Aggreko wins extensions on Argentina contracts
Petroleumworld.com 01 17 2017
Aggreko Plc, the world's largest temporary power provider, said it had been awarded extensions on contracts totalling about 388 megawatts in Argentina, marking a crucial win to help it meet annual profit targets.
The British company, whose kits power major events and cover electricity shortfalls, said the Argentinian government had extended its fixed site contract of 174 megawatts until Dec. 31, 2017.
Additionally, standby contracts of 214 megawatts had been extended till the end of February or March 2017, it added.
The contract win comes amid a tough period for Aggreko, which said late last year that it was reviewing the value of its North American fleet of oil and gas rental generators after further weakness in that market hit its quarterly revenue.
Analysts had then raised concerns about its 2017 profit, as Aggreko said it had bid for a 200 megawatt contract in Argentina at a "significant discount to the historic pricing".
On Monday, Aggreko did not give any further detail regarding pricing on its contract extensions beyond saying that they had been priced in line with its expectations.
The extensions replace earlier contracts of 450 megawatt that made Argentina the company's single largest market.
Story reporting by Esha Vaish in Bengaluru; Editing by Amrutha Gayathri from Reuters.
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