(Alliance News) - ContourGlobal PLC on Monday posted a much higher interim profit thanks to its Mexican assets buy in late 2019 as well as a foreign exchange and fair value gain.
The FTSE 250-listed power generation firm, which has its headquarters in London, reported a USD101.6 million pretax profit for the six months ended June 30, more than four times its USD23.2 million interim profit the year before.
Revenue climbed 10% to USD680.2 million from USD617.4 million as a result of its Mexican combined heat and power plant assets acquisition completed November 2019.
On top of which, ContourGlobal swung to a USD55.5 million gain on foreign exchange and change in fair value of derivatives from an USD8.8 million loss the prior year.
The company maintained its annual guidance for adjusted earnings before interest, tax, depreciation, and amortisation of between USD710 million and USD745 million. This compares to its 2019 adjusted Ebitda of USD702.7 million.
President & Chief Executive Joseph Brandt said: "Our financial performance has been robust and continues to meet our growth expectations. Our resilience was reflected in receiving one of the few credit rating upgrades delivered since the start of the Covid-19 pandemic. The business model is underpinned by consistent and contracted cash generation. The stability of the cash flow ensures that we can deliver our long-term commitment to shareholders, including a targeted annual 10% increase in our dividend and our recent share buyback program."
The CEO also pointed out that the company was classified as an essential business in the 18 countries where it generates electricity and all 107 of its power generating facilities has been operational with "no notable adverse impacts".
ContourGlobal separately announced approval of a 4.0591 US cents per share dividend for the three months ended June 3, equivalent to USD27.0 million and reflecting its 10% year-on-year dividend per share growth target.
By Anna Farley; annafarley@alliancenews.com
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