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Aggreko reviews North America specialist equipment business as third-quarter revenue falls

Published 16/11/2016, 07:52
© Reuters.  Aggreko reviews North America specialist equipment business as third-quarter revenue falls
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(Reuters) - Temporary power provider Aggreko Plc (L:AGGK) said it was reviewing the carrying value of its specialist equipment business as further weakness in the North American oil and gas market weighed on quarterly underlying revenue.

The company said underlying revenue for the third quarter ended Sept. 30 was 7 percent behind last year, citing lower North American revenue due to ongoing weakness in upstream oil and gas with further pricing pressure and a reduction in gas volumes.

"Given this continued decline we are reviewing the carrying value of specialist equipment for the oil and gas market, notably our small gas generators," the company said in a statement.

Aggreko, whose plants are used to supplement base-load capacity, said it expected 2016 results to be broadly in-line with current market expectations, with pre-exceptional pretax profit of around 225 million pounds at current currency rates.

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