Aggreko takes prompt action
By Murray Pollok23 March 2020
Aggreko said it had not closed its offices or depots around the world in response to COVID-19, although an increasing number of its staff are working from home.
It said it was in a strong financial position – with immediately availably liquidity of £606 million - and had taken prompt action, including a reduction in discretionary spending, hiring freezes, travel restrictions and limiting fleet capital expenditure to secured orders and to meet known demand.
“While the challenges facing our business are unprecedented…our primary concern remains the welfare of our people, their families and the local communities in which we work”, said Aggreko.
The power rental company said it was in regular contact with its client for the Tokyo 2020 Olympic and Paralympic Games and that it was continuing to work on the project “in line with the current International Olympic Committee guidance.”
The impact on its revenues from the virus have so far been limited, said the Glasgow, UK-based company, and primarily in events; “However, as central governments and businesses take further action to contain and delay the spread of the virus, there is now significant uncertainty around future demand across several sectors and geographies.
“The recent sharp fall in the oil price has compounded this level of uncertainty. Additionally, we are beginning to face some operational challenges getting our people to project sites as countries close borders and restrict travel.”
The company added that its supply chain had not been heavily impacted so far, although it was experiencing delays of a few weeks in equipment orders from China.