August 11, 2020
Temporary power rental specialist Aggreko has seen a 12% drop in its revenues in the first half of 2020 as a result of the Covid-19 pandemic and lower oil prices, but trading has begun to stabilise and the company has expressed confidence about its resilience.
The UK-based firm reported group revenues of £667 million in the six months to 30 June.
Operating profit before exceptional items came to £64 million, representing a 15% drop compared to the same period in the previous year.
Meanwhile, profit before tax was £47 million, down 13% on the first half of 2019.
Within those profit figures, the Rental Solutions division posted underlying operating profit of £44 million, which represents 69% of group revenues and was down 7% on the previous year.
The Power Solutions Industrial division made an underlying operating profit of £11 million, down 45%. This was said to be driven primarily by a more challenging trading environment in Eurasia.
However, Aggreko’s Power Solutions Utility division saw its underlying operating profit rise by 9% to £9 million. The improvement was driven by cost-saving initiatives.
Fleet capex in the first half of the year increased by 4% to £86 million, compared to the same period in 2019.
Expressing pride in Aggreko’s staff, Chris Weston, the company’s CEO, said, “I would like to recognise and thank everyone at Aggreko for the great job they have done in responding to the Covid-19 pandemic, in the way they have adapted and continued to serve our customers safely and reliably through these challenging times.”
He added, “The immediate steps we took to reduce our cost base and increase our focus on cash generation have enabled us to maintain the strong financial position in which we entered the crisis, while supporting national efforts through practical assistance and without drawing on UK government financial support.”
Weston went on to say, “We entered the year with positive momentum and we continue to believe that our focus on the disciplined execution of our four strategic priorities positions us well to meet our customers’ evolving needs in the changing energy market.
“While the outlook remains uncertain and we do not expect to see our usual second half seasonality, the gradual improvement in demand we have seen in some sectors since May gives us confidence that we can deliver a pre-exceptional profit before tax this year in the range £80-100 million.”
Response to Covid-19
The events industry has been hit hard, and most significant for Aggreko is the postponement of the Tokyo Olympic and Paralympic Games until the summer of 2021.
There has also been a sharp reduction in oil price, which has impacted two of Aggreko’s key market sectors: oil and gas, and petrochemical and refining.
In response to the pandemic, Aggreko established four near-term priorities to manage the business through the crisis:
April 16,Issued by the Ministry of Natural Resources and other seven departments《Notice on Further Strengthening the Construction of Green Mines》(Natural capital regulation〔2024〕Number),Proposed by the end of 2028,The working mechanism of green mine co
April on earth All things grow,Good luck again and again @All machine friends Your Spring Lucky Sign has been generated Excellent performance,It's obvious at a touch Click on the lucky sign below You can trigger your o
Recently,The world's largest single building under construction——Good News from the Muqab Square City Project in Riyadh, Saudi Arabia,With the help of dozens of Zoomlion excavators,New Breakthrough in Project Construction,Its earthwork
April 15,Zoomlion 2000-ton crawler craneZCCSuccessfully Hoisting Dome of Unit 8 of Tianwan Nuclear Power Plant with 32000.,This is another significant progress after the successful hoisting of the dome ball belt in the unit on March 13.。At this point,Z
Copyright Notice 2002-2024 global-ce.com Construction Machinery Online. All rights reserved.
Address: Room 901, Building C, Ruipu Mansion, Hongjunying South Road No.15, Chaoyang District, Beijing.100107 P.R.China