APR Energy sees no impact from emerging-market slowdown

LONDON Wed Aug 28, 2013 4:26am EDT

LONDON Aug 28 (Reuters) - Temporary power provider APR Energy Plc said on Wednesday it has ample orders from developing countries and does not share larger rival Aggreko's cautious attitude towards weak emerging-market spending.

A provider of turnkey power plants for disaster relief, electricity shortfalls and major events, APR Energy's clients are mostly located in developing markets such as Argentina, Burkina Faso and Yemen where demand for readily available energy has been increasing.

However, Aggreko this month gave a cautious outlook as cash-strapped governments in Africa, Asia and Latin America remained hesitant to commit to spending, exacerbating fears that providers of temporary power could be affected by a weak growth outlook in emerging markets.

"From my perspective, our pipeline is very robust at the moment, and we don't see any slowdown at all," Chief Executive John Campion told Reuters.

"Local economic slowdowns tend not to affect us because, quite frankly, these countries we're dealing with, whether the economy is good or bad, they still need power."

APR Energy, whose turbines and diesel generators lit up Japan following the 2011 earthquake, on Wednesday reported a $3.1 million adjusted pretax loss in the six months ended June 30, feeling the impact of last year's contract delays.

The company made an adjusted pretax profit of $51.8 million a year earlier. Adjusted revenue fell 44 percent to $87.2 million.

APR Energy said it expected a better second half, during which lucrative deals from Libya and Uruguay are due to kick in.

The company also scored 147 megawatts (MW) of new contracts in Senegal, Mozambique and Indonesia, bringing its wins to 740 MW so far in 2013 compared with 569 MW for the whole of 2012.

At 0724 GMT, the stock of the U.S.-based company was 5 percent higher at 1034.9 pence on the London Stock Exchange.