Aggreko counts the cost of turmoil in Libya and YemenComments Off on Aggreko counts the cost of turmoil in Libya and Yemen
Aggreko knew a deal to supply 120 megawatts of power to Libya was precarious when the agreement was struck last year.
The group did not even include it in the order book initially, given the “volatile conditions” of a country being torn apart by civil war.
The 53-year-old group has worked in conflict-scarred Yemen for a decade and currently supplies 150MW — one megawatt can provide electricity to several hundred homes.
Aggreko uses local contractors in these countries and does not risk sending its own employees.
But improved trading elsewhere, such as in the Americas, means that profit — allowing for currency fluctuations — is likely to be flat this year.
Group revenue was up 4% in the first three months of the year, but taking into account advantageous US currency conversions this doubled to 8%.
Despite problems in Yemen and Libya, the Europe, Middle East, and Africa region saw trading grow by 10% in the first quarter.