(Corrects paragraph 2 to remove reference to the reason for an
uptick in bidding activity in Middle Eastern markets)
By Sanjeeban Sarkar
Feb 22 Weir Group Plc, a maker of pipes
and valves for energy and mining industries, reported a 22
percent fall in full-year pretax profit, hurt by a weak North
American oil and natural gas market.
Peer Petrofac Ltd said it saw an uptick in bidding
activity in its core Middle Eastern markets.
Weir's shares fell as much as 3.5 percent before trading at
1961 pence. Petrofac shares rose as much as 4.5 percent before
paring losses to trade at 900.9 pence on the London Stock
"There is no doubt that over the last few months bidding
activity has increased... we are seeing a number of projects
deferred in 2016 coming back in 2017," Petrofac CFO Alastair
Cochran told Reuters in a call.
The order book backlog at year-end for Petrofac's core
engineering and constructions unit stood at $8.2 billion dollars
out of a total of $14.3 billion.
Petrofac, which design and maintenance provides services to
oil and gas projects reported a 125.6 percent rise in its core
earnings to $704 million for the year ended Dec. 31, as record
production in the Middle East drove up contract awards.
Weir's full-year order input fell by 8 percent to 1.86
billion pounds, while revenue fell 11 percent to 1.85 billion
pounds for the year, on a constant currency basis.
The Scottish company said its pretax profit fell to 170
million pounds ($212.3 million) for the year ended Dec. 31, from
219 million pounds reported a year earlier.
Peer John Wood Group Plc had reported a 62 percent
fall in its 2016 profit as weak oil prices continued to force
oil producers to slash spending. [nL4N1G62PV
($1 = 0.8008 pounds)
(Reporting by Sanjeeban Sarkar in Bengaluru; Editing by Amrutha
Gayathri and Sunil Nair)