Well dear, the orgasm by hugging is indeed an orgasm. Because it is premature ejaculation. So even before any remote chance if undressing or sexual intercourse, you two are experiencing premature ejaculation.
As with all human activity and endeavour, practice makes perfect. So practicing safe and consensual sex will lead to improved sexual experiences.
You can consult a therapist regarding "premature ejaculation" and / or "wet dreams".
Next Steps
Consult a Therapist.
Health Tips
Safe sex and consensual sex only in adult life, is a lifelong responsibility of every citizen.