APR Energy expects US$40 million hit from Libya suspension

Power rental company APR Energy has said there can be no certainty that it can secure government approvals needed to restart a 450 MW project it has been forced to suspend in Libya.

In November, the company suspended operations in the country awaiting parliamentary ratification of a gas turbine and diesel module power contract – one of its largest projects.

It said the suspension would have a material adverse impact on its 2014 financial performance, with a charge of up to US$40 million (€32.8 million) expected as a result.

CEO Laurence Anderson 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."

For the full-year, it said revenues were expected to reach US$490 million (€402 million), compared to US$308 million (€253 million) for 2013.

“Adjusted Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) remain strong, but are expected to be approximately 500-600 bps below previous guidance, primarily reflecting the margin associated with the Libyan contract,” the company said, adding that it was too early to give financial guidance for 2015.