Q3 2017 Trading Update
Financial highlights
- Strong financial performance with significant growth in revenue, Adjusted EBITDA, CFADS and FFO):
– 9M 2017 Revenue: increased 13% to $742m
– 9M 2017 Adjusted EBITDA: increased 16% to $380m
– LTM Q3 2017 CFADS1: increased 28% to $206m
– 9M 2017 FFO2: increased to 22% to $197m
- Successful integration of new businesses, including Brazil hydro and Solutions Brazil, drives strong growth
- Robust credit performance with 5.1x DSCR and 3.4x Bond Indenture Defined Leverage Ratio3
- Successful November 2017 Initial Public Offering (“IPO”) on the London Stock Exchange (“LSE”) further strengthens credit quality with $490m of corporate level liquidity
- On track to meet FY Adj. EBITDA guidance of $500m – $520m
Financial Highlights
| Q3 2017 | Q3 2016 | Change | |
| YTD Revenue | 742 | 654 | 13% |
| YTD Adjusted EBITDA* | 380 | 327 | 16% |
| LTM CFADS* | 206 | 162 | 28% |
| YTD FFO* | 197 | 161 | 22% |
* Non-IFRS metrics
1 Cash Flows Available for Debt Service (CFADS) is a metric defined in ContourGlobal’s €700m Bond Indenture that is reported on a last 12 month (LTM) basis; CFADS growth ($162m Q3 2016 to $206m Q3 2017) excludes $90m special distribution in Q2 2016 from Maritsa
2 Funds from operations
3 Debt Service Coverage Ratio and Leverage Ratio (“Non-Guarantor Combined Leverage Ratio”) as defined in Bond Indenture
Operational highlights
- ContourGlobal continues to achieve industry-leading health and safety performance, with 0.03 Lost Time Incident (“LTI”) rate for the past 12 months.
- Availability factors are high across the fleet with September YTD factors of 91.4% in Thermal and 97.3% in Renewables. Availability in Renewables was higher than previous period, while availability in Thermal was slightly below due to scheduled maintenance activities at Maritsa and KivuWatt.
- Renewable resource performance was below expected levels with ~3% impact on Adjusted EBITDA for 9M 2017.
- In December, the company closed the acquisition of a 19MW solar portfolio in Italy for €58m. The plants are located near existing ContourGlobal assets and can be immediately integrated into the company’s operations and maintenance platform.
- Final negotiations for commercial close for a 500MW new-build thermal plant in Kosovo currently underway in Pristina, Kosovo.
Operational Highlights
| YTD Q3 2017 | YTD Q3 2016 | Change | ||
| GWh produced | Thermal | 5,872 | 5,393 | 9% |
| Renewable | 3,316 | 3,223 | 3% | |
| MW in operation | Thermal | 2,640 | 2,531 | 4% |
| Renewable | 1,497 | 1,373 | 9% | |
| Availability factor | Thermal | 91.4% | 91.9% | -0.5% |
| Renewable | 97.3% | 94.7% | 2.6% | |
| Avg. capacity factors | Thermal | 37.5% | 36.3% | 1.2% |
| Renewable | 35.5% | 36.2% | -0.7% |
Presentation and conference call
The company will host a call for investors at 14:00 BST. Confirmation code and participant access numbers per country are available on the ContourGlobal website:
http://www.contourglobal.com/event/contourglobals-q3-2017-bondholder-update-call
The presentation for the call can be downloaded at http://www.contourglobal.com/reports
Enquiries
Investor Relations – ContourGlobal
Alice Heathcote – +1 646 599 2924
investor.relations@contourglobal.com
Media – Brunswick
Charlie Pretzlik/Simon Maine – +44 (0) 207 404 5959