24th Jul 2015 06:47
LONDON (Alliance News) - Aggreko PLC Friday said it now expects its 2015 interim and full year results to fall short of current market expectations, citing a further slowdown in its North American oil and gas related business and "ongoing security challenges" in Yemen.
The temporary power provider said it now expects to post a full year pretax profit for 2015 of between GBP250 million and GBP270 million at current exchange rates. It had previously said it expects its 2015 trading profit excluding currency movements and pass-through fuel to be broadly in line with 2014
Aggreko posted a pretax profit of GBP289 million for 2014, down from GBP333 million in 2013.
The company said that trading terms for gas contract extensions in Bangladesh are likely to be less favourable than its earlier expectations. Whilst it will seek to mitigate the hit from this by reducing costs, it expects this to have a net adverse hit on profits in 2015 and 2016.
Additionally the company said ongoing security challenges in Yemen have hampered its ability to operate at full capacity and it remains "concerned about the impact for the remainder of the year".
In May the company warned it had started to see a fall in volumes and pricing in its shale oil business, and said Friday that since then it has seen a further slowdown in North America, with volumes in shale business continuing to decline. It has also begun to see a hit to its offshore oil and gas business in the Gulf of Mexico.
Aggreko will announce first half results August 6.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
AGK.L