ContourGlobal (GLO) has continued to beef up earnings through its renewable energy holdings. The company has not given up on fossil fuels, however, announcing in the first half it would buy two gas-fired cogeneration plants in Mexico, with completion of the $724m (£596m) deal expected by the end of the year.
The interim accounts showed hefty increases across the board thanks to other recent purchases, with the 250-megawatt Spanish solar assets that came into the business in 2018 the biggest contributor. This was thanks to the plants’ income and ContourGlobal selling 49 per cent of its stake for a net gain of $52m in the period.
Overall, revenue was up 15 per cent in the half to $617m, adjusted Ebitda by 36 per cent to $357m and income from operations up 27 per cent to $143m. The adjusted cash profit growth came from the renewables division, which climbed 78 per cent to $214m, while thermal energy remained flat.
This has come alongside a slight drop in net debt from $3bn a year ago, to $2.9bn as of June 30. Chief executive Joseph Brandt said the company would keep expanding, through acquisitions and greenfield projects.
Consensus forecasts compiled by Bloomberg put full year Ebitda at $721m and adjusted earnings per share at 21¢, rising to $766m and 24¢ in 2020.
| CONTOURGLOBAL (GLO) | ||||
| ORD PRICE: | 164p | MARKET VALUE: | £ 1.1bn | |
| TOUCH: | 165-166p | 12-MONTH HIGH: | 266p | LOW: 143p |
| DIVIDEND YIELD: | 7.2% | PE RATIO: | 67 | |
| NET ASSET VALUE: | 64¢* | NET DEBT: | $2.86bn | |
| Half-year to 30 June | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
| 2018 | 535 | 6.9 | 1.0 | 4.00 |
| 2019 | 617 | 23.2 | 2.0 | 7.38** |
| % change | +15 | +236 | +100 | +85 |
| Ex-div: | 15 Aug | |||
| Payment: | 06 Sep | |||
| £1=$1.22 *Includes intangibles of $133m, or 19.8¢ per share **Quarterly dividends of 3.69¢ in 2019 | ||||
