Scottish temporary power firm Aggreko reported a 7% drop in underlying revenues in the third quarter of 2016 as the weakness in the upstream oil and gas sector took its toll.
Aggreko, which supplies generators to a range of industries, said low crude prices and a fall in gas volumes reduced demand from energy sector clients.
The company, which has provided rental power for major sporting events such as the Commonwealth Games in Glasgow and the FIFA World Cup in Brazil, did say it had enjoyed growth in Europe and Australia Pacific.
Aggreko is in talks to renew a number of contracts in Argentina, where it has a large market share.
A number of the deals in the South American company were signed before the economic downturn and are set to expire next year.
The Glasgow-based firm, which has a manufacturing facility in Dumbarton, said its 2016 full year results would be broadly in-line with current market expectations, with pre-tax profits of about £225million.
Spending on its fleet of generators will come to around £260 million this year, up from £237million in 2015.
Net debt June 30 was 1.2 times Aggreko’s expectation and the year-end position is likely to be similar.
Chief executive Chris Weston said: “Whilst the environment over the last nine months has been challenging I am pleased with our strong order intake of over 1GW and with the progress that we are making on the implementation of our business priorities.
“We are working through the status of our contracts in Argentina and continue to navigate the tough conditions in upstream oil and gas in North America. We expect the 2016 full year results to be broadly in-line with current market expectations, with pre-exceptional profit before tax of around £225 million.
“I am confident that our continued focus on delivering our priorities is creating a stronger and more resilient group for the future.”