Aggreko Continues Growth with Strong First Half

Aggreko posted a 9.2-percent revenue increase for the first six months of 2011, going from £583.6 million in group revenue for the first six months of 2010 to £637.2 million (about U.S. $1.04 billion) this year. In constant currency and excluding one-time sporting events such as the Vancouver Winter Olympics, FIFA World Cup and Asian games as well as pass-through fuel costs, the company’s year-over-year increase was 21.7 percent.

Both the International Power Projects division and the Local business segment posted strong growth. Underlying revenues for IPP leaped 24 percent, with trading profit rising 17 percent. The company has 25 new contracts signed for 730 MW, including major new projects in Japan, Argentina and Tanzania.

Underlying revenues for the Local business segment jumped 19 percent and trading profit jumped 17 percent, as North America and Australia recovered strongly and investment in fast-growing economies showed some payoff, the company said. Meanwhile Aggreko is increasing its pace of investment, with fleet capital expenditure growing by £70 million to £169 million (about U.S. $275 million).

“Aggreko delivered a strong underlying performance in the first half of 2011, with revenue growing by 21 percent and trading profit by 17 percent,” said Philip Rogerson, Aggreko chairman. “Reported revenue increased by 9 percent and reported trading profit decreased by 3 percent. Although the prospects for the global economy in the months ahead are uncertain, we believe that profit before tax and amortization for the year as a whole will be higher than we indicated at the time of our trading update and the end of June; we now expect it to be around £315 million. This would equate to a rate of growth in underlying profits of around 24 percent.”

“We generated nearly £50 million of revenue from one-off sporting events in the first half of 2010 and consequently the headline numbers in 2011 were always going to make tough comparators,” added Aggreko chief executive Rupert Soames. “However, the underlying rate of growth in revenues is running at over 20 percent, and it is also encouraging to note that this growth is being delivered by both the Local business and International Power Projects. We are now well placed to deliver a strong second half.”

Based in Scotland, with North American headquarters in Houston, Aggreko is No. 6 on the RER 100.

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