Interim Management Statement

Wednesday 24 July 2013

APR Energy PLC

Interim Management Statement

APR Energy PLC

24 July 2013





For Immediate Release

24 July 2013

APR Energy plc ("the Company")

Q2 Interim Management Statement

·; 240MW of new diesel contracts during the second quarter

·; Diesel utilisation of 81%; total fleet utilisation now at 79%

·; Total new contracts announced year to date 593MW, with contract extensions of 111MW year to date

·; Order book and pipeline of business opportunities remain strong

·; New term loan facility announced, providing additional $150m capacity to underpin future growth

APR Energy plc (LSE:APR), ("the Company"), a global leader in fast-track power solutions, announces its Interim Management Statement to the 24th July 2013, including the Q2 trading period.

TRADING

The Company has performed well in the period, in-line with expectations, generating revenues of $87.2 million during the first half of the year.

As at 30 June 2013, total fleet capacity was 1,607MW (December 2012: 1,311MW) with an order book (backlog of business) of over 14,439 MW-Months - an increase of 25% from the end of 2012 and ahead by 8% from the end of March 2013.

New contracts of 240MW have been won since 14 May 2013. They comprise the 200MW expansion in Libya, announced on 17 June, and the 40MW Mali cross-border agreement announced on 1 July. The contracts are expected to start generating power in early Q3 this year.

These, together with the 353MW of new contracts announced up to 14 May 2013, bring total new contract wins announced this year to 593MW (compared to 344MW in the same period of 2012). An additional 11MW of extensions have been signed (Botswana and Senegal), bringing total extensions year to date to 111MW.

OPERATIONS

APR Energy placed a major focus during the first half of the year on increasing the fleet utilisation of its diesel power modules. With 240MW of diesel contract wins this quarter, utilisation of this technology is now at 81%, on track with a 90% target utilisation rate by year end.

Several APR Energy plants went commercially operational during the quarter. In Uruguay, the 100MW La Tablada site and 100MW Punta del Tigre site expansion went operational, bringing APR Energy's total power generation capacity in the country to 300MW. APR Energy's 32MW plant in Oman went operational as one of the fastest installations in its history, facilitated by APR's patent-pending modular block building system and supported by the regional hub in Dubai. The 15MW plant in Nias, Indonesia also came online during the quarter.

In June, APR Energy announced the expansion of its 250MW contract in Libya by an additional 200MW, making it the largest single contract in the history of the fast-track power industry. The 450MW solution will help cover demand during the critical summer high heat season, as well as provide interim power while the country continues to rebuild and improve its infrastructure.

The first 250MW of installations in Libya are expected to be fully commercially operational by the end of July, with a number of units already online and generating power. Featuring gas turbines, the plants are located in Al Furnag, Al Khoms, and Zliten, located in the northwest of the country, and Samnu, located in the south. The Company expects the 200MW contract expansion announced on 17th June to be commercially operational in August.

In June, APR Energy signed its first ever cross-border agreement, a 40MW diesel power module solution, with the government of Mali. The solution is being installed and operated in Senegal to feed into the OMVS interconnected grid that connects Mali, Senegal, and Mauritania. The deal is APR Energy's first sale of power to Mali. The project further reinforces APR Energy's commitment to West Africa, with other recent projects across the region including Senegal, Burkina Faso, and Gabon.

FINANCIAL POSITION

The Company's balance sheet had gross debt of $440m (excluding capitalised finance costs) at the end of Q2. Cash on the balance sheet as of 30 June 2013 was $35m resulting in net debt of $405m.

The Company is pleased to announce today a $150m term loan expansion of its credit facilities from $400m to $550m. This expansion was arranged with its existing consortium of relationship banks and underpins the growth ambitions of the Company into the medium term.

OUTLOOK

Given that 200MW of the Uruguay contract commenced during May and the 450MW in Libya will commence during the second half, revenues for 2013 will be second half weighted. As a result, the Company anticipates operating profits to be similarly skewed toward the second half. Guidance remains unchanged for 2013.

The Company continues to see strong structural demand for power solutions in Africa, Latin America, the Middle East, and South East Asia, resulting in a strong commercial pipeline. There are ongoing discussions on a significant number of opportunities for both reciprocating engines and turbines.

The Company anticipates fleet capital expenditure of approximately $250 million in 2013 for further expansion of its gas turbine fleet and associated infrastructure, and total capital expenditure to be in line with analysts' expectations. The Company remains focused on making additional operational improvements during 2013.

APR Energy remains confident in the medium- and long-term structural growth of the fast-track power market, and believes it is well placed to continue to capitalise on this opportunity.

John Campion, CEO said: "Earlier this year, we committed to increasing diesel utilisation and are pleased that we have now reached 81% utilisation on these units. We have been able to do this without sacrificing our kw/h pricing, as our fuel-efficient diesel power modules allow us to provide highly competitive fuel efficiency guarantees and an overall lower cost to the customer. As of 30 June 2013, our total fleet capacity was 1,607MW and we believe that today's announcement of our expanded credit facility underpins the growth ambitions of the Company into the medium term.

"We continue to see significant opportunity for large-scale, fast-track power projects, which are our sole focus. The commercial pipeline remains strong, and our technology leadership in mobile gas turbines and diesel power modules positions us well for such opportunities, and provides a competitive advantage that has helped us expand our playing field and gain significant share in our market."

FORTHCOMING ANNOUNCEMENTS

Enquiries:

APR Energy plc +44 (0) 20 3427 3747

Brian Gallagher +44 (0) 7775 906 076

Capital MSL

Richard Campbell, +44 (0) 20 7307 5344 / +44 (0) 7775 784 933

Ian Brown, +44 (0) 20 7307 5344

About APR Energy

APR Energy specialises in the sale of reliable and efficient electricity through the rapid global deployment and installation of scalable turnkey power solutions. APR Energy's solutions, coupled with comprehensive operation and maintenance services and flexible commercial terms, have established it as a leader in its industry. Serving both utility and industrial segments, APR Energy provides power generation solutions to customers and communities around the world, with an emphasis on Africa, Latin America, the Middle East, and Asia. APR Energy also implements philanthropic projects at each plant location through its Community Development Programme, which aims to build and maintain close relationships with its neighbours through projects focused on health, education, and infrastructure.

Certain statements included in this announcement constitute, or may constitute, forward-looking statements. Any statement in this announcement that is not a statement of historical fact (including, without limitation, statements regarding the Company's future expectations, operations, financial performance, financial condition and business) is or may be a forward-looking statement. Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected or implied in any forward-looking statement. These risks and uncertainties include, among other factors, changing economic, financial, business or other market conditions. Although any such forward-looking statements reflect knowledge and information available at the date of this announcement, reliance should not be placed on them. Without limitation to the foregoing, nothing in this announcement should be construed as a profit forecast.

END

Notes to Editors

1. Management has been focused on improving the utilisation rates within our highly efficient, mainly Caterpillar, diesel fleet. Primary drivers of our recent contract wins have been the proven superior fuel efficiency of our diesel fleet, the overall service quality we have been able to provide following the formation of our partnership with Caterpillar, and the establishment of our hub infrastructure last year.

2. The OMVS (Organisation pour la mise en valeur du fleuve Sénégal) is the Senegal River Basin Development Authority. The organisation provides integrated management of waters and resources of the Senegal River basin, including an interconnected power grid that includes Senegal, Mali, and Mauritania.