ContourGlobal unveils EUR-63m solar sale in Europe, posts H1 results
Solar Italy - Monticchio. Source: ContourGlobal Plc
ContourGlobal Plc (LON:GLO) on Tuesday reported “strong” first-half financial results, its first since the company's IPO, and announced the sale of a minority stake in certain European photovoltaic (PV) assets for EUR 63 million (USD 73m).
The thermal and renewable power plants owner said in a statement that it has entered into an agreement on August 6 to sell a 49% interest in its portfolio of Italian and Slovakian solar assets to funds advised by Credit Suisse Energy Infrastructure Partners AG (CSEIP). The seller noted that the agreed price of EUR 63 million is an attractive premium to its cost basis.
ContourGlobal has also agreed a joint venture with CSEIP “to achieve further growth in Italy”.
According to information on its website, the company currently has 65 MW of solar assets in Italy and a further 35 MW in Slovakia.
“We continue to see attractive growth opportunities in our core markets in both the acquisition and greenfield segment and expect to announce further acquisitions this year,” said Joseph C Brandt, president and CEO of ContourGlobal.
For the first six months of the year, ContourGlobal posted a net profit of USD 2.7 million (EUR 2.3m) versus a loss of USD 8.4 million a year back. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) went up by 12% year-on-year to USD 261.8 million, with renewables contributing USD 119.8 million, up 27%.
The company noted that the rise in group EBITDA was driven by the full impact of the Brazil hydro and cogeneration acquisition in March 2017 and the purchase of Acciona SA's (BME:ANA) 250-MW solar thermal power portfolio in Spain, which closed on May 10, 2018. The result also reflects a USD-16-million positive contribution from foreign currency fluctuations.
First-half consolidated revenue increased by 16% to USD 535.4 million. Renewable production climbed by 12% to 2.1 GWh, while the company’s total renewable energy capacity rose by 20% to 1,792 MW from the same period of 2017.
For the full 2018, ContourGlobal forecasts an adjusted EBITDA of USD 600 million-630 million.