Power firm hit by US downturn
Aggreko shares plunge on profits fall
Aggreko’s revenues for the first six months were down 12% to £661m. They have been hit by the decline in North America in upstream oil and gas and softness in petrochemical and refining.
These challenging conditions more than offset good growth in other regions. It has also set aside $17m for bad debts, principally in Venezuela. Aggreko’s shares were down by more than 12% in lunchtime trading.
Chief executive Chris Weston said: “The trading environment in this first six months has been difficult, with the lower oil price continuing to impact a number of our markets.
“We are holding our guidance for the full year while recognising the importance of securing key contract extensions”.
Aggreko has repeatedly been the major supplier of temporary power to the major sporting events but pulled out of bidding for contracts linked to the Rio de Janeiro Olympic Games due to delays and uncertainty.