International power generation leader Aggreko plc posted essentially flat numbers year over year, with group revenue of £1.577 billion (about U.S. $2.4 billion) in 2014 compared to £1.573 billion a year ago. However, the company reported a 9-percent increase in underlying revenues, defined as revenue adjusted for currency movements and pass-through fuel revenue from Power Projects, where the company provides fuel to contracts in Mozambique on a pass-through basis.
Trading profit dropped 13 percent from £352 million a year ago to £306 million on a reported basis, but only declined 2 percent on an underlying basis.
Aggreko posted strong 6-percent growth in the Americas region, from £645 million in 2013 to £684 million in 2014, with 19-percent growth on an underlying basis. In the Americas Local business, rental revenue jumped 9 percent and services revenue increased 18 percent. Rental revenue growth was driven by power rental revenue, which increased by 12 percent.
The company’s Local Business segment grew 8 percent on an underlying basis, with slower growth in the second half of the year as anticipated. Successful execution of the FIFA World Cup in Brazil and the Glasgow Commonwealth Games in Scotland were high points. In the Local business, power volumes on rent are up 6 percent so far in 2015, the company reported.
In Aggreko’s Power Projects segment, underlying revenue grew 10 percent, driven by an 80MW diesel contract in Panama and the full-year impact of gas contracts in Mozambique and Ivory Coast.
“The group has delivered a solid trading performance in 2014, admirably handling the change in senior management and difficult operating conditions in a number of our markets,” said Ken Hanna, chairman.
The company’s new CEO Chris Weston said: “Having visited a number of our locations around the world and met many of our people, I am really enthused by what I have seen and heard. I plan to spend the next few months getting to know the business better and I look forward to coming back at our interim results in August to share my views on the priorities for the group in the next phase of our growth.”
Weston said that at this early stage in the year, the company is encouraged by Aggreko’s performance. “Whilst incremental mobilization costs will impact first half results, overall for 2015, we currently expect underlying trading profit to be broadly in line with last year.”