Aggreko surges on new contract awards for 2014

Suzie Neuwirth
TEMPORARY power provider Aggreko soared to the top of the FTSE 100 yesterday morning, after it unveiled major contract wins and lifted its full-year guidance.

The company, which provided electricity for the 2012 London Olympics, said it has been selected to supply power for the 2014 Fifa World Cup in Brazil and the Glasgow 2014 Commonwealth Games.

It also said it has signed a number of smaller contracts during the past quarter, including a six-month deal to provide power to Panama’s wholesale electricity market.

Aggreko forecasts pre-tax profits of at least £335m this year, lower than last year but ahead of consensus estimates of around £330m, on revenues of around £1.57bn.

Underlying group revenues are expected to be three per cent higher this year – excluding the boost from the London Olympics last year – with eight per cent growth in the Europe, Middle East and Africa region. But Aggreko predicts underlying revenues in the Asia-Pacific region to be 12 per cent lower, due to contracts finishing in Japan and off hires in Indonesia, where projects are out of action.

Aggreko’s shares have plummeted by about 20 per cent this year, due to a low number of contract wins compared to key rival APR Energy and weakness in emerging markets.

Shares closed up 8.5 per cent.

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