LONDON (Alliance News) - Aggreko PLC on Thursday said its profit and revenue dipped in 2015 as it took a hit from the low oil price, a price reduction on a contract extension in Bangladesh, and slower payments in Venezuela and Yemen.
The FTSE 250-listed temporary power company said its pretax profit fell to GBP226.0 million in 2015 from GBP289.0 million in 2014, in line with its expectations as it took a hit from lower demand from the oil and gas industry and pricing pressures which drove its trading margin down to 16% from 19%.
Revenue fell to GBP1.56 billion from GBP1.57 billion the year before, holding up relatively well as Aggreko's diversity geographically offset the impact of lower commodity prices and weakening economic growth in emerging markets.
The group is working on initiatives covering its account management, sales teams and sector-specific strategies in order to return trading to health and said more fuel-efficient gas products will be entering its portfolio in the second half of 2016. Aggreko also remains on track to deliver GBP80.0 in annual savings by 2017 through restructuring actions and procurement practice changes.
Aggreko said it will pay a flat final dividend of 17.74 pence per share, meaning its total payout also will be flat at 27.12p.
"We have ended 2015 with a strong balance sheet, with net debt slightly down; as we continue to generate good levels of operating cashflow; and maintain discipline in our investment in new fleet," said Chief Executive Chris Weston.
"As we enter 2016 I am encouraged by the prospect pipeline we are seeing and pleased by the progress we are making with our business priorities," Weston added.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
