APR suspends Libya power operation on contract delays
APR stock fell as much as 21 percent to a record low on Friday on fears that the delays to the contract
APR Energy Plc, a supplier of temporary power plants, said it had temporarily suspended electricity generation in Libya while the country’s parliament completed some necessary paperwork related to a contract with the company.
APR stock fell as much as 21 percent to a record low on Friday on fears that the delays to the contract, instrumental in the company posting a profit last year, could hurt results.
“It’s a difficult one to call because we don’t know how long this disruption might be,” Peel Hunt analyst Andrew Nussey said. “Each day that they’re not generating power is also going to impact them financially.”
General Electric Company of Libya (GECOL) in July had extended APR’s 450-megawatt power contract through to the first quarter of 2015.
But the final parliamentary review process on the contract, APR’s biggest, has been continuously delayed.
APR, which has power plants at six sites in Libya, said on Friday its plants were on standby until the matter was resolved.
The company’s operations in Libya are caught between two rival governments struggling for control of the country’s vast energy reserves three years after veteran ruler Muammar Gaddafi was overthrown.
APR shares were down 18 percent at 306.75 pence at 1220 GMT, making them the top percentage loser on the London Stock Exchange. They hit a record low of 295.50 pence earlier.