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ContourGlobal earnings boosted by acquisitions

By Michele Maatouk

Date: Friday 05 Apr 2019

ContourGlobal earnings boosted by acquisitions

(Sharecast News) - Power generator ContourGlobal posted a jump in full-year profit and revenue on Friday, boosted by acquisitions, as it announced the appointment of Stefan Schellinger as its new chief financial officer.
In its preliminary results for the year to 31 December 2018, the company said adjusted earnings before interest, tax, depreciation and amortisation rose 19% to $610m, in line with the group's guidance at the half year and reflecting growth from acquisitions.

Meanwhile, revenue was 23% higher at $1.25bn and ContourGlobal proposed a full year dividend of 13.4 cents a share, up from 11.9 cents the year before.

The company, which noted its intention to increase the dividend by around 10% a year going forward, set its guidance for 2019 adjusted EBITDA at between $720m and $770m.

President and chief executive officer Joseph C. Brandt said: "We succeeded in delivering a good set of results in 2018, our first full year since our initial public offering. We delivered on our operational, financial and growth commitments, including another record-setting Health and Safety performance. Excellent progress was made on growth targets, including the acquisition and integration of our Spanish CSP portfolio, the signing of a highly accretive cogeneration acquisition in Mexico just after year end, and hitting milestones on key developments, in particular, our wind repowering projects in Austria and our development project in Kosovo.

"We continue to make progress on our target to double run-rate 2017 adjusted EBITDA by 2022 through profitable, selective growth and high-performance operations."

ContourGlobal also said on Friday that Stefan Schellinger has been appointed as its new CFO with effect from 15 April.

Schellinger was group finance director of plastic and fibre products supplier Essentra from 2015 until 2018, having joined the company as corporate development director in 2013. Prior to this, he was FD of Emerging Markets at Gilbarco Veeder Root.

He has previously worked as vice president in investment banking at JP Morgan and started his career in accountancy at Arthur Andersen.

RBC Capital Markets analyst Alexander Wheeler said: "We believe that there is significant growth potential in the ContourGlobal investment case, with a strong development pipeline and M&A driving a doubling of adj EBITDA by 2022E, from $513m reported at year-end 2017.

"Furthermore, the experience of the company on large M&A transactions should help to mitigate potential execution risk, whilst we do not see overhang risk from the exit of the major shareholder as presenting significant downside versus the potential upside offered by additional liquidity."

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