Libyan termination continues to hit APR Energy
By Steve Ducker26 August 2015
Mobile power provider APR Energy has reported a statutory half-year loss after tax of $64.5 million (€56.5 million) after year-on-year revenues fell by more than 50% in the six months to 30 June.
Its financial results statement said it is now in discussions with lenders to modify its borrowing facility and avoid a breach of covenant.
The company said the results were largely due to the early termination of its contract in Libya, though the controlled shutdown in Yemen and the roll-off of contracts in Bangladesh, Canada and Martinique also contributed.
As well as revenue dropping from $252 million (€221 million) in 2014 to $122 million (€107 million), fleet expenditure fell from $139 million (€122 million) to $16 million (€14 million), while average utilisation was down from 77% to 52%.
"It was a particularly challenging first half of 2015 as the company readjusted to the early termination of its project in Libya and controlled shutdown in Yemen, as well as the customer latency in the broader marketplace, all of which has impacted revenues and profits,” said CEO Laurence Anderson.
“We had strong renewals and several expansions, and our pipeline of opportunities is solid, but many projects have been slower than expected to materialise,” Mr Anderson added.
“In response to the financial impact of these challenges, we have recently instituted strict cost controls, and enhanced discipline around spending and inventory, and we have actively been engaged with the group lenders regarding the expected covenant breach at the end of the third quarter."
Despite the loss, the company reported 183 MW of contract wins, in Egypt and Botswana, and 762 MW of renewals for the year to date.