Aggreko confirms £48m contracts

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AGGREKO, the world's largest temporary power provider, announced two major contracts yesterday worth a combined $75 million (£48.1m).

The Glasgow-based company revealed its largest ever deal in Latin America, which will see it provide 100 megawatts to the national grid in Panama.

Initially covering 12 months, the deal with the Panamanian state power generating utility, Empresa de Generacin Elctrica, comes after Aggreko identified Panama as a key market three years ago, recently opening a new regional hub in the country.

In December The Scotsman revealed that Aggreko was close to signing its largest ever deal in Latin America, with the contract linked to an expansion of the Panama Canal, a project which began last month.

In a statement Aggreko said the requirement for emergency power in Panama had arisen because of low rainfall which had depleted reserves at hydro power-plants, as well as shortfalls in production from other suppliers.

Aggreko also announced a smaller contract in with the Omani utility, Oman Power and Water Procurement Company.

The second deal will see Aggreko supply 115 MW during the summer months.

Chief executive Rupert Soames said the company's ability to move quickly to provide high quality supply helped win the contract.

"Yet again, our ability to deliver very large amounts of utility-grade power within weeks to customers has proved to be a compelling proposition for utilities who need to keep providing stable power supplies," he said.

"These two contracts also underline the global reach of Aggreko, and the ability to deliver power cost-effectively for short periods of time to help utilities overcome temporary shortfalls".

Shares in Aggreko, which joined the FTSE-100 for the first time in December, rose 13p to 895p.