1H revenue and profits ahead of our estimates 1H revenue of $509m was up 15% y-o-y and 10% ahead of our $461m forecast, with strong growth in the US, EMEA and Asia Pacific end markets. Adjusted EBITDA was $77.4m, up 7% y-o-y and 12% ahead of our $69.2m. FY19 guidance is unchanged at this point with the stronger-than-expected 1H outturn having de-risked 2H; only a similar performance to 1H is required to achieve our FY19E adjusted EBITDA of $157m (3% ahead of consensus at $153m). This is against a backdrop of improving international markets, recently launched new products gaining market traction and cost benefits from automation and greater operational efficiency. Adjusted EPS was 23.6c, 13% ahead of our 20.9c, while the interim DPS was as expected at 5.0c. International markets improving International drilling markets are showing signs of improvement. Even the North Sea is seeing an increase in activity. Non-Titan MENA and Asian revenue saw significant y-o-y increases, especially in OCTG products. Firepower for more acquisitions The balance sheet remains strong with net cash of $33.4m, including IFRS 16 of $47m lease liabilities, in line with prior guidance and with $20m of cash generated in the period. The acquisition of RTI Energy Systems on 16 August for $12.5m adds to the Hunting subsea product offering by providing specialist titanium couplings for the deep water markets. Attractive valuation Overall we view this update as very reassuring. We believe management is controlling the variables it can influence. It continues to move the business forward, despite challenging market conditions. Investment in new product development during the downturn years since 2014 has put Hunting in a strong position to benefit from the recovery in international markets; the improvement in these is encouraging and could, in time, provide scope for estimate upgrades. The valuation remains very attractive on sub 10x PE and sub 5x EV/EBITDA in CY20E along with a 10% FCF yield and 3.4% dividend yield.