Aggreko plc, world leader in temporary power and temperature control rentals posted a 30-percent revenue increase in the third quarter compared with the same period a year ago. Trading margins were at similar levels to last year.
Revenues in the International Power Projects business, in constant currency and excluding pass-through fuel, grew by about 11 percent with average megawatts on rent in the quarter increasing 9 percent compared to the year-ago period. Major orders in the period included 60 MW in Cameroon, 80 MW in Indonesia, 50 MW in India and 20 MW in Martinique. The company is in the final stages of formalizing a three-year contract for 150 MW of gas-powered generation in Bangladesh, expected to be worth more than $180 million for the life of the project.
Conditions in the Local business improved, with revenues growing 34 percent in constant currency year over year as a result of increases in utilization and price. Excluding the FIFA World Cup, local businesses grew 22 percent on a constant-currency basis.
Performance in North America was very strong with revenues growing 36 percent in the quarter. After a sub-par year in 2009, high temperatures drove strong demand for temperature control, and demand across all products was strong in the manufacturing and petrochemical sectors. Revenues in the Middle East grew 11 percent with Continental Europe performing very well.
The company expects the Local business to make strong progress in the fourth quarter, and all three regions are performing ahead of expectations. The Asian Games in China will stimulate this business in the fourth quarter, the company said.
Aggreko expects its International Power Projects business to perform in line with expectations in the fourth quarter. Recent strong order intake, combined with a sharp reduction in the rate of “off-hires” will help create good year-over-year growth in megawatts by the end of the year.
Aggreko is expecting pre-tax profits for the full year of about £300 million (about U.S. $478 million), topping the consensus of current analysts’ expectations.
Based in Scotland, with U.S. headquarters in Houston, Aggreko is No. 9 on the RER 100.
