Investec highlights lack of information on new wins at Aggreko

7th Jan 2015 12:52

Aggreko started the year on the front foot, having achieved two contract extensions and one contract win, but the company provided precious little news regarding new contract awards, some analysts pointed out.The firm extended a 300MW contract with Energia Argentina SA for two years on top a new contract with the same client for the provision of a further 150MW of diesel-fueled power in the South American country.Energia Argentina also settled its outstanding bets with the temporary power solution provider. For that reason alone, Aggreko now anticipated a "small increase in the 2014 full year trading profit", apparently when compared to consensus forecasts for fiscal year 2014.In parallel, the firm announced a three-year extension of its 200MW contract in Ivory Coast.As a result of all of the above, broker Investec lifted its forecast for pre-tax profits at the company to £291m from £284m previously. No changes were made to the estimates for earnings per share in fiscal year 2015 and beyond.Nevertheless, the fact the above news related to existing contracts, together with the lack of information regarding new work, meant it remained to be seen whether Wednesday's rally in the stock would be sustained.Alongside all of the above, Investec reiterated its 'hold' recommendation on the shares while placing its target price under review.