Trading Statement

Aggreko plc

TRADING UPDATE

Aggreko plc, the world leader in the supply of temporary power and temperature control, is giving the following update on trading prior to a scheduled analyst visit to some of our projects in Africa. During this visit presentations will be made to analysts, and highlights of these will be made available on www.aggreko.com

This trading update below is in respect of the half-year ending 30 June 2010; our Interim results will be announced on Wednesday, 25 August 2010.

Trading Update

We expect that in the first half, Group revenue in constant currency and excluding pass-through fuel will grow by around 10%, and trading profit by about 20%.

International Power Projects

Demand has continued to be strong and we expect to secure orders for a record 900MW of new work in the first half. Importantly, much of the new work has come from Asia and Central & South America, which are areas which have been a strategic focus for our International Power Projects business. New contracts won in the first half include 200MW in Bangladesh, 215MW in Indonesia, and 180MW in Central & South America.

As a consequence of the high order intake, we expect to put on-hire around 50% more than we have achieved in any previous six-month period. However, we have only been able to deliver this rate of on-hires because the new contract wins have coincided with some large off-hires. The four-year drought finally ended in Kenya, and the country's hydro generation is now running at almost full capacity; as a consequence, our customer KenGen has off-hired some 150MW since the beginning of the year. The Yemeni power utility has also off-hired over 100MW. The record rate of on- and off- hires resulted in lower utilisation during the first half as equipment was serviced and moved from old projects to new. We expect International Power Projects revenues, in constant currency and excluding pass-through fuel, to grow by around 8% in the first half, with margins remaining strong. As we predicted in our April Interim Management Statement, the growth-rate in the number of MW on hire has accelerated markedly during the second quarter, and we expect to start the third quarter with around 18% more MW on rent than the prior year.

Local Businesses

In the Local business, there has been an encouraging pick-up in both power and temperature control volumes. In power, average volumes in the first half will be around 9% higher than the prior year; currently, both temperature control and power volumes are showing double-digit growth over the prior year. Rates remain weak, although we are beginning to see some modest improvement. We have recently secured a large amount of additional work for the FIFA World Cup, which will make it the largest contract ever executed by Aggreko for a sporting event.

We expect that Local business revenues in the first half will increase by about 16% in constant currency, helped by revenues from the Vancouver Winter Olympics and the FIFA World Cup; margins will be a little better than last year. Excluding these events, Local business revenues in aggregate are expected to be at similar levels to last year, with North America down 3%, Aggreko International's Local business down 2%, and Europe and the Middle East up 3%.

Outlook

As a consequence of the more encouraging performance of the Local businesses, the increased scale of the FIFA World Cup contract, the volume of new work secured in the International Power Projects business, as well as favourable foreign exchange movements, we now believe that performance for the year as a whole will be significantly better than we anticipated at the time of our April Interim Management Statement. We have also decided to raise further the rate of fleet investment and we now anticipate that fleet capital expenditure will be around £265 million in the year. This represents an increase of £45 million on our previous expectations; about half of this additional investment will go to support the continued growth of our International Power Projects business, and half to allow the accelerated introduction of a new generation of low-emissions generators into the North American market.

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Enquiries to:

Rupert Soames / Angus Cockburn

Aggreko plc

Tel: 0141 225 5900

Neil Bennett / George Hudson

Maitland 

Tel: 020 7379 5151