Engineering company Weir Group Plc on July 30 reported a 22% fall in like-for-like profit in the first half of the year, while forecasting full-year oil and gas profit at the lower end of its target range as orders in North America slowed.
Shares of the FTSE 250 company fell 3.2% as of 3:00 a.m. CT after the company also reported a 7% drop in like-for-like orders.
Weir, which makes equipment used in mining as well as in energy industries, said the drop in oil and gas orders was due to excess capacity in the North American pressure pumping market.
Operating profit for the first half of 2019 was 172 million pounds (US$209.41 million) and total orders were 1.42 billion pounds (US$1.72 billion), with oil and gas orders down 27%.
The company had previously forecast oil and gas operating profit in the range of 55 million pounds (US$66 million) to 95 million pounds (US$115 million) for the year.
“Bottom line is that we view the guidance message as in line with expectations given increasingly cautious news flow from the U.S. shale sector already being factored into expectations,” Credit Suisse analysts wrote in a note.
($1 = 0.8214 pounds)
Recommended Reading
Comstock, Aethon’s 17 Western Haynesville Wildcats Make 112 Bcf to Date
2024-08-01 - Comstock Resources and Aethon Energy each added one well to Texas state production data on the new western Haynesville play, dubbed ‘The Waynesville.’ The oldest has surfaced 2.1 Bcf per 1,000 lateral ft to date.
NSTA Opens Investigations into UK North Sea Decommissioning Delays
2024-07-16 - The North Sea Transition Authority is investigating missed deadlines for well decommissioning projects on the U.K. Continental Shelf that have already increased forecast P&A costs to $31 billion between 2023 and 2032.
E&P Highlights: July 15, 2024
2024-07-15 - Here’s a roundup of the latest E&P headlines, including Freeport LNG’s restart after Hurricane Beryl and ADNOC’s deployment of AI-powered tech at its offshore fields.
Permian Operations at Risk as Wastewater Equation Remains Unbalanced
2024-06-17 - Wastewater injection is a growing cause of induced seismic activity in oil- and gas-producing regions in the U.S., and without proper management solutions, operational capacities are at risk.
E&P Highlights: Aug. 5, 2024
2024-08-05 - Here’s a roundup of the latest E&P headlines, including new oil discoveries and an implementation of AI technology in operations offshore United Arab Emirates.