3rd Quarter trading update
12 NOVEMBER 2019
Full year earnings outlook remains in line with market expectations
This trading update covers the period from 1 January 2019 to 30 September 2019. Unless otherwise stated, figures quoted in this statement are for the nine months ended 30 September 2019.
Underlying Group revenue down 2%
Underlying Group revenue (excluding the impact of currency and pass-through fuel) for the nine months ended 30 September was down 2% on last year, with reported revenue down 8%.
Excluding revenue from the Winter Olympics in 2018 and early design revenue for the Tokyo 2020 Olympics this year, underlying Group revenue was in line with the prior year.
Rental Solutions (53% of Group) underlying revenue down 1%
Performance across Rental Solutions remains mixed. In North America, our largest region, underlying revenue was up 4%, reflecting good growth in most of our key sectors. Despite softening in the region since the half year, revenue was up 12% excluding the impact of hurricane related work in 2018. Elsewhere, we continue to see the trends referenced at the half year; growth in Continental Europe has been offset by a weaker performance in Northern Europe, while in Australia Pacific good growth in the mining sector has been offset by a 100 MW emergency utility sector contract positively impacting the prior year results.
Power Solutions Industrial (27% of Group) underlying revenue in line with prior year
Our Power Solutions Industrial business has strengthened against the prior year through the last quarter, with underlying revenue now in line with 2018. Excluding both the 2018 Winter Olympics in the prior year and the early design revenue for the Tokyo 2020 Olympics this year, revenue was up 7%, compared to 4% at the half year. Across the regions, Latin America, Middle East and Africa are performing well, with our Eurasia business stabilising following the slowdown we reported in the first half.
Power Solutions Utility (20% of Group) underlying revenue down 7%
In line with our half year performance and as expected, Power Solutions Utility saw underlying revenue decrease 7% with average megawatts on hire down 9% at 2,445 MW (2018: 2,691 MW). This reflects the timing of 2018 off-hires and new work in the period; the year-to-date off-hire rate was 23% (2018: 35%).
Management of trade receivables remains a major focus, and we have continued to make good progress on cash collection through active engagement with our customers.
Our full year earnings outlook is in line with market expectations and we remain on track to deliver mid-teens ROCE in 2020.
Future reporting dates
Full year results
03 March 2020
Investors, analysts and financial media enquiries
Louise Bryant, Aggreko plc
Richard Foster, Aggreko plc
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