Shares in temporary power provider APR Energy (LON:APR) charged higher as news of a contract extension was accompanied by an analyst upgrade.
The company revealed the contract for its 200 megawatt diesel power module project in Libya was renewed – a deal which was picked out by City analysts as key to the firm.
That’s because Libya, where the company is generating interim power while the North African country improves its infrastructure, accounts for around 50% of APR’s revenues and 60% of profits.
John Campion, APR’s chief executive, said he was delighted with the first extension in Libya.
“Today's announcement reflects the strong relationship we have built with our customers and their continued satisfaction in APR's ability to deliver reliable, fast track power,” he said.
An upgrade from UBS proved good timing as the broker lifted the company off its ‘sell’ list.
As well as upgrading to ‘neutral’, the Swiss broker raised its target price to 900p from 800p.
The company also emerged on Liberum Capital’s list of stocks to sell in 2014. However, the broker had pointed out that the biggest risk was the contract renewal process in Libya.
Perhaps it will revise its recommendation on the back of the news.
The shares jumped 6.3% to 956p on Friday.