Aggreko profits slump prompts jobs cut

A slowdown in the North American oil and gas sector, lower than expected pricing on a Bangladesh contract extension and lower production levels in Yemen due to ongoing security challenges have impacted UK-based power rentals company Aggreko. The group notes power projects revenue was down 9%, on the previous year.

The company has revealed plans for a new organisational structure, creating two separate business units - Power Solutions and Rental Solutions - effective from 1 August. In a statement Aggreko says that 2016 will be a year of change in the business with markets remaining difficult; margins and returns are likely to be lower in the short term.
Aggreko engineer

Commenting on the results Fiona Cincotta, a senior market analyst at, said: ‘Aggreko had previously warned of falling profits and they certainly didn´t disappoint there.

‘Chief executive Chris Weston also unveiled a massive cost cutting drive involving the shedding of 600 jobs. He has already shaken up the structure of Aggreko and now looks to improve skills across the company in order to deliver more complex projects in addition to improving its technology to reduce costs for customers.

‘These are a big set of plans for the company and Aggreko remains a strong firm in a sector which still has potential for growth. However weaker oil and gas markets in North America and ongoing security problems in Yemen mean that near term head winds remain strong and difficult markets are expected well into 2016.’

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...