Aggreko plc posted a strong first quarter with both its International Power Projects and Local divisions delivering more than 20 percent underlying revenue growth. IPP has secured more than 450 megawatts of new contracts year to day.
Underlying group revenues, excluding major events such as the Asian Games in 2011 and London Olympics this year, grew 21 percent in the first quarter. On a reported basis, revenues jumped 18 percent. IPP revenues grew 21 percent in constant currency, while average MW on rent was up 22 percent year over year in the first quarter. Order intake has continued to be strong, with a further 150 MW of new projects secured since the company announced its full-year results March 9. Recent order intake includes 40 MW of new work in Asia and a 100-MW contract at a gas-fueled power plant in the Dominican Republic. The two-year project is worth about $80 million.
Local business revenues in the first quarter in constant currency climbed 22 percent year over year. Underlying revenues in North America jumped 22 percent in the first quarter, with revenues in Europe and the Middle East increasing 11 percent on an underlying basis. First-quarter rental revenues jumped 15 percent, primarily driven by growth in Russia and the Middle East. Aggreko International’s Local business continued to perform very strongly with underlying revenues growing by 35 percent in the first quarter, with all areas performing well. Underlying trading margins in the Local business as a whole for the first quarter were a little higher than the prior year.
Aggreko is optimistic for continued growth throughout 2012, including the Olympics in London, which will be worth about £50 million (about U.S. $80 million.)
Aggreko, based in Scotland with North American headquarters in Houston, is No. 6 on the RER 100.