Aggreko, world leader in power generation and temperature control rental, posted an 8-percent increase in revenue for the first quarter. The Americas region grew 7 percent, driven by Aggreko’s Power Projects business and mainly as a result of its large project in Panama which began in last year’s second quarter. Oil and gas revenue in North America increased 6 percent, although towards the end of the quarter Aggreko began to see a decline in volume and pricing in its shale oil business, partially offset by growth in other sectors such as petrochemical and refining.
First quarter growth in oil and gas was offset by a slow start in the northeast United States where the harsh winter affected business, with lower activity in its cooling towers business. Aggreko also had a slowdown in its Chilean mining business.
Aggreko’s business in Europe, Middle East and Africa grew 10 percent in the first quarter with 6 percent growth in “Local” business and 14 percent in Power Projects. Local business grew from businesses in Africa and initial revenues from the European Games in Baku, Azerbaijan.
Revenue dropped 13 percent in Asia, Pacific and Australia.
“Whilst it is early in the year and the market environment remains uncertain, we continue to expect underlying trading profit for the full year to be broadly in line with last year,” said chief executive Chris Weston. “We are making good progress identifying our business priorities and look forward to providing an update at the time of our interim results in August.”
Aggreko anticipates fleet capital expenditures of about £300 million (about U.S. $473 million) for the full year, with £140 million to be spent in the first half, reflecting planned investment in its gas fleet.
Aggreko is No. 6 on the RER 100.
