Aggreko has reported a very strong first quarter growth in both International Power Projects and the Local businesses delivering an underlying revenue over 20 percent.
In the three months to March 2012, underlying group's revenue rose 21 percent, but on a reported basis it rose by 18 percent. However, underlying trading margins were slightly above the last year.
The revenue excludes revenues from major events such as the Asian Games in 2011, London Olympics in 2012 and pass-through fuel and currency movements. Shares of the company climbed 2.41 percent at 0857 AM BST on LSE.
"We have had a very strong start to the year in both the Local and International Power Projects businesses. The performance of the Local business for the year as a whole will depend upon trading in the summer months, but the current environment is favourable and is supported by the London Olympics which we now anticipate will have a contract value of around £50 million. International Power Projects has made an encouraging start to the year; strong order intake coupled with a healthy prospect pipeline means we expect to deliver strong growth for the year as a whole," Aggreko said in a statement.
At the end of first quarter, the group's net debt grew by £63 million to £428 million, which reflects the front loading of its capital spend, in part to build the fleet required for the Olympics.
The temporary power solutions provider has also signed a 100 MW gas project today for approximately $80 million over a two year period and will serve as an interim emergency solution to Edenorte, the Northern electrical distribution company of CDEEE, in the Dominican Republic.
"We are delighted to be have been selected to be of service to CDEEE to help address the temporary power needs in the Dominican Republic. This will improve the stability of the national grid which has had to deal with rapidly increasing demand due to the rapid economic growth of the country," said Chief Executive of Aggreko, Rupert Soames.