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Weir profit surges on stronger minerals and oil orders
Weir Group's annual profit surged as orders rose at the FTSE 250 engineer's minerals business and its oil and gas operation returned to profit amid resurgent market prices.
Operating profit for the year to the end of December rose 36% to £292m. Excluding currency swings operating profit rose 25%.
Constant currency orders at the minerals business rose 11% to £1.35bn while equivalent orders for oil and gas customers increased 67% to £732m as the US oil market recovered.
Reported minerals operating profit rose 5% to £227m but at constant currency profit fell 3% as Weir made investments and incurred costs reorganising plants and supply chains. Reported pre-tax profit jumped 47% to £250m and by 32% at constant currency.
The oil and gas business swung to a £92m profit from a £9m loss a year earlier as US operators increased investment supported by rising oil prices.
Jon Stanton, Weir's chief executive, said: "The group's performance in 2017 reflects the strength of Weir's leadership positions in our core markets.
"We worked closely with customers to identify opportunities to increase their productivity and invested early to take full advantage of improving conditions. That proactive approach saw minerals deliver great order momentum [...] Oil & gas took full advantage of improving markets in North America to deliver an outstanding operating performance."
Weir proposed a final dividend of 29p a share resulting in an unchanged annual dividend of 44p.