Financial Results Centre

Interim Results 2016

Operating Review and Financial Performance:
Chris Weston, CEO & Carole Cran, CFO

Results Highlights

Group Summary

  • Difficult economic backdrop impacting a number of our markets, particularly North America
  • Strong Power Solutions Utility order intake of 875MW
  • Utility business debtor provision increased by $17m
  • Good progress around business priorities of customer, technology and efficiency
  • Interim dividend maintained reflecting confidence in the strength and prospects for the Group

Chris Weston, Chief Executive Officer, commented:

“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 and the seasonal weighting of our North American business to the second half.

I am pleased with the good progress we continue to make with our business priorities and the strong level of order intake in Power Solutions Utility to date.”

Business Unit Highlights

Rental Solutions

  • North American revenue down 20% driven by:
    • Upstream oil & gas decline that started in Q2 2015
    • Petrochemical & refining slow first half after strong 2015
  • Good growth in AUSPAC and Europe
  • Double digit growth in temperature control

Power Solutions

Industrial

  • Revenue down 12%; excluding European Games from comparative revenue down 2%
  • Latin America markets difficult, in particular our transactional business in Brazil
  • Strong performances in Russia and Africa and solid performance in Middle East despite low oil price

Utility

  • Revenue decrease driven by Bangladesh contract renewal and off-hiring of Mozambique and Panama contracts
  • Strong order intake of 875MW (2015: 451MW)
  • First half off hires of 20% (H1 2015: 8%); driven by Mozambique
  • Order book over 68,000MW months includes multi-year contracts in Brazil and Zimbabwe
  • Payment challenges; in particular Venezuela driving $17m debtor provision increase

Read the press release for more information.