Annual Report and
Financial Statements
for the Year ended 31 December 2022
for
ContourGlobal Limited
(formerly ContourGlobal plc)
ContourGlobal Limited (formerly ContourGlobal plc)
(Registered number: 10982736)
Contents of the Annual Report and Financial Statements
for the Year ended 31 December 2022
TABLE OF CONTENTS
Strategic Report | 4 |
Directors Report | 29 |
Auditors Report | 33 |
Consolidated Financial Statements | 42 |
Company Financial Statements | 137 |
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ContourGlobal Limited (formerly ContourGlobal plc)
(Registered number: 10982736)
Company Information
for the Year ended 31 December 2022
DIRECTORS: | Joseph Brandt |
Laurent Hullo (appointed 31 January 2023) |
REGISTERED OFFICE: | 55 Baker Street |
5th Floor | |
London | |
W1U8EW | |
United Kingdom | |
REGISTERED NUMBER: | 10982736 |
AUDITORS: | PricewaterhouseCoopers LLP |
7 More London Riverside | |
London | |
SE1 2RT | |
United Kingdom |
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ContourGlobal Limited (formerly ContourGlobal plc)
(Registered number: 10982736)
Strategic Report
for the Year ended 31 December 2022
The directors present their strategic report for the year ended 31 December 2022.
Principal Activities and Future Developments
The principal activity of the Group is to develop, acquire, own and operate power generation assets around the world, producing reliable energy responsibly. ContourGlobal operates 129 thermal and renewable power generation assets in 20 countries across Europe, Latin America, North America and Africa, with a total installed capacity of over 6.1 GW. We add value through best-in-class operations both in our existing portfolio and in the new assets we develop or acquire.
The future performance of the business will depend on a number of factors, such as the supply and demand dynamics of energy markets, decarbonisation and the timing and mix of generation sources from the energy transition. Inherent in these factors are a number of risks and opportunities which we believe the business is well placed to approach.
Acquisition of ContourGlobal plc by KKR
The recommended cash acquisition (the "Transaction") of ContourGlobal plc by Cretaceous Bidco Limited (a newly formed company indirectly owned by funds advised by Kohlberg Kravis Roberts & Co. L.P. and its affiliates) ("KKR") announced on 17 May 2022 was approved by the required majority of shareholders at the Court and General meeting of shareholders held on 6 July 2022. The scheme of arrangement became effective on 20 December 2022 resulting in KKR taking ownership of 100% of the shareholding of ContourGlobal plc and following this the Company was delisted from the London Stock Exchange on 21 December 2022.
Business Model
Our purpose is to create economic and social value through developing, acquiring, and operating electricity generation businesses worldwide. In this regard, our strategy is built on operational excellence, high growth and financial strength throughout our business.
We supply electricity principally in the wholesale market, mainly selling it under long-term contracts to clients, or 'offtakers', who transmit and sell it to retail customers. These contracts are typically:
- Power Purchase Agreements (PPAs) by which the power plant gets remunerated to be available to generate electricity; and
- Regulated tariffs or other regulated mechanisms, by which we agree a price per unit of electricity output.
Because the vast majority of our revenues are derived from long-term contracts or long-term regulated tariffs with creditworthy counterparties, cash flows are typically predictable and risk is reduced. This gives us good visibility of long-term,de-risked cash flows, which allows us to manage our capital in an effective manner.
Our customers include national grids and utilities that supply these grids, as well as commercial and industrial customers that receive electricity, steam, water, or CO2 directly from on-site facilities.
Our portfolio is diversified across different technologies, and geographies. At the end of 2022, we owned and operated 129 thermal and renewable power generation assets in Europe, Latin America, North America and Africa, with a total installed capacity of 6.1 GW.
Our purpose and strategy are underpinned by three strategic pillars, our four sustainable business principles and five values as set out below.
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ContourGlobal Limited (formerly ContourGlobal plc)
(Registered number: 10982736)
Our Strategy
Our overall strategy to achieve our purpose is built on three pillars:
Operational Excellence | High Growth | Financial Strength | |
Striving to achieve operational | To achieve high growth, we adopt | Strong operational performance | |
excellence, which includes health | four core investment approaches | combined with an efficient capital | |
and safety, lies at the heart of all we | focused on contracted or regulated | structure have allowed us to deliver | |
do. | wholesale power generation, | superior returns at asset level. | |
We have a Target Zero commitment | fostering low- and no-carbon | Our business model is based on | |
in respect of health and safety - | technologies: | contracted or regulated revenue | |
that is, a target of zero Lost Time | 1. | Greenfield development: when | streams combined with operational |
Incident (LTIs). | we can take advantage of cyclical | excellence, which results in stable | |
Ensuring a safe working | under-supply of capital and | and predictable cash flow | |
environment is also one of our core | create opportunities for higher | generation. This in turn allows us to | |
sustainable business principles. | returns | fund new growth projects. | |
We monitor key operational metrics | 2. | Strategic acquisitions: when we | We seek to maintain a highly |
across our plants every week, | can improve operations and have | efficient capital structure to support | |
checking how these measure up | a clear competitive advantage | our business, using a two-tier | |
against internal targets. We then | based on, for example, | financing structure: | |
undertake an analytical review, | complexity of process, geography | • Majority non-recourse project | |
seeking to improve performance by | or technology | level debt for power plants; and | |
learning from what has worked well | 3. | Development of customized | • Attractive bond financing to |
and what has not gone according to | projects: in partnership with | maximize financial flexibility | |
plan. | governments, utilities and | for the parent company. | |
Our deep expertise and experience | corporations in regions where | ||
allow us to improve our operational | there is a need for a reliable | ||
performance and create economic | supply of power but insufficient | ||
value. This operational approach is | expertise or capital | ||
applied to all plants, developments | 4. | Platform expansion: leveraging | |
and acquisitions. | existing stakeholder | ||
relationships and replicating the | |||
same technology and structure. | |||
This approach tends to result in | |||
lower risk and high returns due | |||
to cost synergies. |
Four sustainability principles and five company values underpin everything we do:
Our Sustainable Business Principles
Operate safely and | Grow well | Manage our | Enhance our |
efficiently and | business | operating | |
minimize | responsibly | environment | |
environmental | |||
impacts | |||
By running our power | By growing well, we help | We are committed to | We share our expertise |
plants efficiently, we | meet energy needs | maintaining the | and improve quality of |
maximize electricity | through a cleaner energy | highest ethical and | life through long-term |
output, minimize | model that reduces | legal standards | sustainable |
environmental impacts, | climate impacts. We | wherever we operate. | improvement of the |
and reduce costs. We | promote energy and | We seek to attract, | electricity sector, civil |
seek to promote health, | economic security and | develop, and retain a | society, and local |
safety, and well-being | increase energy access, | workforce that reflects | communities. |
throughout the | creating economic wealth | the diversity of the | |
organization: safety is | for investors, our | communities in which | |
our number one | employees, and, | we operate. | |
priority. | indirectly, our | ||
communities. | |||
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ContourGlobal plc published this content on 19 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 April 2023 14:46:17 UTC.