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ContourGlobal sees higher 2019 core profit, declares bigger dividend

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By Reuters

(Reuters) – ContourGlobal Plc on Friday declared a bigger dividend for 2018 and said it expected higher core profit in 2019 as the power generator looks to benefit from its acquisition of 518 MW assets in Mexico in January this year.

The company also said Stefan Schellinger, former finance chief of specialty plastics and packaging company Essentra Plc, will join the firm as chief financial officer.

ContourGlobal, which posted a 19 percent rise in profit to $610 million in 2018, said it expected 2019 adjusted earnings before interest, tax, depreciation and amortisation to be between $720 million (£551 million) and $770 million.

“In 2019, we will deliver marked increases in earnings and capacity as we close and integrate our Mexican cogeneration business into the company and expand through additional development and acquisition globally,” the company said.

The company also raised its full-year dividend from 11.9 cents per share to 13.4 cents and said it would increase by 10 percent annually.

“We made substantial commitments to new investors during the IPO process. We delivered in 2018 and we are on track to deliver those and then some in 2019 and beyond,” the company said in a statement.

The company, which was listed in November 2017 and currently has a market value of 1.23 billion pounds ($1.61 billion), develops and operates wholesale power generation businesses across Europe, Latin America and Africa.

(Reporting by Justin George Varghese in Bengaluru; Editing by Arun Koyyur)