HOUSTON — Aggreko, world leader in temporary power and temperature control, said that trading in the fourth quarter has been better than expected, driven by strong performance in International Power Projects. The company now expects group revenue for the year to top £1 billion (more than U.S. $1.6 billion), with operating profit around £260 million (about U.S. $420 million). The company expects revenues to rise about 7 percent and operating profit 27 percent, with earnings per share jumping at least 33 percent.
Aggreko expects to generate net cash inflow of around £160 million for the year.
The company expects progress in 2010 on a constant currency basis. Activity levels in international power projects are encouraging and the company expects to begin the year with 10-percent more MW on rent than the same time last year. Aggreko expects 2010 to be a strong year for major events, starting with the Winter Olympics in Vancouver, for which Aggreko is the official supplier of temperature control and power.
Aggreko will support BC Hydro, the primary provider of clean hydro-electric energy, by providing temporary power, heating and cooling equipment at all of the Vancouver and Whistler venues throughout the Games. These venues include: the BC Place Stadium for the opening and closing ceremonies; various celebration sites; the main media center; the Whistler broadcast and press center; the Olympic and Paralympic Villages in Vancouver and Whistler; and all competition venues.
Aggreko expects to expand its fleet, planning to spend around £180 million on new fleet in 2010, £30 million more than in 2009, and about 1.2 times fleet depreciation.
In related news, Aggreko recently opened its newest service center in Plainview, N.Y., near Long Island. The 30,000-square-foot site will house all aspects of the Aggreko business, including sales, service, and a fleet of power generators, chillers, air conditioners, heaters and oil-free air compressors. The new facility will provide a quicker and more comprehensive response to local customers that have been serviced from the company's Linden, N.J., location since 2002.
“Aggreko has a lot of customers in the immediate area, from hospitals to construction companies,” said Tom Magner, vice president, area general manager, Aggreko. “This new location will make it even easier and faster for our customers to receive the high level of expertise, experience and professionalism they have come to expect from Aggreko. As well as providing an even quicker response to our Long Island customers, we will also improve support for the New York City/Manhattan market.”
In addition to Long Island and Linden, Aggreko operates service centers in nearby cities such as Boston; Bridgeport, N.J.; Baltimore; and Richmond, Va.; and is backed by a network of more than 50 locations throughout North America.
Based in Scotland, with U.S. headquarters in Houston, Aggreko North America is No. 10 on the RER 100.