21st Apr 2015 07:39
LONDON (Alliance News) - APR Energy PLC Tuesday reported a substantial USD723.6 million pretax loss in 2014, recording a number of significant impairments after ceasing operations in Libya and warning its financial performance in 2015 will be "slightly below" current market expectations as a result.
The USD723.6 million pretax loss for 2014 compares to a USD69.0 million pretax profit in 2013 after the company booked USD676.4 million in impairments against goodwill, intangible assets and certain items of property, plant and equipment located in Libya, alongside a further USD47 million related to trade receivables, also mainly in Libya.
"While we made substantial progress in many key areas of our business, the difficult decision to cease operations in Libya and demobilise our plants there has had a significant impact on our profitability and was a major contributing factor to our large statutory write-off," said Chief Executive Laurence Anderson.
"As a result of the Libya impact, together with ongoing geopolitical challenges in some of our markets, we expect full-year net income to be at or slightly below market expectations," he added.
Revenue rose to USD485.7 million in 2014 from USD308.3 million, driven by contract renewals, high utilisation rates and new contract wins.
"Operationally, APR Energy had a very solid year. We extended over 1.7 gigawatts of contracts, won 262 megawatts of new contracts and entered into three new countries. We extended over 85% of our contracts, reflecting the ongoing demand for electricity in the markets we serve, the high level of loyalty we have with our customers and the inherent longevity of the solutions we provide," said Anderson.
APR Energy has not proposed a final dividend for 2014, meaning the dividend for the full year will consist only of the interim dividend of 3.3 pence per share. In 2013, APR paid a 3.3 pence interim dividend and a 6.6 pence final dividend, giving a 2013 dividend of 10.0 pence per share. The company said it will continue to "maintain a regular review of its dividend policy".
APR Energy shares fell 8.5% to 338.00 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
APR.L