Aggreko plc, the world leader in the supply of temporary power and temperature control, this week said it traded in line with expectations in the first three months of 2010, with revenues growing 5 percent on a headline basis and 8 percent in constant currency and excluding pass-through fuel.
International Power Projects revenues grew by 8 percent, excluding pass-through fuel, with margins remaining strong. Order intake hit a new record in the first quarter with 18 new projects contracted, representing more than 440 MW of new capacity. Average MW on rent in the quarter grew by about 5 percent year over year, with the slower growth resulting from the timing of on-rents and off-rents during the quarter.
“We expect the growth rate of capacity on rent to accelerate markedly during the second quarter as recent project wins are commissioned,” the company said.
Local business revenues in constant currency grew by 8 percent, helped by revenues from the Vancouver Winter Olympics and the FIFA World Cup. On an underlying basis revenues dropped 9 percent. Volumes on rent remained robust; average MW of power on rent in the quarter was about a 7-percent increase compared with the previous year’s first quarter, and the company noted quarter-over-quarter increases in some areas.
In constant currency local business revenues grew 21 percent in North America and 11 percent in Aggreko International; they decreased by 4 percent in Europe and the Middle East. Excluding the Vancouver Winter Olympics and the FIFA World Cup, underlying Local business revenues declined 17 percent in North America and 5 percent in Aggreko International.
Net debt for Aggreko decreased by £12 million (about U.S. $18.5 million) in the first quarter and was £164 million lower on March 31, 2010, compared with the same date in 2009.
Because of its strong order intake in its International Power Products division, Aggreko now expects fleet capital expenditure of about £220 million, about £20 million higher than previous guidance. However, the company expects trading for the year to be unchanged from the guidelines it offered six weeks ago because the additional fleet is unlikely to begin earning revenue until well into the second half.
Aggreko is based in Glasgow, Scotland, with U.S. headquarters in Houston. The company is No. 10 on the RER 100.