Aggreko Lifts Dividend by 15%
LONDON -- Aggreko (ISE: AGK.L) announced a dividend increase of 15% in its first-half trading results of 2012 this morning. Revenue and trading profit increased by 15% and 25%, respectively. Underlying revenue and trading profit were up 16% and 23%, respectively, and earnings per share increased by 30%.
The company, which supplies temporary power and temperature control solutions to the London Olympics and businesses all over the world, said that while it was being helped by the Olympics contract -- worth around 55 million pounds -- underlying growth for Europe and the Middle East is patchy. However, continued growth is expected in the second half of the year from increases in power volumes and rates in North America.
Chief executive Rupert Soames commented:
It's been a very successful six months. We substantially expanded our Latin American business with the acquisition of Poit Energia in Brazil; we have built a new temporary power plant in Mozambique, which, uniquely, is providing power both to both the South African and Mozambique utilities, and which will deliver revenues of over $200 million over the next two years; our order-book is at record levels; we have opened our new manufacturing facility in Scotland; and we have delivered what will be the world's largest contract for temporary power for a major sporting event, in the form of our work as the exclusive supplier of temporary power for the London Olympics.
Looking ahead, we continue to believe that we will deliver another year of good growth in 2012, and we reiterate our previous guidance of fleet capital expenditure of around 415 million pounds.
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