Financial Releases
Interim Management Statement
12 Apr 2012
- Very strong first quarter – both International Power
Projects and the Local businesses delivering over 20% underlying
revenue growth
- International Power Projects secures 450 MW of new contracts
year to date
- Agreement to acquire Poit Energia expected to complete earlier
than anticipated
Aggreko plc, the world leader in the supply of temporary power
and temperature control, is today issuing its Interim Management
Statement covering the period from 1 January 2012 to date.
Trading
The business has had a very strong first quarter, with both
International Power Projects and the Local businesses delivering
over 20% underlying revenue growth. Underlying Group revenues,
which excludes revenues from major events (Asian Games in 2011 and
London Olympics in 2012) as well as pass-through fuel and currency
movements, grew by 21% in the three months to 31 March 2012. On a
reported basis, revenues increased by 18%. Underlying trading
margins were slightly above last year.
International Power Projects’ revenues grew 21% in
constant currency and excluding pass-through fuel; average MW on
rent in the first quarter was 22% ahead of the prior year. Order
intake has continued to be strong, with a further 150 MW of new
projects secured since our full year results announcement on 9th
March; this takes order intake for the year to date to 450 MW. The
recent order intake includes 40 MW of new work in Asia and a 100 MW
of gas-fuelled power-plant in the Dominican Republic; this project
is for two years, and is worth around $80 million. The agreement,
which is subject to closing conditions usual for a contract of this
type, is described in more detail in a separate announcement also
issued today. Trading margins in International Power Projects in
the first quarter were at similar levels to last year.
Local business revenues in the first quarter in constant
currency were up 21% on the prior year on an underlying basis;
reported revenues were up 22%. Underlying revenues in our North
American business in the first quarter were up 22%, maintaining the
strong momentum with which we finished 2011. Revenues in Europe and
the Middle East grew by 11% on an underlying basis; within this,
rental revenues were up 15%, primarily driven by growth in Russia
and parts of the Middle East. Aggreko International’s Local
business continued to perform very strongly with underlying
revenues growing by 35% in the first quarter, with all areas
performing well. Underlying trading margins in the Local business
as a whole for the first quarter were a little higher than the
prior year.
Financial position
Net debt at £428 million has increased by £63
million in the three months to 31 March 2012, reflecting the front
loading of our capital spend, in part to build the fleet required
for the London 2012 Olympics. This compares to net debt of
£195 million at 31 March 2011; of the £233 million
year-on-year increase £148 million was accounted for by the
return of capital made to shareholders in July 2011 with the
balance, as anticipated, mainly relating to higher levels of
capital expenditure.
Acquisition of Poit Energia
As announced on 26 March 2012, Aggreko has
entered into an agreement to acquire Poit Energia, a leading
provider of temporary power solutions in South America. Good
progress is being made securing pre-closing conditions and
third-party consents, and we now expect that the transaction will
complete during April, which is earlier than we originally
anticipated.
Current Outlook
We have had a very strong start to the year in both the Local
and International Power Projects businesses. The performance of the
Local business for the year as a whole will depend upon trading in
the summer months, but the current environment is favourable and is
supported by the London Olympics which we now anticipate will have
a contract value of around £50 million. International Power
Projects has made an encouraging start to the year; strong order
intake coupled with a healthy prospect pipeline means we expect to
deliver strong growth for the year as a whole.
We continue to believe that we will deliver another year of good
growth in 2012.
A conference call will take place today at 0830 BST. To join the
call please contact Maitland on the number below for the dial in
details.
- ENDS -
Enquiries to:
Rupert Soames / Angus Cockburn
Aggreko plc
Tel. 0141 225 5900
Neil Bennett/ Tom Eckersley
Maitland
Tel: 020 7379 5151