Questor share tip: Hold APR Energy after contract win On Monday, APR said it had signed a new 200 megawatt contract in Uruguay, running until mid 2014. This is a significant contract, as typical coal power station produces around 600 to 700 megawatts. The group has also extended a 100 megawatt contract. This brought APR's total new contract wins this year to 569 megawatts and contract renewals to 724 megawatts. Aggreko, to which the company is inevitably compared, warned on Monday that profits would be lower next year. This is down to none-recurrence of events such as the Olympic Games, as well some weakness in the group's international power operation. However, the nature of this business is that contracts will be lumpy - as both companies have found out. Despite this the scale of the opportunity remains structurally sound - the world is short of power and demand is growing rapidly in emerging economies. Temporary power is used as financing for new power stations can be difficult and they are slow to build. APR has positioned itself entirely in the international sphere - it does not "events" like the Olympics that Aggreko runs form its local businesses. APR operates through "hubs" in Dubai, Panama and Malaysia. It also has stuck a deal on mobile gas turbines with Pratt & Whitney Power Systems. This is relatively unique, as most others in the medium sized power space provide the more traditional piston engines. APR reckons that utility companies have a natural preference for turbines over piston engines because it is the technology with which they are most familiar. They are also a lower emitter of pollutants - so are better environmentally than diesel engines. Although volatility in earnings will remain, the long-term prospects are sound. However, the shares are still significantly below £11 or so a share when the reversal happened. They are likely to take some time to get up to this level. At the current price, City analysts are broadly supportive, with seven on a buy rating, four on hold and four sells, according to Bloomberg data. The shares are a touch lower than Questor's last update a 727p at the end of August. They are trading on a multiple of 14 times 2013 forecast earnings and yielding 1.5pc. The rating remains hold as Questor is disappointed with the accounting issue earlier in the year but sees the scale of the opportunity if management gets it right.