Chief executive Jon Stanton pointed to “unprecedented times” but said the group had “adapted quickly to the challenges of Covid-19”. He highlighted resilient demand in Weir’s core mining markets.
The FTSE 250 firm posted a profit before tax of £63 million for the six months ending 30 June, down 41 per cent from the £106m banked a year earlier. Overall revenue fell 17 per cent to just under £1.1 billion.
Weir, which is not proposing to pay an interim dividend due to the “ongoing uncertainty”, is focused on the mining, oil, gas and power markets. It has taken a knock during the coronavirus crisis due to the slump in oil prices.
Stanton said: “Our core mining technology businesses showed their inherent resilience and the critical role they play in keeping essential activities running. Our oil & gas team also skilfully navigated extremely challenging market conditions.
“As we look ahead, while the business is performing well, it is too early to provide guidance on the full-year given ongoing uncertainty due to Covid-19.
“More broadly, the long-term outlook for mining remains positive, supported by demographic trends, carbon transition, the long-term decline in ore grades and the need to reduce waste and water and energy consumption.”
Analysts at brokerage Shore Capital noted: “Weir announced in February 2020 that it is considering options with regards to the disposal/exit of the oil and gas division.
“This would result in Weir becoming a pure-play mining-focused business which reduces volatility and enhances its earning quality via its aftermarket earnings profile (i.e. less cyclicality).
“We retain our hold recommendation,” they added.
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