Angolan contract adds to Aggreko's African growth

Published on Tuesday 25 September 2007 00:05

AGGREKO, the temporary power supplier, has continued its drive into the developing world with a substantial contract in Angola.

Glasgow-based Aggreko has won a deal with state-owned Empresa Nacional de Electricidade to provide 90 megawatts of electricity around Luanda, Angola's capital and largest city.

The first of three sites will be operational before Christmas. Combined, the sites will provide enough power for up to four million people and will earn Aggreko about $45 million (22.3m) in 2008. The deal more than doubles the company's presence in the south-central African country to 150MW.

Aggreko operates in 19 African countries, and the continent is a source of major growth, as expanding economies turn to temporary power while developing permanent capacity.

Shares in the Scottish group rose 5p to 574.5p yesterday.

At the recent results announcement, chief executive Rupert Soames predicted that by 2015, the shortfall between permanent power generation capacity and demand will grow from 50MW to about 600MW, roughly the entire generation capacity of the European Union.

The City expects Aggreko will make a pre-tax profit of about 120m for 2007, up from 73.9m in 2006, as it cashes in on rising demand and integrates General Electric's rentals arm, which it bought for 111m a year ago.