Aggreko profits hit by ‘difficult’ trading conditions

Aggreko employs about 450 people in Scotland. Picture: John Devlin
Aggreko employs about 450 people in Scotland. Picture: John Devlin
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Temporary power provider Aggreko today said its profits fell by almost a third during the first half of the year amid a “difficult” trading environment.

Despite the slide in earnings, the Glasgow-based group held its interim dividend – to be paid on 30 September – steady at 9.38p per share, and said it was sticking to its forecast that profits would decline “slightly” for the full year.

For the six months to the end of June, Aggreko reported a pre-tax profit before one-off items of £71 million, down from £102m a year earlier, on revenues 12 per cent lower at £685m.

READ MORE: Reassurance from Aggreko despite 2016 profit warning

Chief executive Chris Weston said: “The trading environment in this first six months has been difficult, with the lower oil price continuing to impact a number of our markets.

“We are holding our guidance for the full year while recognising the importance of securing key contract extensions and the seasonal weighting of our North American business to the second half.”

Plans announced last year to save £80m have seen 700 jobs cut from the global workforce at Aggreko, which employs about 450 people in Scotland, split between its Glasgow head office and its Dumbarton facility.

Along with maintaining the forecast for a further dip in profits, Weston – who has previously said that 2016 would be a “year of transition” for the group – said it was making no changes to its guidance for fleet capital expenditure of about £270m this year.