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.

• FY24 saw continued growth in operational scale, with a 14% increase in contracted sites and expansion into new projects, including the BINGO (Eastern Creek) power station.

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

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.

• Debt facility expanded by $20m to $48.8m to fund growth projects.

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.