Aggreko powers ahead with $200m African contract win

TEMPORARY power solutions firm Aggreko topped the FTSE 100 yesterday as it announced a power deal worth $200m (£132m) in Namibia and Mozambique.

The engineer has signed agreements with African utilities Electricidade de Mocambique and NamPower to provide 122 megawatts of gas-fuelled power from its Ressano Garcia facility in Mozambique, which already supplies power to a South African utility.

The 122MW plant is due to go into production in the second quarter of this year and will supply power for a minimum of two years.

“This is an exciting development and suggests that the potential of Aggreko’s Mozambique facilities is greater than we had previously envisaged,” Caroline de la Soujeole, industrial goods analyst at Cantor Fitzgerald, said yesterday.

This new project will make the Ressano Garcia operation the world’s largest cross-border power plant, chief executive Rupert Soames said yesterday.

Shares in the temporary power provider have had a torrid time since the company issued two profit warnings at the back end of last year and remain well below the highs of around 2,400p seen last September.

Shares closed up 6.85 per cent yesterday at 1,965p, making it the biggest riser on the FTSE 100 as investors cheered the contract win.