Scott Wright
AGGREKO declared it was pressing ahead with preparations to support the Olympic Games as the organisers of Tokyo 2020 admitted for the first
time that the event may
have to be postponed because of coronavirus.
But the temporary power generator said the collapse in the price of oil in recent weeks has added to the uncertainty it faces, noting it is starting to face challenges getting people to sites because of global travel restrictions brought in to halt the pandemic.
Glasgow-based Aggreko has a $200 million (£155m) contract to provide power to 44 venues, the athletes’ village and the international broadcast centre during the Tokyo Games, which are due to start on July 24.
The company said yesterday it was in regular dialogue with the Tokyo 2020 Olympic and Paralympic Games and that, “in line with the current International Olympic Committee (IOC) guidance, we are continuing our work in support of delivering the Games”.
The IOC raised the prospect of postponing the Games for the first time on Sunday night, when it said it will step up “scenario planning” for the event. That could include a change to the start date.
Aggreko said the impact on its revenues because of coronavirus since its last statement on March 3 has been limited, noting that the effects have related to the events sector. But it said moves to contain and delay the spread has sparked “significant uncertainty” over future demand.
Aggreko said: “The recent sharp fall in the oil price has compounded this level of uncertainty. Additionally, we are beginning to face some operational challenges getting our people to project sites as countries close borders and restrict travel.”
Aggreko has withdrawn proposals to pay a dividend at its annual meeting on April 23, and said it is now unable to retain full-year guidance flagged on March 3.
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