Weir Group oil and gas orders up 50%

UPDATE 1 — Glasgow-based engineering giant Weir Group said its oil and gas orders rose 50% in the first quarter driven by significant growth in North America and that its full-year profits are anticipated to be in line with current market expectations.

In a trading update, Weir said first quarter overall order input grew 15%, minerals aftermarket orders increased 13%, original equipment was up 4% — but its flow control orders fell 11% and downstream and power markets continued to be challenging.

Weir Group CEO Jon Stanton said: “Mining and oil and gas markets continued to grow in the first quarter, supporting the view that we are at the beginning of a cyclical upturn in our main markets and I’m confident the group is well positioned to benefit.  

“Demand for the group’s mission-critical technology was supported by miners investing in productivity gains and a significant increase in North American onshore oil and gas activity, although pricing in this market remained at low levels. 

“Power, mid and downstream markets, which are later cycle, continued to be challenging and will take longer to recover.  

“Assuming commodity prices remain supportive, we continue to anticipate good growth in constant currency revenues and strong cash generation, with full year profits anticipated to be in line with current market expectations and weighted towards the second half. 

“The minerals division is expected to perform as anticipated with more challenging conditions in flow control partially offsetting additional momentum in oil and gas.”