6th Aug 2021 08:56
(Alliance News) - ContourGlobal PLC on Friday upped its earnings guidance for the full-year after a better-than-planned interim showing.
In the six months to the end of June, the power generation operator reported revenue of USD935 million, a rise of 38% from USD680 million.
Pretax profit, however, was USD65.5 million, down 36% year-on-year from USD101.6 million.
Depreciation and amortization costs rose 26% year-on-year to USD191 million. The hit from net finance costs, foreign exchange effects and changes in the for value of derivatives jumped 98% to USD125 million.
The increase in revenue was supported by higher carbon dioxide quotas pass-through revenue at Maritsa, higher generation with higher prices due to cold weather at Arrubal and higher generation and higher gas sales prices at Mexican CHP.
ContourGlobal's Maritsa project is located in Bulgaria and Arrubal is in Spain.
"We performed very well in the first half of 2021 with better than plan operating and financial performance across the entire fleet," Chief Executive Joseph Brandt said.
ContourGlobal declared a dividend of 4.465 cents for the second quarter, equal to its first quarter payout. It means its dividend for the first half amounts to USD8.93, up 10 from just under USD8.12 a year earlier.
Adjusted earnings before interest, tax, depreciation and amortization was USD406 million, up 16% annually from USD351 million, driven by the Western Generation acquisition and stronger operational performance in renewables.
Going forward, ContourGlobal is increasing its full-year guidance and now expects annual adjusted Ebitda to be in the range of USD780 to USD810 million for 2021. Adjusted Ebitda was USD722 million in 2020, so at best, it expects growth of 12%.
Shares in the company were 1.2% higher at 198.40 pence each in London on Friday morning.
By Amrit Sahota; [email protected]
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