Aggreko secures $200m deal in southern Africa

Temporary energy supplier Aggreko is stepping up its presence in Africa after signing a $200 million (£133m) contract to provide power to the national utilities in Mozambique and Namibia for the next two years.

The firm’s shares surged 7 per cent following the deal, which comes on the back of last week’s reassurance that Aggreko should maintain its double-digit revenue growth for the next five years.

Energy from Aggreko’s gas-fired plant at Ressano Garcia in Mozambique will be split between that country’s power utility, EDM, and its Namibian counterpart, NamPower.

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Ressano Garcia, built in 2012, already provides 110 megawatts of power to EDM for national energy requirements and to Eskom, a South African utility.

A new 122-megawatt plant is due to go into production in the second quarter of this year and will supply power for a minimum of two years.

Chief executive Rupert Soames said the total value of the project is likely to be more than $200m, including fuel costs. He added: “This new project will make Ressano Garcia the world’s largest cross-border interim power plant, with over 232 megawatts of gas-fuelled power generation.”

Cantor Fitzgerald analyst Caroline de La Soujeole said: “This is an exciting development and suggests that the potential of Aggreko’s Mozambique facilities is greater than we had previously envisaged.”

Shares in the Glasgow-based group closed up 126p at 1,965p.

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