2011 was another year of strong growth for APR. Reported
revenues totalled $164.6 million. However, the underlying trading
business on a pro-forma basis delivered revenue growth of 69 per
cent over 2010, with twelve-month revenues totalling $212.8
million. The significant growth was a direct result of new order
intake of 513MW during the year coupled with contract extensions in
Ecuador, Haiti and Peru.
Reported gross profit was $26.6 million, which includes the
impact of $46.5 million of non-cash expense for intangible asset
amortisation. On a pro-forma basis, gross profit totalled $89.0
million, up 95 per cent from $45.7 million in 2010. The pro-forma
gross profit margin was 42 per cent compared to 36 per cent in
2010. The increase in underlying gross profit margin reflects
operating efficiencies as the business has scaled and the impact of
larger-scale projects that went into operation in 2011.
The Company reported an Operating Loss of $45.2 million in the
14-month period due to the impact of one-time transaction costs and
non-cash expenses for the amortisation of acquired intangible
assets in the period post acquisition date, and other exceptional
items. On a pro-forma basis however, the Operating Profit totalled
$60.3 million, up 75 per cent year on year, reflecting the
continued growth in the business. Adjusted net profit was $41.4
million, up from $9.5 million 2010.
Pro-forma Adjusted EBITDA increased 70 per cent from $64.2
million in 2010 to $109.1 million in 2011 as a result of the
overall growth in the business. Adjusted EBITDA margin was 51 per
cent (2010: 51 per cent).
Capital expenditures on new fleet for the twelve month period
ending 31 December 2011 were $298.5 million, up from $20.5 million
in the same period last year. The significant growth in the fleet
to a total of 900MW was the result of investment to support new
project wins and to begin the build out of deployable capacity in
our regional hub structure. The investment in the fleet also
included the introduction of our first 140MW of dual fuel turbines
that went into operation in Japan and Martinique.
Operational Progress
Operational excellence and responsive customer service are as
important as a reliable, cost-effective fleet. To ensure we stay
well positioned to meet the challenges of the temporary power
market, we enacted the following initiatives to drive success in
2011 and beyond.
-- APR's fleet capacity and utilisation In order to address pipeline growth and emerging opportunities, APR grew its power generation capacity substantially over 2010, from approximately 350MW to 900MW, more than doubling over the course of the year. This investment spanned across diesel reciprocating engines as well as high-capacity dual-fuel turbines. The fleet composition at year end was 78 per cent diesel and 22 per cent turbine technology. The rapid growth in fleet and timing of new projects coming on line impacted fleet utilisation. At the end of the year, 83 per cent of the fleet was under contract while 72 per cent was in operation and generating revenue.
-- Strategic partnerships In 2011, APR signed global strategic supplier partnerships with Caterpillar Inc. and Pratt & Whitney Power Systems, two of the world's leading manufacturers in mobile power generation technology. These partnerships give us access to state-of-the-art technology at competitive pricing. The Caterpillar agreement is a five-year term and covers both diesel and gas reciprocating engine technologies, as well as aftermarket support and sales/marketing collaboration. Our exclusive partnership with Pratt & Whitney, also a five year agreement, grants us exclusive worldwide rights within the power rental market to offer their mobile dual-fuel turbines. Both partnerships have already generated new leads and business opportunities.
-- Investment in dual-fuel turbines The Company has differentiated itself through its decision to provide the choice of dual-fuel turbines in addition to gas and diesel reciprocating generators in its fleet. Where gas is available to a customer, it can significantly cut the generating costs of electricity, as well as cutting emissions substantially. The aero-derived turbines are each capable of producing up to 25MW of power, the equivalent of some 25 diesel/gas reciprocating generators. Their small footprint to megawatt ratio radically improves the speed and logistics of transport, while their advanced turbine technology provides greater reliability, requires much less maintenance, and produces significantly less emissions than its reciprocating engine counterparts.
