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Aggreko's first-half profits fall on Argentina legacy contracts pricing, but guidance unchanged

The FTSE 250-listed firm reported a pretax profit before exceptional items of £63mln for the six months to June 30, down from £71mln a year earlier

Aggreko PLC (LON:AGK) saw its first half profits fall by 10%, hurt by lower pricing on its Argentina contracts, although the world's largest temporary power provider maintained its full-year guidance.

The FTSE 250-listed firm reported a pretax profit before exceptional items of £63mln for the six months to June 30, down from £71mln a year earlier.

READ: Aggreko's 2016 profits drop, and it warns 2017 results will be even lower

However, group revenue rose by 16% to £702mln, although excluding legacy pricing contracts in Argentina revenue was only up by 6%.

The firm said the first-half results were in line with market expectations and its full-year guidance is unchanged.

Aggreko’s chief executive Chris Weston said: "I am confident that the changes we have made in the last two years are delivering results, with our first-half performance supporting our view that, Argentina aside, we will grow this year."

The firm left its interim dividend unchanged at 9.38p.

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