Shares in Glasgow-based global engineering giant Weir Group fell more than six per cent yesterday after it warned that full-year operating profits will be “lower than previously indicated” – despite a 21 per cent increase in thirds-quarter orders.
The specialist pump and valve-maker said operating profits for the full year will be lower as a result of project phasing in Minerals, one-off plant reconfiguration costs and ‘investment in growth’.
The profit warning came in spite of Weir reporting a 12 per cent rise in order growth from minerals customers in the third quarter, as well as the continuing recovery of the North American onshore oil and gas sector.
Oil and gas orders jumped 56 per cent in the third quarter, on a like for like basis that excludes the impact of acquisitions.
Original equipment orders were up 82 per cent, while aftermarket orders climbed 50 per cent.
Weir Oil & Gas Dubai has been awarded a contract with Eni Iraq BV to provide global maintenance services for gas compressor units and associated equipment located in the three Initial Production Facilities (IPF) plants in the Zubair fields in southern Iraq.
2 Nov 2017