Aggreko grew first quarter revenue 18 percent compared to the first quarter last year. Excluding the impact of re-pricing and off-hires in Argentina, revenue growth was 7 percent and 25 percent respectively.
Rental Solutions revenue increased 3 percent year over year. Oil and gas sector revenues in North America have stabilized, Aggreko said. Although they were a third lower compared to the first quarter of 2016, they were up sequentially compared to the fourth quarter of 2016. All other sectors in North America grew, Aggreko said, with revenue excluding oil and gas jumping 8 percent. The wider Rental Solutions business also contributed to the growth, with a strong performance in Europe and a solid performance in Australia Pacific.
Power Solutions Industrial revenue hiked 17 percent with strong performances in Eurasia and the Middle East and a good performance in Aggreko’s industrial business in Africa. Asia and Latin America continue to be more challenging and Aggreko is working to downsize those businesses.
Power Solutions Utility revenue was 7 percent lower than last year because of repricing and off-hires in Argentina. Excluding the impact of Argentina, revenue grew 4 percent. Year-to-date order intake is 156 MW compared to 486 MW last, including 200 MW from Zimbabwe. While the project pipeline continues healthy and is at a similar level as 2016, conversion rates are currently running lower. The first quarter off-hire rate was 10 percent.
Aggreko has signed its first solar diesel hybrid contract of 7 MW, supplementing 20 MW of diesel already on contract, for a 10-year period.
Aggreko forecasts fleet capital expenditure of about £300 million (about U.S. $387 million). The company said because of the impact of Argentina, its profits before tax and pre-exceptional items will be lower in 2017 than 2016.