Share price for Glasgow-based Aggreko hit a 10-month high, after it was announced as preferred bidder for a big contract in Brazil.

The company was selected to provide temporary diesel power for the Amazonas state for a period of 15 years.
Aggreko engineer and equipment
Analysts were encouraged that, whereas temporary power contracts usually run for a few years, the Brazilian deal would be much longer in duration

Connor Campbell, a senior market analyst at told Decentralized Energy, “Having hit a 10 month high on the back of news that it is the preferred contractor to supply diesel generators in the Amazon, Aggreko has fallen back slightly this Wednesday, investors seemingly waiting for confirmation of the deal before sending the stock any higher.”

“The contract would see the Scottish company supply the Amazonas region in Brazil for 15 years, a period that far outstrips the usual 1 year deals for temporary power.”

Brazil has suffered from electricity shortages, partly due to low levels of hydro power due to insufficient rainfall. This may indicate the potential demand for temporary power.

Aggreko initially rallied 1.7 per cent to £11.85 with the group due to host an investor meeting on Wednesday.