Asian Games contract helps Aggreko power still further ahead

TEMPORARY power provider Aggreko, whose shares have surged by more than 67 per cent this year, further cheered investors yesterday after securing another big success in the sporting arena.

The Glasgow firm has signed contracts worth $30 million (19m) for the 2010 Asian Games and Asian Para Games to be held later this year in China.

Aggreko will supply 65 megawatts of power generation and distribution to the games' 16 stadia and international broadcasting centre.

The contracts follow on from Aggreko's involvement in the 2008 Olympics in Beijing, when it supplied power and cooling equipment in a deal worth about $22m. More recently, Aggreko generators provided power for the World Cup competition in South Africa in an agreement worth 30m to the Scottish company.

"The Asian Games, along with the Olympic Games and Football World Cup, are the world's largest sporting events and I am delighted to say that Aggreko has scored a hat-trick by being selected to supply power to all of them," Aggreko chief executive Rupert Soames said.

"This success is the result of the talented team of events professionals we have brought together in Aggreko and the tens of millions of pounds we have invested to serve these large events."

Aggreko reported a 19 per cent rise in first-half pre-tax profits to 125.7m before tax. The group's strong performance has prompted a series of earnings upgrades throughout 2010, lending strong support to the share price.

The stock has also benefited to a lesser degree from takeover speculation, as rumours have intermittently emerged of international interest in acquiring the operation.

Aggreko employs 4,000 staff in more than 130 locations around the globe. Though China is one of its smaller regions in terms of sales, the group is aiming to expand activity in this growing market.

Shares closed up 10p at 1,570p.