Aggreko Raises Full-Year Profit Growth Forecast on Orders
Aggreko Plc (AGK), the world’s largest provider of mobile-power supplies, raised its forecast for underlying profit growth this year after winning contracts in countries such as Japan, Russia and Iraq.
Underlying trading profit, which excludes the effects of one-off sporting events, will be around 315 million pounds, ($515 million) an increase of about 24 percent, the Glasgow, Scotland-based company said in a statement today. Analysts were previously estimating about 305 million pounds, Chief Executive Officer Rupert Soames said.
Aggreko benefits more from sporting events in even-numbered years. As well as the soccer World Cup, its generators were used at the Winter Olympics and the Asian Games in 2010. The company is providing services to next year’s London Olympics.
“We had a cracking first half,” Soames said on a conference call. “Our order book grew to record levels and we won 25 new projects.”
Net income declined 2.6 percent to 85.1 million pounds, or 31.6 pence a share, from 87.4 million pounds, or 32.3 pence. Revenue increased 9.2 percent to 637.2 million pounds.
Aggreko won a contract from Tokyo Electric Power Co. in the wake of the magnitude-9 earthquake that hit its Fukushima nuclear plant in March. The temblor and the subsequent tsunami resulted in three of the six reactors melting down, causing radiation leaks. None of the revenue from the one-year contract was received in the first half, Soames said.
The shares rose 2 pence, or 0.1 percent, to close at 1,765 pence at 4:30 p.m. in London trading.
Aggreko raised its interim dividend 10 percent to 7.2 pence a share. The company, which returned 151 million pounds to investors last month, won’t make a similar payment before 2013, Soames said.
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