Bloomberg News

Aggreko Lifts Profit Forecast as Third-Quarter Sales Rise

October 21, 2011

(Updates with closing share price.)

Oct. 21 (Bloomberg) -- Aggreko Plc, the world’s largest provider of mobile power-supplies, lifted its pretax profit forecast and said underlying third-quarter revenue rose at a faster pace than in the first half.

Pretax profit this year will be at least 320 million pounds ($504.7 million), the Glasgow-based company said in a statement today. That compares with a previous forecast in August of around 315 million pounds and with an average estimate of 317.5 million pounds from 15 analyst estimates compiled by Bloomberg.

“We have had a strong third quarter,” Chief Executive Officer Rupert Soames said in a telephone interview. “North America had a very strong September, while Europe and the Middle East came in 20 percent ahead of last year.”

Aggreko is benefiting from the increasing gap between demand for power and the permanent infrastructure available to provide it, especially in emerging markets. It won a major industrial contract in Iraq in the period to provide 40 megawatts of power in Basra.

Underlying revenue, which excludes the effects of one-off sporting events, fuel costs and currency movements, rose 22 percent in the third quarter, compared with 21 percent in the first half.

“The underlying sales growth is impressive,” Peel Hunt analyst Andrew Nussey, who has a “hold” recommendation, said in a note to clients. “Aggreko remains a quality proposition but this is largely in the price.”

The shares fell as much as 4.9 percent, before recovering to close up 0.4 percent at 1,710 pence in London trading, giving a gain this year of 15 percent.

--Editors: James Kraus, Tim Farrand

To contact the editor responsible for this story: Peter Woodifield at pwoodifield@bloomberg.net


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