Aggreko, international leader in power generation rentals posted a 28.2 percent revenue increase in 2007, with £693.2 million (about U.S. $1.4 billion), compared with £540.7 million in 2006. Trading profit leaped 54.8 percent from £86.7 million in 2006 to £132.2 million in 2007, while operating profit jumped 53.2 percent from £89.5 million in 2006 to £137.2 last year.
The company said its integration of GE Energy Rentals, which it acquired in 2006, has been completed, and the benefits are well ahead of the expectations the company had at the time of the purchase.
Aggreko officials said they expect to make good progress in 2008. “The trading performance in the first few weeks of the year, particularly in our international business, has further increased our confidence since the last trading update in December 2007,” the company said in an earnings presentation.
Aggreko said it was particularly bullish on increased construction activity in the Middle East, and a lot of refinery work in the United States. Revenue from storm-related activities was lower in 2007.
The company expects to expand more quickly in 2008 in Central and South America; southern and eastern Europe, including Russia; India, China, South Africa, Asia, Australia and the Middle East. Under-exploited opportunities such as power projects in North America may provide opportunities in the year to come.
The company said the demand for power is growing rapidly in the developing world, and that major forecasting institutions have consistently under-estimated the rate of growth in demand. Aggreko said its aim is to average double-digit revenue growth over the next five years, assuming world economic growth is similar over the next five years compared with the past five years.
Aggreko posted $337.1 million in 2007 revenue in North America, a 15-percent increase compared with $293.1 million in 2006.
Based in Scotland, with U.S. headquarters in Houston, Aggreko is No. 12 on the RER 100.