Aggreko performance boosted by Tepco contract

British temporary power supplier, Aggreko says a major contract with Tepco, after Fukushima boosted the company’s performance in 2011.

The company also said emerging market demand for electricity helped to drive double-digit revenue growth in the first quarter of 2012.

“We entered the year with good momentum. Demand for energy exceeds supplies available across emerging markets,” said Rupert Soames, chief executive, adding, “we’ve had very strong order intake so far this year.”

The company, which installs temporary power in developing countries where local companies cannot keep up with demand for energy, said underlying revenues grew 21 per cent for the first three months to March 31, reports FT.

Aggreko’s performance last year was boosted by a major contract to supply electricity to Tokyo Electric Power in the wake of the nuclear disaster in Fukushima, Japan.

This year, a series of international contracts and the acquisition of São Paulo-based Poit Energia, which management said would be completed by the end of this month, are expected to boost operating profits.

Aggreko will pay £140m for the Brazilian company, which it anticipates will raise sales in its South American operations by a third to £193m.

The FTSE 100 also announced on Thursday a two-year contract to supply 100 MW of emergency gas-powered generation to Edenorte Dominicana, an electrical distribution company in Dominican Republic. The contract is estimated to be worth about $80m.

Aggreko’s international power projects business now has 450 MW of new contracts for the year to date, which analysts at Barclays said put the company “well on the way” to the 1800 MW the company forecast it needs to secure in order to make a pre-tax profit of £379m.

The company said a contract to help supply electricity for the Olympic Games in London would be worth £50m, about £10m more than it expected.

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