StockMarketWire.com - Power generation business ContourGlobal reiterated guidance and said it would stick with the plan to raise its annual dividend by 10% after earnings increased by a fifth, driven by solid performance in its thermal division in the first quarter.

For the three months to 31 March, adjusted (earnings) EBITDA was up 20% to $172.7m on-year.

The performance in the quarter was driven by the thermal division following the Mexico CHP acquisition completed in November last year and higher availability and capacity factors in some of its power generation assets, the company said.

These positives, however, were partially offset by a negative FX effect of $6.7m due to euro and Brazilian real depreciation.

'This is a strong set of results, particularly given the current background and we maintain our 2020 Adjusted EBITDA guidance of $710m to $745m,' the company said.



The company approved a quarterly dividend of USD 4.0591 cents per share for the first quarter, and said it expected to maintain its dividend policy of a 10% annual increase in dividend per share.

'We have not seen meaningful disruption to operations as a result of Covid-19 to date, and current trading is in line with our expectations,' the company said. 'As a result, we reiterate our guidance for Adjusted EBITDA in the range of $710m - $745m,' it added.



Story provided by StockMarketWire.com