Aggreko revenues up, profits down

UK temporary power provider Aggreko has posted a 10% year-on-year rise in its revenues for the first six months of 2018.

The company’s half-year sales were £857 million (€962.5 million), compared to £779 million (€875 million) for the first six months of 2017.

The company’s operating profit, however, fell 4% year-on-year, to £76 million (€85.4 million), compared to the £79 million (€88.7 million) recorded at the same time last year.

Aggreko said it expected its financial returns to improve over the medium term, with a £50 million (€56.2 million) cost reduction programme set to take place, which will help to increase its operating margin and capital efficiency.

The company’s Rental Solutions division saw revenues of £386 million (€433.5 million), which was a rise of 26% compared to the same period last year. operating profit also grew exponentially for the division, up 169% to £40 million (€44.9 million).

Aggreko said its rental operations in North America were strong, supported by £17 million (€19 million) hurricane-related work. It added that both Europe and Australia Pacific were strong, too.

Chris Weston, CEO of Aggreko, said, “These are encouraging results that keep us well on track to deliver our full year guidance. As we continue to execute on our strategy, we have also completed a comprehensive review of the Group’s expected performance over the medium term.

“Based on this review, and the detailed action plans we have developed, we are confident that the group can deliver a return on capital employed in the mid-teens in 2020 with potential for further improvement beyond this.”