March 10, 2011 / 7:47 AM / 7 years ago

UPDATE 2-Aggreko sees no 2011 trading profit growth

* 2010 pretax profit 307.1 mln stg vs 302.8 mln forecast

* Revenue 1.23 bln stg vs 1.21 bln forecast

* Lack of sporting events temper 2011 outlook

* Shares fall 5.4 percent, among the top FTSE 100 losers

(Adds detail, analyst and executive comment, updates shares)

By Adveith Nair

LONDON, March 10 (Reuters) - British temporary power provider Aggreko (AGGK.L) forecast no growth in trading profit this year due to a lack of major sporting contracts, disappointing investors who had hoped for a stronger outlook.

The company had helped power the soccer World Cup, the Vancouver Winter Olympics and the Asian Games in 2010, with the events adding 87 million pounds ($140.7 million) to 2010 revenue.

While Aggreko does not have any high-profile sporting contracts this year, it is to provide temporary power for the London Olympics next year.

Aggreko also warned instability in the Middle East and Africa made forecasting for the year ahead more difficult, but Chief Executive Rupert Soames later told reporters the company’s exposure to countries where “there are issues was pretty small and limited.”

“Between Yemen and Cote d‘Ivoire, the only countries we have any concerns about at the moment, we have about 140 megawatts (MW) of equipment, compared with about 6700 MW in our total fleet,” Soames said. “We have no exposure to Libya or Tunisia.”

Analysts at Investec and Seymour Pierce warned the lack of upgrades could lead to some disappointment.[ID:nLDE7290PJ]

Aggreko shares were down 5.4 percent at 1407 pence on 1005 GMT on Thursday on the London Stock Exchange -- among the top losers on the FTSE 100 .FTSE

Earlier on Thursday, Aggreko said pretax profit for 2010 rose 25 percent to 307.1 million pounds, slightly above estimates of 302.8 million pounds, according to a Thomson Reuters I/B/E/S poll. Revenue was 20 percent higher at 1.23 billion pounds, marginally above estimates of 1.21 billion.

The company also raised its dividend by 50 percent to 18.9 pence.

($1=.6185 Pound)

Reporting by Adveith Nair; Editing by Neil Maidment and Erica Billingham

Our Standards:The Thomson Reuters Trust Principles.
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