CountourGlobal performs better than expected in first half
Power generation plant operator ContourGlobal reported a 44% improvement in first-half consolidated revenue on Wednesday, to $1.35bn.
The FTSE 250 company said its adjusted EBITDA was ahead 9% year-on-year for the six months ended 30 June, at $444m.
Its net consolidated leverage ratio was 4x as at 30 June, compared to 4.6x on 31 December.
Income from operations was up 84% over the same period last year at $333m, including the gain on disposal from the sale of the firm’s Brazilian hydro business of $121m.
Funds from operations totalled $238m, making for a 9% increase from the first half of 2021, with a cash conversion of 54% remaining “consistent” year-on-year.
The board declared a second quarter dividend of 4.9115 cents per share to be paid on 9 September, reflecting its commitment to a 10% year-on-year growing dividend supported by “strong and visible” cash flows.
Its dividend cover increased to 3.5x, from 2.8x on 31 December.
The company also noted that the recommended cash acquisition by Cretaceous Bidco - a newly-formed company indirectly owned by funds advised by KKR, announced on 17 May - was approved by the required majority of shareholders on 6 July.
It said the transaction was expected to complete in the fourth quarter, following receipt of the outstanding regulatory approvals.
“We performed very well in the first half of 2022, with better than anticipated operating and financial performance across the entire fleet,” said president and chief executive officer Joseph Brandt.
“I am particularly pleased that our performance has been achieved while maintaining our primary focus, as always, on the safety and wellbeing of our people.
“We continue to pursue ‘target zero’, with zero lost time Incidents in all businesses in the first six months of the year.”
At 1012 BST, shares in ContourGlobal were up 0.4% at 257.52p.
Reporting by Josh White at Sharecast.com.