Weir full year profits fall, but sees growth in Q4

Oil services outfit Weir reported a 22% fall in full year pre-tax profits to £170m as it was hit by the collapse in prices but said it had returned to growth in the final quarter as prospects for the sector brightened.

The company reported a 10% rise order growth in the fourth quarter as mining and oil and gas markets showed signs of recovery.

In North America the division broke even in the same quarter and the company expected a return to “modest profitability”.

Revenues fell 2% on a reported basis to £1.84bn. The dividend remained unchanged at 44p a share.

Chief executive Jon Stanton said he had been encouraged by macro commodity trends and “signs in our mining and oil and gas markets that point to a cyclical upturn”.

"Minerals increased revenues from both original equipment and aftermarket. Oil & Gas extended its technology leadership amidst difficult end markets and Flow Control benefited from its recent restructuring which supported margins in challenging downstream energy markets,” he said.

“At a group level, we expect to deliver strong cash generation and good growth in constant currency revenues. Profit growth will be further supported by foreign currency translation benefits, partly offset by incremental investments in people and technology."