Aggreko hopes Olympics will boost profit to £190m

Shares of Glasgow-based temporary power giant Aggreko plc rose about 2% on Tuesday after it published a trading update for the nine months ended September 30, 2020, saying it expects to deliver full year pre‑exceptional profit before tax at the upper end of its guided range.

“Underlying group revenue … for the period was down 14% on last year, driven by the significant impact of the pandemic in the last two quarters and the lower oil price,” said Aggreko.

But the firm added: “We are encouraged by the increased levels of activity we are seeing and, despite continuing uncertainties surrounding the pandemic and the absence of our usual second half seasonality, we expect to deliver full year pre‑exceptional profit before tax at the upper end of our guided range of £80 to £100 million …

“Our work for the Tokyo Olympics continues to progress well, and we remain confident of delivering the Games to the revised schedule.

“We are also making good progress in our discussions with TOCOG on the necessary contract revisions to reflect both scope changes and the impact of the delay of the Games into 2021 …

“There is continuing uncertainty as to the speed of the market recovery from the pandemic and the likely range for the oil price in 2021.

“However, our trading trends indicate increases in activity levels for our more transactional rental business and an improved outlook on the timing of our larger project mobilisations within Power Solutions.   

“Based on our current assumptions of a continued gradual economic recovery, a relatively stable oil price, the Tokyo Olympics proceeding as planned at an increased overall contract value, and the resumption of the group’s all-employee annual performance bonus scheme, we expect to deliver profit before tax in 2021 in the range £170-190 million.”

Aggreko also released a statement saying that “by 2050 or sooner” the company and the services it provides will be net zero.

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