Trading Update

27 October 2020

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 2020 to 30 September 2020.

Joseph Brandt, Chief Executive Officer, said: "We continue to make good progress with ContourGlobal on track to meet our 2020 Adjusted EBITDA guidance of $710 million to $745 million1. I am pleased to be able to confirm the third quarter dividend payment of 4.0591 cents per share2, maintaining our commitment to a 10% annual increase in dividends.

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."

Strong operating and financial performance

· Continued industry leading Health and Safety performance with 0.05 Lost Time Incident Rate ("LTIR") in the first 9 months of 2020 (one LTI year-to-date ("YTD") occurred at our Vorotan hydro plant in Armenia in September 2020).

· Operational performance remains strong with an average availability factor of 94.6% in the first 9 months of 2020 combined across the thermal and renewable fleets, compared to 93.5% for the comparable period last year.

· Adjusted EBITDA up 2% for the first 9 months of 2020 to $542.8 million vs. $531.6 million for the comparable period in 2019. The increase is driven by the Thermal division, reflecting the Mexico CHP acquisition completed in November 2019 (+$74m) and better commercial terms in the Renewable fleet (+$7m). This was partially offset by net cash gains from Spanish CSP and European Solar farm-downs in 2019 (-$46m) and negative FX effect (-$23m).

· Strong cash flow generation with Funds from Operations ("FFO") reaching $314.1 million in the first 9 months of 2020, a 10% increase from the comparable period in 2019, primarily due to higher Adjusted EBITDA, higher distributions from JVs in Colombia and lower interest paid, partially offset by higher distributions to non-controlling shareholders, higher tax paid and higher capex.

· Our cash conversion rate (FFO / Adjusted EBITDA) continued to be strong at 58% for the first 9 months of 2020, higher than for the comparable period in 2019 (54%), reflecting the FFO impacts mentioned above.

· Net profit up 64% in the first 9 months of 2020 to $85.5 million vs. $52.2 million for the comparable period in 2019 benefiting mainly from a non-cash revaluation of $43 million for a derivative in the Mexican CHP assets that locks in a fixed electricity price margin for certain contracts that would otherwise be impacted by electricity and gas price volatility. Adjusted net profit down 34% in the first 9 months of 2020 to $54.9 million vs. $83.4 million for the comparable period in 2019 mainly due to excluding the above mentioned positive $43 million non-cash change in fair value of the Mexican CHP derivative in 2020 as well as the 2019 Adjusted Net Profit benefiting from adding back $15 million of hedge breaking costs associated with the refinancing of our Italy and Slovakia PV assets.

· As separately announced today, the Company will pay a dividend for Q3 2020 of 4.0591 cents per share2, equivalent to $26.92 million3 to be paid on 29 December 2020. This is in line with the Company's commitment to an annual 10% increase in dividend per share.

COVID-19

Тhe Company continues to experience no material operational or financial impact as a result of COVID-19. We continue to focus on the health and safety of our employees, continued business resilience, and community support.

Delivering on our growth commitments

We continue to focus on external growth opportunities and our M&A pipeline remains very robust.

*Non-IFRS metrics

 Share buy-back update

The Company commenced a buy-back programme on 1 April 2020, to repurchase up to £30 million of shares. Up until 30 September 2020, 6,464,387 shares have been repurchased for a consideration of £11.5 million and are held in treasury, representing a further return of capital to shareholders in addition to the dividend payments.

OutlookContourGlobal's business model is highly resilient with stable and predictable cashflows. We have not seen meaningful disruption to operations as a result of COVID-19 to date, and current trading is in line with our expectations. As a result, we reiterate our 2020 Full Year guidance for Adjusted EBITDA in the range of $710m - $745m1 and maintain our dividend policy of an 10% annual increase in dividend per share.

1 Based on constant exchange rates from 2019 of EUR/USD 1.12 and BRL /USD 0.25, and assuming no prolonged disruption to operations, human resource and to our off-takers from the current COVID-19 pandemic.

2 Payment of 4.0591 cents per share, or 3.1139 pence per share. Further details on timing announced separately today.

3 Based on 663,114,749 shares in issue as at 23 October 2020, excluding shares held in treasury

Enquiries

Investor Relations - ContourGlobal

Alice Heathcote

+1 617 690 9633

+44 (0) 203 626 9077

[email protected] 

[email protected]

Media - Brunswick

Charles Pretzlik/William Medvei

Tel: +44 (0) 207 404 5959

[email protected]

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 4.8 GW in operation in 18 countries. ContourGlobal operates a portfolio of 107 thermal and renewable power plants across Europe, 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.