Contourglobal Share Discussion Threads

[rolo7] 29/4/2020 11:56

Nice move out of trading range next stop 180p

[rolo7] 21/4/2020 18:32

Anyone with any thoughts on this company? Share buyback due to Mexico plants, board think company undervalued?

[haywards26] 02/2/2020 21:06

Looking and interested also. Would like entry at 180 if possible...

[the white house] 20/1/2020 09:05

I'm a looking and I'm a liking

[cfro] 07/11/2019 16:14

I see this is a US company. Does anyone know why they chose London to list as preference to the US?

[saucepan] 07/11/2019 12:48

Long here today after arriving through a ShareScope data mining exercise.

cyfan101: thanks for the link to The Times article. It was very helpful in that one of my major concerns on first look at fundamentals was the high level of debt.

However The Times article confirms in its first paragraph that GLO: "generates so much cash that, in some instances, it has been capable of paying off debts running into the hundreds of millions that it has amassed buying plants in less than a year".

As a non-subscriber it was only the first paragraph I was able to read, unfortunately!

Only 12 previous posts since the opening of the thread in May 2018 - suggests GLO is not on many PI radars. That usually augurs well!

I'll be tempted to add once £2.20 is convincingly cleared. That should improve the technical picture considerably.

[cyfran101] 24/10/2019 23:11

Very positivehttps://www.thetimes.co.uk/edition/business/contour-global-renewable-fuels-power-bright-future-3bgnlkc20

[davwal] 11/10/2018 16:34

Yes, better late...

At least the RNS was unambiguous and positive, so hopefully there will be a reasonable recovery from here.

[cyfran101] 11/10/2018 15:19

Looks like they have!

[davwal] 11/10/2018 13:57

Thanks cyfran101. Nice of GLO to inform their shareholders...

[cyfran101] 11/10/2018 11:43

World bank has pulled out as its coal not renewable. Without their support bills will rise for the poorest in eurooe.

[davwal] 11/10/2018 10:14

So what's with the 'Kosovo problems' referred to by the Daily Mail business pages as the reason for the share price fall - and if there are problems with the Kosovo project how come we shareholders are kept in the dark? Well some of us!

[davwal] 09/10/2018 20:45

Yes, bit of a downturn recently and now a sharp drop. On the basis of what..? And I thought I was doing well buying back in on a bit of a fall!

[orm5] 09/10/2018 15:23

Sharp move for this one ?

[davwal] 07/8/2018 15:16

Didn't seem a bad set of figures in the interims, and a little bit of divi to boot. I took some of these on the spur a couple of months ago, sold and bought back lower to increase my holding, but will now hold and wait and see. I think it could appreciate quite well from here.

[soundbuy] 05/6/2018 16:24

Dog-like in its performance given current markets...........

[cyfran101] 16/5/2018 19:10

UK income seekers may want to take a look at ContourGlobal (GLO), which was one of the largest companies to float on London’s main market so far this year when it made its debut on 9 November. The US-based power generator raised net proceeds of £281m via an institutional offering, giving it a market capitalisation of £1.68bn, or 250p a share. Part of this has been used to pay down debt, with the remainder retained to fund future growth. ContourGlobal’s parent has reduced its holding to 73 per cent in the process. The shares began unconditional trading on 14 November.

Founded by chief executive Joseph Brandt 12 years ago, ContourGlobal owns and operates 69 power generation assets across 19 countries. During that time, it has grown by acquiring and developing assets in countries with insufficient generating capacity, including Brazil and parts of sub-Saharan Africa. It also entered the European market via a partnership with Coca-Cola Hellenic to operate co-generation facilities.

As of December 2016, adjusted cash profits were split roughly 59 per cent to 41 per cent between thermal assets (plants that use conventional fuels) and renewable assets (plants that primarily use wind, solar and hydropower). However, the renewables business is growing at a much faster rate – it represented just 12 per cent of adjusted cash profits in 2014 – as management has ramped up investment in the renewable asset base.

GLO:LSE

ContourGlobal PLC
1mth
Today change
2.44%
Price (GBP)
252.00

This is unsurprising. The IEA, a Paris-based energy agency, pointed to 2016 as a watershed for renewables; a year in which 164 gigawatts of new renewable energy capacity came online globally. That represented triple the amount of new gas-fired power plants, and more than twice the volume of coal.

The group focuses exclusively on long-term wholesale contracted power generation. Roughly 95 per cent of forecast revenues from existing projects between 2017 and 2021 will come from feed-in tariffs, long-term contracts or other regulated service payments. Its contracts had an average remaining term of around 12 years at the end of June. Management said the structure of these power purchase agreements limits its exposure to fluctuating power prices and fuel costs, for example by writing in fuel cost pass-through mechanisms.

Scaling up its portfolio of assets has delivered impressive revenue and cash profit growth. During the two years to the end of 2016, adjusted cash profits grew at a compound annual growth rate (CAGR) of 20 per cent. Meanwhile a strong cash conversion rate – as the cost of capital has come down – resulted in a CAGR in funds from operations of 26 per cent during the same period.

That bodes well for Contour’s income potential. Management plans to pay shareholders an initial dividend of $17.5m (£13.2m) for the first six months of 2018, totalling between $70m and $80m for the full year. Based on the total number of shares in issue at the time of the IPO, that would give the shares a rough yield of between 3.2 and 3.6 per cent on the issue price. Management says it intends to grow the dividend annually at a minimum high single-digit percentage rate during the next five years.
IC View

As an internationally diversified energy generation group, Contour offers UK investors a tempting chance to play the increasing trend towards smaller-scale distributed generation from diverse sources. As is typical for many power generation and utility groups, Contour has a high level of net debt – $2.1bn, or 4.8 times adjusted cash profits at the end of 2016. But management expects this to reduce to four times by the end of this year. What’s more, the group is in high-growth mode – it plans to double adjusted cash profits earned in 2016 by 2022, without returning to the market. Given the structural changes under way in global energy markets, and with the shares trading in line with the offer price at the time of going to press, we reckon Contour is worth a closer look.

[mikecoxhard2] 13/8/2007 20:14

got the money, thnaks and good nite everyone

[masterjunior12] 18/7/2007 13:57

cbb was only 3 years late!

[boringreg] 26/6/2007 08:08

Well, not the offer I thought but at least something has finally happened. Would have preferred 90p but 20% up is better than 20% down :(

For those who haven't noticed, the offer is from Spring Group who, I think, was oen of the predateurs spotted by CBB.

Boring REG

[cornelious billy bee] 13/6/2007 13:00

will networkers international buy glotel?

[cornelious billy bee] 04/6/2007 12:55

waiting for the bad results

[cornelious billy bee] 22/5/2007 17:35

the market is saying results will be bad