Aggreko maintains guidance for profit before tax of £250-£270 millionStaff writer ▼ | November 9, 2015
Aggreko posted its third quarter trading update for the period from July 1, 2015 to November 8, 2015.
Aggreko Aggreko rental solutions revenue was down 1%
Aggreko rental solutions revenue was down 1% on last year. The on-going weakness in the oil and gas and mining sectors, has been largely offset by continued growth in other sectors, such as petrochemical and refining.
The company also saw a strong temperature control season in North America and Continental Europe.
Power Solutions revenue was 11% lower than the same period last year. Within this, Industrial was 12% higher, including the successfully executed European Games.
The company also saw solid growth in our Russian and African businesses. However, the continuing weak economic backdrop in Brazil is having an impact on our business.
Utility revenue in Power Solutions was 21% lower than last year, driven by the previously announced price reduction on our contract extension in Bangladesh and the off-hiring of our contract in Panama; excluding the impact of these, revenue was down 12%. Order intake year to date is 561MW (2014: 697MW); last year's comparative included 170MW of summer peak shaving work in Saudi Arabia and Oman.
In addition, The company extended our 260MW of gas contracts in Mozambique until the end of the year. The closing order book at the end of the third quarter is strong with the equivalent of 14 months of forward revenue cover, reflecting the number of contract extensions secured this year.
Chris Weston, chief executive, commented: "Aggreko continues to demonstrate its resilience against a challenging market backdrop and I am pleased that we are maintaining our guidance for 2015 full year profit before tax of between £250 and £270 million.
"Whilst we are at an early stage in delivering the specific actions identified at our business review in August, I am encouraged with the progress we are making which, regardless of the prevailing market conditions, will strengthen Aggreko and position it well for the future." ■