30th Jul 2019 09:02
(Alliance News) - FTSE 250-listed pumps and valves manufacturer Weir Group PLC boosted its interim dividend Tuesday after profit and revenue both grew amid good progress despite tough conditions.
For the six months ended June, pretax profit widened to GBP105.7 million from GBP93.4 million the year prior. This was after revenue rose GBP1.33 billion from GBP1.07 billion the year before.
"The first half of the year progressed largely as we expected it to," Weir Chief Executive Officer Jon Stanton said.
Weir proposed a 16.50 pence per share interim dividend, up 4.8% from 15.75p the year prior.
"We are making good progress in our mining equipment businesses, benefiting from our focus on aftermarket-intensive applications, particularly for battery metals including copper, lithium, nickel and cobalt supported by our extensive installed base and global service network," Stanton said. "Our pipeline of firm OE quotes has grown significantly year-on-year with encouraging demand for our technology that reduces water and energy consumption."
Overall, orders grew 17% to GBP1.42 billion from GBP1.21 billion the year prior. On a like-for-like basis, however, they fell 7%.
"While oil and gas markets in North America continued to be challenging compared to the same period last year we saw good demand for our latest innovations," Stanton continued. "This included our Large Bore Simplified Frac System and our new QEM 5000 frack pump which is well positioned to support the development of future electric frack fleets."
"As we look to the rest of 2019, we continue to anticipate another year of good constant currency revenue and profit growth," Stanton said.
Shares in Weir were 3.2% lower at 1,511.00 pence in London on Tuesday.
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