StockMarketWire.com - Flexible power supplier Aggreko scrapped its dividend and pulled its guidance after warning that further containment measures by governments worldwide to contain the Covid-19 virus would hurt demand.

'We do not believe it is possible to retain the group's 2020 guidance as communicated at our full year results on 3 March,' the company said.

In an effort to preserve cash, it had decided to withdraw its recommendation to pay a final dividend at its forthcoming AGM.

The suspension of the dividend arrived as the company warned of further virus-led disruptions to its business, though said it remained in a strong financial position.

'As central governments and businesses take further action to contain and delay the spread of the virus, there is now significant uncertainty around future demand across several sectors and geographies,' the company said. 'The recent sharp fall in the oil price has compounded this level of uncertainty.'

Additionally, we are beginning to face some operational challenges getting our people to project sites as countries close borders and restrict travel, it added.

'As at the end of February the group had immediately available liquidity of £606m, comprising £66m of available cash, £458m of undrawn committed facilities arranged on a bilateral basis with eight international banks and £82m of undrawn uncommitted facilities,' Aggreko said.

At 9:00am: [LON:AGK] Aggreko PLC share price was -16.6p at 348.3p



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