Aggreko eyes upturn at power projects division

TEMPORARY power provider Aggreko is on track to generate a 5 per cent rise in first-half revenues, despite “subdued” trading at its large-scale power plants division.

Rupert Soames said Aggreko was planning World Cup bids. Picture: Reuters

The Glasgow-based firm said turnover at the power projects division, which aims to fill gaps in the energy needs of developing economies, are likely to edge up 1 per cent, but margins will be lower than last year because of costs associated with the 220MW of gas plants it is commissioning in Côte d’Ivoire and Mozambique.

Although trading at the projects arm “remains subdued”, Aggreko said prospects have improved since the start of the year and second-half revenues are expected to be higher than in the first six months.

Revenues at its “local” business, which supplies generators for events such as the Olympics, are on track to grow 9 per cent, and chief executive Rupert Soames told The Scotsman that Aggreko will pitch for business at the World Cup, which is being hosted in Brazil next year.

Soames said the firm is “very excited” about its new range of generators, powered by heavy fuel oil, which are able to produce electricity more cheaply than diesel-powered units.

The first of the fuel oil generators are currently being installed in the Caribbean, with a further two contracts secured elsewhere, and Soames said: “We’re getting a lot of customer interest.”

Overall order intake for the six months to 30 June is expected to be around 400MW, down from 669MW a year ago, while trading profits will be in line with the £159 million it reported for the same period last year.

Cantor analyst Caroline de La Soujeole said: “The company is the leader in what we believe to be a very attractive market with long-term structural growth drivers.”