Modular, mobile power specialist Aggreko posted £857 million in group revenue in the first half of 2018, compared to £779 million for the first half of 2017, a 10-percent increase. Profit before tax was £59 million compared to £63 million for the first half of 2017, a 6.3-percent decline. Among the highlights in the first half was successful execution of the Commonwealth Games and South Korea Winter Olympics.
Aggreko’s Rental Solutions division jumped 26 percent in revenue from £307 million in 2017 to £386 million in this year’s first half. It was a strong first half for North America with revenue jumping 34 percent, supported by £17 million from hurricane-related work, and a strong performance in several key sectors including building services and construction, petrochemical and refining, and oil & gas. Aggreko also achieved good growth in both Europe and Australia Pacific. The operating margin rose six percentage points to 11 percent, driven by improved volumes, rates, fleet utilization and operating leverage.
Power Solutions industrial increased underlying revenue 15 percent, supported by the South Korea Winter Olympics (up 3 percent excluding the Olympics). The operating margin was 11 percent, down three percentage points because of competitive pressure and market conditions driving down rates across the Middle East and in parts of Africa.
“These are encouraging results that keep us well on track to deliver our full-year guidance,” said CEO Chris Weston. “As we continue to execute on our strategy, we have also concluded a comprehensive review of the Group’s expected performance over the medium term. Based on this review, and the detailed action plans we have developed, we are confident that the Group can deliver a return on capital employed in the mid-teens in 2020 with potential for further improvement beyond this.”
Aggreko continued to expand and grow in the first half of 2018 with three acquisitions: It acquired A Contact Electric Rentals in February; Generator Hire Service in Australia in May; and a 14-percent share in Origami Energy Ltd. in March.
Based in Scotland with North American headquarters in Houston, Aggreko North America is No. 11 on the RER 100.