07:00 Mon 09 Nov 2015
Aggreko PLC - THIRD QUARTER TRADING UPDATE
THIRD QUARTER TRADING UPDATE
EXPECTATIONS FOR THE YEAR UNCHANGED
The trading update covers the period from
Trading
Underlying1 revenue for the third quarter was 7% behind last year with reported revenue down 6%. All growth rates set out below are on an underlying basis.
Business Unit Trading
Rental Solutions revenue was down 1% on last year. The on-going weakness in the oil and gas and mining sectors, has been largely offset by continued growth in other sectors, such as petrochemical and refining. We also saw a strong temperature control season in
Power Solutions revenue was 11% lower than the same period last year. Within this, Industrial was 12% higher, including the successfully executed European Games. We also saw solid growth in our Russian and African businesses. However, the continuing weak economic backdrop in
Utility revenue in Power Solutions was 21% lower than last year, driven by the previously announced price reduction on our contract extension in
Management Change
We are delighted to have recently announced the appointment of
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1“Underlying” is defined as: adjusted for currency movements and pass-through fuel revenue from Power Solutions, where we provide fuel to our contracts in
Business Priorities
At this early stage we are on track with the implementation of the business priorities we outlined in August this year. The Programme Management Office is in place with each of the initiatives now sponsored and embedded in the business. In line with our priorities, we announced a bolt-on acquisition on
Capital Expenditure
In recognition of the trading environment and as we seek to balance growth with maintaining a strong balance sheet, we have further flexed our capex plans for the current year and now anticipate spending around
At this stage, we anticipate first half 2016 fleet capex to be in the region of
Outlook
At a Group level, we continue to expect that the underlying revenue trend in the second half of the year will be similar to that in the first half, reflecting the on-going challenging market conditions.
Overall, our guidance for profit before tax for the full year to be between
Conference Call
A conference call will be held today for investors and analysts at
Dial in: + 44 20 3059 8125
Conference call name: Aggreko Third Quarter Trading Update
A recording of the call will be available on demand for 7 days.
Audio playback: + 44 121 260 4861
Reference: 2144095#
Future Reporting
Aggreko will report its 2015 Full Year Results on Thursday
Enquiries
Investors & Analysts |
|
Louise Bryant, |
+44 7876 478 272 |
Media |
|
John Sunnucks / Lorna Cobbett, Bell Pottinger |
+44 20 3772 2500 |
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