APR Energy has reported that its financial performance has been significantly affected by its decision to stop operations in Libya.
In its full-year results for 2014, the company said that pulling out of Libya was a very difficult decision to make, but it was done to protect the long-term interests of the business.
"At the time we entered Libya, it was a historic contract to win and a testament to our ability to deploy rapidly large blocks of power in an incredibly challenging operational environment. Operating across six sites, some in challenging desert conditions, we were able to provide 450MW of much needed power to millions of Libyans.
"From the time we won the contract, we began producing power in just 90 days. It was an attractive contract that produced significant revenues, margin and cash flow for us, coupled with a customer who greatly valued the power we produced.
"However, the increasingly challenging political, social and security environment within Libya, and the speed at which it deteriorated, caused our renewed contract to be held up in the Libyan parliamentary review process. With no line of sight towards a ratification date, the Board made the difficult decision to demobilise the Group’s plants in the country.
"Our focus now is the successful extraction of our assets and their redeployment onto new projects as quickly as possible. The nature of our business means that all of our projects have a finite life cycle.
"We have a strong track record of being able to redeploy assets when contracts come to their conclusion, and I feel confident that we will be able to place the Libyan assets into new opportunities.
"Despite its challenges, the demobilisation of our plants is so far progressing according to schedule and our customer has been supportive with the necessary paperwork as we prepare to ship assets out of the country."
(Source: APR)
