Aggreko first-quarter revenue down 17%, maintains guidance

FTSE 250 temporary power provider Aggreko reported a drop in first-quarter revenue amid challenging markets but maintained its guidance for the year.

In a trading update for 1 January to 27 April, the company said underlying revenue was down 14% from last year, while reported revenue was 17% lower.

Chief executive Chris Weston said: “Performance in this first quarter has been in line with our expectations. Whilst some of the markets we operate in continue to be challenging I am encouraged by the order intake to date. Our guidance for the full year, of profit before tax slightly lower than 2015, remains unchanged."

In terms of divisions, revenue in Rental Solutions was down 9% on the previous year, mostly on the back of a weak performance in North America.

Power Solutions Industrial revenue was 10% lower, as prior year comparatives included revenues from the European Games.

In Power Solutions Utility, revenue was down 19% versus last year. Aggreko noted that the first quarter of 2015 included revenues from its diesel contract in Panama which ended in June 2015, in addition the previously announced new contract terms in Bangladesh were not effective until the second quarter of last year, which has affected this year's first quarter numbers.

Aggreko expects fleet capital expenditure to be around £250m compared to £237m in 2015, in line with the guidance issued at the full year. This spend will focus on investment in more efficient gas and diesel engines.