Report
Oliver Juggins

ContourGlobal - Initiation Note

ContourGlobal is a pure-play contracted energy generator that acquires, develops, and operates a technologically diverse range of renewable and thermal assets around the world. It currently controls c.6.3GW of generation capacity with 119 assets in Europe (46% of EBITDA), Latin America (31%), US and Caribbean (13%), and Africa (10%).

This business was designed and built to produce stable cashflows and thus benefits from long, mostly inflation-protected, take-or-pay, predominantly fixed-price (or regulated tariff) contracts – with commodity price pass-throughs on thermal production. Its counterparties are usually government-linked entities or large, investment-grade multi-national corporates. It insures political risk (though hasn't ever had to claim) and hedges currency risk. It has a record of operational excellence in both building and re-structuring power production assets, achieving improved safety, output, and cashflows from the existing assets it takes on.
Underlying
ContourGlobal Plc

ContourGlobal is engaged in developing, acquiring, owning and operating wholesale power generation businesses with expertise across wind, solar, hydro and thermal generation. Co. is organized into two divisions: Thermal and Renewable. The Thermal division consists of plants using conventional fuels, specifically natural gas, coal, fuel oil and diesel. The Renewable division consists of plants using renewable resources of wind, solar and hydropower.

Provider
Capital Access Group
Capital Access Group

Capital Access Group advises companies on effective engagement with investors. Our experienced team offers market-leading access with hard-to-reach investors, including smaller institutions, pension funds and private client fund managers. These under-serviced investors are located not only in London but across the regions of the UK and Europe. We have an unrivalled knowledge of this extensive audience, to whom our published research is distributed, as well as to larger institutions. We offer this service as part of an integrated investor communications strategy to promote a company’s investment story.

Our clients, ranging from AIM to FTSE 100 companies, benefit from our professional, long-term relationships with investors. Not only do we identify and target investors, we contact them directly and relay their views back to clients with analysis, interpretation and advice. This ensures that our clients are in control of their investor engagement. The objective is to improve the reach and engagement with investors, which in turn strengthens the share price.

Analysts
Oliver Juggins

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