TIDMAPR
RNS Number : 5257Y
APR Energy PLC
27 January 2014
27 January 2014
APR Energy plc ("the Group")
Year End Trading Update
740MW of contract wins and completion of transformational
acquisition
-- New contract wins in 2013 totalling 740MW and 298MW of extensions
-- Strong Q4 financial and operational performance
-- 2013 results anticipated to be in line with expectations
-- Full year revenues up 17% to approximately US$310 million
-- Continued high utilisation of 81% across the fleet at year end
-- Completion of the acquisition of GE power rental business,
creating the world's leading fast- track mobile turbine
business
-- 36% increase in order book to 15,730 MW-months (31 Dec 2012: 11,592 MW-months)
-- Strong start to 2014 with extension of 200MW project in Libya
APR Energy plc (LSE: APR), a global leader in fast-track power
solutions, today issues a trading update for the fiscal year ended
31 December 2013 ahead of its Preliminary Results, which will be
announced on 26 March 2014.
Commenting, John Campion, Chief Executive Officer, said:
"2013 was a year of major progress for APR Energy.
Operationally, we reported record new
contract wins, whilst our existing clients' contract renewal
rate exceeded 90%. During the period, we successfully deployed in
Libya the largest single contract in the history of the fasttrack
power industry, providing power to more than one million homes.
Strategically, our acquisition of the GE power rental business, and
ongoing partnership agreement with GE, has expanded our fleet,
diversified our operational footprint, and supports our future
growth plans. I am especially pleased at our ability to mobilise
these turbines and improve pricing on contracts acquired through
the acquisition.
The demand for our solutions remains strong, reflected in our
new contract wins, high renewal rates, and significant growth in
our order book. We remain confident in both the prospects for
mobile gas turbines and the significant market opportunity that a
growing global structural power deficit creates for us."
TRADING
During 2013, APR Energy gained record new contract wins of
740MW, together with 298MW of contract extensions (2012: 569MW
contract wins and 724MW contract extensions).
Group revenues totalled approximately $139 million for the
three-month period ending 31
December 2013, resulting in full-year revenues of approximately
$310 million, up 17% versus 2012 (2012: $266 million).
As at 31 December 2013, total fleet capacity was 2,074MW, an
increase of over 58% compared to 31 December 2012 (1,311MW),
reflecting the 520MW of additional capacity acquired through the GE
power rental acquisition and 313MW of organic capacity expansion,
funded by fleet capital expenditure of $290 million. As part of the
renewal of the 70MW contract in Botswana in late December, APR
Energy has agreed to sell its 70MW installed fleet to the client,
with the transfer of assets to occur post the end of the existing
contract in Q4 2014. The sale represents a mutually attractive
opportunity for the client to supplement their owned diesel
reciprocating power in country, while enabling APR Energy to
dispose of legacy equipment. In the interim, we continue our strong
relationship with the Botswana Power Corporation.
APR Energy's success in securing significant new contracts and
contract renewals is reflected in the increase in order backlog to
15,730 MW-Months (31 December 2012: 11,592MW), with contract
renewals continuing to exceed 90%.
For the full year 2013, the Group expects to deliver Adjusted
EBITDA and Adjusted EBIT in line with market expectations. Adjusted
EPS is expected to reflect a weighted average number of shares of
81.0m and the higher interest charge arising from the year-end net
debt position.
FINANCIAL POSITION
As at 31 December 2013, the Group had gross debt of $590 million
(excluding capitalised finance costs) (31 December 2012: $205
million) and cash of $33 million (31 December 2012: $21 million),
resulting in a net debt of $557 million (31 December 2012: $184
million). This net debt position reflects the timing of the receipt
of receivables in respect of the Libyan contracts, which were
partly paid in January. As previously communicated, we will
continue to focus on cash management and balance sheet efficiency.
The Group's bad debt position is expected to remain unchanged and
in line with historic levels.
OPERATIONS
Utilisation remained high; with total fleet utilisation at
period end of 81%. Diesel utilisation remains strong at 81%; with
turbines fully utilised, other than the two remaining
non-contracted turbines acquired as part of the GE power rental
business.
During the fourth quarter, client demand for our mobile turbine
power solutions remained strong. We announced our first mobile gas
turbine project in sub-Saharan Africa - with the signing of a
twelve-month contract in Angola - using two of the non-contracted
GE mobile gas turbines acquired through the GE acquisition. With
the extension of our existing 40MW diesel power module contract in
Q4 2013, APR Energy increased its industry leading capacity on the
continent.
In the US Virgin Islands, APR Energy successfully secured a
twelve-month extension with improved pricing on the 25MW mobile gas
turbine contract that was assumed as part of the recent acquisition
of GE's power rental business. Pricing on the contract is now
consistent with APR's historic turbine pricing levels. Furthermore,
our turbine contract in Martinique was renewed through Q1 2014.
In Indonesia, the 75MW fast track diesel plant was deployed and
commissioned during the fourth quarter, bringing the Group's power
generation capacity in the country to 130MW.
In early 2014, we were pleased to announce the extension to our
200MW diesel power module project in Libya on the same terms as the
original contract. The provision of 200MW of diesel power modules,
announced in June 2013 as an expansion to APR Energy's 250MW gas
turbine contract, created the largest single contract in the
history of the fast-track power industry.
OUTLOOK
The Group continues to see strong structural demand for power
solutions in Africa, Latin America, the Middle East, and South East
Asia, resulting in a strong commercial pipeline. There are ongoing
discussions on a significant number of opportunities for both
reciprocating engines and mobile gas turbines. Utilisation rates
remain high and are expected to be maintained going forward.
APR Energy believes that the outlook for the mobile gas turbine
market remains very positive. The scalability of mobile gas
turbines, which allow large amounts of power to be deployed swiftly
and efficiently, combined with low emissions and dual-fuel
capability, have made turbines the technology of choice for
customers requiring large-scale fast-track power.
The impact of recent emerging markets currency volatility is
expected to be immaterial to the
Group, as most of the Group's contracts require payment in US
dollars.
APR Energy remains confident in the structural growth trends
within the fast-track, turnkey power market and, specifically, in
the application of mobile dual-fuel turbine technology. As such,
the Group expects to make strong progress in 2014.
Enquiries:
APR Energy
Karen Menzel +44 (0) 777 590 6076
Capital MSL
Richard Campbell +44 (0) 20 3219 8800 / +44 (0) 7775 784 933
Ian Brown +44 (0) 20 3219 8817 / +44 (0) 7908 251 123
About APR Energy
APR Energy is the world's leading fast-track mobile turbine
power business. We provide largescale, fast-track power, providing
customers with rapid access to reliable electricity when and where
they need it. APR combines state-of-the-art, fuel-efficient
technology with industry-leading expertise to provide turnkey power
plants that are rapidly deployed, customisable, and scalable.
Serving both utility and industrial segments, APR Energy provides
power generation solutions to customers and communities around the
world, with an emphasis on Africa, the Americas, Asia- Pacific, and
the Middle East. For more information, visit the company's website
at www.aprenergy.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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