Weir Group PLC (LON:WEIR) has reported a 36% jump in full-year operating profit as the industrial pumps specialist saw a surge in orders from the oil and gas market.
The FTSE 250-listed firm posted 2017 operating profit of £292mln, up from £214mln a year earlier, benefiting from a £16mln foreign exchange gain on the translation of overseas earnings due to the weakening of sterling against the majority of currencies.
READ: Pumps specialist Weir Group tempers growth forecasts
The company’s full-year revenue increased by 28% to £2.356bn, up from £1.845bn, as total orders rose by 20% to £2.395bn from £1.989bn.
Weir said the increase in both revenue and orders was helped by the recovery in the North America oil and gas markets, with oil and gas market orders up 67%, and North American orders increasing by 82%.
Jon Staton, Weir's chief executive officer, said: “We worked closely with customers to identify opportunities to increase their productivity and invested early to take full advantage of improving conditions.”
He added: “Looking to 2018, assuming market condition remain supportive and despite anticipated foreign exchange headwinds, we expect to deliver strong revenue and profit growth and further balance sheet deleveraging.”
The group is to pay a final dividend of 29p per share, making a total payout of 44.00p, unchanged from 2016
In the morning trade, company’s shares were down 0.5% at 1,990p.