Aggreko Share Discussion Threads

[bluebelle] 14/9/2007 11:41

Thanks Peaeff. I re-read the July release before I posted the above and thought that they had actually won it : I have a feeling that quite a few people bought / added on that understanding too.

It's an important issue for me because it is clear from their annual report that local market competition is intense in many areas and their focus is moving towards large international 'ad hoc' projects (many of which are infrequent but continuous if you get my drift) which few companies - and AGK is in pole position - have the resources to handle. Winning a contract like this would, apart from the immediate financial benefit, validate that strategy and be a great springboard for other major global 'prestige' events, not just sporting ones, where the organisers can't risk a structural failure.

[peaeff] 14/9/2007 09:38

Bluebelle

from the interims statement:

"In July 2007 we announced that we had been selected as the Exclusive Supplier of Temporary Power and Temperature Control to the Beijing 2008 Olympic Games. At this stage, this agreement covers sponsorship arrangements only, but as a result of this agreement we are well-placed to negotiate a supply agreement with the Chinese authorities."

The initial announcement in July was a little ambiguous to my way of thinking, I am sure most of us thought the same as you. I presume we will get a further announcement when things are finalised.

Regards

[bluebelle] 14/9/2007 08:21

As sponsor of the Beijing Olympic games next year, Aggreko hopes to supply the event with power.


From today's Torygraph : have I missed something. I thought the release earlier this year said they had been awarded that contract

[barcelona4] 13/9/2007 21:10

Classic LSE-announce superb figures and strong prospects and watch your price go down.What do "they" want-blood?

[bountyhunter] 13/9/2007 17:31

With such good results and the very positive outlook announced today including the statement that "we now anticipate that Aggreko's performance for the year will be well ahead of market expectations" I'm surprised that the initial gains were not at least partially sustained. Still tomorrow's another day!

Outlook

We have made a good start to the second half of 2007 with encouraging levels of activity.

In North America, after a cold start to the summer season, trading in July and August improved as temperatures increased. We are still seeing growth in demand, although this could change quite rapidly and we remain watchful for any impact current macro-economic events might have on our customers. We have good momentum going into the last four months of the year, and we believe that, short of a major deterioration in market conditions, performance in the second half will be well ahead of last year.

In Europe, the key summer trading period began slowly due to poor weather across many parts of Europe in May, June and July. The business has however regained momentum in recent weeks and we expect performance for the full year to be well ahead of the previous year.

In Aggreko International's Local business the strong market conditions are likely to continue, and we expect continued year on year growth in the second half, albeit at a rather slower rate than in the first half.

The strong demand we have seen in the International Power Projects business continues unabated. With the new contracts secured in the first half of 2007, and with many existing contracts extending, we anticipate another strong performance from this business in the second half.

Overall, we now anticipate that Aggreko's performance for the year will be well ahead of market expectations.

[peaeff] 13/9/2007 15:21

Had my finger on the button at 581p and should have pressed it. I would have bought back in by now. Disappointing day really but ftse250 hasn't broken sweat all day. I am confident this will find it's true level in the 'not to distant' future. Nevertheless what a set of figures. I shall sit down later and analyse every word of the presentation.

Regards

[bountyhunter] 13/9/2007 13:58

Dow futures looking strong so we may get a kick @ 2:30

[qazwsx123] 13/9/2007 11:08

Morning all.

[bluebelle] 13/9/2007 09:58

Good stuff. Still a core long term hold for me. One of about half a dozen or so I base my portfolio around.

[heartyprophet] 13/9/2007 08:28

Im in at 573p. Good luck all.

[bountyhunter] 13/9/2007 07:49

"* 65% increase in trading profit (83% in constant currency)."

"* Demand for International Power Projects extremely strong, with revenues up 74% in constant currency and excluding pass-through fuel"
...
...
Philip Rogerson, Chairman, commented:

"I am pleased to report that Aggreko has produced another very strong set of results for the first half of 2007. The most notable performance was in Aggreko International, where the strong demand we have seen in the last few years continues unabated, and revenues grew by 68%; our European business grew revenues by over 30%, and in North America revenues grew by 14%."

"We now anticipate that Aggreko's performance for the year will be well ahead of market expectations."

Rupert Soames, Chief Executive, commented:

"The growth in our revenues and earnings is the result of strong demand, greatly increased investment in new rental fleet, and the successful integration of the GE Energy Rentals business, which we acquired in December 2006. In many of the 90 countries in which we operate, there are power shortages caused by demand outstripping supply and ageing infrastructure; these issues will not be resolved quickly, and we foresee a growing need for temporary power. Having consolidated our position as the world's leading provider of temporary power, with over 4,000 megawatts of generating capacity, Aggreko is well-positioned to benefit from this growing demand."

