Weir Group (LON:WEIR) shares jumped nearly 10 percent on Monday morning, after a trading update showed strong performance in their oil division.
The resource-focused engineering group said a quicker-than-expected recovery in the North American markets had a positive impact on performance, with “higher levels of frack fleet utilisation and significant tightening of industry capacity are both benefiting the Group’s Oil & Gas division.”
“As a result, it has seen increased volumes, stronger operating leverage and modest pricing recovery ahead of prior expectations, and has delivered low double-digit operating margins in the first half”, the group said in a statement on Monday.
The positive update comes after the group took a cautious tone at the beginning of the year, after a year of weak oil prices took its toll on company results.
Shares in Weir Group are currently trading up 8.28 percent at 1,975.00 (1020GMT).