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Aggreko set to monitor virus' risk to Olympics.

Byline: JACK RICHARDSON @JakRich93

SHARES in back-up power generator company Aggreko closed up more than five per cent yesterday as the firm reported strong profit and said it was making progress with the Tokyo 2020 Olympics despite the coronavirus outbreak.

The temporary power supplier yesterday reported an increase in profit after tax from PS125m to PS129m for 2019.

Final dividend per share increased from 17.1p in 2018 to 18.3p in 2019.

Operating cash inflow ballooned 48 per cent from PS423m to PS628m from 2018 to 2019.

"Our 2019 results demonstrate the significant progress we have made to improve the group's financial performance," said chief executive Chris Weston.

The business noted its rental solutions arm had performed strongly with an operating profit increase of 22 per cent and the power solutions utility arm's underlying profit also increased by 21 per cent. However, the power solutions industrial arm's underlying profit fell seven per cent.

Aggreko will supply equipment for the Olympic and Paralympic games, which have faced speculation of being disrupted or even cancelled due to the crisis.

Companies around the world have been affected by the spread of the coronavirus with sectors including the car and airline industries reporting significant disruption.

Last week saw a major fall in international markets with the oil price around $50 (PS39) a barrel.

This comes on the day the US Federal Banking Reserve cut interest rates in order to safeguard the US economy from a slowdown.

China, the source of the outbreak, is also seeking to stimulate its economy following the disruption.

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Publication:City AM (London, England)
Date:Mar 4, 2020
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