Aggreko wins Brazil World Cup power contract
Monday 16 December 2013
Temporary power firm Aggreko — responsible for keeping the lights on and the cameras rolling at the last World Cup in South Africa and at the London 2012 Olympics — has been chosen by FIFA to perform the same duties across 12 different venues in Brazil.
The contract is worth up to $15 million (£9.1 million).
Closer to home, Aggreko also announced a similar contract win for Glasgow’s 2014 Commonwealth Games worth up to $10 million.
The wins came as Aggreko nudged up full-year profit forecasts to £335 million — ahead of previous consensus estimates of £331 million — on revenues of £1.57 billion.
This sent the company’s shares up more than 5 per cent to the top of the FTSE 100 leaderboard, rising 85.5p to 1601.5p.
Chief executive Rupert Soames said the World Cup contract would be carried out largely by its local business in Brazil, which employs around 700 people.
“We’re providing secured power for the floodlights, broadcasters and security. It’s extremely hard work and a technical challenge,” he said.
Aggreko will supply up to 46MW of power to the international football tournament — enough to power 100,000 homes in South America — through a 200-km network of heavy-duty electrical cable.
The company has also signed a six-month, 80MW contract in Panama, under which it will provide power as a licenced generator to the Panamanian wholesale-electricity market.
Aggreko believes that this is the first time a temporary power supplier has entered a country’s wholesale-electricity market competing with permanent generators.
Stripping out one-offs like the Olympics, the company’s revenues for 2013 will be around 3 per cent higher and trading profits flat.
Revenues will rise by 8 per cent in Europe and the Middle East this year and 7% in the Americas. However, they are set to fall by 12 per cent in the Pacific region as temporary contracts in Japan following the 2011 tsunami come to an end.
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