ContourGlobal - Initiation Note
We have released an initiation note for ContourGlobal (GLO.L).
ContourGlobal is a FTSE250 listed, 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.
Read the full note here.