Covanta releases Q3 results

By Erin Voegele | October 28, 2014

Covanta Holding Corp. has released third quarter financial results, reporting revenue of $414 million and net income from continuing operations of $6 million. Adjusted EBITDA was $135 million. During the same period of last year, the company reported revenue of $425 million, net income from continuing operations of $28 million and adjusted EBIDA of $157 million.

According to the company, North America energy-from-waste (EfW) increased by 9 million on the same store basis, with waste and service revenues decreased by $1 million and energy revenues up by $4 million, driven by higher production. Recycled metals revenues increased by $7 million, primarily as a result of prior investments to increase the quality and quantity of metal recovered and higher market prices. Overall, growth in North America EfW same-store revenue was more than offset by less construction revenue as a result of the Durham-York EfW project nearing completion. Contract transitions, including the mark-to-market impact of the expiration of energy contracts and lower debt service revenues resulted in a $7 million decline.

“Our facilities are running well and the team continues to provide clients with high quality and reliable service,” said Anthony Orlando, president and CEO of Covanta. “We expect to finish the y ear near the middle of our guidance ranges, which we have not changed since we initially set them out at the beginning of the year.”

During a call to discuss the company’s financial results, Orlando addressed the recently announced Dublin EfW project. “On Sept. 19, we announced that we had signed the project agreement and completed financing for the €500 million Dublin energy-from-waste facility,” he said. “Construction has commenced and should take about three years to complete.” Orlando noted that Ireland has set a goal to move away from landfilling over the next 10 years, a goal more ambitious than the European Union Landfill Directive, which requires member states to reduce landfilling by 65 percent from 1995 levels. According, the Orlando, the new facility will play a vital role in achieving Ireland’s national waste policy objectives.

Orlando also indicated Covanta has nearly completed construction of the 500-ton-per-day Durham-York EfW facility in Canada, with the facility expected to begin energy production in November and commercial production expected in early 2015.

Covanta operates 45 EfW facilities, which convert approximately 20 million tons of waste into clean energy to power 1 million homes. A full transcript of the earning call is available on Covanta’s website