SHARES in Aggreko have fallen by more than three per cent, cutting the temporary power specialist's stock market worth by around £130 million, with analysts citing worries about the company's exposure to conflict-torn Yemen.
APR Energy, a rival of Glasgow-based Aggreko, said yesterday that it had ceased operations in Yemen "due to escalating conflict in the country".
Michael Hewson, chief market analyst at CMC Markets UK, said during afternoon trading: "Temporary power provider Aggreko is...on the slide over concerns about its operations in Yemen, where it has some small exposure."
Aggreko declined to comment on its position regarding Yemen.
Shares in Aggreko finished 52p or nearly 3.3 per cent lower on the session at 1543p, giving the company a stock market worth of about £3.95bn.
APR said it had operated in Yemen since 2012, providing 60 megawatts of power capacity.
It added: "The decision to proactively terminate our contract in Yemen has been made with much careful consideration, and follows a detailed assessment of the well-publicised conflict in the country.
"The safety of our people is always APR Energy's number one priority, and as such, the management team believes that this decision is in the best long-term interest of our people, company and shareholders."
Shares in APR Energy ended 18.5p or 4.9 per cent lower at 358.5p.
APR Energy also announced that a customer in the South Pacific had provided notice to terminate its 60MW contract in the third quarter of this year. It noted this was three months earlier than the original termination date.
It added that the customer would no longer need the additional generation capacity because of progress it had made on its permanent generation solution.
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