Aggreko forecasts "further progress" in 2010 and will expand fleet
By Murray Pollok21 December 2009
Aggreko said that a better than expected final quarter of the year - particularly from its international power projects division - would push its revenues for the year up 7% to over £1 billion and operating profits up 27% to £260 million. On a constant currency basis, revenues are 5% down and profits 4% up.
Trading at the international power projects business has continued strongly, said Aggreko, with fourth quarter revenues up 8% "There was a sharp increase in the number of new megawatts (MW) put on hire, and we will probably just beat our previous record of delivering 300 MW of new capacity in a single quarter", said the company.
The outlook for 2010 is for Aggreko to make "further progress", with the international power projects business starting the year with 10% more power on rent than the same time last year. The company's local business is more difficult to predict, said Aggreko, although it expects 2010 to be a strong year for major events. Aggreko is the official supplier for the Vancouver Winter Olympics. Of the local business, Aggreko said; "Outside of major events, all we can say at this stage is that conditions are getting no worse and we are hopeful that we will start to see some improvement in the coming year."
Aggreko will also buck the trend for rental companies to reduce capital expenditure. The company said it would expand its fleet again next year and would increase spending by £30 million to £180 million.