Michael Kneeland CEO of United Rentals.

Michael Kneeland CEO of United Rentals.

Rental Revenues for United Rentals hit $1.22 billion (€1.11 billion) in the second quarter of 2015, a year on year increase of 3.5%.

However, the world’s biggest rental company revised its net capital expenditure forecast for the full year from $1.2 billion (€1.09 billion) to $1.1 billion (€1 billion). It also projected an increase in hire rates of 0.5% compared to the previous figure of 3%, while utilisation is now expected to be 67.5% as opposed to 69%.

“We solidly improved our profitability in the second quarter year-over-year, with record results for second quarter EBITDA margin and adjusted EPS,” said chief executive officer Michael Kneeland.

“The adverse impacts from the drop in oil and gas activity as well as industry fleeting were greater than we anticipated and, as a result, we've updated our outlook on our 2015 targets."

He added: “Demand for our equipment is clearly there, and our industry is expected to benefit from solid growth in the years ahead as oil drilling stabilises and rental fleet is absorbed. Industry experts are projecting years of growth ahead, led by the ongoing rebound in non-residential construction.

“Given this outlook, and our ability to drive profitable growth and returns, we are accelerating our current $750 million (€682 million) share repurchase programme and announcing an additional $1 billion (€910 million).”

The results took United’s half-year rental revenue to $2.345 billion (€2.13 billion), a year on year increase of $161 million (€146 million). Compared to 2014, six month revenues are up 7.4, with the volume of equipment on hire up 5.3% and rental rates 2.2% higher.

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