Hunting secures $31m subsea order for Turkish Black Sea gas project

Hunting PLC (LON:HTG) has secured a $31 million contract for its Subsea Spring unit to supply titanium stress joints for a deepwater gas development in the Turkish Black Sea, with deliveries scheduled to commence in Q1 2027 over a 24-month period. This award, representing phase three of the project, significantly expands Hunting's Subsea group sales order book to approximately $125 million and the Group's total order book to around $480 million, underscoring its continued involvement in major energy infrastructure projects.

Analysis

Hunting PLC (LON:HTG) has secured a significant $31 million contract for its Subsea Spring business unit, reinforcing its position in the deepwater energy market. The order involves supplying six patented titanium stress joints for a gas development in the Turkish Black Sea, with revenue recognition spread over 24 months beginning in the first quarter of 2027. This award represents the third phase of a major project, following a phase two contract secured earlier in 2024, which demonstrates a strong, ongoing client relationship and provides multi-year revenue visibility. Critically, this contract lifts Hunting’s Subsea group sales order book to approximately $125 million and contributes to a total Group order book of around $480 million. The company is also actively pursuing additional work on the same project through its Flexible Energy Solutions portfolio, suggesting potential for further backlog expansion from this single development.

Key Decisions for Investors

• The contract win materially enhances Hunting PLC's order book to approximately $480 million, which improves medium-term revenue visibility and should be viewed as a positive indicator of operational strength in the subsea segment.
• Investors should monitor for future announcements related to this Turkish deepwater project, as the company is actively pursuing additional contracts which could serve as a further positive catalyst for the stock.
• As revenue from this specific $31 million contract will be recognized over a 24-month period starting in Q1 2027, its financial impact is long-term and should be modeled accordingly rather than expecting a boost to near-term quarterly earnings.