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Aggreko reveals financial results in line with expectations, dividend maintained

Chief executive Chris Weston pointed to strong performances in Aggreko’s rental and industrial power solutions businesses but acknowledged that the power solutions utility division held back group performance
Aggreko generator unit
Aggreko maintained its dividend at 27.12p

Aggreko Plc (LON:AGK) revealed financial results in line with market expectations, with group revenue increasing but profits below the preceding year.

At £1.73bn the annual revenue figure was up 4% (though that excludes currency and pass through fuel impacts), meanwhile, operating profit was down 10%.

READ: Aggreko tumbles on Argentina and slow payment concerns

The temporary power generator group reported a £195mln profit before tax and exceptional items, which was in line with expectations and compared to £221mln in 2016.

Aggreko told investors that it will maintain its dividend at 27.12p per share, as it highlighted stronger cash flow – at £450mln in 2017 versus £388mln in 2016. It also highlighted that the financial position remains strong, with the net debt to EBITDA ratio of 1.2 times maintained from the preceding year.

Chief executive Chris Weston pointed to strong performances in Aggreko’s rental and industrial power solutions businesses, but, acknowledged that the power solutions utility division has held back the group performance.

"Over the last three years we have stabilised the business, enhanced our service offering and positioned ourselves to prosper in rapidly changing energy markets,” Weston said in the results statement.

“We have delivered over £100mln in cost savings, invested in new systems and processes and developed new technology, all of which enables us to provide high quality solutions for customers.

“We expect 2018 Group profit before tax to be in line with last year, on a constant currency basis."

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