Power supplier Aggreko encouraged by strong Q1 start

PORTABLE power supplier Aggreko said it had been encouraged by its strong start to the year with business up 17% in its Local division during the first three months.

The group, whose UK head office is in Cannock, added that encouragingly, growth in the Local business had been broadly spread, with most areas other than Europe showing healthy year-on-year increases in the level of megawatts (MW) on hire.
Revenues in the first quarter were up 10% on an underlying basis; on a reported basis revenues were up 16% and trading margins were similar to last year.  

The group said in a first quarter trading update that it would also be investing around £260m this year – depending on economic conditions – on fleet upgrades.

Group revenues for the period to March 31, 2013 grew by 8%, although the firm said its expectations for the year remained unchanged.

The group said its Power Projects division had been subdued but the order pipeline was stronger with notable contracts including 122 MW of cross-border power to Namibia and Mozambique and a new heavy fuel oil (HFO) contract for 56 MW in the Caribbean.

The Americas region grew revenues by 9% on an underlying basis; Asia, Pacific and Australia (APAC) was 1% ahead of last year on an underlying basis; and Europe, Middle East and Africa (EMEA) grew 13% on an underlying basis.

Net debt stood at £597m at period-end, an increase of £4m. This compares to net debt of £428m at March 31, 2012. Of the £169m year-on-year increase, £136m has been accounted for by the Poit Energia acquisition with the balance reflecting higher working capital requirements.

“The pattern of trading is largely unchanged from that described at our Results Presentation on March 7; the Local business has made a strong start to the year and trading in Power Projects remains subdued, although the prospect pipeline has improved,” it said.

“Overall, our expectations for the year remain unchanged from previous guidance.”