the financial crisis.

Head of Research at Accendo since 2010, covering shares, indices, commodities and FX, he is regularly quoted in the financial press. Accendo Markets has been voted Best CFD research Service by ADVFN in 2017 and 2018.

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