Market turbulence sees H1 profits dip for Aggreko

TURBULENCE in key markets such as North America has had a major impact on the first half performance of portable power provider Aggreko.

The Cannock-based group saw group revenue for the six months to June 30, 2016 slip 12% to £685m (H1 2015: £781m).

Pre-tax profit declined 31% to £71m (H1 2015: £102m). Diluted earnings per share (DEPS) was 19.81p, 33% lower than the prior year.

Interim dividend is flat at 9.38p per ordinary share (2015: 9.38p), which the board said maintained the group’s position in line with the prior year.

It said Rental Solutions revenue was down 8%, driven by the decline in North America in Q2 oil & gas sector volatility. In addition, there was a softening in the petrochemical and refining sector from the start of 2016, following a strong 2015.

Outside North America, Rental Solutions grew year on year in both Europe and Australasia Pacific. Power Solutions underlying revenue was down 15% and within this, Industrial business revenue decreased 12%, primarily due to the comparatives including revenue from the European Games. Excluding this, revenue was down 2%.

Commenting, Chris Weston, CEO, Aggreko, said: “The trading environment in this first six months has been difficult, with the lower oil price continuing to impact a number of our markets.

“We are holding our guidance for the full year while recognising the importance of securing key contract extensions and the seasonal weighting of our North American business to the second half.
 
“I am pleased with the good progress we continue to make with our business priorities and the strong level of order intake in Power Solutions Utility to date.”