Aggreko reports dip in rental revenues

Temporary power specialist Aggreko has reported an 8% year-on-year fall in underlying rental solutions revenues for the first half to £280 million (€334 million), driven by declines in North America.

The rental solutions business also reported a 71% underlying year-on-year drop in trading profit for the first six months of the year to £10 million (€12 million).

Aggreko said North American rental solutions revenues were down 20% in the first half, driven by declines in the upstream oil and gas market that started in the second quarter of 2015. It said the petrochemical and refining industries in the region had also seen a slow first half after a strong 2015.

In contrast, Aggreko said it had seen good growth in the rental solutions business in the Australia Pacific region and Europe, and added that it had also seen double digit growth in temperature control.

In its power solutions business, Aggreko said total revenues excluding fuel stood at £381 million (€454 million), down 15% on an underlying basis year-on-year.

Overall, Aggreko’s group revenues were down 12% year-on-year in the first half to £685 million (€817 million), and profit before tax stood at £61 million (€73 million) compared to £71 million (€85 million) for the first six months of 2015.

CEO Chris Weston said, “The trading environment in this first six months has been difficult, with the lower oil price continuing to impact a number of our markets.

"We are holding our guidance for the full year while recognising the importance of securing key contract extensions and the seasonal weighting of our North American business to the second half.

“I am pleased with the good progress we continue to make with our business priorities and the strong level of order intake in Power Solutions Utility to date."