A big jump in profits and revenue in its oil and gas division failed to prevent an overall weaker first half performance at Scottish engineer Weir Group.
Oil and gas operating profits grew by 18% – or 27% on a constant currency basis – to £98million, the Glasgow-based firm said yesterday.
Revenue for the division was up by 14% at £435million, or a 23% rise if the impact of fluctuating currency exchange rates is stripped out, thanks to booming US shale business.
But the impact of a strong pound weighed heavily on the overall results.
Group pre-tax profits were down by 6% to £182million, with revenue 5% lower at £1.14billion.
But Weir, which makes pumps and valves for the mining, oil and gas industries, said it saw 10% growth in the value of its order book, to £1.24billion, in the six months to July 4.
The company said its first half figures were in line with expectations on a constant currency basis.
“Weir has delivered a good underlying first half performance,” said Keith Cochrane, Weir Group’s chief executive.
“The benefits of our diverse portfolio were evident as the impacts of previously identified downside and upside
risks offset each other.
“Double-digit growth in oil and gas was partially offset by challenging mining end market conditions and the impacts of prolonged industrial action in South Africa.
“We anticipate strong revenue and profit growth in the second half of 2014, assuming no further deterioration or disruption in mining end markets.
“As a result we remain on track to meet our full-year expectations of good constant currency revenue and profit growth.”
A strike by metalworkers in South Africa has caused losses estimated at £3million in July alone.
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