Aggreko PLC Interim Management Statement (0046X)

TIDMAGK

RNS Number : 0046X

Aggreko PLC

14 November 2014

14 November 2014

Interim Management Statement

TRADING IN LINE WITH EXPECTATIONS

FULL YEAR GUIDANCE UNCHANGED

This Interim Management Statement covers the period from 1 July 2014 to 13 November 2014. Unless otherwise stated, figures quoted in this statement are for the quarter ended 30 September 2014.

Trading

Trading since our Interim results in August has been in line with our expectations. Underlying Group revenue in the third quarter was 6% ahead of the same period last year, with reported revenues significantly impacted by adverse currency movements, decreasing by 3%. All growth rates set out below are on an underlying basis.

Regional Trading

The Americas business grew a healthy 15% year on year in the third quarter, despite a slow temperature control season for our North American business. Our Europe, Middle East and Africa (EMEA) business grew 4%, with the Local business continuing to deliver growth. EMEA Power Projects revenue was flat year on year, with a comparative which included over 200MW of gas capacity coming online in Mozambique and Cote d'Ivoire. In addition, our 120MW contract in Libya is fully operational again after a one month interruption, following a review of the security situation. Finally, in Asia, Pacific and Australia (APAC) revenue was 9% lower; this reflects the impact of the slowdown in the mining sector on our Australian business, and volume and pricing pressure in Indonesia.

Our EMEA business has recently completed the acquisition of Golden Triangle Generators Limited, a power rental business in the UK with revenue of around GBP3 million.

Business Line Trading

Our Local business grew 4% in the third quarter, which, as we expected, was not as strong as the first half given the strong comparative. We continue to deliver year on year growth in North America, the UK, parts of the Middle East and a number of our newer markets; however, more challenging trading conditions remain in Australia, Brazil and much of Continental Europe. Regionally, the Americas business grew 5% and the EMEA business grew 7%, whilst the APAC business declined 9%.

Power Projects grew 10% in the third quarter, as anticipated. Order intake for the year to date is stronger than last year at 697MW (2013: 530MW). This includes a new 104MW eight month diesel contract in Panama following a competitive tender process, with the original 80MW contract having off-hired at the end of the third quarter, as well as new work in Benin, Gabon and Guinea Bissau. Additionally, we have extended our 150MW of diesel contracts in Japan for a further three months and are making good progress with multi-year contract extensions in the Cote D'Ivoire and Argentina.

Financial position

Net debt at 30 September 2014 was GBP511 million, a decrease of GBP26 million in the three months since the end of June. This is after GBP200 million was returned to shareholders in June 2014 and compares to net debt of GBP469 million at 30 September 2013.

Outlook

Overall, the Group has continued to perform in line with our expectations. As anticipated tougher comparatives mean that growth in the Local business will be at a lower level in the second half, but we continue to expect to deliver growth for the year as a whole. In Power Projects, year to date order intake is stronger than last year and we are encouraged with the recent progress on contract extensions; however, the market environment continues to be uncertain.

We continue to expect fleet capital expenditure in 2014 to be around GBP235 million. At this stage, we anticipate first half 2015 capital expenditure to be in the region of GBP140 million which in part reflects product mix.

Overall, we continue to expect underlying trading profit for the full year to be similar to 2013.

Management Update

As announced on 31 October 2014, Chris Weston will join the Group as Chief Executive Officer on 2 January 2015.

Conference Call

A conference call will be held today for investors and analysts at 8.30am (GMT), hosted by Ken Hanna, Executive Chairman and Carole Cran, CFO.

   Dial in:                                     [phone] 
   Participant code:                        26088821# 

A recording of the call will be available on demand for 30 days.

   Audio playback:                         [phone] 
   Reference:                                 651206# 

Future Reporting

The Group will report its 2014 Full Year Results on Thursday 5 March 2015.

 
 Enquiries 
 
  Investors & Analysts 
 Louise Bryant, Aggreko plc       [phone] 
 
   Media 
 Neil Bennett / Tom Eckersley, 
  Maitland                        [phone] 
 

Notes to Editors

About Golden Triangle Generators (GTG)

Golden Triangle Generators Limited is a UK company with annual revenues of around GBP3 million. Operating since 1988, GTG is a leading provider of rental power solutions to customers throughout Merseyside, Cheshire and North Wales and have built a solid business in the utilities sector, service a wide variety of local industries and are a major supplier to local events and festivals.

This information is provided by RNS

The company news service from the London Stock Exchange

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