Covanta Holding Corp., Morristown, N.J., a global owner and operator of energy-from-waste (EfW) projects, reported financial results for the fourth quarter and the full fiscal year, which ended Dec. 31, 2012.
Covanta lists the following highlights for the year:
- Record year in terms of EfW boiler availability;
- Signed $2.5 billion of waste and energy contracts with an average term of 12 years -- secured two million tons of waste and 750,000 megawatt hours (MWh) of generation per year;
- Acquired the Delaware Valley EfW facility, which gives the company an additional 2,700 tons per year, which will be immediately accretive to key metrics;
- Successfully refinanced $1.9 billion in debt, creating substantial financial flexibility; and
- Completing the expansion of its Honolulu EfW project.
Commenting on Covanta's 2012 results, Anthony Orlando, Covanta's president and CEO, states, "I'm pleased with both our 2012 operating performance and the execution of organic growth initiatives. This good work enabled us to offset the drop in energy and metals markets, as well as the impact of Hurricane Sandy. We also had a great year extending long-term waste and energy contracts. Our contracted revenue base, combined with our continued investment in organic growth initiatives, positions us to grow in the coming year.”
For the full year ended Dec. 31, 2012, total operating revenues declined slightly to $1.644 billion from $1.650 billion in 2011. The company says the decline was due primarily to the negative impacts of lower revenues earned explicitly to service project debt; lower pricing for energy at EfW facilities and recycled metals; and the impact of Hurricane Sandy, as certain facilities were briefly forced offline.
The negative impacts were offset by what the company says are organic growth initiatives in special waste and scrap metal; the escalation in service fee contracts; and new units coming online.
Operating expenses were $1.420 billion for 2012, compared to $1.427 billion for 2011. The $7 million decrease was primarily due to the benefits from various operational improvements, offset by expenses related to Hurricane Sandy for repairs at facilities and lower alternative fuel tax credits, says the company.
For the fourth quarter, operating revenues stood at $430 million, flat with the prior year. Significant factors included the positive impacts of organic growth initiatives in special waste, recycled metals and other and escalations in service fee contracts.
Detailed earnings charts are available at http://investors.covantaholding.com/.