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16 Jun 2015 07:00
16 June 2015
APR Energy plcMarket Update
APR Energy plc (the "Company"), a global leader in fast-track power solutions, today announces that it expects its full-year 2015 results to be significantly below market expectations.
The anticipated impact on results is being driven largely by delayed negotiations and long lead times associated with projects the Company is pursuing; demobilisation costs in Libya that have been higher than expected despite the significant progress made to date in extracting the majority of assets; and unfavorable foreign exchange rates, particularly in Australia and Indonesia.
The Company's guidance at the beginning of the year was predicated on an expectation that contracts being pursued would have a financial impact by the fourth quarter of 2015. While those opportunities still exist, and the market for interim power solutions remains strong - particularly in Asia Pacific and Africa - customer decisions about deals in the pipeline have been pushed out until later in the year.
The Company is in compliance with its banking facility and expects to meet its financial covenants when next tested at the end of the current calendar quarter. The Company believes, however, that there is a realistic possibility that the anticipated delay in revenue may result in an inability of the Company to meet the financial covenant calculations under its banking facility on future quarter-end testing dates. The Company will continue to evaluate all commercial opportunities (and the contemplated impact on its operations and financial performance) and will engage with its lenders at an appropriate time if the Company determines that seeking a modification of its financial covenants is advisable. The Company will continue to progress this matter and expects to provide a further update at its half-year meeting in late August.
Ends
Enquiries:
APR Energy plc
Lee Munro (investors) + 1 904 404 4576
Alan Chapple (media) + 1 904 223 2277
CNC Communications
Richard Campbell +44 (0) 20 3219 8800 / +44 (0) 7775 784 933
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.
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