Aggreko plc (LON:AGK) fell 13% this morning after releasing a less than favourable trading update.
The company said in a statement:
“We now expect the 2015 interim and full year results to fall sort of current market expectations.
Our 325MW of gas contract extensions in Bangladesh are entering the final stages of approval, with our expectation being that 180MW will be secured into the first half of 2016 and the remaining 145MW for three years. The trading terms secured for these extensions, which would retrospectively apply from the second quarter 2015, are likely to be less favourable than our earlier expectations”, leading to an adverse effect on profit.
Furthermore, security challenges in Yemen mean the company are operating below full capacity.
The oil arm of the business has also taken a hit:
“We have seen a further slowdown in North America with volumes in the shale basins continuing to decline. More recently, we have begun to see an impact on our offshore oil and gas business in the Gulf of Mexico.”
Aggreko plc is a United Kingdom-based company, which provides power and temperature control solutions.
