UPDATE 1 — Glasgow-based international mobile power firm Aggreko said in a first quarter trading update that its outlook for 2017 remained unchanged and that it still expected profit before tax and pre-exceptional items to be lower than 2016 following recent problems in Argentina.

Aggreko has been hit by the repricing of contracts in Argentina — but the firm said that absent these problems, it expects to deliver growth across the group.

On first quarter trading, Aggreko said: “Revenue excluding the impact of currency and pass-through fuel for the first quarter was 2% up on last year with reported revenue up 18%.

“Excluding the impact of re-pricing and off-hires in Argentina, revenue growth was 7% and 25% respectively.”

In its rental solutions business, revenue was up 3% on last year. Oil and gas sector revenues in North America have stabilised and, although a third lower when compared to the first quarter of 2016, were up on the fourth quarter of 2016.

Aggreko’s power solutions industrial revenue was 17% higher with strong performances in Eurasia and the Middle East and a good performance in industrial business in Africa.  

Asia and Latin America continued to be more challenging for power solutions industrial and Aggreko said “action is being taken to right size these businesses.”

Revenue in Aggreko’s power solutions utility business was 7% lower than last year “due to repricing and off-hires in Argentina.”

Aggreko CEO Chris Weston said: “I am pleased to see underlying growth in both business units, in particular in power solutions industrial. 

“We continue to execute on our business priorities: investing in technology; improving our customer focus; and delivering efficiencies.  

“The new products have been well received in the market and it is good to see that our investment in technology is beginning to deliver results.”