Aggreko points to 55% jump in interim pre-tax profit

Aggreko, the world player in the supply of temporary power and temperature control, seems to win both ways – both when the world is too hot and also when it’s too cold.

In a trading update this morning, Aggreko says that during the six months to 30 June turnover jumped ahead by 20% and pre-tax profit will probably pan out at 55% higher than the previous figure.

Aggreko said that a strong performance in the international power projects division will be partly offset by weaker conditions in the group’s local businesses division.

Once a few bits of tweaking have been done, in other words looking at the sums in constant currency terms and “excluding pass-through fuel” (what ever that technical term means) the expectation is that trading profit will be 15% higher.

The group reported: “Conditions in most of our Local Businesses have deteriorated in the second quarter, most noticeably in temperature control, where volumes are well down on last year. 

“Although there are regional variations, in aggregate our power business is holding up well, and megawatts on rent are currently at similar levels to last year, excluding the Beijing Olympics. 

“Generally, across most products and geographies, there has been some pressure on rates. 

“We expect that revenues in constant currency in the first half will be about 10% lower in North America; about 11% lower in Europe and the Middle East; and at similar levels to last year in Aggreko International's Local Businesses, adjusted for the impact of the Olympics (-20% unadjusted).

 “Looking ahead to the second half, International Power Projects continues to trade strongly. 

“We expect that this business will grow its revenues in the first half, in constant currency and excluding pass-through fuel, by around 40%, and by over 80% in sterling terms. 

Whilst the rate of signings of new projects has slowed, the prospect pipeline remains strong.  Project extensions are running at a healthy rate, and margins in the first half are likely to be at record levels. 

“In the second half we expect the business will continue to grow but, given the very large number of new projects commissioned in the second half of 2008, it will be at a noticeably slower rate.”