Rental Solutions Revenue Jumps 9 Percent in Aggreko’s Fiscal Third Quarter

Rental Solutions revenue increased 9 percent year over year for Aggreko in its fiscal third quarter ended Nov. 20, 2017. The results included revenue from the hurricanes that impacted the southern United States and the Caribbean.

Michael Roth

March 3, 2018

2 min read

Revenue excluding the impact of currency and pass-through fuel increased 1 percent for the fiscal third quarter compared to the previous year, with reported revenue up 8 percent. Excluding the impact of its Argentina business, revenue grew 3 percent year over year on an underlying basis.

In North America revenue increased 10 percent year over year, 3 percent excluding the impact of the hurricanes that generated incremental work but also resulted in the cancellation of scheduled maintenance work. The wider Rental Solutions business also contributed to the growth with a strong performance in Europe, particularly in U.K. utility sector, and a solid performance in Australia Pacific with increased activity in the mining sector.

In the Power Solutions division, industrial revenue was 6 percent higher with continue strong performance in Eurasia, where order intake remains robust at 255 MW year-to-date. A good performance in Africa also continued in the third quarter.

Utility revenue was 15 percent lower than last year, driving by repricing and off-hires in Argentina. Excluding the impact of Argentina revenue decreased 7 percent.

Aggreko’s full year guidance remains unchanged. The trading performance continues to support Aggreko’s view that, Argentina aside, the company will grow this year. Aggreko expects fleet capital expenditure to be around the previously forecast figure of about £300 million.

About the Author

Michael Roth

Editor

Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.