Upbeat Aggreko shrugs off disappointing profitsComments Off on Upbeat Aggreko shrugs off disappointing profits
Aggreko, which provides temporary power to events like Glastonbury, has charmed the City despite warning that its first-half profits will be lower.
The company reported profits that were at the lower end of expectations, as revenues fell slightly because of the impact of a lower oil price and slower contract payments.
But the power provider argued that it still had a healthy pipeline of business, sending the shares up by 8% to 968.5p.
The update came despite high-profile problems in Brazil where Aggreko decided not to provide power for the Olympic Games for the first time in years.
Normally an Olympic year would be a particularly strong one for the power group.
Pre-tax profits fell by 13% to £252 million in 2015, but the company’s full-year dividend was maintained.
Aggreko surprised investors in July when it issued a profits warning regarding its business in North America.
The company also said that there were security challenges in Yemen, Libya and Venezuela which it is continuing to monitor.