LGI (LGI) H2 2024 earnings summary

Executive summary

• LGI is a leading Australian vertically integrated landfill gas company, converting landfill biogas into renewable electricity and carbon abatement products, with diversified revenue streams from electricity, carbon credits (ACCUs), and infrastructure services.

• Expanded network to 32 landfill, power generation, and carbon sites, a 14% increase year-over-year, including new projects such as the BINGO (Eastern Creek) power station.

• Achieved >35% growth in biogas flows and >20% growth in ACCU volumes since FY21, supporting revenue and EBITDA growth despite commodity price declines.

• Underlying EBITDA rose 6% to $15.3 million, with a 49% EBITDA margin despite commodity price declines.

• Achieved 97% portfolio availability, surpassing the 95% target.

Financial highlights

• FY24 net revenue rose 2% to $30.9m, with underlying EBITDA up 6% to $15.3m compared to FY23.

• Statutory NPAT increased 4% to $6.7m, while underlying NPAT declined 11% due to higher tax expense.

• Operating cash flow increased 24% to $9.9m, with EBITDA cash conversion at 65%.

• Capital expenditure reached $22.7m, reflecting investment in new generation and battery projects.

• Electricity and ACCU revenue contributed about 83% of total revenue.

Outlook and guidance

• FY25 priorities include health, safety, and quality, delivering Canberra and BINGO expansions, and pursuing new landfill gas and battery opportunities.

• FY25 EBITDA is expected to grow by a low double-digit percentage versus FY24, subject to market and operational factors.