ContourGlobal sees FY profit 'modestly' below expectations

Wholesale power generator ContourGlobal said it expected full year core earnings to be below guidance after a delay in closing the deal on its Mexico acquisition.

The company had previously guided earnings before interest, tax, depreciation and amortisation (EBITDA) to be in the lower half of a $720m - $770m range.

Contour said adjusted EBITDA for the nine months to September 30, was up 19% to $531.6m reflecting the full nine month of ownership impact of its Spanish concentrated solar power (CSP) acquisition, a $52m cash gain on the reduction of a minority stake in the CSP assets and improved renewable generation.

"While underlying trading remains inline with expectations, consistent with the delay in closing from Q3 into Q4 of the acquisition of the combined heat and power business, the company now expects the 2019 full year adjusted EBITDA to be modestly below the bottom end of the previous range," Contour said on Thursday.