Aggreko PLC (LON:AGK) has committed to reach net-zero carbon emissions by 2050 and set the profit guidance for 2021.
The supplier of temporary power generation and temperature control equipment said it at least halve the diesel fuel used in customer solutions as well as cutting local air quality emissions of those solutions by 2030.
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It will also achieve net-zero emissions across its business operations by 2030, extending it to all services by 2050.
During the energy transition, revenue is expected to grow 5-10% in the medium term, driving 18-19% group margin.
Capital expenditure is estimated to be £250-350mln per year.
In a separate statement, the FTSE 250 firm said next year’s profit before tax is forecast to be in the range £170-190mln if the Tokyo Olympics contract proceeds as planned.
There is continuing uncertainty as to the speed of the market recovery from the pandemic and the likely range for the oil price in 2021.
However, Aggreko’s trading trends indicate increases in activity levels for its more transactional rental business and an improved outlook on the timing of its larger project mobilisations within Power Solutions.
In the year to December 31, pre‑exceptional profit before tax is expected to come in at around £100mln, which is the upper end of the previously guidance range, with capital expenditure of slightly below £200mln.
In the nine months to September 30, underlying group revenue slipped 14% due to the pandemic and the oil price plunge, while net debt at the end of the period was £469mln.
The company has seen some recovery in most of its markets for Rental Solutions, with activity levels and equipment on hire continuing to increase through the third quarter.
Conversely, Power Solutions Industrial continued to be impacted by the oil crisis.
Shares rose 3% to 584.5p on Tuesday morning.
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