Spirax-Sarco Engineering PLC (LON:SPX) shares rose 3.9% as the valves specialist predicted a boost in 2018 if the current oil price rally continues.
Oil equipment markets have been depressed for years but crude prices recently topped US$65 per barrel and if sustained, the recent improvement would provide growth opportunities, it said.
That might mean more acquisitions to follow last year's spend of £484mln, said Nicholas Anderson, chief executive.
“We increased investment in 2017 and, during 2018, we will again prioritise accelerating revenue and capital investments for growth over further margin expansions.”
READ: Spirax-Sarco steams higher on US$415mln acquisition of US thermal technology firm Chromalox
A FTSE 250-firm, the engineer, which makes steam traps and pumps, acquired Gestra in May for €186mln and US thermal technology firm Chromolox in July for US$415mln.
The acquisitions added 20% to sales and 14% to profit in 2017 and allied to a strong performance in the EMEA region lifted pre-tax profits by12% to £192.5mln.
Turnover increased to £998.7mln from £757.4mln as EMEA (Europe, Middle East, Africa) industrial growth hit its highest level for several years at 3.3%, while Asia Pacific grew 4.6%, backed by a stronger year in China.
Reflecting the optimism over 2018, the final dividend rises 16% to 62p per share from 53.5p last year.
In the early morning trading company’s shares rose 3.9% to 5,970p.