-- Increased regional presence in priority markets In 2011 we laid the groundwork for the opening of three regional hubs, including one in Panama, which opened in February of 2012, and another in Dubai, which opened in March of this year. A third hub in Malaysia is scheduled to open in the third quarter of 2012. These hubs will afford us significant improvements in our response time to customer needs and emerging opportunities, as well as serve as a base for expanding regional commercial and sourcing activities. By staging inventory of generating equipment closer to the customer in the hub locations, we will be able to deploy projects rapidly and cost-effectively.
Our People
The true heart and engine behind APR is its people. Without the
hard work, passion and dedication of our employees, we could not
have achieved the strong results we enjoyed in 2011. Over the
course of 2011, we significantly expanded our global base of
highly-skilled professionals from approximately 300 in January,
2011 to over 850 by the end of December, 2011. This included the
addition of experienced personnel across key functions around the
globe, including engineering, logistics, sales and marketing,
finance, legal, and human resources. Many bring significant
experience within the industry, and the quality and commitment of
our new hires will play a key role in helping APR execute our
growth objectives for 2012.
Our Communities
Throughout an incredibly busy and productive year, we maintained
our pledge to make a meaningful contribution to the communities we
serve. Our brand promise, Powering your Progress, means that we go
beyond just providing a reliable source of power. We also help our
communities by hiring within their local workforce and providing
valuable skills training. Through our Community Development
Programme, both our Company and our people provide significant
contributions, including volunteer time, to serve local education
and healthcare causes - whether it be providing immunisations in
Peru or providing computers to a classroom in Botswana. Ultimately,
our goal is to integrate with and become part of our local
communities by building positive relationships and helping them
prosper.
Current Trading
The momentum of the business as we exited 2011 has already
carried over into the early part of 2012. Recent commercial
activity has translated into new project awards totalling 284MW to
date. These wins reflect the continued diversification of our
global footprint and include 120MW in Cyprus, 100MW in Mexico, 40MW
in Angola, and 24MW in Oman. In addition, several existing
contracts have been extended, including all five plant sites in
Argentina, the turbine contract in Martinique with EDF, and the
current contract in Haiti. As such, the current order book (backlog
of business) stands at nearly 7,200 MW-months.
Having received feedback from certain shareholders and given the
stage of our company's life-cycle, we have decided going forward to
report news of individual project wins of 50MW or more via a RNS
release upon contract award. In addition, material contract
extensions will also be announced via RNS. Subject to complying
with our regulatory requirements, all other business development
will be announced within normal channels of disclosure with results
or interim management statements.
We continue to see steady demand for temporary power solutions
across all regions and we maintain an active commercial pipeline of
opportunities. We are closely monitoring the intake of new fleet to
align with current inventory, known roll-off of assets and
projected demand. We reiterate our expected investment in new fleet
capital expenditures in the range of $230 to $260 million as we
execute on the deployment of our regional hub strategy and position
for future growth. We remain confident that 2012 will be a year of
continued transformation and growth for APR.
John Campion
Chief Executive Officer
15 April 2012
Financial Review
Pro Forma (Unaudited) Financial Results and Performance
Review
On 13 June 2011 APR Energy through its subsidiary APR Energy
Holdings Limited acquired the entire issued share capital of APR
Energy Cayman Limited and all of the membership interests of
Falconbridge Services, LLC (these together, the "APR Group") (the
"Acquisition").
To provide investors with greater clarity on the performance of
the APR Group, pro forma unaudited financial information has been
prepared to show the results of the APR Group for the twelve months
ended 31 December 2011 and includes items of income and expenditure
of APR Energy plc and APR Energy Holdings for the seven months post
acquisition. The pro forma unaudited financial information has been
prepared on an adjusted basis to exclude exceptional items and
amortisation of intangible assets from the business
combination.
Selected Income Statement Data - Pro Forma Unaudited Results for
12 months ended 31 December 2011
Grafico Azioni Apr Energy (LSE:APR)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Apr Energy (LSE:APR)
Storico
Da Lug 2023 a Lug 2024
