16th Jun 2015 07:29
LONDON (Alliance News) - APR Energy PLC shares were down 34% early Tuesday after it warned that its 2015 results will be significantly below market expectations due to delayed negotiations for projects it is pursuing, demobilisation costs in Libya that have been higher than expected, and unfavourable exchange rates, particularly in Australia and Indonesia.
The company also said it expects to meet its financial covenants when they are next tested at the end of the current quarter, but warned there is a "realistic possibility" that the delays in revenue may mean it is unable to meet these covenants on future quarter-end testing dates.
According to broker forecasts provided by Morningstar, Numis Securities Ltd expects the provider of mobile turbine power products to posted a pretax loss of GBP24.5 million in 2015, whilst Peel Hunt LLP expects it to post a pretax loss of GBP2.3 million, and Investec Securities a pretax loss of GBP9.9 million.
APR said that customer decisions about deals in the pipeline have been pushed out until later in the year, although it said opportunities still exist and the market for its products remains strong.
APR Energy is continuing to "evaluate all commercial opportunities", it said, and "will engage with its lenders at an appropriate time if the company determines that seeking a modification of its financial covenants is advisable."
Additionally, Chief Operations Officer Brian Rich has opted to step down for personal reasons, and left the company with effect from Monday.
Shares in APR Energy are trading down 34% at 230.00 pence early Tuesday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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