APR signs largest ever industrial power contract
26 March 2014
APR Energy has signed a 60 MW power rental contract with a mining client in the South Pacific. It is its largest ever industrial project.
APR has also announced its annual results, with revenues up 16% to US$308 million and after tax profits of $19.8 million, compared to a $14.9 million loss in 2012.
For the South Pacific contract, APR will supply its mobile turbine plants, which are able to fit within the space constraints at the mine site. The plant will run on diesel with the ability to seamlessly switch to natural gas if needed.
John Campion, APR Energy's chief executive officer said: "This is the second contract for large-scale power that we have signed in the last month and, together with the Myanmar project announced in February, adds to the rapid growth we have achieved in the Asia Pacific region in recent months."
For the full year, power generation capacity increased by 58% to 2074 MW, including the acquisition of GE Power Rental’s business. Fleet utilisation at the end of 2013 was 81% and the average over the year was 74%.
APR said it had won orders of 740 MW of power during 2013, a record for the business, including 298 MW of extensions.
Mr Campion said 2013 had been a good year for the company; “The record number of new contract wins as well as a renewal rate in excess of 90% shows the attractiveness of longer-term, larger-scale power solutions, as well as our ability to deliver against the market opportunity. The integration of the GE business is proceeding and we are already seeing marketing opportunities from the strategic alliance”.
He said APR had made a positive start to 2014 with the extension of its 200 MW project in Libya and new contract wins of 142 MW in Myanmar and the South Pacific. “Today's expectations for 2014 reflect strong year-on-year growth, including the successful renewal of a number of contracts and although it is still early in the year, the business is performing in line with expectations."