Year-end trading update The Q4 update signals that FY trading and outturn remain in line with expectations, with an EBITDA of c.$50m projected (INVe $52.0m, Bloomberg consensus $50.7m). This compares to a broadly breakeven FY21 EBITDA outturn. The order book continues to improve following further order wins within the Subsea Technologies business group. The Group's order book now approaches c.$500m. Improved outlook Subsequently, 2023 market expectations have been raised with an EBITDA target in the range of c.$85m-$90m - previously c.$80m (up 6-13%). Net cash is expected to be $20m by year end. The strong balance sheet can fund opportunistic M&A, diversification to capture opportunities in the Energy Transition and working capital from recent contract wins. Years of industry under-investment is finally catching up with the supply-demand balance. Formation of global Energy Transition sales group Hunting announces the formation of a global Energy Transition sales group to pursue carbon capture, geothermal and other low carbon technologies. Crucially, low levels of capex are expected given that Hunting's key product lines naturally align with energy transition markets. A rising ROIC will help drive the rating. Valuation On unchanged estimates (pre EBITDA guidance raised 6-13%), the shares trade on a FY23E EV/EBITDA of just 6.4x. We reiterate our Buy given the improving outlook, strong balance sheet and compelling valuation.