Aggreko sees FY profits in line at £225m

Portable power provider Aggreko said it expected 2016 full year results to be broadly in-line with current market expectations, with pre-exceptional profit before tax of around £225m

Portable power provider Aggreko said it expected 2016 full year results to be broadly in-line with current market expectations, with pre-exceptional profit before tax of around £225m.

In a third quarter trading update, Chief executive Chris Weston said the trading environment over the last nine months had been “challenging” although he was pleased with a strong order intake of more than 1 gigawatt.

“We are working through the status of our contracts in Argentina and continue to navigate the tough conditions in upstream oil and gas in North America,” he said.

Underlying revenue for the third quarter was 7% behind last year with reported revenue up 8%.

Aggreko said revenue from rental solutions was down 7% on last year.

“North America revenue was materially lower year on year driven by the ongoing weakness in upstream oil and gas with further pricing pressure and a reduction in gas volumes,” the company said.

“Given this continued decline we are reviewing the carrying value of specialist equipment for the oil and gas market, notably our small gas generators.”

“In our other key sector, petrochemical and refining, we have seen greater activity in recent months with a sequential improvement in seasonally adjusted revenues.”

“Outside North America, the rental solutions business has performed well, with growth in both Europe and Australia Pacific. Our temperature control business has also performed well, up 5% in the quarter including the two acquisitions we have made in the last year.”