APR.L Regulatory News (APR)

APR Energy PLC

Interim Management Statement

APR Energy PLC





For Immediate Release

23 October 2013

APR Energy plc ("the Group")

Q3 Interim Management Statement

· Transformational acquisition of GE Turbine Rental Business and strategic alliance announced today

· 147MW of new diesel contracts during the third quarter

· Diesel utilisation at 89%; turbines fully contracted; total fleet utilisation now at 85%

· Total new contracts announced year to date 740MW, with contract extensions of 116MW year to date

· Order book of 13,425 MW-months and pipeline of business opportunities remain strong

APR Energy plc (LSE: APR) (the "Company" and together with its subsidiaries, "APR Energy" or the "Group"), a global leader in fast-track power solutions, announces its Interim Management Statement to the 23 October 2013, including the Q3 trading period. APR Energy has brought forward its IMS announcement from the 25 October to coincide with today's announcement of the acquisition of GE Turbine Rental Business, creating the world's leading fast-track mobile gas turbine power business.

TRADING

The Group has performed well in the period, in-line with expectations, generating adjusted revenues of $84 million during the third quarter of the year.

As at 30 September 2013, total fleet capacity was 1,607MW (31 December 2012: 1,311MW) with an order book (backlog of business) of 13,425 MW-months an increase of 60% from 8,372 MW-months in the same period in 2012.

New contracts of 147MW were won during the quarter, including Mozambique (40MW), Indonesia (75MW), and Senegal (32MW). These, together with the 593MW of new contracts announced up to 28 August 2013, bring total new contract wins announced this year to 740MW (compared to 369MW in the same period of 2012). The Group has also signed extensions year to date of 116MW.

OPERATIONS

In Libya, all six plants (450MW) were deployed and commissioned during the third quarter of 2013, despite the challenging socio-political environment and extreme climactic conditions.

In July, APR Energy successfully deployed 40MW of diesel power in Mali, its first cross-border agreement.

During the period, APR Energy announced a further 32MW contract award for diesel power modules in Senegal, supplementing the 66MW of existing APR Energy power capacity serving the country. The 32MW of capacity has since become commercially operational.

APR Energy also announced a multi-year 40MW award in Mozambique. The plant will run solely on natural gas and is APR Energy's second project in the country.

In Indonesia, APR Energy was awarded its third contract in a year, for a 75MW fast-track diesel plant, which will bring the Group's power generation capacity in the country to 130MW. The contract was awarded in a competitive tender process, based on the fuel efficiency of the diesel modules.

FINANCIAL POSITION

The Group's balance sheet had gross debt of $475 million (excluding capitalised finance costs) at the end of Q3. Cash on the balance sheet as of 30 September 2013 was $25 million resulting in net debt of $450 million.

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 are 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 them the technology of choice for customers requiring large-scale fast-track power.

ACQUISITION AND STRATEGIC ALLIANCE

Separately today, APR Energy has announced its acquisition of GE's Turbine Rental business, in a cash and stock transaction with a total consideration of $314 million.

In addition to creating the world's leading mobile turbine power provider, the acquisition creates a long-term strategic alliance between APR Energy and GE covering areas such as future supply of turbine technology, service, and branding. The acquisition also provides APR Energy with access to new markets and sectors.

More information on the acquisition and strategic alliance can be found on the Company's website.

COMMENT

John Campion, Chief Executive Officer, said:

"During the quarter, we have maintained high utilisation rates for our fleet and have successfully commissioned our facilities in Libya, despite the challenges of that market. We have continued to win attractive contracts and have seen our order book expand by 60% year-on-year, highlighting the demand for our services.

"We remain confident in the fundamental attractiveness of mobile gas turbines, as illustrated by the transaction and strategic alliance announced today with GE, making APR Energy the world's leading fast-track mobile turbine power provider. We have seen turbines rapidly take a significant market share of the large-scale fast-track power market, and we expect to see this growth continue, providing more opportunity for our enlarged fleet."

Enquiries:

APR Energy plc +44 (0) 20 3427 3747

Brian Gallagher +44 (0) 7775 906 076

Capital MSL

Richard Campbell +44 (0) 20 7307 5344 / +44 (0) 7775 784 933

Ian Brown +44 (0) 20 7307 5344 / +44 (0) 7908 251 123

About APR Energy

APR Energy specialises in the sale of reliable and efficient electricity through the rapid global deployment and installation of scalable turnkey power solutions. APR Energy's solutions, coupled with comprehensive operation and maintenance services and flexible commercial terms, have established it as a leader in its industry. Serving both utility and industrial segments, APR Energy provides power generation solutions to customers and communities around the world, with an emphasis on Africa, Latin America, the Middle East, and Asia. APR Energy also implements philanthropic projects at each plant location through its Community Development Programme, which aims to build and maintain close relationships with its neighbours through projects focused on health, education, and infrastructure. 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.

END