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UPDATE 1-APR Energy revenue triples as electricity demand grows
July 29, 2014 / 8:26 AM / 3 years ago

UPDATE 1-APR Energy revenue triples as electricity demand grows

* Second-qtr revenue jumps 203 pct to $134 mln

* Contracts in Libya, Uruguay extended, renewed

* Shares rise as much as 13 pct (Adds analyst, CEO comment, share price, details)

By Esha Vaish

July 29 (Reuters) - Power plant supplier APR Energy Plc’s quarterly revenue more than tripled as the company extended lucrative contracts and signed new deals to supply electricity to power-starved regions.

APR’s stock rose 13 percent to rank as the top percentage gainer on the London Stock Exchange on Tuesday morning.

Demand for quick, short-term power supply in developing markets has rocketed as economies grow quicker than permanent power plants can be built - a process that can take four to five years.

APR said it renewed contracts covering 253 megawatts during the second quarter, including the first 100 megawatts of its contract to supply mobile gas turbines in Uruguay.

This month, after its second-quarter reporting period, APR also extended its 450 megawatt contract in Libya until the first quarter of 2015. The Libyan and Uruguayan contracts were key to the company’s swing to a full-year profit last year.

“With a sustained renewal rate in excess of 80 percent, our efforts are paying off and reflect the inherent longevity of our service,” Chief Executive John Campion said in a statement.

Jacksonville, Florida-based APR rents out 25-megawatt turbines for electricity shortfalls in countries such as Argentina, Burkina Faso and Yemen. It also supplied the turbines and diesel generators that lit up parts of Japan after the 2011 earthquake.

Revenue rose to $134 million for the second quarter ended June 30 from $44 million a year earlier.

Liberum analysts wrote in a note that APR’s contract renewals would “materially de-risk the short-term outlook for the business”.

APR’s shares were up 10.3 percent at 567 pence at 0805 GMT. (Editing by Robin Paxton)

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