TIDMGLO
RNS Number : 0259Q
ContourGlobal PLC
25 October 2021
25 October 2021
ContourGlobal plc
Trading Update
ContourGlobal plc (the "Company"), an international owner and
operator of contracted wholesale power generation businesses, today
issues a trading update for the period from 1 January 2021 to 30
September 2021.
Joseph Brandt, Chief Executive Officer, said, "Safety first. The
Health & Safety of our employees and contractors is our highest
goal and included in our value statement. We had two unacceptable
health and safety failures in the third quarter: a fatality of one
our contractors at a wind farm in Brazil, our first in nine years,
and a Lost Time Incident at one of our CSPs in Spain. We will learn
from these failures and improve and recommit to Target Zero.
Our business performed well financially during the third quarter
and I am pleased to confirm the third quarter dividend payment of
4.465 cents per share, representing a 10% year-on-year growth in
line with our dividend policy. This is underpinned by strong
operating cash flows and 14% year-on-year growth in 9M 2021
Adjusted EBITDA to $622 million. We continue to focus on
operationally led low-carbon growth opportunities in our key
geographies and our pipeline of attractive opportunities remains
robust.
At the end of September, we successfully completed the financing
of our 277MW portfolio of Caribbean power plants, leading to a cash
distribution to the parent company of $110 million received at the
beginning of October. The Caribbean portfolio, consisting of assets
in Trinidad and Tobago, Bonaire and Saint Martin, was significantly
under levered and the financing was completed at attractive terms.
In addition, we refinanced our Brazilian Asa Branca Wind assets in
Q3 as well as our Brazilian Hydro assets in October. The financing
was at attractive terms, leading to a total cash distribution to
the parent company of approximately BRL200 million of which BRL55
million were received in Q3 and the remaining amount is expected to
be received in Q4."
Strong operating and financial performance
-- With the exception of our health & safety performance
noted above, our Operational performance remained strong although
slightly below 9M 2020 with an average availability factor of 93.9%
in the first 9 months of 2021 combined across the thermal and
renewable fleets (9M 2020: 94.6%).
-- Adjusted EBITDA was up 14.4% from $542.8 million to $622.2
million, mainly reflecting the contribution (+$64 million) from the
Western Generation Portfolio acquisition completed on 18 February
2021 and a positive FX variance of $14 million.
-- Strong cash flow generation with Funds from Operations
("FFO") reaching $349 million in 9M 2021, an 11% increase over 9M
2020, mainly explained by growth in Adjusted EBITDA (+$79 million)
partially offset by higher distributions to non-controlling
shareholders (-$22 million) and lower distributions from associates
(-$12 million).
-- Cash conversion (FFO / Adjusted EBITDA) of 56% in 9M 2021,
compared to 58% in 9M 2020, largely driven by higher distribution
to non-controlling shareholders.
-- Cash flows and overall business continue to be well protected
from potential inflation increases. 79% of Adjusted EBITDA is
inflation protected, while 84% of total debt is with fixed interest
rates providing a significant hedge against potential rising
interest rates. Assets with inflation linked revenues have an
average contract life of 10 years. Assets without inflation
linkages have long-term fixed interest rate financing.
-- The Company will pay a dividend for Q3 2021 of 4.465 cents
per share / 3.2333 pence per share ([1]) , equivalent to $29.3
million ([2]) to be paid on 19 November 2021. This is in line with
the Company's commitment to an annual 10% increase in dividend per
share.
-- The process to monetize the renewables business in Brazil is
progressing and the Company continues to explore other transactions
that unlock intrinsic value for shareholders.
