Aggreko first-quarter revenue up 2%, leaves FY guidance unchanged

Temporary power provider Aggreko reported a rise in revenue for the first quarter as it left its full-year guidance unchanged.

In a trading update for 1 January to 26 April, the company said revenue excluding the impact of currency and pass-through fuel was up 2% on last year, with reported revenue up 18%.

Excluding the impact of re-pricing and off-hires in Argentina, revenue growth was 7% and 25% respectively.

In Rental Solutions, revenue was 3% higher than last year and Aggreko said oil and gas sector revenues in North America have stabilised. Although a third lower when compared to the first quarter of 2016, they were up on the fourth quarter of last year.

All other sectors in North America grew, with revenue excluding oil and gas increasing 8%. The wider Rental Solutions business also contributed to the growth, with a strong performance in Europe and a solid performance in Australia Pacific.

Power Solutions Industrial revenue was up 17%, with strong performances in Eurasia and the Middle East and a good performance in the industrial business in Africa.

Meanwhile, Power Solutions Utility revenue was 7% lower than last year due to repricing and off-hires in Argentina.

As announced in March, the company expects pre-tax profit and pre-exceptional items to be lower than 2016 given the significant impact of Argentina. Absent this, it expects to deliver growth across the group.

Chief executive Chris Weston said: "I am pleased to see underlying growth in both business units, in particular in Power Solutions Industrial. We continue to execute on our business priorities: investing in technology; improving our customer focus; and delivering efficiencies. The new products have been well received in the market and it is good to see that our investment in technology is beginning to deliver results."

At 0925 BST, the shares were up 1.3% to 916p.