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Aggreko PLC - Growth through the transition - Net zero by 2050

RNS Number : 4966F
Aggreko PLC
17 November 2020
 

     

STRATEGIC UPDATE

17 NOVEMBER 2020 

Growth through the energy transition - reaching net zero by 2050

Note: Today we have also published a trading statement, covering the period from 1 January 2020 to 30 September 2020. This, together with details of our strategic update presentation, can be found on the Aggreko investor relations website. 

 

Aggreko today sets out how we will evolve our business through the energy transition to be a leader in the temporary energy market we serve, while improving returns to shareholders.

 

Our net zero commitments

·      By 2030 we will:

‒  Reduce the amount of diesel fuel used in customer solutions by at least 50%

‒  Reduce local air quality emissions of those solutions by the same amount

‒  Achieve net zero across our business operations

·      By 2050 or sooner, Aggreko and the services we provide will be net zero

 

Delivering shareholder value through the energy transition

·      We are focused on profitable growth

‒  Revenue growth in our sectors expected to be 5 - 10% p.a. over the medium term

‒  Driving high teens Group margin in the medium term

 

·      We are maintaining our target of delivering mid-teens ROCE

‒  Disciplined capital investment in the range of £250-350 million p.a.

‒  We will drive a continuous improvement in working capital performance

Chris Weston, CEO, commented:

"The world is changing and so is Aggreko. Demand for electricity will continue to grow, driven by population growth, and the climate imperative and availability of new technology is changing the way in which electricity is generated, distributed, consumed, stored and monitored, making it more complex. This means the need for flexible, reliable and integrated solutions with lower carbon and local emissions has never been greater, and our market for temporary, distributed energy is not just enduring, but growing.

"We have made stretching, but achievable commitments which puts Aggreko on a path to reduce diesel fuel in customer solutions and emissions by at least 50% over the next decade, and to become a net zero company by 2050. At the same time, we expect to drive profitable growth, building on our sector-specialism, realising new opportunities in our markets as they transition, and implementing initiatives underway to expand margins.

"The energy transition will require capital investment in our business, averaging in total between £250 million and £350 million per year, and we are well supported by our cash generation and strong balance sheet. In the medium term, profitable growth in combination with improving capital efficiency, means we have a clear path to mid-teens ROCE."

 

Strategic update - Analyst and investor presentation

 

A presentation of our strategic update will be webcast for analysts and investors today at 08:30am (GMT). The webcast presentation will be followed by a Q&A session starting from 09:15am (GMT).  

 

The link to the web-cast is accessible on our website at www.plc.aggreko.com/investors. Presentation materials will be available on the website from the start of the event.  

 

Third quarter trading statement

 

Note that this morning we have also published a trading statement covering the period from 1 January 2020 to 30 September 2020. This is available on the Aggreko investor relations website.

 

Enquiries

Investors and analysts

 

Richard Foster, Aggreko plc

+44 7989 718 478

 

Jill Sherratt, Aggreko plc

+44 7814 077 690

 

Financial media

 

Andy Rivett-Carnac, Headland

+44 7968 997 365

 

Sophie O'Donoghue, Headland

+44 7798 687 042

 

 

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