ContourGlobal acquisition on track; triples profit in year-to-date

(Alliance News) - ContourGlobal PLC on Friday said its fleet has put in a strong performance in the first nine months of the year, and its takeover by a US private equity firm is on track to complete during December.

In the first nine months of 2022, the London-based power generation firm said revenue rose 44% to USD2.14 billion from USD1.48 billion.

Funds from operations rose 17% to USD407 million from USD348 millon, and net profit more than tripled to USD245 million from USD75 million.

Thermal gigawatt hours produced rose 21% to 14,106, whereas renewable gigawatt hours produced fell 6.9% to 11,644.

ContourGlobal noted strong performances from Arrubal natural gas fired power plant, its assets in the US and Trinidad & Tobago, and a good commercial performance and connection of new customers at Mexico combined heat & power. Austria Wind and Peru Wind also continued to deliver strong operational and financial performances.

These were partially offset by negative variance of foreign exchange rates, the firm noted.

"Our business has performed very well through the first nine months of the year with better than anticipated operational and financial performance across the fleet," said Chief Executive Officer Joseph Brandt.

ContourGlobal declared a dividend of 4.91 cents per share, which is in line with its commitment to an annual 10% increase.

Shares in the firm rose 0.4% to 254.96 pence each in London on Friday morning.

It also updated on the recommended acquisition by Cretaceous Bidco Ltd, which is expected to complete in December. Completion remains conditional on achieving the outstanding regulatory and antitrust approvals in France, Spain and Austria.

In May, ContourGlobal agreed to a GBP1.75 billion takeover offer from US private equity firm Kohlberg Kravis Roberts & Co LP.

Cretaceous Bidco, a newly formed company wholly-owned by New York-based KKR, offered 263.6 pence in cash per ContourGlobal share.

By Elizabeth Winter; [e-mail]

Copyright 2022 Alliance News Limited. All Rights Reserved.