Aggreko shares jump on restructuring plan hopes

* Aggreko (LSE: AGK.L - news) says on course to meet savings targets

* Statement reassures investors, shares rise

* First (Other OTC: FSTC - news) half 2016 profit to fall because of contract dates (Adds CEO comments, details)

By Li-mei Hoang

LONDON, March 3 (Reuters) - Temporary power provider Aggreko (EUREX: AGKF.EX - news) reassured investors on Thursday that it was on track to deliver a planned 80 million pounds ($112.6 million) of savings, boosting its shares.

The group, which provides generators for major public events and industrial groups, said on Thursday it would deliver the savings by 2017 from reorganisation and improvements in its procurement process.

Chief Executive Chris Weston told Reuters he expected the company return to growth over the next two years, as the effects of its restructuring plan begin to take effect on the business.

The company issued a profit warning in July and has since warned that its markets were likely to remain difficult in the coming year as its adapts the business.

"We probably have another 18 months to two years to run on that but we will start to see the benefit before then, but we have always characterised 2016 as a year of transition."

Aggreko shares, which have fallen 63 percent since their peak in September 2012, jumped by 9 percent in early trading, the biggest gainer on the mid-cap FTSE index.

"Management has made good progress with its streamlining efforts and seems on track to deliver 80 million pound savings, which should underpin 2017 margin recovery and enable further investments," said Citi analysts in a note, maintaining their "neutral" rating on the stock.

Aggreko has struggled over the last year from the uncertainty in oil and gas markets and problems in some of the emerging markets it operates in.

It (Other OTC: ITGL - news) pulled out of bidding for a contract to supply generators for the Olympics in Rio de Janeiro this year after having been the supplier for London in 2012.

It posted full-year underlying pretax profit of 252 million pounds( $354.8 million) for the year ended Dec. 31, in line with expectations, but down from 289 million pounds in 2014. Group revenue also fell by 3 percent to 1.6 billion pounds.

Weston cautioned profits for the first half of 2016 would be lower than a year earlier due to the timing of contract start and end dates, and that the firm would continue to monitor the political situation in Yemen, Libya and Venezuela. ($1 = 0.7103 pounds) (Editing by Keith Weir)