Engineering giant looks to sell oil and gas division

Wed, 26 Feb 2020 | DIVISION SALE



Scottish engineering giant Weir Group is looking to sell its oil and gas business and focus its efforts on its mining division.

A downturn in the American shale gas market saw Weir incur losses and a £546 million oil and has impairment charge saw it report a pre-tax loss of £372 million for the year ending December 31, 2019, down from £86 million profit in 2018.

Despite this, the group’s operating profits rose to £352 million, up from £348 million in 2018. The minerals arm of its mining division posted a 4 per cent revenue rise to £1.478 billion, along with a 7 per cent operating profits increase to £270 million.

Discussing these results and the decision to sell, Weir Group chief executive John Stanton said: “2019 saw a strong performance from our mining businesses with margin expansion in both Minerals and ESCO.”

“North American oil and gas market conditions deteriorated significantly through the year and we undertook a major cost reduction programme in response.”

“While the long-term prospects for shale remain positive, current market dynamics mean it now has a very different investment case to our premium mining technology positions.”

“We are therefore taking actions so that we can maximise value for shareholders whenever the right opportunity is identified.”

The group’s total dividend has increased 2 per cent to 46.95p and its board said that the decision to sell reflected “confidence in the long-term prospects of the group.”

Looking to the year ahead, Stanton said there was “uncertainty over the impact of coronavirus on the global economy and demand for natural resources.”

He added that: “Assuming underlying demand does not change, we expect further good constant currency growth in our mining-focused businesses to be offset by the continued challenges in North American oil and gas markets.”


Share this article



Latest Businesses for Sale

Cladding Systems & Fume Extraction Engineers
Midlands, UK Wide

Profitable systems engineers specialising in building cladding systems and associated steel building frames, fume extraction systems, ducting and mechanical engineering services. Reason for sale: semi-retirement. Offers invited.

Asking Price: Offers Invited
Turnover: £450,000

Precision Grinding Engineering Business
Leicestershire, UK Wide

A great opportunity has arisen for a new buyer to acquire a well-established and lucrative Precision Grinding Engineering business based in Barwell, Leicestershire. A family run business offering in-demand services. Offers invited.

Asking Price: £650,000
Turnover: £440,110

RELOCATABLE


Precision Mechanical, Electrical & Electronic Engineering
South West, UK

The company acts as a single source supplier and provides complete engineering solutions to large clients, typically within the aerospace, automotive, marine, nuclear and defence sectors. Offers invited.

Asking Price: Offers Invited
Turnover: £4,300,000


View more businesses for sale

News Search

Latest News

 
24
 
May
 

Over 50 hotels and travel brands up for sale as leisure company collapses | ADMINISTRATION

The parent company of coach holiday company National Holiday...

 
22
 
May
 

Owner of Joe.co.uk enters administration | ADMINISTRATION

Joe Media Limited, the UK parent company of social news webs...

 
21
 
May
 

South London-based law firm acquired in pre-pack sale | BUSINESS SALE

Croydon-based McMillan Williams Solicitors (MSW) has been so...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources