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

Chemical Engineering Solutions Provider
Lancashire, North West, UK

Manufactures thermoplastic, fluoropolymer lined steel and GRP composite equipment for clients throughout the UK and internationally. Utilises a number of unique manufacturing techniques to ensure its clients receive a cost-effective, reliable solutio...

Asking Price: Offers Invited
Turnover: £1,790,225


Precision Engineer Embedded in Multiple Supply Chains
UK Wide

Designs prototypes and oversees the manufacture of an extensive range of precision engineered parts for use across heavy industry - with a particular focus on the rail sector. The company's lengthy history sees it with access and expertise in produci...

Asking Price: Offers Invited
Turnover: £1,525,000

Machining & Engineering Firm Producing Components
Wales, UK

Machining & engineering firm boasting decades of experience in producing components primarily for the semiconductor industry but with clients worldwide in aviation & other high-tech industries. Operating from a state-of-the-art workshop the company c...

Asking Price: Offers Invited
Turnover: £2,257,000

View more businesses for sale

News Search

Latest News


Mobile phone supplier and recycler goes into administration | ADMINISTRATION

Mobile phone refurbishment company Redeem UK has gone into a...


John Lewis to close eight stores as COVID-19 accelerates shift to online | BUSINESS NEWS

Department store chain John Lewis has said that eight of its...


Chancellor cuts VAT on hospitality as part of £30 billion rescue plan | BUSINESS NEWS

Chancellor Rishi Sunak has announced a £30 billion pla...

Free guide: 10 Biggest Buyer Mistakes

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


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