Aggreko (AGK)

Sector:

Support

Index:

FTSE 250

841.20p
   
  • Change Today:
      9.20p
  • 52 Week High: 876.60p
  • 52 Week Low: 691.80p
  • Currency: UK Pounds
  • Volume: 312,456
  • RiskGrade: 123

Aggreko loses power on Argentina, order intake concerns

By Michele Maatouk

Date: Tuesday 21 Nov 2017

LONDON (ShareCast) - (ShareCast News) - Aggreko shares tanked on Tuesday as investors focused on disappointing order intake and weakness in Argentina in the temporary power provider's third-quarter results.
In an update for the period from 1 July to 20 November, the company said revenue rose just 1% on last year, with reported revenue up 8%. Excluding the impact of Argentina, revenue was up 3% on an underlying basis.

Rental Solutions revenue increased 9%, with revenue in North America up 10%, or 3% excluding the impact of the hurricanes, which generated incremental work but also resulted in the cancellation of maintenance work.

In the Power Solutions Industrial division, revenue was 6% higher, with a strong performance in Eurasia and a good performance in Africa. However, the Middle East saw lower volumes in Qatar after the imposition of sanctions, and in Saudi Arabia, where the lower oil price continues to impact the economy.

In Power Solutions Utility, revenue fell 15%, driven by re-pricing and off-hires in Argentina. Excluding the impact of Argentina, revenues were down 7%. Meanwhile, the year-to-date order intake is 666 MW, down from 1,034 MW last year.

Aggreko said the prospect pipeline continues to be healthy, although it is taking longer to convert than last year. In Japan, half of its 148 MW contract has off-hired early, paying an early termination fee, and it expects the rest to off-hire in the first quarter of 2018. In addition, it continues to expect that the remaining 214 MW of volume in Argentina will off-hire at the end of 2017.

The off-hire rate for the nine months ending 30 September was 24% and Aggreko expects the full year rate to be in line with its historic average of around 30%, while forecast fleet capital expenditure is unchanged at around £300m.

"Our full year guidance remains unchanged. The trading performance continues to support our view that, Argentina aside, we will grow this year," Aggreko said.

RBC Capital Markets said it would expect 2018 consensus forecasts to come down 5-10% given a weak order intake and further off-hires.

Meanwhile, UBS said that while revenue growth of 1% is a small improvement compared to a flat performance in the first half of last year, it is slightly below the bank's forecast of 3% growth.

"While FY18 guidance will only be given in Mar-18, Aggreko is flagging some more headwinds today with Japan off-hiring early and Argentina's longer running to end this year. FY18e consensus PBT of circa £225m currently implies more than 12% growth overall, but these factors make this challenging and we expect to see consensus downgrades."

At 0915 GMT, the shares were down 9.3% to 879.50p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Aggreko Market Data

Currency UK Pounds
Share Price 841.20p
Change Today 9.20p
% Change 1.11 %
52 Week High 876.60p
52 Week Low 691.80p
Volume 312,456
RiskGrade 123

Aggreko Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
23.39% below the market average23.39% below the market average23.39% below the market average23.39% below the market average23.39% below the market average
39.34% below the sector average39.34% below the sector average39.34% below the sector average39.34% below the sector average39.34% below the sector average
Price Trend
35.93% above the market average35.93% above the market average35.93% above the market average35.93% above the market average35.93% above the market average
54.33% above the sector average54.33% above the sector average54.33% above the sector average54.33% above the sector average54.33% above the sector average
Income
1.86% below the market average1.86% below the market average1.86% below the market average1.86% below the market average1.86% below the market average
14.61% below the sector average14.61% below the sector average14.61% below the sector average14.61% below the sector average14.61% below the sector average
Growth
67.04% below the market average67.04% below the market average67.04% below the market average67.04% below the market average67.04% below the market average
72.88% below the sector average72.88% below the sector average72.88% below the sector average72.88% below the sector average72.88% below the sector average

What The Brokers Say

Strong Buy 3
Buy 1
Neutral 4
Sell 1
Strong Sell 4
Total 13
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Aggreko Dividends

  Latest Previous
  Interim Final
Ex-Div 05-Sep-19 18-Apr-19
Paid 01-Oct-19 24-May-19
Amount 9.38p 17.74p

Trades for 13-Sep-2019

Time Volume / Share Price
16:43 10,000 @ 836.69p
16:43 10,000 @ 836.69p
16:43 10,000 @ 844.22p
16:43 10,000 @ 844.22p
16:35 138,041 @ 841.20p

Aggreko Key Personnel

CEO Chris Weston
CFO Heath Drewett

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