Aggreko ups forecast after contract wins

Kasmira Jefford
Follow Kasmira
AGGREKO, the world’s biggest provider of temporary power supplies, said its full year profits will be better than expected after winning contracts in countries such as Japan, Russia and Iraq.

Trading profits for the first half of this year slipped five per cent to £120.7m after a lack of major sporting contracts that boosted results last year. However, it expects a full-year trading profit of about £315m - a rise of three per cent.

“We have had a very strong start to the first half of the year. The upgrade is really coming from international power projects business where we have had 25 new contracts signed and order for 730 Mega Watts, including 200MW from Japan,” said chief executive Rupert Soames.

Aggreko’s generators helped power the World Cup, the Vancouver Winter Olympics and the Asian Games in 2010, with the events adding about £50m to revenue in the first half.

While it does not have any blockbuster sporting contracts this year, it will provide temporary power for the London Olympics next year and the World Athletics Championships in South Korea later this year.

Shares remained almost unchanged at 1765p as the results fell in line with analyst expectations.