Shares in power generator hire group Aggreko PLC (LON:AGK) spluttered on Wednesday after it reported lower profits and tough trading Stateside.
The stock fell 148p, or 12%, to 1083p after Aggreko said pre-tax profits in the six months to June 30 fell to £61mln from £102mln beforehand on a drop in revenue to £685mln from £781mln previously.
The company said a difficult economic backdrop caused by lower oil prices was affecting a number of its markets, particularly North America.
In its equipment rental business, North American revenue fell by a fifth due to the decline in the oil & gas production industry that started in the second quarter of last year.
It also said revenue in its power business fell 12% as a result of tough Latin American markets, particularly Brazil.
Aggreko said it was sticking to guidance of full-year pre-tax profits before one-off items being slightly lower than last year.
But chief executive Chris Weston said: “Rental Solutions is a seasonal business normally weighted to the second half.
“More broadly we continue to see challenging conditions in North America, more than offsetting good growth in our other regions and our outlook for the balance of this year remains cautious.”