Aggreko raises forecast for annual results

16th Dec 2013 07:04

- Expects slight increase in annual revenue- Concern about sluggish demand from customers- Order intake for the year-to-date around 700 megawattsTemporary power group Aggreko said it now expects full year results to be slightly higher than previous expectations while order intake for the year-to-date stands at around 700 megawatts.Recently shares in the generator hire specialist slumped on concern it would issue a profit warning as it struggles with the weaker dollar, mixed trading at its two main divisions and a dearth of recent contract, impacting trading in 2014.In Monday's update Aggreko announced it has signed a six-month 80 megawatts (MW) diesel contract in Panama, to provide power as a licensed generator to the Panamanian wholesale electricity market.However some analysts have expressed concern that the group needs total annual contract wins of around 900 MW just to keep its head above water. Others believe the issue is more to do with the cyclical nature of the market rather than waning customer demand. Group revenue for 2013 on an underlying basis is expected to increase 3% from the prior year. Trading profit is expected to be at similar levels to the prior year. Underlying excludes the impact of the London Olympics, the Poit Energia acquisition, pass-through fuel and currency movements. Reported revenues for the year are expected to be around £1.57bn, similar to last year, and profit before tax and amortisation is expected to be at least £335m.Aggreko added that it expects to take delivery of about £15m of ancillary fleet items in early 2014 rather than late 2013 and as a result expects capital expenditure to be around £215m in 2013 and £155m in the first half of 2014. CJ