Dive Brief:
- Morristown, NJ-based Covanta Holding Corp. has reported its fourth quarter and full-year earnings, marking losses in revenue, free cash flow, and EBITDA. Covanta reported a revenue of $1.65 billion in 2015, down from $1.68 billion in 2014, free cash flow of $147 million versus $240 million in 2014, and an adjusted EBITDA of $428 million versus $474 million in 2014.
- Despite its losses, Covanta has highlighted a strong operational year in 2015, noting the completion of five strategic acquisitions, multiple new contracts, and the opening of key facilities such as its metals processing facility in Fairless Hills, PA.
- Covanta President and CEO Stephen J. Jones shared an excited outlook to 2016, noting that the company will primarily focus on "the integration of the business we've already acquired." Jones said Covanta will continue to look for growth opportunities for both organic and inorganic operations.
Dive Insight:
Despite losses, 2015 was a crucial year of growth for the New Jersey waste and energy company, marked with extended partnerships, waste-to-energy facility upgrades, and both domestic and international growth.
"While lower commodity market prices negatively impacted our results, operationally we had a strong year," Jones said in a conference call with investors. "Waste, energy and metals volumes from our energy-from-waste business came in within our forecasted ranges. We also achieved another year of record profile waste revenue, 24% growth rate in 2015 and are expecting to see that business grow again in 2016. Also we're now receiving waste from New York City at both our Niagara Falls and Delaware Valley facilities."
Recently, the firm announced the execution of a long-term contract for the Dublin Waste-to-Energy Facility with Panda, one of the leading waste and recycling collection companies in Ireland.
"The project is progressing on track, so we're very pleased at this stage. Note that we're committing significant time and energy to make sure this project is successful," said Jones.
