Aggreko results suffer due to Argentina contract

Shares at the world’s largest temporary power provider have continued to experience a negative effect from a contract in Argentina earlier this year.
Aggreko‘s shares slumped 11 per cent, and revenue dropped 15 per cent at the company’s power solutions utility division, partly due to repricing in Argentina.
The company had issued a profit warning in March that its full-year results would be hit due to discounts in the Latin American country.

The decline in the power solutions utility business offset a 9 per cent increase in revenue in its rental solutions unit, which benefited from high demand for power generators due to hurricanes in southern United States and the Caribbean.

The company, which provides generators to cover electricity shortfalls or live events, reiterated its full-year outlook. According to a company-compiled consensus, analysts’ average expectation is for a full-year pre-tax profit of à‚£203.6m and revenue of à‚£1.62bn.

Aggreko shares were down about 11 percent at 864.50 pence in morning trading on the London Stock Exchange, putting them on course for their worst day since the company issued its profit warning in March.à‚ 

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