Aggreko to invest despite profits warning

29 July 2015

Aggreko chief executive Chris Weston.

Aggreko chief executive Chris Weston.

Temporary power provider Aggreko is to spend £25 million (€35 million) in Indonesia, including the opening of a new depot in Jakarta.

The investment in the country, where Aggreko already has more than 200 MW of capacity, comes despite the company issuing a profits warning last week, which caused its share price to fall by 15%.

Aggreko said profits had been affected by lower than expected gas contract prices in Bangladesh, and capacity issues in Yemen caused by the ongoing security situation in the country.

The news comes only weeks after Aggreko announced major management changes following its reorganisation into Power Solutions and Rental Solutions businesses instead of the regional approach it historically favoured.

At that time, chief executive Chris Weston said that results for 2015 would be “broadly in line” with 12 months ago.

Aggreko’s full-year pre-tax profit figure is now expected to be not more than £270 million (€382 million), compared to £289 million (€409 million) last year.

The company announces its interim results on 6 August.

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