Aggreko has made the strategic decision to exit 25 countries since the end of 2021 in an effort to reduce risks within its business operations. The company is also shifting its focus away from small contracts worth under US$10,000 and towards larger customers in Europe and North America. As a result, Aggreko reported a 16% increase in revenues for the year ending on December 31, 2023, with EBITDA profit up by 33% to $950 million. One of its new products is the 60 kVA battery storage unit.
With the move towards larger and less risky projects, Aggreko is now generating around 62% of its revenues from Europe and North America. These regions have experienced significant growth of over 30% in the past two years, while Latin America saw a 17% growth last year compared to 12% for both Europe and North America. The Middle East has also been in a high-growth category, although sales declined by 9% due to effects of the 2022 Qatar World Cup. Revenue in Africa also fell by 10% due to exits and off-hires in countries such as Malawi, Chad, and Mali.
In addition to its operational 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 $559 million spent last year, 57% higher than in the previous year. The majority of this investment, 70%, has been allocated to products related to the energy transition, with 68% invested in Europe or North America. This includes the acquisition of community solar projects in the US. On average, Aggreko had 5,312 MW of power on hire during 2023, with fleet adjustments made to meet demand in various regions. Power revenues make up approximately half of the company’s total revenues.