Slump has adverse impact on figures
Aggreko warns on profits over Middle East and lower oil price
Shares in temporary power plant company Aggreko tumbled 12.24% or 175p to 1,255p after it issued a profits warning because of security issues in the Middle East and a further slowdown in its North American oil and gas related business.
The Glasgow-based company is awaiting gas contract extensions in Bangladesh and it says this delay will have an impact on profits this year and in 2016.
It also warns that ongoing security challenges in Yemen have impacted its ability to operate at full capacity and remains concerned about the impact for the remainder of the year.
In May it said it a slowdown had begun the shale oil business.
“Since then we have seen a further slowdown in North America with volumes in the shale basins continuing to decline. More recently, we have begun to see an impact on our offshore oil and gas business in the Gulf of Mexico.
“As a result of these trading issues, we now expect our full year profit before tax to be between £250 million and £270m at current exchange rates, which have moved adversely in recent months.”
The Group will announce interim results for the half year to 30 June on 6 August and Chris Weston, chief executive, will outline the group’s business priorities together with the actions being taking to position the group for future growth.