Aggreko Posts Revenue Increase in First-Half Interim Results

Aug. 23, 2013

Aggreko plc, world leader in the supply of temporary power and temperature control, posted interim results for the first six months of 2013 through the end of June. Total group revenue was £760 million (about U.S. $1.18 billion), compared to £734 billion last year, about a 3.5-percent increase. Group revenue excluding pass-through fuel increased from £714 million to £745 million, about a 4.3-percent hike.

Trading profit was essentially flat, from £159 million a year ago to £157 million this year, while profit before tax was also roughly the same, dropping from £148 million to £146 million.

Aggreko’s management said the revenue and profit was in line with expectations. Revenue in the Americas increased 11 percent from $441 million to $489 million. Power Projects excluding fuel dropped 1.6 percent from $490 million to $482 million, while “Local” business increased by 9 percent from £404 million to £433 million.

“First-half performance was in line with expectations,” said chief executive Rupert Soames. “Our Local business, representing some 60 percent of revenues, delivered strong underlying revenue growth and margins strengthened; trading in our Power Projects business was, however, subdued relative to its historic performance, with revenues flat on the prior year and margins weaker. Our expectations for the full year remain unchanged.

“We expect revenues in Power Projects to be higher in the second half than in the first, as increased revenues from our gas projects offset reduced revenues from Military and Japan. We also expect to make further progress with our new HFO product, for which we have signed another contract since our June trading update. We now have a total of four customers for this product in the Americas, Africa and in Asia, underlining the broad appeal that this product will have. However, although the prospect pipeline remains healthy, we do not expect a pick-up in the rate of order intake for the Power Projects business in the immediate future.”

Soames added that Aggreko expects to spend about £240 million (about U.S. $373.9 million) on fleet capital expenditure for the full year.

Aggreko plc is based in Scotland, with U.S. headquarters in Houston. The company is No. 5 on the RER 100.