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Weir Group PLC on Wednesday reported consensus-topping yearly revenue for 2022, and said it kicked off the new year with a ‘record order book’ and a promising outlook in the key mining market.
Shares in the company shot up 7.2% to 2,035.00 pence each in London on Wednesday morning, the best FTSE 100 performer.
The Glasgow-based mining technology company said revenue in 2022 jumped 28% to £2.47 billion from £1.93 billion in 2021. Revenue came in ahead of company-compiled consensus of £2.36 billion.
Pretax profit improved 40% to £260.2 million from £209.5 million, while adjusted operating profit climbed by a third to £395 million, topping consensus of £379 million.
‘The value creation opportunity for Weir is compelling. The mining industry is playing a crucial role in meeting the twin demands for decarbonisation and economic growth, resulting in multi-decade demand growth for critical metals,’ Chief Executive Officer Jon Stanton said.
‘This is reflected in the proven performance of our mining businesses through the cycle, and was further evidenced in 2022.’
Weir lifted its annual payout by 38% to 32.8 pence per share from 23.8p. It lifted its final payout by 57% to 19.3p.
Looking ahead, the company said: ‘We begin 2023 with a record order book and positive conditions in mining markets, where high levels of activity, coupled with miners’ focus on sustainable operations, are driving demand for our AM spares and brownfield OE solutions. In 2023, we therefore expect to deliver growth in constant currency revenue, profit and operating margin.’
Its adjusted operating margin for 2022 was 16.0%, rising from 15.3%. Weir expects to deliver on its 17% margin target for 2023.
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