27th Oct 2020 09:32
(Alliance News) - ContourGlobal PLC on Tuesday affirmed its earnings guidance for 2020, following a robust performance in the first three quarters of the year.
For the nine months to the end of September, the FTSE 250 power generation operator recorded net profit of USD86 million, up 64% from the USD52 million a year before.
Adjusted earnings before interest, taxes, depreciation and amortisation were USD543 million, a 2.2% year-on-year rise from USD532 million. ContourGlobal attributed the rise in earnings to the Thermal division. This was complemented by the company's Mexican combined heat and power plant assets acquisition completed November 2019, as well as better commercial terms in the Renewable fleet.
Revenue grew by 5.8% to GBP1.02 billion from GBP961 million a year before.
Operationally, thermal gigawatt hours produced rose by 26% to 7,627; however renewable gigawatt hours dropped by 6.7% to 3,644.
Thermal and renewable megawatts in operation rose by 19% and 1.3% respectively to 2,992 and 1,813. Availability factor was up 2.2 basis points in thermal at 93.5%, but down 0.3 points in renewable at 96.4%.
ContourGlobal declared a dividend for the quarter at 4.059 cents per share, up 10% from 3.690 cents the year before.
Looking ahead, ContourGlobal reiterated its annual guidance for adjusted Ebitda in the range of USD710 million and USD745 million, reflecting a 1.0% to 6.0% rise from GBP702.7 million. In addition, the group said it would maintain its dividend policy of a 10% annual increase.
"Our results reflect the resilience of our business model, with ContourGlobal continuing to deliver strong and predictable cash flow generation. While Covid-19 has posed challenges to every business and economy I am pleased with the way that we have responded. The dedication of our workforce has ensured the continued safe operation of our assets around the world and has meant we have experienced no material operational or financial impact from Covid-19," said Chief Executive Officer Joseph Brandt.
Shares in ContourGlobal were down 0.1% at 194.80 pence on Tuesday in London.
By Dayo Laniyan; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
GLO.L