StockMarketWire.com - Engineering company Weir Group cut earnings guidance for its oil and gas business, owing to a slowdown in North American production.

Ebitda in the unit for the full year was now expected at between £90m and £100m, the company said.

Across the broader business, third-quarter orders from continuing operations rose 16%, or by 40% including the acquisition of ESCO.

Weir Group said the ESCO acquisition was performing well, with orders up 8% on a pro-forma reported basis.

'Group orders continued to grow strongly in markets that have good long term prospects,' chief executive Jon Stanton said.

'In mining, our largest market, we benefited from our global presence as we worked closely with customers to help them increase production and improve productivity within current operations.'

'Quotation activity for expansion projects also remained strong, reinforcing our view that we are in the early stages of a multi-year capex growth cycle.'

In oil and gas, Stanton said the business was progressively impacted from late August by a temporary slowdown in activity in North American onshore markets, prompted by industry capacity constraints in the Permian basin.

'As we work through the current slowdown, which we and our customers view as a short-term pause in growth, we will continue to invest in our people and technology to ensure we fully benefit from the anticipated upturn in 2019 when E&P budgets replenish, Permian pipeline capacity expands and pressure pumping fleet utilisation increases,' Stanton said.






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