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Rotork continues to tread water amid a downturn in the oil and gas sectors, with currency moves and acquisitions making the biggest contributions to revenue growth at the UK engineering company.
The FTSE 250 group said in a first quarter trading update that group order intake rose 19.7 per cent year-on-year, with foreign exchange moves accounting for 13.7 per cent. Revenue rose 14.5 per cent, with 13.1 per cent due to favorable foreign exchange moves. Stripping out the effect of currency, revenue was down 1.4 per cent.
Rotork is the world’s largest producer of actuators, the safety devices that open and close valves in pipelines and machinery used to extract and store hydrocarbons, but has been hurt by the downturn in energy prices which have prompted energy groups to slash investment. In response it has cut costs amid a mixed outlook:
The end market trends seen towards the end of 2016 continued in the first quarter of 2017. Oil and gas remained challenging, with weakness evident in the downstream sector, although we have seen an improvement in levels of activity in upstream and midstream.