(Corrects outsourcing firm to Serco from G4s in last paragraph)
LONDON, Jan 7 (Reuters) - Shares in Aggreko, the world’s biggest temporary power provider, rose more than 5 percent after it raised its 2014 trading profit expectations following a debt settlement.
The British firm, whose kit powers major events and covers electricity shortfalls, said it had negotiated a contract in Argentina which included a settlement on an outstanding debt.
Aggreko said it had agreed to extend an existing 300 megawatt (MW) of capacity with Energia Argentina for two more years. This enabled it to reach a settlement of debt for which it had previously set aside provisions.
The company said it had also signed a two-year contract to provide an additional 150 MW of diesel-fuelled power with Energia Argentina and won an extension to a contract in Ivory Coast.
Shares in Aggreko rose more than 5 percent to 1,511 pence in early trading, making it one of the biggest gainers on the FTSE 100 index.
“It’s a little bit of good news at the start of the year after the stock has been pretty weak,” said Andrew Nussey, analyst at Peel Hunt.
CEO Rupert Soames left the firm last April to join outsourcing company Serco and in August it warned that the strength of the British pound would hit its trading profits. (Reporting by Li-mei Hoang; editing by Sarah Young and Jason Neely)