Flat start for Aggreko
By Helen Wright11 August 2014
Growth in the Americas region boosted first half results for temporary power provider Aggreko, which reported revenues of £768 million (€962 million) for the period, up 1% year-on-year.
Of this, revenues generated in the Americas jumped 25% compared to the first six months of last year to £340 million (€426 million).
Aggreko said growth was fuelled by the oil and gas sector with continuing strength in shale in North America.
Offsetting this, Asia Pacific revenues were down 16% year-on-year to £125 million (€157 million). Revenues for Europe, the Middle East and Africa, excluding pass-through fuel revenues, were up 14% compared to the first half of 2013 to £280 million (€351 million).
Revenues from power projects also grew 14% to £314 million (€393 million), while local business revenues were up 10% year-on-year to £431 million (€540 million).
Profit before tax was down 9% compared to the first six months of 2013 to £132 million (€165 million).
Aggreko spent £107 million (€134 million) on new fleet in the period, up from £111 million (€139 million) in 2013.
Interim CEO Angus Cockburn said the company had made an encouraging start to the year and delivered a good performance in the first half.
“The Local business has performed well, particularly in the Americas and EMEA regions which have delivered strong growth. We are proud to have been involved in the provision of broadcast and stadium power for both the FIFA World Cup and the Glasgow Commonwealth Games.
“One of the highlights of the first half has been our success in executing two ground-breaking contracts. In Panama we are the first temporary power provider to be awarded a wholesale contract, and we are selling into the spot market to help alleviate the hydro power shortages.
“In Southern Africa, we are supplying 230 MW of cross-border power into three countries as part of the Southern African Power Pool from our plant in Mozambique, where we have just extended the first 108MW.”
Mr Cockburn said the company expected to deliver growth in the second half, but added that comparators were more challenging.
“In Power Projects, whilst we take some encouragement from the order intake in the first half and a healthy enquiry pipeline, customers generally remain cautious.
"Overall, we continue to expect underlying trading profit for the full year to be similar to 2013,” he said.