Aggreko, a leading power and temperature control specialist, has made significant strategic moves to de-risk its business and focus on larger contracts in Europe and North America. Since the end of 2021, the company has exited 25 countries and shifted its attention towards bigger customers, resulting in a 16% increase in revenues and a 33% rise in EBITDA profit to $950 million for the year ending December 31, 2023.
The company’s decision to move away from small and higher-risk projects has paid off, with Europe and North America now accounting for 62% of its revenues. These regions have experienced impressive growth of over 30% in the past two years, with the Middle East also showing strong growth.
However, not all regions have seen positive results. Sales in Latin America grew by 17% last year, while Europe and North America reported 12% growth each. On the other hand, the Middle East saw a decline of 9% due to the impact of the 2022 Qatar World Cup, and revenues in Africa fell by 10% following exits from countries like Malawi, Chad, and Mali.
In addition to these changes, Aggreko’s parent company has decided to sell its Eurasian business in Russia and Kazakhstan to private equity owners due to regulatory challenges in Russia. The company continues to invest in its fleet, with a significant increase in spending last year, particularly in products related to the energy transition.
Overall, Aggreko remains a key player in the power and temperature control industry, with a strong focus on growth and strategic decision-making to drive its business forward.