9th Nov 2015 07:23
LONDON (Alliance News) - Temporary power provider Aggreko PLC on Monday said it has maintained its pretax profit guidance for the year despite the tough conditions which have hit the company in 2015 continuing in the third quarter.
The FTSE 250-listed company said it continues to expect its pretax profit for the full year to be GBP250.0 million to GBP270.0 million, down from GBP289.0 million in 2014.
The group said its revenue for the third quarter to the end of September was down 6.0% on a year before and was down 7.0% on an underlying basis, which is in constant currencies and which adjusts for its pass-through fuel revenue from its Power Solutions business in Mozambique.
Rental Solutions revenue was down 1.0% on an underlying basis in the quarter from a year before, with the ongoing weakness in oil and gas markets largely offset by more solid performances from other sectors, including petrochemicals and refining.
Power Solutions revenue, however, fell 11%, hit hard by the tough economic conditions in the Brazilian market, though Aggreko's industrial sales increased thanks to the European Games sports event. Utility revenue in the Power Solutions business was down 21%, however, due to the price reduction on its contract in Bangladesh and the off-hiring of Aggreko's contract in Panama, both previously disclosed.
"Aggreko continues to demonstrate its resilience against a challenging market backdrop," said Chief Executive Chris Weston. "Whilst we are at an early stage in delivering the specific actions identified at our business review in August, I am encouraged with the progress we are making which, regardless of the prevailing market conditions, will strengthen Aggreko and position it well for the future."
By Sam Unsted; [email protected]; @SamUAtAlliance
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