Pipe and valve maker hurt by ’weak Middle East markets’

Pipe and valve maker Weir Group Plc warned that profit would fall below market expectations due to weakness in its oil and gas markets, particularly in the Middle East, sending its shares down as much as 6.5 percent.
The Scottish company, which makes valves and pumps for the energy and mining industries, said increased competition in the Middle East combined with lower prices in North America had hurt trading in its oil and gas unit.
Engineering and oilfield services companies have seen revenues plunge as miners and energy exploration and production companies cut spending to weather weak oil and commodity prices.
However, oilservices companies exposed to the Middle East, such as Petrofac, have fared better through the downturn as national oil companies in the region have continued to ramp up production. 
But unexpected weakness in that market, hurt Weir’s oil and gas unit and overshadowed some higher activity in North America as rig counts have risen. Middle East accounted for about 15 percent of the company’s revenue last year.

Source: Arab News