2014 Interim Results Weir Oil & Gas, USA London, 31 July 2014
Highlights Keith Cochrane Weir Minerals, Brasil
H1 in-line with expectations in mixed end markets 10% order growth year on year and 9% up on H2-13 Positive aftermarket momentum across the Group: 15% order input growth Strong growth in upstream Oil & Gas: divisional input up 40% year…
Financial review Jon Stanton Weir Power & Industrial, France
Power & Industrial: Good order and revenue growth m 2013 H11 2013 H21 2014 H1 +/- Input OE 82 85 87 +7% Input OE / Aftermarket (%) Input aftermarket 82 77 88 +7% Input Total 164 162 175 +7% 50 47 50 AM Revenue OE 78 93 90 +16% OE Revenue…
Cash flow impacted by working capital investment 2014 2013 H1 H1 m m Highlights Operating cash flows pre working capital 229 246 Cash interest down; lower levels of average net debt and FX Working capital (79) (63) benefit on US…
Underlying improvement in working capital management Working capital as % of revenue1 Working capital metrics impacted by external market factors 30 25 20 Good progress in reducing underlying slow moving inventory: 15 24.6 26.2…
Finance costs and net debt Reduction in finance costs to 19m (2013: 24m) Movement in net debt m Repayment of amortising loan in 2013 Net debt at 3 January 2014 747 Benefit from exchange on interest of US debt Free cash outflow 21…
Sterling strength impacts only partially felt in H1 m Revenue Operating USD rate profit 2013 as reported 2,430 467 1.56 2013 average FX (171) (34) As presented February 2014 2,259 433 1.64 Jan-14 average FX (22) (5) Constant…
Business overview & outlook Keith Cochrane Weir Power & Industrial, France
Coherent and complementary Group Divisions with shared characteristics Serving structural growth markets Highly engineered equipment Extreme and remote environments Power & Intensive aftermarket demand Oil & Gas Industrial…
Minerals: Resilient performance in challenging markets Commodity price rebased to 100 120 110 Difficult OE environment, good ore production growth 100 Copper /ton 90 Gold /oz Absence of greenfield activity 80 Iron ore 62% Dry…
Minerals: Impacts of South African industrial action H1 revenues and profits impacted by platinum strikes Association of Mineworkers & Construction Union (AMCU) Longest mining strike in modern times (23 Jan to 24 Jun) South African…
Minerals: Strategic progress Comminution strategy gaining traction 34m orders in H1-14 Developing mining and oil and gas product portfolios Range of swellable packers extended Extending Development of cone-crusher on track…
Oil & Gas: Increasing momentum across division US rig count and wells drilled Strengthening upstream market conditions 2,000 10,000 1,900 Oil prices supporting growth, particularly in Permian 9,000 Wells 1,800 drilled Pressure…
Oil & Gas: Strategic progress Uptake of new product and services accelerating Premium fluid ends c.40% of category input Positive uptake of flowback and zipper in Bakken Services expansion on track LUKOIL start up in Iraq under way…
Power & Industrial: Revenue growth offset by margin mix Global manufacturing purchasing managers index trend Power and oil & gas projects subject to delays 57 Global Customer caution impacting project timetables US 55 Nuclear new…
Power & Industrial: Strategic progress Expanding mid/downstream oil and gas presence Success in LNG safety valve market Oil & gas end markets input up 69% Maximising aftermarket opportunities Driving Valves aftermarket orders up…
2014 Group outlook unchanged Minerals1 Oil & Gas1 Power & Industrial1 No further disruption in Strong opening order Strong opening order mining markets book book First half OE orders Continuation of current Strong full year…
A platform for profitable growth Structural Emerging market growth and urbanisation growth Resource scarcity and industrialisation markets Aligned to higher growth commodities Process Technological leadership critical Exposed to high…
Differentiated technology Structural growth Minerals Enhanced vertical slurry pump, markets designed for retrofit Ceramic lined cyclones providing Process critical materially extended life products Oil & Automated relief valve…
Appendix 2: Order input by end market Divisions Power & 2014 20131 End Markets Minerals Oil & Gas Industrial Total Total Minerals 77% - 1% 35% 39% Oil & Gas 9% 99% 16% 46% 38% Power 3% - 57% 10% 11% General Industrial 9% 1% 13% 6%…
Appendix 4: Foreign exchange by currency 2013 Revenue 2013 Operating Profit At 2013 At 2014 At 2013 At 2014 rates FX 1 rates rates2 FX rates2 m m m m m m US 506 (39) 467 120 (10) 110 Australian 129 (22) 107 25 (4) 21 Euro 124 (5) 119…
Appendix 5: Foreign exchange by division 2013 Revenue 2013 Operating Profit1 Published FX FX Restated Published FX FX Restated m m % m m m % m Minerals 659 (81) (12%) 578 130 (16) (12%) 114 Oil & Gas 381 (28) (7%) 353 83 (6) (7%) 77…
Appendix 6: Income statement FX rates 2014 H1 2013 FY 2013 H1 Average Average Average US 1.67 1.56 1.54 Australian 1.82 1.61 1.51 Euro 1.22 1.18 1.18 Canadian 1.83 1.61 1.57 Chilean Peso 924.75 771.29 736.46 South African Rand…
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