Financial Releases
Aggreko gives its initial assessment of the impact of Hurricane Katrina
05 Sep 2005
Aggreko plc, the world's leading supplier of temporary power, temperature control and compressed air systems, is issuing the following statement to update investors on its initial assessment of the likely impact on its operations of Hurricane Katrina.
Louisiana, Mississippi and Alabama are important markets for Aggreko, and the Company has service centres in Mobile, Baton Rouge and New Orleans. All of them have been affected by Hurricane Katrina, although it is believed that the physical damage to the service centres themselves is not serious. None of our employees in the area have been hurt, but some have lost homes, and many have been affected directly or indirectly. Across all three states, Aggreko is working to assist the humanitarian relief efforts.
Aggreko has equipment on oil rigs in the Gulf of Mexico, and, prior to the storm, generators were deployed to customer sites to support their hurricane contingency plans. Some of this equipment may have suffered damage, but at the moment the extent of damage or loss is unknown as access is in many cases impossible. The Company has in place appropriate insurance policies, and our initial assessment is that the financial impact of any losses is not likely to be material.
However, the fact that this equipment is not currently available may compromise our ability to respond to further storms. To mitigate this, we are examining ways of expediting the replacement and repair of lost or damaged equipment, and we are also organising the transfer of generators from our European business to North America. Throughout this difficult period, we will be working closely with our customers to ensure that they receive the best service possible in the circumstances.
Over the next few weeks, the consequences of Hurricane Katrina will have a disruptive effect on Aggreko's North American business; however, it is likely that the necessary re-construction work will give rise to strong demand for our services in the months ahead. We should have a better view of the likely impact of the storm at the time of our Interim Results, due to be published on 15th September, and we will give a further update then.
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For further information, please contact:
| Rupert Soames / Angus Cockburn |
Tel: 0141 225 5900 |
| Aggreko plc |
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| Fiona Piper |
07808 727 500 |
| The Maitland Consultancy |
Tel: 020 7379 5151 |