Oil price impacts on firm

Aggreko expects lower profits; maintains dividend

Chris WestonTemporary power plant firm Aggreko warned that profits would be lower this year after reporting a slide in earnings over the past 12 months.

It said it had been impacted by the oil price and slower payments.

The Glasgow-based company saw profit before tax slip from £289 million to £252m but said it proposes maintaining its dividend at 17.74p per share, making 27.12p for the year.

Group revenue was almost flat at £1.56 billion (2014: $1.58bn).

“Overall, we expect profit before tax and exceptional items to be slightly lower than the prior year on a constant currency basis in line with current consensus,” it said in its full year announcement.

Chris Weston (pictured), chief executive, who joined the company from British Gas, said: “We have ended 2015 with a strong balance sheet, with net debt slightly down; as we continue to generate good levels of operating cashflow; and maintain discipline in our investment in new fleet.

“We have also maintained the full year dividend in line with last year, reflecting our continued confidence in the strength and prospects of the business which provides a much needed service to our customers.

“As we enter 2016 I am encouraged by the prospect pipeline we are seeing and pleased by the progress we are making with our business priorities.”

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