The slowdown in the Australian mining sector has impacted on the profits of global power rental group Aggreko in 2014, offsetting a boost from the World Cup in Brazil and the Glasgow Commonwealth Games.
In the first results released under the on-site power group’s newly appointed chief executive Chris Weston, Aggreko said that it had been hit by the strength of the pound, reducing the impact of earnings in other currencies on its bottom line.
Trading profits from the group’s local operations in the Asia-Pacific fell 46 per cent, largely due to a drop in demand for new iron ore mines. The strong pound reduced trading profits overall by £40m. Revenues for the group slid only slightly from £1,577m to £1,573m in 2014.
Despite disappointing performance in the Asia-Pacific market, Carole Cran, chief financial officer, said the underlying results were in line with company expectations.
Underlying revenue, adjusted for currency fluctuations, in its Local business and power projects divisions were up 8 per cent and 10 per cent respectively. Full-year order intake for power projects rose 4.4 per cent to 757 megawatts.
Mr Weston, who took up his position on January 1, said he was encouraged by the group’s performance. The company has recorded year-to-date order intake of 287 MW with contract extensions in Argentina, the Ivory Coast and Japan also secured.
