Management are stressing that it is very early to be making guidance for 2013 and that they are quite likely to be wrong. However, it does again reiterate the risks in the business and the market is now likely to put a higher risk premium on the company.
PAUL JONES | PANMURE GORDON
The update suggests that 2012 will close largely as expected in overall terms, though 2013 has a stronger headwind than expected and that previous expectations are likely to be too optimistic. We now expect 2013 to be below 2012 – something not seen at Aggreko for some time.
CAROLINE DE LA SOUJEOLE | SEYMOUR PIERCE
Aggreko is, in our view, a well-managed, quality business. The underlying drivers, namely the continued supply demand power imbalance in developing countries, remain strong. However, contract awards can be lumpy, particularly in international power projects.