24th Mar 2020 15:22
(Alliance News) - Power generator rental firm Aggreko PLC said Tuesday it will begin talks after the Tokyo Olympics were postponed.
The International Olympic Committee confirmed earlier Tuesday the games will now be held in the summer of 2021 due to the Covid-19 pandemic.
The games were scheduled for July 24 to August 9, but after telephone discussions between IOC President Thomas Bach and Japanese Prime Minister Shinzo Abe, a joint decision was taken for the first postponement of an Olympics in peacetime.
Aggreko is to now begin discussions with the Tokyo Organising Committee of the Olympic & Paralympic Games, or TOCOG.
Aggreko has a contract worth an initial USD200 million to supply the games, though this could rise to USD250 million. So far, USD98 million in payments have been received.
"As noted in our announcement of March 23, we are in a strong financial position. We have considered a range of scenarios to stress-test the group's liquidity position through to the end of this year, including the situation in which the games do not take place this year," said Aggreko.
"These show that even in a reasonably probable worst-case scenario, with appropriate mitigating actions, we expect to remain within the group's financial covenants, while maintaining headroom under our existing committed facilities."
On Monday, Aggreko withdrew 2020 guidance and also said it would not be paying its final dividend for 2019 due to the uncertainty over the outbreak.
Shares were 4.8% higher on Tuesday afternoon in London at a price of 396.30 pence each.
By George Collard; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
AGK.L