Aggreko Share Discussion Threads

[mechanical trader] 15/3/2011 15:54

Keeping eyes on the troubled region, Goldman Sachs analyst Charles Wilson thinks that Aggreko (LON:AGK) - a temporary power generation and temperature control business - has no exposure to Libya, Tunisia and Egypt and just a small exposure to Yemen, where there have been no disruptions at its sites thus far.

Wilson is expecting this week's results - due on Thursday 10 March - to confirm 'a rebound in on-hire rates in International Power Projects (IPP) and continued cyclical growth in the Local business.' He rates Aggreko as a 'buy' with an unchanged £20.11 a share target – which implies more 35 percent upside to the current levels.

[mechanical trader] 15/3/2011 09:07

PRO TAer Zak Mir just commentated on AGK..........

Zak Mir



Reged: 28/06/07
Posts: 1653
Re: Aggreko(AGK) [
#477291 - 15/03/11 08:16 AM Edit Reply Quote



It is interesting that until the Japan disaster struck AGK shares appeared to be topping out. But at least while above the top of March's chart gap at 1,482p a retest of the best levels through 1,700p could be possible if the general stock market sell off is not too severe

[bountyhunter] 15/3/2011 08:17

yes although AGK is not doing too badly compared to the FTSE:

[peaeff] 15/3/2011 08:14

todays opening has put a damper on things at present. It will be interesting to see, as the day progresses, whether we will rise or go with the flow.

[bountyhunter] 15/3/2011 08:10

Tuesday tips round-up: Aggreko, Bovis, Consort Medical...

[bountyhunter] 15/3/2011 08:09

Questor share tip: White knight Aggreko is the go-to company for world events

[mechanical trader] 15/3/2011 07:59

Aggreko looks like it could do well out of the Nuclear fallout in Japan. The chart is showing a positive Technical divergence. Highly speculative in this market. DYOR

TA.




FUNDIES... Although not cheap I think that their might be a short term trade on here.

Aggreko PLC

FORECASTS 2011 2012
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Panmure Gordon
14-03-11 HOLD 300.00 79.50 20.80 318.00 84.40 22.90
Numis Securities Ltd
11-03-11 HOLD 307.00 81.00 337.80 88.50
Peel Hunt
11-03-11 HOLD 303.97 81.48 20.80 332.49 91.21 22.90
Seymour Pierce
11-03-11 BUY 310.90 81.60
Arden Partners
10-03-11 NEUT 307.00 80.20 21.00 320.00 83.60 23.00
Investec Securities
02-03-11 BUY 310.56 80.97 21.10 339.71 88.56 23.21
Charles Stanley [A]
08-02-11 HOLD
The Royal Bank of Scotland NV [A]
25-01-11 BUY 295.00 75.56 14.50
Canaccord Genuity Ltd
06-01-11 HOLD 305.90 80.20 357.60 93.80
Fyshe Horton Finney Ltd [A]
24-05-10 SELL
Collins Stewart [A]
04-03-10 HOLD 70.00 80.90

2011 2012
Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Consensus 306.45 80.75 20.80 333.21 88.16 22.90
1 Month Change -5.08 0.75 1.02 1.02 1.97 1.74
3 Month Change -1.82 1.73 0.21 5.47 4.18 0.18

Notes to forecasts
(25 Aug 10) A flag refers to outlook


GROWTH
2010 (A) 2011 (E) 2012 (E)

Norm. EPS 32.48% 3.55% 9.18%
DPS 38.78% 40.73% 10.10%

INVESTMENT RATIOS
2010 (A) 2011 (E) 2012 (E)

EBITDA £m £497.79m £534.73m
EBIT £m £319.54m £355.28m
Dividend Yield 0.97% 1.37% 1.50%
Dividend Cover 5.28x 3.88x 3.85x
PER 19.53x 18.86x 17.28x
PEG 0.60f 5.31f 1.88f
Net Asset Value PS p p p

LAST FORWARD STATEMENT. 10/03/2011

Aggreko plc, the world leader in the supply of temporary power and temperature control, announces its results for the twelve months to 31 December 2010.

Outlook for 2011

The current instability in some countries in the Middle East and Africa makes the task of predicting the outcome for the year more than normally difficult; our global scale and diversification of risk exposures will be helpful as we manage through this period of uncertainty. We currently anticipate that for the year as a whole trading profit in 2011 will be at a similar level to 2010. Allowing for currency movements and the £87 million of major events revenue in 2010 which will not recur in 2011, this would represent underlying growth of around 15%. We expect both International Power Projects and our Local businesses to deliver good growth on an underlying basis in 2011, and to support this, fleet capital investment is expected to increase by 26% to a record £320 million.



In International Power Projects, the business will benefit from the strong order-intake seen in 2010, and the order book is now some 60% higher than the prior year as a consequence of signing several large multi-year contracts. The off-hire rate has fallen sharply in recent months, and the business started the year with nearly 14% more capacity on rent than at the beginning of 2010; as a consequence we expect the business to deliver strong growth in 2011.



