Company unveils biggest contract in its history to help country rebuilt after political upheaval
APR Energy, the temporary power supply business, has surged more than 10% following news of a contract win in Libya, the largest in the company’s history.
As Libya rebuilds following its political upheaval, it has awarded APR a 250MW contract for its dual-fuel turbines, running into the middle of next year. The mobile turbines will help cover power demand during the summer heat, as well as provide temporary supply as Libya develops its infrastructure after the overthrow of Colonel Gaddafi in 2011.
APR said the deal brings its new contract wins this year to 361MW. Chief executive John Campion said:
We are honoured to serve as a partner to Libya as it rebuilds and develops its new economy. This project is ground breaking for the country in terms of both scale and scope.
For such projects we strongly believe that mobile dual-fuel turbines are the best fit and the customer technology of choice.
APR has jumped 77.5p at 821p, and Caroline de La Soujeole at Cantor Fitzgerald hailed the contract award, but kept her reduce rating:
This is clearly encouraging news, suggesting there is good momentum in the business but ahead of the company’s preliminary results next week (21 March) we reiterate and maintain our reduce recommendation. The shares are trading on a 2012 PE of 18.4 times falling to 14.3 times which we believe is expensive for a company which still has a lot to prove.
APR joined the stock market by reversing into the Horizon company owned by Pizza Express and Punch Taverns tycoon Hugh Osmond in 2011. This time last year it caused a shock after it delayed issuing its results for a month ” due to the complexities in reporting and accounting for the various corporate transactions which have taken place during the period.”