Aggreko pulls out of running for Rio Olympics

Temporary power provider Aggreko has pulled out of the bidding process to supply next year’s Rio de Janeiro Olympic and Paralympic Games.

Aggreko will not be powering the Olympics in Rio. Picture: AP/Andre Penner

The Glasgow-based group, which helped power last year’s World Cup in Brazil, as well as the Commonwealth Games in Glasgow and 2012 London Olympics, said the contracts for power provision in Rio were being awarded in parts “and we have been advised that we have not been awarded the first tranche of contracts”.

Aggreko told investors: “Given the preparation required for an event of this scale, we have withdrawn from bidding for the remaining tranche.”

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Chris Weston, the firm’s chief executive, added: “We have given considerable thought to our decision to withdraw from the bidding process and I would like to thank our team for all their hard work. We wish Brazil, the Rio 2016 Committee and the International Olympic Committee the very best for a successful games.”

Last month, Aggreko said it was sticking to its full-year profit guidance of between £250 million and £270m for 2015 – although this would be down from the figure of £289m reported for the previous year.

However, Weston said spending on its fleet of power generators and temperature control units would be about £250m, down from the £270m forecast given in August, when Aggreko said it would cut about 600 jobs amid the downturn in oil and gas markets.