TEMPORARY power supplier Aggreko has told investors its shale customers in the United States have started asking it to review prices.
Chief financial officer Carole Cran told the company's annual general meeting the company gets around 80 per cent of its revenues from the production area in that industry which has helped to mitigate the impact of oil price fluctuations.
Ms Cran confirmed Aggreko works across all the large shale basins with major oil companies although she admitted the impact of cuts in exploration spending along with lower prices was "not entirely straight forward" for the company.
She said: "We are being asked by customers if we can look at our pricing."
Ms Cran indicated Aggreko was looking closely at the matter and went on to suggest ongoing low oil prices should help to stimulate demand in alternative sectors.
Chief executive Chris Weston said the issue of price reductions is mainly confined to the US at the moment.
He said: "We operate in 30 countries around the world in oil and gas alone. We are seeing the biggest level of enquiry in shale which is not surprising as that is at the nexus of where the oil price fall and discussion is focused."
Mr Weston described the oil price situation as "fluid" but said Aggreko was able to create "mini-power stations" for its shale customers which can run off the flare gas created during the fracking process.
"We have some really good solutions for our customers that we can help them reduce their costs."
Mr Weston told shareholders at the AGM in Glasgow's Grand Central Hotel he had been hugely impressed with Aggreko's staff and products during his first few months in charge.
All resolutions put forward at the meeting were passed.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereComments are closed on this article