Aggreko sees big revenue rise in North America
By Murray Pollok13 November 2018
Aggreko has reported fast growing rental activity in North America for the first nine months of the year, partially offset by a sharp decline in revenues at its power utility businesses in Latin America, Africa and Asia.
In its trading statement for the nine months to 30 September Aggreko reported underlying revenues up 11% (7% after adjusting for currency).
The results were adversely impacted by a marked decline in sales at the Power Solutions Utility division, where underlying revenues fell 14%, reflecting lower rates and volume in Argentina and the effect of off-hires in Zimbabwe, Bangladesh and Japan.
The Rental Solutions business unit – which accounts for more than half of all revenues – reported an underlying increase of 26% year on year, propelled by a 32% rise in North America, where there was strong growth in its oil and gas related work. Hurricane-related contracts benefitted, but even excluding that the increase was 27%.
Northern and Continental Europe also reported good activity levels, helped by the Ryder Cup in France in September, gas related contracts in Ireland, the Glasgow Games, and a 100 MW emergency power contract in Melbourne, Australia.
Revenues at the Power Solutions Industrial division were up 11%, although the increase would have been just 2% without the South Korea Winter Olympics contract. Aggreko said market conditions in the Middle East continued to be challenging as a result of the impact of the Qatar blockade.
Aggreko said it remained on track to deliver its full year guidance on profit before tax, in line with 2017.