In an update, the FTSE 250 group said it had refinanced a US$950mln revolving credit facility and a £200mln term loan, extending their maturities to 2023 and 2022 respectively. The company added that it was continuing to be “highly cash generative” and its liquidity positions included £500mln of committed facilities and cash.
Meanwhile, Weir said its mining markets had held up during the second quarter of the year despite some disruptions to production levels in April and May, adding that this appeared to be easing through June.
The company said its minerals business had shown “resilience” throughout the pandemic, with aftermarket orders in the second quarter being similar to the first. Equipment orders had also continued at similar levels to the first quarter as several large gold project orders offset delays across other commodities.
However, Weir said the division’s infrastructure markets had been “significantly disrupted” as a result of a shutdown in construction activity in North America and Europe, although they had now started to recover gradually.
Meanwhile, the company’s oil and gas division had experienced a “significant step-down” in North American activity levels in the second quarter, as expected, although they still expected the segment to be cash generative for the full year and was continuing to explore options for an exit from the business.
Weir also said it will reinstate its guidance for the full year “when it has sufficient confidence on the outlook”.
The company’s shares rose 2.7% to 1,061p in early deals on Friday.
Published at Fri, 26 Jun 2020 07:11:00 +0000-Weir refinances bank facilities, says mining markets robust despite pandemic disruption