Dividend
Taking account of the strong trading performance, the Board has decided to declare an interim dividend of 3.04 pence per share, which is an increase of 20% over the 2006 interim dividend. This interim dividend will be paid on 16 November 2007 to shareholders on the register at 19 October 2007, with an ex-dividend date of 17 October 2007.

fantastic!

divi info added to header

[peaeff] 11/9/2007 16:57

BH

It's looks, by todays volumes, as though there has been an overhang of shares which, hopefully, now has been cleared.

[bountyhunter] 11/9/2007 16:16

going great guns today - always nice to see a rise towards results!

[peaeff] 10/9/2007 19:10

Baecelona4

There is nothing pompous about my thoughts and opinions and I certainly don't purport to be any better informed than anyone else. You are quite at liberty to express your own thoughts and I have no doubt they will be read and accepted in the manner they are intended.

Re the new director, I thought some investors may wish to know of his past history. If you're not interested then please ignore it. Some like to talk on these boards and no-one is under any obligation to read what is said, including you.

As a further thought why are you telling us that AGK are well managed when we already know and appreciate that fact. VERY OLD NEWS chummy.

If you have a problem with the society we live in then find a board where others share your opinion instead of trying to inflict it on others.

Regards PF

[bountyhunter] 10/9/2007 18:05

no not with that comment; I agree good management is very important

[barcelona4] 10/9/2007 17:49

in a "friendly and civilised way" I repeat my earlier comment--AGK is a very well managed company etc. do you have a problem with that?

[bountyhunter] 10/9/2007 16:45

please take any personal criticism elsewhere; this bb is for discussing Aggreko in a friendly and civilised way

[barcelona4] 10/9/2007 16:37

as a further thought which I think came originally from JKGailbraith,most things that happen on stock markets have nothing to do with the price of fish!

[barcelona4] 10/9/2007 16:32

peaeff and others
I just enjoy criticising (usually)pompous statements from people who are presumably no better informed than I am.AGK is a very well managed company which like so many others in our crazy world suffers from the vagaries of the capitalist world we all live in.Why do you post details of a new board appointment which has already been announced by the company for instance?

[peaeff] 10/9/2007 16:17

New appointment to board

Biography

Name: Robert McLeod
Age: 42

Work History: 1990 - Qualified from KPMG
1990 – 1993 Worked on a range of audits including London Weekend Television, Wembley
1993 - Joins Enterprise Oil and holds a range of jobs including financial reporting manager, assistant treasurer, US finance director
2003 – Moves to WS Atkins as group financial controller
2004 – June: appointed group finance director, replacing Stephen Billingham

[peaeff] 10/9/2007 13:31

Well here you are once again critisising but not putting forward any particular views of your own. However I have no intention of arguing with you
I post things as I see them, I don't do wishful thinking. Neither do I sit nit-picking.

The overall picture here is a good one and, IMO, the shares at present are cheap. On Thursday I believe this will be borne out by the figures which of course will not include revenue from US storms, that will no doubt come later.
Just to make one further point, this company is no longer as reliant on extreme weather conditions in US as it once may have been, as last years finals proved.

Perhaps you would now like to give us all your summation of this company's prospects as it would appear you like to talk down other's optimism. Or is that beyond you?.

Regards PF

Edit. Three severe storms have already caused havoc in Caribbean and Mexico areas and whilst insurance companies may not be too worried, I am sure that outlying/ badly hit districts with no electricity supplies are. Perhaps they may use Aggreko eh!

[barcelona4] 10/9/2007 11:50

don,t know where peaeff gets his information,this years hurricane season not worrying US insurers,see daily telegraph etal.perhaps its wishful thinking of the worst kind mr.p

[bountyhunter] 09/9/2007 13:02

cheers Pf; yes good to see the the Olympics sponsorship; that's when I got into AGK; plenty of publicity yet to come there!

[peaeff] 09/9/2007 12:17

Thanks BH you're doing a fine job. I'm afraid all these technical additions are beyond my 'know how' but I do appreciate someone making the effort and doing it.

Going back to last years figures I noted that the last aquisition was purported to be successfully intigrated, more cheaply than anticipated and, fully utilised.

With the global expansion that has taken place over the past 2-3 years and the probability of good feedback from the olympics next year, I feel sure that there will be further aquisitions, possibly over in that area, in the not too distant future.

regards PF