With a general election looming here in the UK, it seems like a good week to focus on a company that generates most of its profit outside its home market.
In simple terms, FTSE 250 member Aggreko (LON: AGK) can be thought of as a company that rents out big generators to provide electricity in places where none (or not enough) is available from power grids.
In reality, the business is a bit more sophisticated than this. It supplies diesel and gas-fired generators, heating and cooling solutions, plus equipment such as loadbanks and battery systems.
Clients include emerging market power utilities, natural resources firms, remote communities and organisers of large events, such as the Olympics (Aggreko will power the Tokyo 2020 Olympics). The company also gets involved in disaster recovery situations and has a growing renewables business.
The global diversity of these operations may seem attractive, but it isn’t without risk. Recent years have seen Aggreko run into problems collecting payments from clients in markets such as Venezuela, Yemen and parts of Africa. Aggreko is also exposed to cyclicality in the oil and mining sectors, which hurt the business in 2015/16.
The firm’s shares remain more than 60%…
Disclaimer: Please note all prices are for information only, they should not be relied upon for accuracy or trading. All prices quotes are based on CFD prices and are similar though not always identical to real exchange prices. STOCKTRKR or anybody connected with STOCKTRKR will not accept any liability for loss or damage arising from use of any information/commentary/charts or articles which is provided 'as is' for educational purposes only, nothing contained on this website should be considered as investment advice - please seek proper investment advice from registered financial broker or institution if you wish to trade on global markets and ensure you are familiar with the risks.
