Valve-control systems maker Rotork Plc posted an 8% rise in full-year revenue and said it would benefit from U.S. President Donald Trump's move to encourage shale and pipeline activity and investment in infrastructure.
"[Trump] is encouraging activity in shale, which will be beneficial to us," CEO Peter France told Reuters, adding that the president's move to expedite clearance of pipelines would also give a boost.
Trump, speaking at the Conservative Political Action Conference Feb. 24, said his administration was "planning bold action to lift restrictions on U.S. energy sources, including shale oil, natural gas and coal."
He has also cleared the controversial Dakota Access and Keystone XL pipelines.
France said there has been an uptick in activity in the oil and gas markets since the U.S. election, and added that he expects this to carry on into 2018.
This is in contrast to his comments in August, when France warned that activity in oil and gas markets would remain subdued.
Oil and gas companies last year were forced to scale back on capex due to a more-than-two-year slump in oil prices, harming companies like Rotork, which gets a lion's share of revenue by selling valve-automation equipment to the oil and gas industry.
Rotork said 2016 revenue rose to US$733.3 million from US$679.1 million a year earlier, when it reported an 8.1% drop in revenue.
"This is a very solid set of FY2016 results from Rotork, with numbers coming in ahead of the Street across the board," Jefferies analyst Andy Douglas wrote in a note.
Rotork's shares rose as much as 5.7% before paring some gains to trade at up 3%.
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