Weir Group Buoyed by US Shale Recovery
UK-based Weir Group, a leading supplier of hydraulic fracturing pumps globally, updated its full year 2017 guidance July 17 to reflect strong sales into the US.
"In recent weeks, upstream North American markets have recovered more strongly than formerly anticipated. Higher levels of frack fleet utilisation and significant tightening of industry capacity are both benefiting the group's oil and gas division. As a result, it has seen increased volumes, stronger operating leverage and modest pricing recovery ahead of prior expectations, and has delivered low double-digit operating margins in the first half.
"Assuming supportive market conditions continue, the division is now expected to deliver low-teens operating margins through the second half with full year revenues and operating profits that are above the upper end of analysts' estimates," the company added.