Weir Group benefits from surge in fracking
Pump and valve manufacturer for the oil industry Weir Group has benefitted from a surge in fracking activity in the US, according to the London Evening Standard.
The massive fall in crude oil prices since 2014 had been causing the company to suffer, however, in a recent financial update, the company has said annual revenues and profits for the oil division are now expected to exceed analyst expectations.
Increased fracking activity in the US has resulted in higher pump and valves sales for Weir, and a modest increase in prices. This in turn allowed the company to boost its operating margins in the first half of the year.
According to the Evening Standard article, Numis upgraded its recommendation from Hold to Add, and said the statement was “significantly more upbeat” than the one it issued last week. Weir shares leapt 164p, or 9%, to 1988p.