Pressure Technologies boosted by oil rig work
Pressure Technologies expects the performance of its largest trading division, Chesterfield Special Cylinders (CSC), to beat market forecasts.
The industrial machinery business said activity in the deep water oil rig market had "considerably strengthened" Chesterfield Special Cylinders' order book.
In an update ahead of its AGM, Pressure Technologies said increased activity in the oil rig market had started in the fourth quarter of the last financial year.
That has continued and CSC has secured orders for cylinders on nine drillships for the current financial year, two of which have been delivered.
Market conditions for deep-water oil and gas and the general oil services sector remain strong, according to the business, which said CSC also continued to make progress in the development of the trailer and in-situ inspection markets.
Progress in the CSC division was tempered by the likelihood Chesterfield BioGas will secure one less biogas upgrade project than expected.
Earlier this year, Chesterfield BioGas won an order to supply a biogas upgrader on a project in Stockport and the company thought it would secure a further contract in 2011/2012.
But despite a number of projects being at an advanced stage of the tendering process, Pressure Technologies said it was unlikely any further orders won this financial year would be completed in the year. That shortfall in activity would be reduced by potential vehicle refuelling and trailer projects the division was involved with.
Growth in Pressure Technologies' engineered products division is being driven by Hydraton with order books strengthened in both the UK and USA.
As a result of the size of its order books and the immediate pipeline, Pressure Technologies said it is confident of achieving market forecasts for the current financial year.
