By John Lee.
Shares in APR Energy were up 3 percent on Wednesday morning after the company announced that it has signed a contract renewal for its power generation contract in Iraq, taking the term through the end of 2015.
The power plant has been in operation since 2012 and comprises six GE TM2500 mobile gas turbines capable of generating more than 120MW of electricity. APR Energy acquired the plant in 2013 as part of its acquisition of GE's power rental business.
Located in Basra, the gas-fired power plant provides reliable base load power and grid stability to the population of the Basra province, as well as supporting oil and gas, petrochemical and agricultural industries.
Commenting on the contract renewal, APR Energy's Managing Director for Europe, Middle East and Africa, Ranjit Singh said:
"Our fast-track solution is providing Basra residents and industries with reliable power, helping to fill critical needs and supporting economic and social stability. Mobile turbine technology helps stabilise the grid, uses approximately a third of the space required by a mobile reciprocating engine site and requires only a small team to operate and maintain.
"This renewal reflects our customer's ongoing demand for electricity, as well as our proven ability to deliver large-scale power quickly, reliably and consistently."
Laurence Anderson (pictured), APR Energy Chief Executive Officer added:
"I'm very pleased to have renewed this significant contract in Iraq, which follows on the heels of our 135MW contract extension and expansion in Indonesia.
"Our focus following the acquisition of the GE power rental business has been to renew the former GE contracts under more favourable terms or else relocate the assets to higher-value opportunities, and this renewal is very much aligned with that strategy."
(Sources: APR Energy, Yahoo!)