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Credit: 22 February 2012
Morristown, New Jersey based waste to energy operator, Covanta Holding Corporation, has reported a 4% year on year rise in operating revenues for 2011.
According to the company, for the twelve months ended December 31, 2011, total operating revenues increased 4% to $1650 million from $1583 million in 2010.
The company attributed the increase to improvements in several areas across the business: price and volume increases in both recycled metals and waste; service fee escalations; and increased construction revenue.
However, Covanta added that these increases were offset by lower production at certain biomass facilities that were economically dispatched off-line, lower debt service pass through revenue as project debt matures, and lower energy pricing.
Operating expenses of $1432 million were reported as flat versus the prior year.
Excluding the non-cash write-downs in 2010, operating expenses increased $38 million or 3%, primarily due to normal cost escalations, higher fuel related costs, lower Renewable Energy Credits and increased construction expense, partially offset by lower costs at certain biomass facilities that were economically dispatched off-line.
Operating income increased by $63 million, or 41%, to $218 million compared with 2010. Excluding the non-cash write-downs in 2010, operating income increased by $29 million, or 15%.
The company said that this was primarily as a result of higher recycled metal revenues, service fee contract escalations, higher waste volumes and operational improvements. This increase was partially offset by lower debt service pass through revenue, lower operating income at the company's biomass facilities and lower energy pricing.
Adjusted Earnings Before interest, Taxes, Depreciation and Amortisation (EBITDA) increased $22 million, or 5%, to $492 million.
Free Cash Flow declined by $38 million, or 12%, to $280 million, which was in line with guidance. Covanta attributed this decline primarily to interest payments made in 2011 for high yield notes issued in 2010 and unfavourable changes in working capital compared to 2010.
Adjusted Earnings Per Share (EPS) was $0.52, an increase of 24% compared to $0.42 in 2010, with the increase attributed to improved operating income and a lower number of shares outstanding due to the company's common stock buyback program, offset by higher interest expense.
Key Full Year 2011 Financial Highlights
"Operational performance was outstanding and we executed on our plan to grow Adjusted EBITDA by 5%. I am also very pleased that we recently extended a number of municipal waste contracts to build upon our tradition of working in partnership with our client communities."
Morristown, New Jersey based waste to energy operator, Covanta Holding Corporation, has reported a 4% year on year rise in operating revenues for 2011.
According to the company, for the twelve months ended December 31, 2011, total operating revenues increased 4% to $1650 million from $1583 million in 2010.
The company attributed the increase to improvements in several areas across the business: price and volume increases in both recycled metals and waste; service fee escalations; and increased construction revenue.
However, Covanta added that these increases were offset by lower production at certain biomass facilities that were economically dispatched off-line, lower debt service pass through revenue as project debt matures, and lower energy pricing.
Operating expenses of $1432 million were reported as flat versus the prior year.
Excluding the non-cash write-downs in 2010, operating expenses increased $38 million or 3%, primarily due to normal cost escalations, higher fuel related costs, lower Renewable Energy Credits and increased construction expense, partially offset by lower costs at certain biomass facilities that were economically dispatched off-line.
Operating income increased by $63 million, or 41%, to $218 million compared with 2010. Excluding the non-cash write-downs in 2010, operating income increased by $29 million, or 15%.
The company said that this was primarily as a result of higher recycled metal revenues, service fee contract escalations, higher waste volumes and operational improvements. This increase was partially offset by lower debt service pass through revenue, lower operating income at the company's biomass facilities and lower energy pricing.
Adjusted Earnings Before interest, Taxes, Depreciation and Amortisation (EBITDA) increased $22 million, or 5%, to $492 million.
Free Cash Flow declined by $38 million, or 12%, to $280 million, which was in line with guidance. Covanta attributed this decline primarily to interest payments made in 2011 for high yield notes issued in 2010 and unfavourable changes in working capital compared to 2010.
Adjusted Earnings Per Share (EPS) was $0.52, an increase of 24% compared to $0.42 in 2010, with the increase attributed to improved operating income and a lower number of shares outstanding due to the company's common stock buyback program, offset by higher interest expense.
Key Full Year 2011 Financial Highlights
- Revenue increased 4% to $1,650 million
- Adjusted EBITDA increased 5% or $22 million to $492 million
- Free Cash Flow was in line with guidance at $280 million
- Adjusted EPS increased 24% or $0.10 to $0.52
- Shareholder returns totaled $272 million, including quarterly dividend paying $0.30/share annually
- Achieved exemplary safety record and best ever 91.7% EfW Boiler Availability
- Durham-York EfW project construction commenced
- Honolulu EfW project expansion on schedule to be fully operational in 2012
"Operational performance was outstanding and we executed on our plan to grow Adjusted EBITDA by 5%. I am also very pleased that we recently extended a number of municipal waste contracts to build upon our tradition of working in partnership with our client communities."
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Covanta Secures Windsor's Waste to Energy Contract
The Royal Borough of Windsor and Maidenhead has awarded a long term contract to treat all residual and organic waste generated in the borough to Covanta Energy.
Waste to Energy Facility Given Thumbs Up in Ontario
The Regional Municipalities of Durham and York, Ontario has given Covanta Notice to Proceed for the construction of a 140,000 tonne per year waste to energy facility in Ontario.
Covanta Wins Waste to Energy Contract Extension in Virginia
Covanta Energy subsidiary, Covanta Alexandria/Arlington, which operates the 25 year old waste to energy incinerator for the City of Alexandria and Arlington County, Virginia, has been awarded a new waste disposal and service agreement.
Covanta Secures Windsor's Waste to Energy Contract
The Royal Borough of Windsor and Maidenhead has awarded a long term contract to treat all residual and organic waste generated in the borough to Covanta Energy.
Waste to Energy Facility Given Thumbs Up in Ontario
The Regional Municipalities of Durham and York, Ontario has given Covanta Notice to Proceed for the construction of a 140,000 tonne per year waste to energy facility in Ontario.
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