Aggreko stocks boosted by World Cup contracts

The share price of Aggreko is up today (December 16th) after the company confirmed it has won the right to supply temporary power for the World Cup in Brazil next summer.

Aggreko revealed that it will also be supplying energy for the Commonwealth Games next year, which are due to be held in Glasgow, Scotland.

In a trading update, Aggreko stated that it now expected full-year results to be slightly ahead of expectations, with its stocks soaring in value as a result. This afternoon, the share price of the firm was around eight per cent higher and still rising.

The company explained that in the wake of the major new contracts being awarded, its revenues are now projected to be £1.57 billion, which will be broadly in line with the previous year.

A company statement said: "We are delighted to report that we have been chosen as the supplier of temporary power for the 2014 Fifa World Cup and the Glasgow 2014 Commonwealth Games."

Aggreko revenues

Once its work on the 2012 Olympics and other factors have been stripped out of its results, Aggreko stated that revenues for 2013 would be up by three per cent on an underlying basis. 2012 was a particularly strong year for the organisation due to its involvement in the Olympics.

Europe, the Middle East and Africa, as well as the Americas, were all areas of strong growth for the Glasgow-based company in recent months, although it saw a 12 per cent decline in Japan.

Pre-tax profits are now forecast by the company to be "at least £335 million", which will be a slight fall on last year's figure of £365 million. Rupert Soames, chief executive of Aggreko, said: "We look forward to supporting the Organising Committee by providing a seamless temporary power supply across all competition venues and ensuring an uninterrupted television broadcast to millions of viewers throughout the world."

At 14:37 GMT this afternoon, the share price of Aggreko was 8.77 per cent up for the day's trading and stocks were selling for 1,647.00.

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