Aggreko share price: Q1 underlying revenue rises 4 percent

Aggreko Plc (LON:AGK) has this morning issued a trading update. Here are the highlights from Aggreko’s statement:

Chris Weston, Chief Executive, commented:
“Whilst it is early in the year and the market environment remains uncertain, we continue to expect underlying1 trading profit for the full year to be broadly in line with last year. We are making good progress identifying our business priorities and look forward to providing an update at the time of our interim results in August.”
Trading
Underlying revenue for the first quarter was 4% ahead of last year, with reported revenue up 8%, benefiting from the currency translation effect of a stronger US dollar. All growth rates set out below are on an underlying basis.
Outlook
As we look forward, we expect growth to improve in the Local business, but it remains unclear what the full year impact of a lower oil price will be across all our markets.
In Power Projects, year to date order intake is solid and we are making progress on key contract extensions. However, external market conditions remain difficult in a number of our markets, in particular the security challenges in Libya and Yemen.
We anticipate fleet capital expenditure to be around £300 million for the full year, with £140 million now expected in the first half, reflecting planned investment in our gas fleet. As we have said in the past, our model allows us to flex this number up and down, and we will continue to do this based on the opportunities that we see in front of us.
Overall, as indicated in the March results announcement, underlying trading profit for the first half is expected to be lower than last year, principally due to higher mobilisation costs, with underlying trading profit for the full year being broadly in line with last year.
As of 07:18 BST, Thursday, 14 May, Aggreko plc share price is 1,624.00p.