Scottish engineer Weir Group expects to return to growth this year by capitalising on an increase in its oil and gas customers’ upstream spending.
But the Glasgow-based firm yesterday predicted a further decline in its core mining business.
Weir, which sells pumps and valves for the mining and oil and gas industries, reported a 5% drop in 2013 profits after an expected fall in orders from mining clients who have been hit by low metal prices.
The company is counting on mid-single-digit growth in North American and Middle Eastern upstream investments this year to help it return to growth, provided oil and gas prices remain stable.
Chief executive Keith Cochrane said: “In 2014, we anticipate that the group will return to underlying growth despite mixed end market conditions.”
The firm said its order book was seeing a pick-up towards the end of last year, providing a better start to the financial year.
Weir also said it saw strong demand in international markets for its pressure pumps used in shale gas exploration
The firm had warned in November that 2013 pre-tax profits could fall as low as £413million, from £440million the year before, but they actually came in at £418million.
Revenue declined 4% year-on-year, to £2.43billion.