Aggreko Posts Small Revenue Increase in First Half of 2015

Power generation and temperature control rental giant Aggreko posted an overall 2 percent revenue increase for the first half of 2015, coming in at £781 million (more than U.S. $1.12 billion) compared to £768 million in the first half of 2014. Aggreko’s Local business increased by 3 percent, helped by successful delivery of the inaugural European Games.

Power Projects revenue decreased 9 percent year over year, driven by low pricing in Bangladesh and lower utilization on its Panama contract. Year-to-date order intake of 451 MW has been solid, reflecting extensions in Argentina, Ivory Coast, Bangladesh and the first 115 MW in Mozambique.

However, results have been impacted negatively by the slowdown in the North American oil-and-gas sector. Lower production levels in Yemen, caused by ongoing security challenges, have also been a factor. The company still expects full-year profit before tax to be between £250 million and £270 million.

Aggreko’s CEO Chris Weston recently announced the creation of two separate business units, Power Solutions and Rental Solutions, effective Aug. 1.

“Our new organization structure, which incorporates Rental Solutions, comprising our Local business in developed markets, and Power Solutions, comprising our Power Projects business and Local business in developing markets, better focuses the business on our markets and our customers, providing a more effective platform for growth,” said Weston. “Through focusing on three business priorities: our customers, our technology and our efficiency, we are positioning the business for its next phase of growth. I am impressed by the commitment of our people and our culture and I am confident that our new focus and structure will see the business return to growth.”

Revenue in the Americas region declined 7 percent in the first half of 2015, and 17 percent in Asia Pacific, while increasing 10 percent in Europe, Middle East and Africa.