Aggreko uprates its performance forecasts
By Murray Pollok15 June 2010
Aggreko said its performance for 2010 will be significantly better than previously forecast because of an "encouraging pick-up" in its local businesses as well as continued growth at its international power products division and additional work on the FIFA World Cup contract.
The company is expecting group revenues to grow by around 10%, and trading profit by about 20% in the first six months of the year.
It its trading statement for the first half of the year, Aggreko said its local businesses would post a 16% increase in revenues for the half-year, partly because of the Vancouver Winter Olympics contract and also the World Cup, where a large amount of additional work has been secured. Excluding these events, the local business is expected to be at similar levels to the same period in 2009.
Demand at its international power projects division has been strong in the first half year, with orders for a record 900MW of new work likely to be taken, including 200 MW in Bangladesh, 215 MW in Indonesia and 180 MW in Central & South America.
Aggreko said that as a consequence of its performance it would be raising its fleet capital expenditure for the year by £45 million to £265 million. Half of this will be spent on products for its international power projects activities and the other half on the "accelerated introduction of a new generation of low-emissions generators into the North American market."