Aggreko PLC 1st Quarter Results (4594D)
April 27 2017 - 2:02AM
UK Regulatory
TIDMAGK
RNS Number : 4594D
Aggreko PLC
27 April 2017
27 April 2017
FIRST QUARTER TRADING UPDATE
FULL YEAR GUIDANCE UNCHANGED
The trading update covers the period from 1 January 2017 to 26
April 2017. Unless otherwise stated, figures quoted in this
statement are for the quarter ended 31 March 2017.
Chris Weston, Chief Executive, commented: "I am pleased to see
underlying growth in both business units, in particular in Power
Solutions Industrial. We continue to execute on our business
priorities: investing in technology; improving our customer focus;
and delivering efficiencies. The new products have been well
received in the market and it is good to see that our investment in
technology is beginning to deliver results."
Trading
Revenue excluding the impact of currency and pass-through fuel
for the first quarter was 2% up on last year with reported revenue
up 18%. Excluding the impact of re-pricing and off-hires in
Argentina, revenue growth, was 7% and 25% respectively. All
movements set out below exclude currency and pass-through fuel.
Business Unit Trading
Rental Solutions revenue was up 3% on last year. Oil and gas
sector revenues in North America have stabilised and, although a
third lower when compared to the first quarter of 2016, were up on
the fourth quarter of 2016. All other sectors in North America
grew; with revenue excluding oil and gas increasing 8%. The wider
Rental Solutions business also contributed to the growth, with a
strong performance in Europe and a solid performance in Australia
Pacific.
Power Solutions Industrial revenue was 17% higher with strong
performances in Eurasia and the Middle East and a good performance
in our industrial business in Africa. Asia and Latin America
continue to be more challenging and as we have previously announced
action is being taken to right size these businesses.
Power Solutions Utility revenue was 7% lower than last year due
to repricing and off-hires in Argentina. Excluding the impact of
Argentina revenue grew 4%. Year to date order intake is 156MW
(2016: 486MW, including 200MW Zimbabwe). Whilst the prospect
pipeline continues to be healthy and is at a similar level to 2016,
conversion rates are currently running at a lower level. The first
quarter off hire rate was 10% and we continue to expect the full
year off-hire rate to be around 25% to 30%.
Our investment in technology is starting to deliver and year to
date we have signed around 50MW of next generation gas orders
across the Group and we have signed our first solar diesel hybrid
contract of 7MW, supplementing 20MW of diesel already on contract,
for a period of 10 years. In addition we have been awarded two HFO
projects, totalling over 50MW. These are not included in the order
intake as both are subject to contract.
Outlook
The outlook for 2017 is unchanged. As we said in March we expect
profit before tax and pre-exceptional items to be lower than 2016
given the significant impact of Argentina, absent this we expect to
deliver growth across the group. Forecast fleet capital expenditure
is also unchanged, at around GBP300 million.
Conference Call
A conference call will be held today for investors and analysts
at 8am (GMT), hosted by Chris Weston, CEO and Carole Cran, CFO.
Dial in: + 44 20 3059 8125
Conference call name: Aggreko
Future Reporting
2 August 2017 Half year results for the period to 30 June
2017
November 2017 Q3 2017 trading update
Q4 2017 Capital Markets Day - Customer
Enquiries
Investors & Analysts
Tom Hull, Aggreko plc +44 7342 056 727
Media
John Sunnucks / Liz Morley, Bell
Pottinger +44 20 3772 2500
This information is provided by RNS
The company news service from the London Stock Exchange
END
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