Aggreko reported £1.760 billion in group revenue for 2018, compared to £1.698 billion in 2017, a 3.6-percent increase. Aggreko’s Rental Solutions division increased underlying revenue – which excludes pass-through fuel, currency and exceptional items – increased 22 percent, and its Power Solutions Industrial division underlying revenue went up 7 percent.
The company’s fleet capex of £196 million was considerably less than in 2017 when the company spent £246 million on fleet capex, reflecting increased discipline and focus on utilization.
Aggreko was awarded the supply contract for temporary electricity generation for the Olympic and Paralympic Games in Tokyo worth an expected $200 million in revenue in 2020.
Underlying group revenue rose 8 percent, driven primarily by a strong performance in Rental Solutions, offset by a decline in Power Solutions Utility, which only represents 21 percent of group revenue.
Rental Solutions posted £822 million in revenue, compared to £690 million a 19.1-percent jump, representing 52 percent of group revenue. North America had a very strong year with revenue up 25 percent, including £27 million earned from hurricane-related work (net of base business lost because of hurricanes), and a strong performance across several key sectors including oil & gas, petrochemical & refining, utilities and building services & construction. Aggreko also achieved good revenue growth of 17 percent in Europe and 16 percent in Australia Pacific. Operating margin on an underlying basis rose 1.2 percentage points to 12.9 percent, driven by improved rates and operational efficiency.
Power Solutions Industrial, which had a 7-percent increase in underlying revenue, had strong growth in Latin America of 31 percent, Asia up 11 percent with the Winter Olympics in South Korea.
Aggreko completed two acquisitions during the year. On Feb. 15, 2018, Aggreko acquired the business and assets of A Contact Electric Rentals in North America for £2` million, specializing in the rental of medium and high-voltage electrical distribution equipment across North America. The transaction furthered Aggreko’s position in the specialty rental market.
On May 31, 2018, Aggreko acquired the business and assets of Generator Hire Service in Australia for £3 million.