5th Dec 2019 09:51
(Alliance News) - Power generation operator ContourGlobal PLC on Thursday recorded a sharp rise in energy produced but lowered its adjusted earnings guidance on the length of time it took to close its Mexico acquisition.
Shares in ContourGlobal were 1.2% lower in London on Thursday morning at 204.50 pence each.
In the nine months to the end of September, ContourGlobal recorded revenue of USD961.0 million, up 4.5% on the USD920.0 million seen the year before.
Net income in the nine-month period tripled to USD52.2 million from USD17.3 million. Income from operations was up 10% to USD231.0 million.
ContourGlobal recorded 22% and 23% year on year growth in thermal and renewable gigawatt hours produced, respectively, rising to 6,035 and 3,907.
Thermal and renewable megawatts in operation were broadly flat at 2,512 and 1,790, respectively. Availability factor was up 2 basis points in thermal, at 91.3%, but flat in renewable at 96.7%.
Adjusted earnings before interest, tax, depreciation and amortization in the nine months to the end of September was up 19% year-on-year to USD531.6 million.
The company said the rise in earnings reflects the full nine-month ownership of the Spanish Concentrated Solar Power project, which was acquired in May 2018. ContourGlobal also noted the USD52 million cash gain from selling a minority stake sale in the CSP facilities, in the southwest of Spain, to Credit Suisse Energy Infrastructure Partners.
ContourGlobal previously guided for 2019 adjusted Ebitda to be in the lower half of its expected range of USD720 million to USD770 million. Now, however, the company expects its adjusted Ebitda to be "modestly below" the bottom end of the expected range.
The company stressed underlying trading remains in line with expectations, but a delay in closing the CHP deal in Mexico will result in a drop in earnings.
In late November, ContourGlobal PLC closed the acquisition acquire Alpek SAB de CV's portfolio of two natural gas-fired combined heat and power plants, together with development rights and permits for a third plant, for USD724 million in cash. The deal was originally agreed in January.
By Paul McGowan; [email protected]
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