Montrose site closed in rationalisation

International oilfield service firm Hunting closed its distribution centre in Montrose in the first half of the year as part of an “ongoing rationalisation” programme.

London-based Hunting made the announcement in its first-half results package.

Hunting said the impact on staffing levels was “negligible”, but refused to give an exact number.

As of last September the business employed about 210 people across four locations in the Aberdeen area: Altens, Dyce, Portlethen and Fordoun.

First-half revenues increased 40% to £250 million thanks to an upturn in US onshore shale drilling, which increased demand for its perforating systems.

Pre-tax losses narrowed to £19.8m from a deficit of £60.8m in the same period last year.

Hunting recently announced that chief executive Dennis Proctor would retire at the end of this month and be replaced by chief operating officer Jim Johnson.

Mr Proctor said yesterday: “We are pleased to report a positive ebitda (earnings before interest, tax, depreciation and amortization), indicating profitability within certain businesses.

“Results from Hunting’s Perforating Systems business have exceeded management’s expectations by some margin, thanks to the buoyant US onshore drilling market and a portfolio of industry leading products, which enables cost efficiencies to be captured by operators.

“International drilling activity is now anticipating modest improvements during H2 2017 which provide cautious optimism about the group’s performance in the final months of the year.

“Management remain disciplined on all costs across the business to ensure that Hunting exits this market downturn a leaner and more profitable group, while retaining its experienced workforce.

“Despite trading momentum and order-book levels within most businesses improving, the outlook for the full year remains dependent on the oil price.”