Aggreko PLC Trading Update (9642T)
July 24 2015 - 2:00AM
UK Regulatory
TIDMAGK
RNS Number : 9642T
Aggreko PLC
24 July 2015
24 July 2015
TRADING UPDATE
In anticipation of the approval of our Bangladesh contract,
given the ongoing security challenges in Yemen, and as a result of
a further slowdown in our North American oil and gas related
business, we now expect the 2015 interim and full year results to
fall short of current market expectations.
In Power Projects, our 325MW of gas contract extensions in
Bangladesh are entering the final stages of approval, with our
expectation being that 180MW will be secured into the first half of
2016 and the remaining 145MW for three years. The trading terms
secured for these extensions, which would retrospectively apply
from the second quarter 2015, are likely to be less favourable than
our earlier expectations. While we will be seeking to mitigate the
profit impact by reducing operating costs, there will be a net
adverse impact on profits this year and in 2016.
The ongoing security challenges in Yemen have impacted our
ability to operate at full capacity and we remain concerned about
the impact for the remainder of the year.
In addition, at the time of our trading update in May 2015 we
said that we had started to see a decline in volumes and pricing in
our shale oil business and that the full year impact of a lower oil
price on our business remained unclear. Since then we have seen a
further slowdown in North America with volumes in the shale basins
continuing to decline. More recently, we have begun to see an
impact on our offshore oil and gas business in the Gulf of
Mexico.
As a result of these trading issues, we now expect our full year
profit before tax to be between GBP250 million and GBP270 million
at current exchange rates(1) , which have moved adversely in recent
months.
On 6 August 2015 the Group will announce Interim Results for the
half year to 30 June 2015 and Chris Weston, CEO, will outline the
Group's business priorities together with the actions being taking
to position the Group for future growth.
Enquiries
Investors & Analysts
+44 7876 478
Louise Bryant, Aggreko plc 272
Media
John Sunnucks / Lorna Cobbett, +44 20 3772
Bell Pottinger 2500
________________ (1) The profit before tax range is based on the
following full year average exchange rates for our major currencies
relative to sterling: US dollar 1.55, Argentinian Peso 13.85, Euro
1.38, Brazilian Real 4.72, Australian Dollar 2.00 and Russian
Rouble 87.29.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTKXLFLEDFFBBQ
Aggreko (LSE:AGK)
Historical Stock Chart
From Sep 2024 to Oct 2024
Aggreko (LSE:AGK)
Historical Stock Chart
From Oct 2023 to Oct 2024