APR suspends Libya power generation operations
Temporary power specialist halts work at six sites until government signs paperwork.
APR Energy has suspended power generation operations in Libya due to unfinished paperwork by the government.
The temporary power company, which rents out 25 megawatts (MW) turbines and generators, said on Friday its plants at six sites in Libya were on standby until the matter was resolved.
In July, General Electric Company of Libya (GECOL) extended APR's 450-megawatt power contract through to the first quarter of 2015, but the final parliamentary review process has been continuously delayed.
Chief executive Laurence Anderson told Reuters: "One would expect that with the acute need of electricity (in Libya), this should expedite the process or raise the priority level for them."
He said the company would quantify the impact once the issue was resolved, but did not give a timeline for a resolution.
Friday's warning comes about a month after APR said full-year profit would be at the lower end of market expectations due to escalating geopolitical and global economic uncertainty leading to "customer hesitancy" in making decisions.
The company's optimism in emerging markets has been in stark contrast to that of larger rival Aggreko, which has warned on multiple occasions that emerging markets remained challenging.
APR's persistence with emerging markets has left it exposed to countries such as Libya and Iraq, where political risks abound.
Its operations in Libya have been a particular cause for concern, caught between two rival governments struggling for control of the country's vast energy reserves three years after veteran ruler Muammar Gaddafi was overthrown.