27th Apr 2016 08:50
LONDON (Alliance News) - High-pressure engineering company Pressure Technologies PLC on Wednesday said orders continued to decline in the second quarter of its financial year from the oil and gas industry, driving it to issue a profit warning.
Pressure said it anticipates results for the year to the end of October will be substantially below current market expectations, as the difficult trading in the oil and gas industry deteriorated further in the second quarter to the end of April.
The company said that despite a marginal recovery in oil prices, the outlook is for a slow recovery as capital expenditure by oil and gas operators remains under pressure, meaning any pick up in the market is unlikely to materialise until at least 2017.
Though the prospects for alternative energy sales look strong, the timing of these contracts remains uncertain.
Pressure shares were down 22% to 134.00 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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