The Weir Group PLC has announced an update to its full year guidance for 2017.
In recent weeks, upstream North American markets have recovered more strongly than formerly anticipated. Higher levels of frack fleet utilisation and significant tightening of industry capacity are both benefiting the Group’s Oil & Gas division.
As a result, it has seen increased volumes, stronger operating leverage and modest pricing recovery ahead of prior expectations, and has delivered low double-digit operating margins in the first half.
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.
At Group level, this growth will be partially offset by one-off charges to operating profit of £13 million related to previously announced legacy contract delivery challenges in the Gabbioneta business, part of the Group’s Flow Control division. Expectations for the Minerals division remain unchanged.
The updated outlook for the Group’s full year performance is now for strong constant currency revenue and profit growth. As previously indicated, profits will be weighted to the second half of the year.
The Group will publish its Interim results on 27 July 2017, with a live webcast and management presentation at 0830 BST. Registration details are available at www.investors.weir.
The person responsible for the release of this announcement on behalf of The Weir Group PLC is Christopher Morgan, Company Secretary and Group General Counsel.
Read the article online at: https://www.oilfieldtechnology.com/special-reports/18072017/the-weir-group-plc-trading-update/