Rental Solutions Revenue Jumps 9 Percent in Aggreko’s Fiscal Third Quarter

Rental Solutions revenue increased 9 percent year over year for Aggreko in its fiscal third quarter ended Nov. 20, 2017. The results included revenue from the hurricanes that impacted the southern United States and the Caribbean.

Revenue excluding the impact of currency and pass-through fuel increased 1 percent for the fiscal third quarter compared to the previous year, with reported revenue up 8 percent. Excluding the impact of its Argentina business, revenue grew 3 percent year over year on an underlying basis.

In North America revenue increased 10 percent year over year, 3 percent excluding the impact of the hurricanes that generated incremental work but also resulted in the cancellation of scheduled maintenance work. The wider Rental Solutions business also contributed to the growth with a strong performance in Europe, particularly in U.K. utility sector, and a solid performance in Australia Pacific with increased activity in the mining sector.

In the Power Solutions division, industrial revenue was 6 percent higher with continue strong performance in Eurasia, where order intake remains robust at 255 MW year-to-date. A good performance in Africa also continued in the third quarter.

Utility revenue was 15 percent lower than last year, driving by repricing and off-hires in Argentina. Excluding the impact of Argentina revenue decreased 7 percent.

Aggreko’s full year guidance remains unchanged. The trading performance continues to support Aggreko’s view that, Argentina aside, the company will grow this year. Aggreko expects fleet capital expenditure to be around the previously forecast figure of about £300 million.