Aggreko raises profit forecasts...again

published 19 December 2011

After raising its profits forecasts twice already this year, Aggreko has informed that full-year profits are expected to slightly ahead of the previous guidance given in October.

The temporary power and temperature control provider now anticipates generating around £324m in profit before tax and amortisation for the year ended 31 December, up 5% on last year's figure and just ahead of previous expectations of £320m.

"We have had a very successful year in 2011 and have grown our business significantly at the same time as returning capital to shareholders," said Chief Executive Rupert Soames.

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Underlying revenues are expected to grow by at least 20% while reported revenues will rise by 13% to £1.4bn, helped by strong underlying growth in its International Power Projects business.

The firm also said that from next year, it expects an ongoing reduction of around three percentage points in the group's effective tax rate.

While Aggreko expects a strong first half in 2012, helped by its major contract to supply temporary power for the London Olympics, the group did caution on the outlook for the last six months of next year - "We are more cautious about the second half of 2012, when any downturn in economic activity is more likely to be felt by our businesses, and comparatives will be tougher."

In a separate statement, Aggreko revealed that it will exchange the existing 145 MW diesel-fuelled temporary power plant at Ghorashal, Bangladesh, for one which will run on natural gas. The contract term has been extended to 2015 and its value has increased by $100m.

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