APR Apr Energy

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RNS Number : 5165H

APR Energy PLC

20 May 2014

20 May 2014

APR Energy plc

Q1 Interim Management Statement

In advance of its Annual General Meeting to be held at 10.00 am today, APR Energy plc (LSE:APR), (the "Group"), a global leader in fast-track power solutions, announces its Interim Management Statement to 20 May 2014, including its Q1 trading period.

-- Strong start to 2014 with 359MW of contract extensions including 200MW diesel project in Libya and 142MW of new contract wins in Myanmar and the South Pacific

   --      Q1 financial and operational performance in line with expectations 

-- Myanmar contract commences operations; Angolan and South Pacific mobile gas turbine contracts on track to commence operations in Q2

   --      Continued high utilisation of 81% across the fleet as at 31 March 2014 

-- Net debt as at 31 March 2014 of $515 million, reflecting a leverage ratio of 2.1 times Adjusted EBITDA

John Campion, Chief Executive Officer, said:

"We have made a positive start to 2014 with 501MW of new contract wins or extensions and the business is performing well. We have successfully commissioned our landmark project in Myanmar and are on track to commence operations across recent contract wins in Angola and the South Pacific.

Demand for our solutions remains strong, reflected in our new contract wins and continued high renewal rates. Our focus for the year includes securing a number of key contract renewals, transferring the GE contracts that are due for renewal onto more favourable terms or re-deploying these assets, developing opportunities through our partnership with GE and continuing to deliver an improved financial and operational performance. We are making good progress on each of these areas."

Trading

Year to date, APR Energy has announced 142MW of new contractswins comprising a gas power module contract in Myanmar for 82MW, with plant capacity to deliver up to 100MW and a mobile gas turbine plant in the South Pacific, producing a guaranteed 60MW. The latter isto power the customer's critical mining operations, representing the Group's largest industrial contract to date. In addition, the Group has signed contract extensions of 359MW, including the extension of a 200MW project in Libya.

As at 31 March 2014, total fleet capacity was 2,074MW (31 December 2013: 2,074MW). Group revenue for the quarter ending 31 March 2014 was $120 million (Q1 2013: $43 million),reflecting continued high utilisation levels across the fleet.

Operations

Utilisation remained high with total fleet utilisation at the quarter end of 81%. The new contract in Myanmar commenced operations in late April and the new mobile gas turbine contracts in Angola and the South Pacific are expected to start generating power in Q2 this year.

As highlighted at the time of our preliminary results an Australian customer, Forge Group Limited, has filed for protection from its creditors. The Group continues to work with the administrators and receivers in connection with possession of assets in Australia. The Group has drawn theletter of credit in respect of this contract which will be recognised during the second quarter, ensuring no adverse impact to the Group's 2014 net income in respect of this contract.

Financial position

The Company's balance sheet had gross debt of $593 million (excluding capitalised finance costs) at the end of Q1 2014 (31 December 2013: $590 million). Cash on the balance sheet as of 31 March 2014 was $78 million (31 December 2013: $34 million) resultingin net debt of $515 million (31 December 2013: $556 million) and representing 2.1 times Adjusted EBITDA.

The Group's discussions with its existing relationship banks regarding its refinancing strategy are progressing and we expect to execute this strategy over the coming months.

Outlook

The Group's focus for the year ahead includes successfully securing a number of key contract renewals and transferring the GE contracts that are due for renewal onto more favourable terms or re-deploying these assets. Discussions have commenced with a number of customers in this respect and we expect to provide an update on these negotiations in due course. We continue to develop opportunities through our partnership with GE and to deliver an improved financial and operational performance.

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

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