Aggreko last week reported 2006 pre-tax profit of 83.1 million pounds (about U.S. $161.5 million), a 47.5-percent increase over the previous year. Worldwide revenues grew 29.5 percent to 540.7 million pounds (about U.S. $1.05 billion).
Glasgow, Scotland-based Aggreko more than doubled profits in Europe, reported strong demand in the Middle East, Asia and Australia and strong performance in North America despite reduced storm revenues. International power projects revenue increased by 46 percent and trading profit grew by 41 percent.
The company said the integration of GE Energy Rentals, acquired in December 2006, is proceeding faster than expected, and integration costs are lower than forecast. With that, the company expects the acquired company to contribute to profits earlier than expected.
“Trading in the first few weeks of 2007 has been strong, and the integration of GE Energy Rentals is running ahead of plan,” said Aggeko chairman Phillip Rogers. “Overall if current trends continue, we anticipate a strong first half. For the year as a whole, we expect to achieve a material increase in profits compared to 2006, and to be ahead of current market expectations.”
“Trading profits reached record levels, and returns on capital improved for the third year in a row,” added chief executive Rupert Soames. “We grew revenues in all our major markets and served customers in more than 90 countries. North America and Aggreko International both performed extremely well, and, after three difficult years, our European business delivered sharp improvements in both revenues and profitability. Capital investment increased by 60 percent to 128 million pounds, and we opened new service centers in Europe, the Middle East, South America and Asia. The acquisition of GE Energy Rentals complemented this by adding further geographic reach, and also increased our rental fleet by about 30 percent.”
With U.S. base in Houston, Aggreko is No. 13 on the RER 100.