Aggreko gets Argentinian contract extensions

UK-based temporary power provider Aggreko has confirmed that the government of Argentina has extended its fixed site contracts on projects in the country, totalling around 388MW.

The company said its contracts equating to 174MW had been extended until 31 December 2017, with the original contracts amounting to 180MW.

Adding to its total, the company’s standby contracts – which originally totalled 270MW, with 56MW off-hired in 2016, leaving the balance at 214MW – have been extended until the end of February or March 2017, the company said.

Aggreko’s contract extensions may prove timely for the company, following its announcement in late 2016 that it was reviewing the value of its North American fleet of oil and gas rental generators after further weakness in that market hit its quarterly revenue.

The company has not disclosed the financial details of the contracts, but said the extensions had been priced in-line with its expectations.