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21 Aug 2015 07:00
21 August 2015
APR Energy plc
Market Update
APR Energy plc (LSE: APR), a global leader in fast-track power solutions, (the "Group") today updates the market on several developments that will impact its upcoming half-year financial results.
The Group has received a payment of $8.4 million from its terminated project in Yemen. This represents payment in full on the outstanding project balance. The Group will reverse its previously recorded provision of $8.4 million in the half-year results. In addition, during the past week, the Group has gained access to the Yemen project sites and its equipment, which will result in a re-evaluation of the $24 million impairment taken in the second quarter due to its inability to safely enter the sites at that time.
Following its 12 August announcement about the receipt of $10.7 million in receivables for its terminated Libya projects, the Group continues to work diligently to recover all of the remaining outstanding balance. At the same time, the Group is making significant progress in its Libya demobilisation and has, to date, removed successfully the vast majority of assets from the country. The Group anticipates that the demobilisation will be completed in the third quarter. However, due to rising security expenses, it expects to record higher than anticipated demobilisation costs.
In addition, as part of a broader review of its receivables, the Group has provided for additional provisions, related primarily to outstanding payments for its ongoing project in Angola. The Group is working closely with its customer and is confident in its ability to recover its receivables as demonstrated by a successful track record of collections in very difficult environments such as Yemen and Libya.
"We are encouraged by the significant progress we have made with the removal of Libya assets and the recent payments of more than $19 million in outstanding receivables from challenging environments, and we will continue to be relentless in our collection efforts and protection of our assets," said Chief Executive Officer Laurence Anderson.
Ends
Enquiries:
APR Energy plc
Lee Munro (investors) + 1 904 404 4576
Manisha Patel (investors) + 1 904 517 5135
Alan Chapple (media) + 1 904 223 2277
CNC Communications
Richard Campbell +44 (0) 20 3219 8801 / +44 (0) 7775 784 933
Michael Kinirons +44 (0) 20 3219 8803 / +44 (0) 7827 925 090
About APR Energy
APR Energy is the world's leading provider of fast-track mobile turbine power. Our fast, flexible and full-service power solutions provide customers with rapid access to reliable electricity when and where they need it, for as long as they need it. Combining state-of-the-art, fuel-efficient technology with industry-leading expertise, our scalable turnkey plants help run cities, countries and industries around the world, in both developed and developing markets. 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.
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