Aggreko expects $315m from revised Olympic deal

Shares of Glasgow-based temporary power giant Aggreko plc rose about 4% on Wednesday after it announced it agreed contract revisions with The Tokyo Organising Committee of the Olympic and Paralympic Games “to reflect both scope changes and the impact of the delay of the Games into this year.”

Aggreko said the revenue value the contract is now expected to be around $315 million.

The Glasgow firm said its guidance for the group’s profit before tax for 2021 of £170 million-190 million “assumes the Games proceed as planned at this increased overall contract value.”

Aggreko said: “We are pleased to confirm that we have now agreed and signed the necessary contract revisions with The Tokyo Organising Committee of the Olympic and Paralympic Games to reflect both scope changes and the impact of the delay of the Games into this year.

“The total revenue value to the group is now expected to be around $315 million.

“As we confirmed in our third quarter trading announcement on 17 November 2020, our preparation work for the Games continues to progress well and we remain confident of delivering to the revised schedule.

“As previously noted, our guidance for the group’s profit before tax for 2021 of £170-190 million assumes the Games proceed as planned at this increased overall contract value.”

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