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Aggreko to raise dividend by 50% after profit jump

H1 profits of temporary power provider boosted by World Cup.

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Aggreko is raising its dividend for H1.
Aggreko is raising its dividend for H1.

 Aggreko, the world’s biggest provider of temporary power, on Wednesday said it would raise its interim and final dividend by 50 percent after posting a jump in first-half profit, bolstered by contracts for major global sporting events.

The FTSE 100 firm said it would pay an interim dividend of 6.55p per share, after events such as the US Superbowl and FIFA World Cup, for which it provided 300 generators, generated £85m ($131m) in revenues in the first half for its local business arm.

“Aggreko delivered another strong performance in the first half of 2010 with reported revenue increasing by 17 percent and reported trading profit increasing by 23 percent,” chairman Philip Rogerson said in a statement. “We believe that we will make further good progress in the second half and that the outcome for the year as a whole will be slightly better than our previous expectations.
The FTSE 100 firm said it would pay an interim dividend of 6.55p per share, after events such as the US Superbowl and FIFA World Cup, for which it provided 300 generators, generated £85m ($131m) in revenues in the first half for its local business arm.

“Aggreko delivered another strong performance in the first half of 2010 with reported revenue increasing by 17 percent and reported trading profit increasing by 23 percent,” chairman Philip Rogerson said in a statement. “We believe that we will make further good progress in the second half and that the outcome for the year as a whole will be slightly better than our previous expectations.
The firm’s International Power business, which provides temporary power to developing countries, posted a record order intake for the first half, closing deals for 860MW of power in 18 countries.

In February, Aggreko signed a contract to provide 115MW of power to Oman. The firm has 200MW on rent in Yemen, its largest Middle Eastern market.

Aggreko’s Europe and Middle East, arm reported a rise in revenue to £125.1 from £122.1 in the year-earlier period.

For the six months to the end of June, underlying trading profit rose 23 percent to £131.2m on revenue up 17 percent at £585.6m. Pretax profit rose 19 percent to £127.1m.

In a July interview with Arabian Business, chief executive Rupert Soames said Aggreko had invested more than $30m in new equipment for the Middle East over the last 12 months and was mulling a number of new depots for the region.

“It is a major focus for us in terms of new fleet – there is virtually a ship a week going from [head office] down to my colleagues in the Middle East bringing them new equipment. We continue to invest very heavily,” he said.

“The rate of economic growth of many countries in the Middle East is phenomenal and there has then been an increase in base industry that is growing. Many Middle Eastern countries have very significant investment plans to add more power into their grids. What we provide is a bridge between today’s demands and tomorrow’s supply.”

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