ContourGlobal PLC (LON:GLO) today released quarterly update following AGM.
· Adjusted EBITDA for the first quarter of 2019 of $147.0m, a rise of 23.5% compared to the prior year primarily due to the acquisition of the 250 MW Concentrated Solar Power facilities in the southwest of Spain (the “Spanish CSP business”) in May 2018 (+$31.6m) as well as improved wind resource and availability (+$5.2m), partially offset by FX movements in the Euro and Brazilian Real (-$11.5m).
· As announced during its annual results presentation, the annual dividend is expected to be increased by 10% and ContourGlobal has moved to a quarterly dividend payout and today declares a first quarterly dividend for 2019 of $24.75 million corresponding to 3.6901 USD cents per ordinary share. This is expected to be paid on 21 June 2019 to shareholders on the register at 31 May 2019.
· 36.9% increase in FFO compared to prior year driven by the acquisition of the Spanish CSP business (+$28.0m), partially offset by a change in timing of Eurobond interest payment dates from June and December 2018 to August and February 2019 (-$13.7m).
· Further to the announcements made by the Company on 7 January 2019 and 5 April 2019 regarding the acquisition of natural-gas fired cogeneration plants in Mexico from Alpek S.A.B. de C.V. (the “Acquisition”), the Company today updates on the transaction status and timing. As previously announced, closing of the transaction is conditional upon, among other things, the entry into commercial service of the asset under construction (CGA1). Closing is now expected to occur in Q3 2019. As previously disclosed, the Acquisition is expected to make an Adjusted EBITDA contribution of $110m in its first full year of operations.
· On 3 May 2019, the Company announced it had reached a key milestone in the Kosova e Re Power Plant Project with a consortium of General Electric companies being selected as the Preferred Bidder in the tender for the turn-key engineering, procurement and construction and longterm maintenance contracts.
· Further to the announcement made on 6 December 2018, on 20 May 2019, the Company completed the sale of a 49% interest in the Spanish CSP business to a fund advised by Credit Suisse Energy Infrastructure Partners AG for a total consideration payable of €134 million in cash.
· Unchanged 2019 Adjusted EBITDA guidance of $720 – $770m.
Q1 2019 (figures in USDm unless otherwise stated)
|Q1 2019||Q1 2018||Change|
|YTD Adjusted EBITDA||147.0||119.0||23.5%|
|YTD Adjusted Proportionate EBITDA*||123.0||97.0||26.8%|
|YTD Adjusted Net Income*||13.3||(21.1)||n.m.|
|YTD Funds from Operations (FFO)*||69.0||50.4||36.9%|
* Non-IFRS metrics
Joseph Brandt, Chief Executive Officer, ContourGlobal said:
“We have made a strong start to 2019 with growth in Adjusted EBITDA in line with our expectations. During the quarter, we marked an important milestone in the development of the Kosova e Re project. Our M&A pipeline remains robust and other key projects such as our innovative hydroelectric refurbishment in Armenia and the modernization of our integrated renewable, storage and thermal generation facility on the island of Bonaire are on track.”