Following a presentation by Aggreko chief executive Rupert Soames, Cantor Fitzgerald said there is “a strong possibility” that the Glasgow-based company will pay out between £300m and £400m early next year. That would amount to almost 150p a share.
Soames recently admitted that the firm’s high-margin power projects division is in the midst of a “soft patch” as soldiers pulling out of Afghanistan and Japan’s recovery from the devastating tsunami of 2011 hit demand for its portable power supplies. He said he was “cautious, not nervous” about the outlook as emerging market growth slowed.
Analyst Caroline de La Soujeole said that, while the slowdown in order intake was frustrating, it was only temporary.
She said: “The business model is not broken; the thirst for power in emerging markets hasn’t suddenly been switched off. We think investors are likely to be well rewarded for their patience, with a return of cash to shareholders a strong possibility in the first half of 2014.”