APR Apr Energy

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RNS Number : 5247A

APR Energy PLC

23 December 2014

23 December 2014

APR Energy plc

Libya and Trading Update

APR Energy plc (LSE: APR), a global leader in fast-track power solutions, (the "Group") today updates the market on its largest project - 450 megawatts of gas turbine and diesel module power in the country of Libya.

Update on Libya

On 7 November, the Group announced that it had temporarily suspended operations in Libya while awaiting final parliamentary ratification of the contract addendum that was signed by the customer and the Ministry of Electricity in July 2014. Those operations remain suspended and, as previously advised, will have a material, adverse impact on the Group's financial performance in 2014.

Given the ongoing geopolitical challenges in the country, there can be no certainty that the ratification will be secured, and operations recommenced in the near-term. The Board of APR Energy continues to assess a number of strategic options available to the Group in relation to the Libyan contract. The acute need for energy in Libya continues and the Group is working productively with the customer to achieve a definitive outcome.

Laurence Anderson, Chief Executive Officer, said: "While recognising the challenging political situation in Libya and the impact this has on our customer, our current key priority is to obtain rapid resolution of our contractual position. We remain confident in the attractiveness of the global fast track power market and our ability to deploy rapidly, at scale, to meet the ever growing worldwide deficit."

2014 update

Revenues for the year are expected to be approximately $490m, reflecting the suspension of Libyan operations in early November 2014, offset by revenues of approximately $30m arising from the planned disposal of two turbines to the Group's customer in Uruguay.

Adjusted EBITDA remains strong, but is expected to be approximately 500-600 bps below previous guidance, primarily reflecting the margin associated with the Libyan contract.

Net debt is expected to be between $550 and $570m at year end.

The Group anticipates a non-cash charge of up to approximately $40 million, primarily reflecting the accelerated expense of unamortised mobilisation/demobilisation costs in respect of Libya, together with full recognition of the deferred tax asset as at 31 December 2014. The timing of these charges will be determined through the year-end financial closing process.

The Group expects to continue to generate strong positive cash flow from operations, and will actively manage fleet capital expenditure, ensuring solid liquidity and a robust cash position.

Given the various moving parts regarding the Libya contract, it is too early to comment on financial guidance for next year. However, the Group will provide a further update in early 2015.

Enquiries:

APR Energy plc

   Karen Menzel                +44 (0) 777 590 6076 
   Lee Munro                     +1 904 223 2282 

Capital MSL

   Richard Campbell           +44 (0) 20 3219 8800 / +44 (0) 7775 784 933 
   Michael Kinirons            +44 (0) 20 3219 8816 / +44 (0) 7827 925 090 

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

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