Weir Group boosted by upturn in North American markets

Weir said annual earnings at its oil and gas division should beat City forecasts. Picture: John Devlin

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Engineering group Weir has seen its oil and gas division boosted by a stronger-than-expected recovery in its North American upstream markets.

The Glasgow-based firm told investors that a “significant tightening of industry capacity”, along with higher demand for fracking equipment, had helped deliver an increase in volumes and pricing.

“Assuming supportive market conditions continue, the division is now expected to deliver low-teens operating margins through the second half with full-year revenues and operating profits that are above the upper end of analysts’ estimates,” Weir said in a trading update.

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However, the group noted that growth would be partially offset by £13 million of one-off charges linked to “legacy contract delivery challenges” at its Gabbioneta heavy-duty pumps business.

Half-year results are due on 27 July, and Weir said its expects “strong” revenue and profit growth for the full year.

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