Aggreko PLC AGK Trading Statement

  Aggreko PLC (AGK) - Trading Statement

RNS Number : 4484F
Aggreko PLC
15 June 2012
 



 

                                                                  15 June 2012

 

                                 Aggreko plc

 

                                TRADING UPDATE

                                       

            Strong performance expected for first half of the year

 

Aggreko plc, the world leader in the supply of temporary power and temperature
control, is giving the following update on trading prior to entering its close
period in respect  of the half-year  ending 30th June  2012.  Interim  results 
will be announced on Thursday, 2nd August  2012. Highlights of the update  are 
as follows:

 

-     First half underlying Group revenue(1) anticipated to grow by around 15%
and trading profit1 by around 20%

-     75 MW contract won in Japan

-     Fleet investment  to increase by  a further £50  million to around  £415 
million in 2012

 

Trading Update

 

The Group  expects to  deliver a  strong performance  for the  first half.  We 
anticipate that first half underlying Group revenue(1) will grow by around 15%
and trading profit1  by around  20%. On a  reported basis,  Group revenue  and 
trading profit are expected to increase by around 14% and 25% respectively.

 

In our International Power  Projects business, revenue excluding  pass-through 
fuel and currency movements  is expected to  grow by around  17% in the  first 
half. Order intake in the first half  continues to be strong and is likely  to 
be over 700 MW, which includes the recently announced 107 MW project to supply
power to Mozambique and South Africa, and  a new contract to provide 75 MW  to 
the Japanese utility company Hokkaido Electric Power Company (HEPCO).  Trading 
margin in  International  Power  Projects,  excluding  pass-through  fuel,  is 
expected to be  higher than  that achieved  in the  first half  of last  year, 
notwithstanding a similar increase in our bad debt provision.

 

In the Local business we expect underlying revenue to grow by about 13% in the
first half. Within this,  our Europe and Middle  East business is expected  to 
grow by around  9%, North America  by around 11%  and Aggreko  International's 
Local business by about  25%.  We opened  new locations in  the first half  in 
Cape Town and Nairobi as well as completing the acquisition of Poit Energia in
Brazil. We expect  Local business trading  margin in  the first half  to be  a 
little better than last year on an underlying basis.

 

Outlook

 

While we think it  likely that the  weakening macro-economic environment  will 
reduce our underlying rate of growth in the Local business in the second half,
any weakness will be offset by the impact of the London Olympics and the  Poit 
acquisition.  On a reported basis, we  expect to deliver strong growth in  the 
second half.

 

In International Power Projects  the level of order  intake in the first  half 
means we expect to deliver  faster revenue growth in  the second half than  in 
the first. In  light of this,  and a  healthy pipeline of  enquiries, we  have 
decided to raise fleet investment in 2012  by a further £50 million to  around 
£415 million; the additional fleet will  not become operational until late  in 
the fourth quarter. 

 

We expect margins in  International Power Projects to  be lower in the  second 
half than the same period  in 2011, in large  part due to higher  mobilisation 
costs.  Overall, we  anticipate that  Group margins for  the year  will be  at 
similar levels to 2011.

 

We continue to believe  that we will  deliver another year  of good growth  in 
2012.

 

 

                                   - ENDS -

 

 

Enquiries to:

 

Rupert Soames / Angus Cockburn

Aggreko plc

Tel: 0141 225 5900

 

Neil Bennett / Tom Eckersley  

Maitland 

Tel: 020 7379 5151

 

 

(1) Underlying revenue and trading profit excludes major events (Asian Games
in 2011 and London Olympics in 2012), the recently completed Poit Energia
acquisition, pass-through fuel and currency movements.

 

                     This information is provided by RNS
           The company news service from the London Stock Exchange
 
END
 
 
TSTGGUACQUPPUAA -0- Jun/15/2012 06:00 GMT