TIDMAPR
RNS Number : 3083V
APR Energy PLC
27 October 2014
27 October 2014
APR Energy plc
Interim Management Statement
Continued financial and operational progress: revenue up 45% and
36% increase in fleet capacity; cash on balance sheet up 75% and
contract renewal success rate over 90%
APR Energy plc (LSE: APR) (the "Group"), a global leader in
fast-track power solutions, announces its Interim Management
Statement to 27 October 2014.
-- Strong financial and operational performance with Q3 revenue
up 45% to $122m (Q3 2013: $84m), high utilisation of 76% (Q3 2013:
85%) and a 36% increase in fleet capacity to 2,189MW (Q3 2013:
1,607MW). Cash on the balance sheet up 75% to $92 million
-- Signed one-year extension of the 60MW Yemen contract,
bringing contract renewals to a record 1,366MW year to date and
reflecting a renewal success rate in excess of 90%
-- Contract signed in Australia for a four-turbine power plant,
to run through second quarter 2017
-- Awarded extension of the Libyan 450MW contract, to run
through first quarter 2015, with contract addendum in final
confirmation process; repositioning of one of the 100MW diesel
plants to a new location
Laurence Anderson, Chief Executive Officer, said: "The business
continues to perform well, reflecting strong financial and
operational performance. The Group is pleased with the 45% growth
in revenue year-on-year and our strong cash position of $92 million
at period end. We continue to have outstanding success extending
contracts, as seen with the renewal of our 60MW contract in Yemen,
our 450MW Libya contract extension and a renewal rate exceeding 90%
year to date. We continue to see opportunity in our market place,
in spite of slowed decision making by customers.
"While conditions in Libya remain challenging, the Group's
Libyan operations continue to run normally and profitably. Our
customer continues to make payments in accordance with our contract
and together with our risk mitigations in place, we feel
comfortable with our continuing operation. Our plants operate at
full baseload capacity and the underlying structural electricity
deficit in Libya only grows more acute.
"These factors, together with our strong relationship with our
customer, give us confidence that our services will continue to be
required into the medium term and we maintain our ongoing
commitment to providing much needed electricity to the Libyan
people."
Trading and operations
Year to date, APR Energy has signed 262MW of new contracts,
including a four-turbine power plant in Australia, contracted to
run through the first quarter 2017, together withcontract
extensions of 1,366MW, representing a renewal rate exceeding
90%.
As at 30 September 2014, total fleet capacity was 2,189MW (30
June 2014: 2,194MW), providing the Group with the capacity needed
to position itself for new large-scale opportunities.
Utilisation remained high at 76%(Q3 2013: 85%), reflecting the
new four-turbine power plant in Australia, ongoing demobilisation
of the Bangladesh plant and fleetexpansion.
Group revenue was up 45% to $122 million for the quarter ending
30 September 2014 (Q32013: $84 million).
On 29 July 2014, the Group was awarded an extension for its
450MW Libyan contract, taking the term through the first quarter of
2015. The Group is in the final stages of a multi-step confirmation
process for the signed contract addendum. The Group continues to
provide electricity and the customer continues to make payments per
the contract. The Group has taken a number of risk mitigation
measures through its comprehensive insurance programme and has
received an extended documentary letter of credit.
Following recent discussions, the Group has agreed with the
customer to relocate one of its six Libyan power plants to a more
sustainable location to meet the customer's long-term needs. The
100MW diesel power module plant is expected to recommence
operations in Q1 2015 for a further six-month term, resulting in
the deferment of the associated revenues into 2015.
The Group also recently has signed an extension of its 60MW
contract in Yemen, taking its term into the third quarter of 2015.
The Group's power plants continue to provide critical baseload
power to the country.
Financial position
Cash on the balance sheet is up 75% as of 30 September 2014 to
$92 million (30 June 2014: $52 million), resulting in net debt of
$523 million (30 June 2014: $518 million), comfortably within
financial covenants. Gross debt (excluding capitalised finance
costs) as at 30 September 2014 was $615 million (30 June 2014: $570
million).
In August 2014, the Group secured a new syndicated credit
facility, which provides the Group with increased capacity and
greater covenant flexibility. This new five-year facility,
comprising a $450 million revolving credit facility and $320
million term loan, replaced the Group's existing $400 million
revolving credit facility and $250 million term loan. The new
facility also contains an accordion feature that allows the total
facility to expand to $1 billion, subject to the Group obtaining
additional funding commitments and complying with certain financial
covenants.
Outlook
The Group's financial and operational performance continues to
make significant progress, with achievements across each of its key
priorities. The Group continues to build out its global operating
footprint and is leveraging its ongoing relationship with GE. The
Board remains confident of year-on-year growth for 2014, albeit
profit is anticipated to be at the low end of current year-end
expectations.
The Group's pipeline of longer-term, larger-scale power
projects, in both emerging and developed markets, has never been
larger and the ongoing global energy deficit continues. However,
recently there has been hesitancy among our prospective customers
to make decisions, which may be attributable to escalating
geopolitical and global economic uncertainty.
While still early, the Group believes these challenging external
factors may impact growth in 2015, resulting in modest year-on-year
revenue and earnings progression.
Nevertheless, the need for power globally is as acute as ever
and we are confident that our growth profile should continue.
Indeed, at some point when customers are no longer able to continue
to defer decisions, it could result in a strong demand for the
Group's services. It is in this scenario when the Group will
benefit most from its relationship with GE - as together we will be
positioned for strong demand when it almost inevitably occurs.
Conference call details
A conference call for investors and analysts will take place
today at 1pm UK time / 9am EST. To join the call please dial 0808
237 0030 (UK only), +1 866 928 7517 (US) or +44 20 3139 4830,
participant code 16396342#.
For audio playback please dial 0808 237 0026 (UK only) or +44 20
3426 2807, playback reference 650920#.
Enquiries:
APR Energy plc
Karen Menzel +44 (0) 777 590 6076
Capital MSL
Richard Campbell +44 (0) 20 3219 8800 / +44 (0) 7775 784 933
Richard Gotla +44 (0) 20 3219 8819 / +44 (0) 7904 122 207
About APR Energy
APR Energy is the world's leading fast-track mobile turbine
power business. We provide large-scale, 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.
Certain statements included in this announcement constitute, or
may constitute, forward-looking statements. Any statement in this
announcement that is not a statement of historical fact (including,
without limitation, statements regarding the Company's future
expectations, operations, financial performance, financial
condition and business) is or may be a forward-looking statement.
Such forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially
from those projected or implied in any forward-looking statement.
These risks and uncertainties include, among other factors,
changing economic, financial, business or other market conditions.
Although any such forward-looking statements reflect knowledge and
information available at the date of this announcement, reliance
should not be placed on them. Without limitation to the foregoing,
nothing in this announcement should be construed as a profit
forecast.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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