Aggreko posted group revenue of £1,730 million (about U.S. $2,436 million) in 2017 compared to £1,515 million in 2016, a 14.2-percent hike for the international leader in temporary power and temperature control. The Rental Solutions division posted £720 million in revenue compared to £629 million in 2016, a 14.5-percent jump not including pass-through fuel and currency.
The Power Solutions division for industrial had revenue of £340 million compared to £262 million a year ago, a 29.8-percent boost. Power Solutions utility division declined slightly, with £531 million compared to £564 million in 2016, a 5.9-percent slide.
“I am pleased that we are seeing revenue growth return, with strong performances in both Rental Solutions and Power Solutions Industrial,” said Aggreko CEO Chris Weston. “As expected, the challenges in Power Solutions Utility held back the Group overall. Over the last three years we have stabilized the business, enhanced our service offering and positioned ourselves to prosper in rapidly changing energy markets. We have delivered over £100 million in cost savings, invested in new systems and processes and developed new technology, all of which enables us to provide high quality solutions for customers. We expect 2018 group profit before tax to be in line with last year, on a constant currency basis.”
Profit before tax was £154 million in 2017 (post exceptional items) compared to £172 million in 2016. Return on capital employed was 9 percent in 2017, compared to 10 percent in 2017.
The company focused on growth opportunities through its new business unit Global Solutions, with more than £52 million invested, including the acquisition of Younicos.
Aggreko realized solid growth in Europe and a small increase in Australia Pacific. Business in North America had an uplift from hurricane-related work, with revenue increasing 10 percent year over year (4 percent excluding hurricane-related work). Although revenue from the oil-and-gas market in North America was lower year over year, it has stabilized and delivered growth in the second half. Outside of this sector, revenue in North America grew 14 percent.
Aggreko also grew its Temperature Control business in North America 10 percent.
Power Solutions Industrial underlying revenue jumped 20 percent with strong growth from Eurasia and Africa, while Power Solutions Utility underlying revenue was down 9 percent because of repricing and off-hires in Argentina. Excluding the impact of Argentina, underlying Power Solutions Utility revenue was in line with the previous year.
Aggreko launched a new website, designed for usability, which has increased activity. Later this year, Aggreko will introduce a new e-commerce offering. Its new CRM and Configure, Price, Quote systems are now live across the majority of the Rental Solutions footprint, and Aggreko launched Field Service Management, an operations system allowing real-time visibility of both physical assets and its workforce of technicians. The full suite of applications is driving improvements in customer service, utilization and productivity.