Aggreko’s underlying revenue declined 14 percent between Jan. 1 and April 27 compared to last year, the company announced, with reported revenue down 17 percent. The Rental Solutions unit decreased 9 percent year over year. Revenues in North America declined year over year, with the decline in upstream oil and gas revenue being a big part of it.
Outside North America, the Rental Solutions business grew and in response to a hydro shortage in Tasmania, the company is mobilizing 108 MW which will have a positive impact on the company’s numbers in the second quarter.
Power Solutions Industrial revenue dropped 10 percent, primarily because last year’s European Games marked a large jump. The company is seeing growth in Russia, the Middle East and Africa, offset by more difficult conditions in Latin America, particularly Brazil and Chile.
Power Solutions Utility revenue declined 19 percent. The first quarter of 2015 included revenues from Aggreko’s diesel contract in Panama, which ended in June 2015.
“Performance in this last quarter has been in line with our expectations,” said chief executive Chris Weston. “Whilst some of the markets we operate in continue to be challenging, I am encouraged by the order intake to date. “Our guidance for the full year, of profit before tax slightly lower than 2015, remains unchanged.”
The world’s largest provider of temporary power, temperature control equipment and oil-free air compressors, Aggreko is based in Scotland with North America headquarters in Houston.
