London: APR Energy Plc, which runs temporary power plants, suspended electricity generation in Libya and said its results could be hurt, a warning that wiped out more than a fifth of its market value.
APR’s stock fell to a record low on Friday after the company said it suspended operations due to unfinished paperwork by the Libyan government on a contract that was instrumental in APR posting a profit last year.
“Well there obviously will be a financial impact on APR but we’re taking it one day at a time at this point,” founder and Chief Executive Laurence Anderson said.
He said the company would quantify the impact once the issue was resolved, but did not give a timeline for a resolution.
“One would expect that with the acute need of electricity (in Libya), this should expedite the process or raise the priority level for them.”
In July, General Electric Company of Libya (GECOL) extended APR’s 450-megawatt power contract through to the first quarter of 2015, but the final parliamentary review process has been continuously delayed.
APR, which rents out 25 megawatts turbines and generators, said yesterday its plants were on standby until the matter was resolved. Yesterday’s warning comes about a month after APR said full-year profit would be at the lower end of market expectations due to escalating geopolitical and global economic uncertainty leading to “customer hesitancy” in making decisions.
Reuters
