Aggreko PLC Interim Management Statement (0046X)
November 14 2014 - 2:00AM
UK Regulatory
TIDMAGK
RNS Number : 0046X
Aggreko PLC
14 November 2014
14 November 2014
Interim Management Statement
TRADING IN LINE WITH EXPECTATIONS
FULL YEAR GUIDANCE UNCHANGED
This Interim Management Statement covers the period from 1 July
2014 to 13 November 2014. Unless otherwise stated, figures quoted
in this statement are for the quarter ended 30 September 2014.
Trading
Trading since our Interim results in August has been in line
with our expectations. Underlying Group revenue in the third
quarter was 6% ahead of the same period last year, with reported
revenues significantly impacted by adverse currency movements,
decreasing by 3%. All growth rates set out below are on an
underlying basis.
Regional Trading
The Americas business grew a healthy 15% year on year in the
third quarter, despite a slow temperature control season for our
North American business. Our Europe, Middle East and Africa (EMEA)
business grew 4%, with the Local business continuing to deliver
growth. EMEA Power Projects revenue was flat year on year, with a
comparative which included over 200MW of gas capacity coming online
in Mozambique and Cote d'Ivoire. In addition, our 120MW contract in
Libya is fully operational again after a one month interruption,
following a review of the security situation. Finally, in Asia,
Pacific and Australia (APAC) revenue was 9% lower; this reflects
the impact of the slowdown in the mining sector on our Australian
business, and volume and pricing pressure in Indonesia.
Our EMEA business has recently completed the acquisition of
Golden Triangle Generators Limited, a power rental business in the
UK with revenue of around GBP3 million.
Business Line Trading
Our Local business grew 4% in the third quarter, which, as we
expected, was not as strong as the first half given the strong
comparative. We continue to deliver year on year growth in North
America, the UK, parts of the Middle East and a number of our newer
markets; however, more challenging trading conditions remain in
Australia, Brazil and much of Continental Europe. Regionally, the
Americas business grew 5% and the EMEA business grew 7%, whilst the
APAC business declined 9%.
Power Projects grew 10% in the third quarter, as anticipated.
Order intake for the year to date is stronger than last year at
697MW (2013: 530MW). This includes a new 104MW eight month diesel
contract in Panama following a competitive tender process, with the
original 80MW contract having off-hired at the end of the third
quarter, as well as new work in Benin, Gabon and Guinea Bissau.
Additionally, we have extended our 150MW of diesel contracts in
Japan for a further three months and are making good progress with
multi-year contract extensions in the Cote D'Ivoire and
Argentina.
Financial position
Net debt at 30 September 2014 was GBP511 million, a decrease of
GBP26 million in the three months since the end of June. This is
after GBP200 million was returned to shareholders in June 2014 and
compares to net debt of GBP469 million at 30 September 2013.
Outlook
Overall, the Group has continued to perform in line with our
expectations. As anticipated tougher comparatives mean that growth
in the Local business will be at a lower level in the second half,
but we continue to expect to deliver growth for the year as a
whole. In Power Projects, year to date order intake is stronger
than last year and we are encouraged with the recent progress on
contract extensions; however, the market environment continues to
be uncertain.
We continue to expect fleet capital expenditure in 2014 to be
around GBP235 million. At this stage, we anticipate first half 2015
capital expenditure to be in the region of GBP140 million which in
part reflects product mix.
Overall, we continue to expect underlying trading profit for the
full year to be similar to 2013.
Management Update
As announced on 31 October 2014, Chris Weston will join the
Group as Chief Executive Officer on 2 January 2015.
Conference Call
A conference call will be held today for investors and analysts
at 8.30am (GMT), hosted by Ken Hanna, Executive Chairman and Carole
Cran, CFO.
Dial in: +44 203 139 4830
Participant code: 26088821#
A recording of the call will be available on demand for 30
days.
Audio playback: +44 203 426 2807
Reference: 651206#
Future Reporting
The Group will report its 2014 Full Year Results on Thursday 5
March 2015.
Enquiries
Investors & Analysts
Louise Bryant, Aggreko plc +44 7876 478 272
Media
Neil Bennett / Tom Eckersley,
Maitland +44 20 7379 5151
Notes to Editors
About Golden Triangle Generators (GTG)
Golden Triangle Generators Limited is a UK company with annual
revenues of around GBP3 million. Operating since 1988, GTG is a
leading provider of rental power solutions to customers throughout
Merseyside, Cheshire and North Wales and have built a solid
business in the utilities sector, service a wide variety of local
industries and are a major supplier to local events and
festivals.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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