Financial Releases
Aggreko updates its assessment of the impact of Hurricane Katrina
15 Sep 2005
On 5th September 2005, Aggreko gave an initial assessment of the impact on its operations of Hurricane Katrina, and undertook to give investors a further update at the time of the announcement of its Interim Results, which are being published today (see separate announcement).
Since the storm, Aggreko employees have responded magnificently to the many challenges of the aftermath of Hurricane Katrina. As stated in our initial statement, all of our staff are safe, although some have lost homes, and many have been affected directly or indirectly. Despite this, and in extremely difficult circumstances, they have worked tirelessly to help the relief, reconstruction and humanitarian efforts.
In terms of our own facilities in the area, our Service Centres in Baton Rouge, Mobile and New Orleans are now accessible, and none have been seriously damaged. Because of the state of the infrastructure in New Orleans, the local Service Centre’s business is being largely carried out from Baton Rouge.
The difficulties of access and communications mean that we have made limited progress confirming the status of equipment which was exposed to the worst effects of the storm. This includes equipment on offshore oil-platforms in the Gulf of Mexico, some 20 of which have been lost, and many damaged. The latest data we have is that Aggreko equipment with a Gross Book Value of $0.3 million is confirmed lost, and a further $8 million is at risk. The great majority of this will be covered by either customers’ or Aggreko’s insurance, and we remain of the view that the net balance-sheet impact of any equipment losses will not be material.
The main cost to the company is likely to be the revenue foregone from units whilst they are repaired or replaced, and to mitigate this and to respond to the additional demands, large amounts of power, temperature control and dehumidification equipment have been transferred into the area from other parts of North America, and we are also shipping generators from Europe to assist in the effort.
Although it is too early to quantify with any accuracy the longer-term impact of Hurricane Katrina on Aggreko’s trading, at the moment it is likely that Aggreko North America’s storm-related revenue in 2005 will be towards the upper end of the historic levels of $6-13 million.
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For further information
| Rupert Soames / Angus Cockburn |
0141 225 5900 |
| Aggreko plc |
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| Fiona Piper |
020 7379 5151 |
| The Maitland Consultancy |