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Aggreko Shares Climb On Higher FY12 Profit, Dividend Hike

3/7/2013 7:46 AM ET

Shares of Aggreko Plc (AGK.L, ARGKF.PK) climbed around 14 percent in the morning trade on London Stock Exchange after the UK-based temporary power provider reported higher profit in its fiscal year 2012, and announced a 15 percent increase in dividend.

Looking ahead for 2013, the company said its expectations for the year as a whole remain unchanged from previous guidance.

In December, the company had said that group performance in 2013 would likely be slightly lower than in 2012 amid the difficult economic environment and certain impacts including the absence of benefit from Olympics and the planned reduction of US troops in Afghanistan.

In its fiscal year 2012, the company's pre-tax profit increased to 367.0 million pounds from 323.7 million pounds last year. Adjusted pre-tax profit, which excluded certain exceptional items, grew 11 percent to 360.5 million pounds.

Profit for the year was 276.0 million pounds or 103.86 pence per share, compared to 260.1 million pounds or 97.49 pence per share last year. Adjusted earnings per share increased 16 percent to 100.40 pence.

Revenue increased 13 percent to 1.58 billion pounds from 1.40 billion pounds last year, benefited by growth in all regions and segments. On an underlying basis, revenues increased 14 percent.

Underlying results excluded revenues from the Poit Energia acquisition, pass-through fuel and currency movements, as well as major events.

Aggreko noted that its performance was strong in both business segments. Power Projects' underlying revenues grew 15 percent, and the Local business' revenues rose 13 percent.

Meanwhile, trading margin in Power Projects was six points lower than 2011, principally due to increased bad debt provisions, mobilisation costs on Mozambique contract and the reduction in revenues from US Military contracts.

Further, the company said its Board recommended a final dividend of 15.63 pence per ordinary share, resulting in a total dividend for the year of 23.91 pence, a 15 percent increase from last year.

Going ahead, Aggreko said its local business has had a very strong start to the year, with almost 20 percent more power on rent than a year ago, helped in part by acquisition of Poit Energia in April 2012.

In Power Projects, trading continues to be subdued and is likely to remain so in the first half; however, in recent weeks there has been some improvement in the prospect pipeline.

In London, Aggreko shares are currently trading at 2,012 pence, up 254 pence or 14.45 percent.

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by RTT Staff Writer

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