Aggreko's first-quarter underlying revenue rises

15th Apr 2014 07:05

Aggreko reported an "encouraging" start to the year with underlying revenues up five per cent in the first three months. However, the temporary power generator said reported revenue, which includes the impact of currency movements, fell 4% amid weakness in emerging markets. Revenue grew by 11% in the Americas and by 15% in Europe, Middle East and Africa (EMEA) but fell by 21% in Asia Pacific. Local business underlying revenues in the first quarter climbed 11% as growth in Americas and EMEA offset challenging conditions in Australia which is experiencing a slowdown in the mining sector. Power Projects revenues in the first quarter were 3% down on an underlying basis largely, driven by off-hires over the past year in Indonesia, Military and Japan. The division had an order intake of 406 megawatts (MW) in the year to date, up 150 MW year-on-year. Orders include a 12-month 50 MW heavy fuel oil contract in Senegal as well as 170 MW of short-term summer peak-shaving contracts in Saudi Arabia and Oman. The group has also started to deploy the 120 MW Libyan contract, announced at the time of the full-year results in March.Net debt decreased came to £320m at March 31st, compared to £597m the previous year. The company said the £277m year-on-year decrease reflects the "ongoing strong cash generation by the group largely as a result of a disciplined approach to capital expenditure".Looking ahead, the company expects fleet capital expenditure in 2014 to be at similar levels to last year, with about £130m in the first half and about £215m for the full-year."Overall, our expectations for the year remain unchanged," Aggreko added. RD