AGGREKO has seen its underlying revenue rise six per cent in the third quarter of the year and confirmed it has yet to see any impact on its business as a result of falling oil prices.
The temporary power supplier, which has its headquarters in Glasgow, also announced the purchase of Cheshire-based Golden Triangle Generators for an undisclosed sum as a way to increase its footprint in the north east of England.
Across the group Aggreko saw its Americas revenue rise by 15 per cent in the quarter to the end of September while the Europe, Middle East and Africa (EMEA) grew four per cent.
Revenue in Asia Pacific fell nine per cent as a result of the slowing of the mining sector in Australia along with volume and pricing pressures in Indonesia. Foreign currency fluctuations are still having an impact with group reported revenue down three per cent. Aggreko saw its shares rise 52p, or 3.4 per cent, to 1594p, following the trading update.
Chief financial officer Carole Cran said the recent plunge in oil prices had not affected its operations in North America, where it supplies generators to a number of shale operators, and she still anticipated growth in that part of the business. She said: "Our sense on speaking to the guys on the ground is that the oil price would have to go to a lower level and for a sustained period before the shale producers would be worrying about their production. We are keeping a close eye on it."
The local business, which delivers an array of generally shorter-term projects, including sporting and entertainment events and provision of power following natural disasters, was up by four per cent in the third quarter.
Power projects, which provides longer-term power generation, was up by 10 per cent in the period.
Aggreko said its order intake there stands at 697 megawatts, ahead of the 530MW taken in the prior year. Ms Cran outlined how Aggreko has secured a new eight-month contract in Panama for a 104MW installation, building on an 80MW contract which had just come to an end. New work in Benin, Gabon and Guinea Bissau was also secured in the quarter.
In Japan, 150MW of diesel contracts have been extended through to the end of March while the group is also in talks about multi-year contract extensions in the Ivory Coast and Argentina.
A 120MW contract in Libya has also gone fully live again following a one month interruption while the security situation was reviewed.
Asked by analysts whether the falling oil price may make Aggreko's technology more attractive to customers Ms Cran was cautious.
She said: "Theoretically in power projects for many of the customers we have today and for prospective customers, a falling oil price should be good news in terms of the cost of the diesel. Unfortunately what we have seen in a number of these countries is currencies continuing to devalue.
"The other thing is I would suspect it would take a bit of time for it to filter through the decision making process. It is not something that would turn on a dime."
John Lawson at Investec kept a hold rating on the stock and said results were in line with forecasts.
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