Group Operational highlights
9M 2021 9M 2020 Change
GWh produced Thermal 11,644 7,627 +52.7%
--------------------- -------- -------- -------
Renewable 3,913 3,644 +7.4%
--------------------------------- -------- -------- -------
MW in operation Thermal 4,494 2,992 +50.2%
--------------------- -------- -------- -------
Renewable 1,799 1,813 -0.8%
--------------------------------- -------- -------- -------
Availability factor Thermal 93.1% 93.5% -0.4%
--------------------- -------- -------- -------
Renewable 95.7% 96.4% -0.7%
--------------------------------- -------- -------- -------
Financial highlights
In $ millions 9M 2021 9M 2020 Change
Revenue 1,484 1,017 +46.0%
-------- -------- -------
Income from Operations 282 246 +17.2%
-------- -------- -------
Adjusted EBITDA* 622 543 +14.4%
-------- -------- -------
Thermal Adj. EBITDA 388 308 +25.8%
-------- -------- -------
Renewable Adj. EBITDA 258 259 -0.4%
-------- -------- -------
Corporate and other costs (24) (24) -2.9%
-------- -------- -------
Proportionate Adjusted
EBITDA* 502 422 19.1%
-------- -------- -------
Funds from Operations
(FFO)* 349 314 11.1%
-------- -------- -------
Net Profit 75 86 -12.0%
-------- -------- -------
Adjusted Net Profit* 51 81 -37.1%
-------- -------- -------
*Non-IFRS metrics
Outlook
ContourGlobal's business model is highly resilient with stable
and predictable cashflows. We reiterate our guidance for 2021
Adjusted EBITDA in the range of $780 million - $810 million[3] and
maintain our dividend policy of a 10% annual increase in dividend
per share.
Enquiries
Investor Relations - ContourGlobal
Jose Cano
+44 203 626 9062
jose.cano@contourglobal.com
investor.relations@contourglobal.com
Media - Brunswick
Charles Pretzlik / Will Medvei
Tel: +44 (0) 207 404 5959
Contourglobal@brunswickgroup.com
About ContourGlobal
ContourGlobal is listed on the premium segment of the London
Stock Exchange (TKR: GLO). ContourGlobal is an international owner
and operator of contracted wholesale power generation businesses
with approximately 6.3 GW in operation in 20 countries.
ContourGlobal operates a portfolio of 114 thermal and renewable
power plants across Europe, North America, Latin America, and
Africa utilizing a wide range of technologies.
Cautionary note regarding forward-looking statements
These results include statements that are, or may be deemed to
be, "forward-looking statements". These forward-looking statements
can be identified by the use of forward-looking terminology,
including the terms "believes", "estimates", "anticipates",
"expects", "intends", "plans", "goal", "target", "aim", "may",
"will", "would", "could" or "should" or, in each case, their
negative or other variations or comparable terminology. These
forward-looking statements include all matters that are not
historical facts. They appear in a number of places throughout
these results and the information incorporated by reference into
these results and include statements regarding the intentions,
beliefs or current expectations of the directors or the Company
concerning, amongst other things, the results of operations,
financial condition, liquidity, prospects, growth, strategies and
dividend policy of the Company and the industry in which it
operates.
By their nature, forward-looking statements involve risks and
uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future and may be
beyond the Company's ability to control or predict. Forward-looking
statements are not guarantees of future performance. The Company's
actual results of operations, financial condition, liquidity,
dividend policy and the development of the industry in which it
operates may differ materially from the impression created by the
forward-looking statements contained in these results and/or the
information incorporated by reference into these results. In
addition, even if the results of operations, financial condition,
liquidity and dividend policy of the Company and the development of
the industry in which it operates, are consistent with the
forward-looking statements contained in these results and/or the
information incorporated by reference into these results, those
results or developments may not be indicative of results or
developments in subsequent periods.
Other than in accordance with its legal or regulatory
obligations, the Company does not undertake any obligation to
update or revise publicly any forward-looking statement, whether as
a result of new information, future events or otherwise.
[1] Based on fixed FX rate GBGBP1= US$1.3809243
[2] Based on 656,140,855 shares in issue as at October 22 2021,
excluding shares held in Treasury.
([3]) Assuming 2021 exchange rates of EUR/USD 1.19 and BRL/USD
0.18
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END
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