APR market update warns of drop in income

Power solutions specialist APR Energy has told the London Stock Exchange that it expects full year net income for 2014 to be “significantly below market expectations”.

The news follows APR’s announcement on 23 February, where it had discussed with its banking syndicate that it might not meet certain financial covenants in the future, and was looking to amend its credit facility.

In November 2014, APR had to suspend its operations in Libya. It had been scheduled to complete a 450MW gas turbine and diesel module power project in the country, but could not get final parliamentary ratification and the project was delayed.

Africa is a key market for APR, along with the Americas, Asia Pacific and the Middle East, and the company said the the six-site Libyan project was the largest ever signed in the mobile turbine power industry.

The latest announcement said the group expects to take a number of reserves for receivables.

It also said: “The board is conducting an ongoing review of those reserves. In addition, the board is re-evaluating the value of intangible assets and goodwill in the group balance sheet.”

A statement in December had said that APR expected revenues to be approximately US490 million (€451 million) with net debt at year end of US$550 million to US$570 million (€506 million to €525 million).