Amongst the Local businesses, we are expecting all of our businesses to deliver underlying growth. In North America, we expect the recovery seen in the second half of 2010 to continue into 2011. In Europe and the Middle East, we also expect to see growth in 2011, albeit at more modest levels than North America. In Aggreko International's Local business, we are continuing our programme of geographic expansion, and expect to open several new service centres during the year; we expect this business to deliver strong underlying revenue growth in 2011.

DYOR

[bountyhunter] 14/3/2011 20:56

good find Peaeff

[peaeff] 14/3/2011 18:08

LONDON (Dow Jones)--Aggreko PLC (AGK.LN), which rents generators to provide temporary power and cooling systems, Monday said it was prepared to supply equipment to Japan, following a devastating earthquake and tsunami.

"Aggreko stands ready to help Japan and its people in any way it can by supplying temporary power if asked," said a company spokesman. "We have already signaled our willingness to the relevant authorities and will deploy our equipment as rapidly as possible if needed."

The U.K. company's shares rose Monday on the possibility that its expertise in offering services in difficult conditions could be in demand. At 1230 GMT, its shares traded up 83 pence, or 5.9%, at 1490 pence, making it the biggest gainer in the benchmark FTSE 100 index, which traded down 0.3%.

"We see this as beneficial for the group and the expectations of contract wins in Japan is a realistic possibility," said one analyst.

Aggreko's shares have gained 33% in value in the past 12 months. They shed 6.7% Thursday, however, after it reported earnings that beat expectations but didn't upgrade any forecasts.

-By Jonathan Buck, Dow Jones Newswires; [phone]; [e-mail]

(

[bountyhunter] 14/3/2011 11:02

cheers Peaeff, that's interesting.

...just added a gas powered generator pic from Aggreko's site to the end of the header.

In Japan from what I've read fire eringines are currently being used to pump sea water to cool reactors at the Fukushima nuclear plant. The following is not directly on topic but a worthwhile read nonetheless:

[peaeff] 14/3/2011 10:59

BH.

It's a dutch word meaning 'power' apparently the company was fouded in Netherlands in 1962. (google)

[bountyhunter] 14/3/2011 10:48

just noticed that Aggre..ko interestingly almost has a Japanese ring to it, just a coincidence I presume as I've no idea where the name came from originally.

[bountyhunter] 14/3/2011 10:45

Hi Peaeff - I mistakenly sold these a while ago, but I agree Aggreko is a well run global leader in their field and so have got back in this morning following the current tragic events and will not be selling any time soon now. With rolling 3hr power cuts affecting Tokyo and the surrounding area having commenced today and reportedly expected to last at least into April Japan's demand for power generators is likely to increase dramatically imho. In addition to this additional generators are likely to be required over the coming months in the areas directly struck by the Tsunami.

[peaeff] 14/3/2011 10:27

Bountyhunter

Thanks for the update it makes good reading at the top of the page. It looks as though many others have echoed your thoughts on Japan and the share price has reacted accordingly. The Japanese have not delayed in pumping a few yen into the economy and I am sure that the recovery will be swift with no expense spared. They are a nation who don't tolerate mess.

Regards

[peaeff] 14/3/2011 10:17

AGK are so well positioned now, throughout most of the world, that it is almost innevitable they will be called upon to help with any tragic events which involve electricity supply. Years ago it used to be the hurricane season around N.America which gave them a few unexpected dollars but now it could be almost anything. It has become a truely international and brilliantly run company and, IMO, one which does it's best to keep shareholders informed, a trait which a good many other companies could do with copying. I only wish they would consider a 3 for 1 share consolidation to bring the price down to reasonable, and more attractive to investors, level.

Very good luck all.

[bountyhunter] 14/3/2011 08:53

Aggreko as a previous supplier to Japan...

Aggreko Scores Big at the 2002 FIFA World Cup Korea Japan
Aggreko Scores Big at the 2002 FIFA World Cup Korea/Japan The challenge to the customer Chosen by the Japan Organising Committee as the sole supplier of temporary electrical power generators.

[bountyhunter] 14/3/2011 08:43

header updated

[bountyhunter] 14/3/2011 08:21

back in!
power generators are going to be in high demand imo

[ccnp] 14/3/2011 07:14

And California - yet to come !

[apad] 10/3/2011 09:59

Seems so com...

IC:
■ Aggreko, the temporary electricity supplier that will power next year's London Olympics, enjoyed a strong year in 2010, but warned that the current turmoil in the Arab world makes predicting this year's outcome difficult.

Unfortunately I'm fully invested in AGK otherwise I would be tempted.

apad

[comcols] 10/3/2011 09:02

is a Hell of a fall agreed, part due no doubt to the general market being down over the Libya scare ???

[peaeff] 10/3/2011 08:48

You'd think we'd lost the crown jewels looking at the share price today. It makes a great set of results pale into insignificance.

[nellie1973] 25/2/2011 13:35

Broker upgrade

[jodi17qad] 24/2/2011 12:33

All will be revealed Peaeff, but for what it is worth, REFS shows a projected normalised pre tax profit this year of £305m against £234m , an increase in eps of 32.1% and a dividend growth figure of 70.9% with 4.27 times cover. Gearing is shown at 29.1%.