Weir Group boosted by upturn in North American markets

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

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

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.

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“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.

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.