Aggreko posts record profits

Aggreko_profits

Aggreko reported record profits for 2010 but stated that unrest in the Middle East region added significant uncertainty to its outlook for 2011.

The company saw revenue increase by 20.1 per cent in the year ended 31 December 2010 to £1.2 billion and pre-tax profit jumped 24.6 per cent to £307mn.

Rupert Soames, Chief Executive of Aggreko, said, "2010 demonstrated the strength of Aggreko's business model. We go into 2011 with strong momentum, a record order book in International Power Projects, and continued strong demand driven by the world-wide shortage of power."

One of the big factors behind the company's stellar 2010 results was the high revenues, £87mn, it got from events such as the Winter Olympics, the Asian Games and the FIFA World Cup. Aggreko's International Local Business arm performed particularly well with trading profit more than doubling to £55.9 million.

Other arms also saw good growth with European & Middle Eastern trading profit climbing 17.3 per cent to £41.8 million and the International Power Projects arm reporting trading profit growth of 4.9 per cent to $259.9 million.

The ongoing unrest in the Middle East region has cast a cloud over the companies 2011 predictions with Philip Rogerson, Chairman, stating that: "The current instability in some countries in the Middle East and Africa makes the task of predicting the outcome for the year more than normally difficult. Our global scale and diversification of risk exposures will be helpful as we manage through this period of uncertainty, and we anticipate that for the year as a whole trading profit in 2011 will be at a similar level to 2010."

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