APR Energy Jumps on Contract Extension

Shares in APR Energy have jumped 10 percent in early trading on Tuesday following the publication of its Interim Management Statement for the three months to the end of June.

The company reported that, post period, the Ministry of Electricity and GECOL have awarded it an addendum to the 450MW Libyan contract, comprising both the 250MW mobile gas turbine project and the 200MW diesel power module project, extending through first quarter 2015, on similar terms to the original contract.

The shares have fallen by half since October of last year, largely due to concerns about debt levels, but have risen 25 percent in recent weeks.

John Campion (pictured), Chief Executive Officer, said:

"The Group has continued to perform well, delivering strong financial and operational results for the quarter. Renewals have been a major focus for us and continue to be a highly critical and strategic part of our business.

"With a sustained renewal rate in excess of 80%, our efforts are paying off and reflect the inherent longevity of our service. This can clearly be seen in the extension of the full 450MW contract in Libya, as well as in the extension of the first 100MW tranche of the Uruguay contract.

"These reflect the strong long-term relationships we have built with these customers and their preference for mobile gas turbines to deliver large-scale, semi-permanent power."

(Sources: APR Energy, Yahoo!)

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