Aggreko pleased with progress as order intake increases
EMERGENCY power supply firm Aggreko has reported an encouraging start to the year with strong revenue growth from its overseas operations.
In an interim management statement the company said underlying group revenues in the three months to 31 March 2014 grew 5%, although this excludes pass-through fuel and the impact of currency movements.
When currency movements are added in, revenues decreased by 4%.
Aggreko said: “Two of our three regions delivered strong revenue growth in the first quarter, with Americas up 11% and Europe, Middle East and Africa (EMEA) up 15%.
“Trading remains difficult in Asia Pacific (APAC), and revenues were down 21%.”
The Local business has continued to trade strongly, with underlying revenues in the first quarter up 11%. Amongst the regional Local businesses Americas grew by 12% and EMEA grew by 19%.
Power Projects revenues in the first quarter were 3% down on an underlying basis largely driven by off-hires over the last 12 months in Indonesia, military and Japan, which were partially offset by on-hires in the same period in Mozambique and Ivory Coast.
Projects margins in the first quarter benefited from a reduction in bad debt provisions as a result of improved cash collections. Excluding this benefit, and as anticipated, margins were lower than the prior year.
Quarter one order intake amounted to 209 MW, similar to the fourth quarter of 2013. However, the first weeks of quarter two have seen order intake of nearly 200 MW, and year-to-date order intake now stands at 406 MW, which compares with 260 MW at the same stage last year.
“Within this we are pleased to have signed a 12-month 50 MW HFO contract in Senegal as well as 170 MW of short-term summer peak-shaving contracts in Saudi Arabia and Oman,” the firm said.
“We have also begun to deploy the 120 MW Libyan contract, announced at the time of our results in March, and accordingly it is now included in the order intake.”
Aggreko’s net debt at £320m decreased by £43m in the three months to March 31. This compares to net debt of £597m at 31 March 2013.
The firm is proposing a £200m return of capital to shareholders which, subject to shareholder approval, is expected to be paid in June 2014.
