Lgi Ltd
ASX:LGI
Lgi Ltd
LGI LTD engages in designing and installing bio gas extraction systems. The company is headquartered in Brisbane, Queensland. The company went IPO on 2022-10-04. The firm is specialized in the engineering of, and delivery of, solutions for the management, capture and beneficial use of biogas from landfills. The firm operates through three segments: Renewable electricity, Greenhouse gas abatement, and Site infrastructure, management and other. Its Renewable electricity segment is engaged in the installation of power generation systems on landfills. The company is engaged in the sale of electricity, Large-scale Generation certificates (LGCs), and Australian Carbon Credit Units (ACCUs). Its Greenhouse gas abatement segment is engaged in the installation of flaring systems on landfills at its option for the creation of ACCUs. Its Site infrastructure and management segment is engaged in the installation, operation, and maintenance of biogas extraction infrastructure and flaring systems for landfill owners. Its subsidiary is LGI Financial Service Pty Ltd.
LGI LTD engages in designing and installing bio gas extraction systems. The company is headquartered in Brisbane, Queensland. The company went IPO on 2022-10-04. The firm is specialized in the engineering of, and delivery of, solutions for the management, capture and beneficial use of biogas from landfills. The firm operates through three segments: Renewable electricity, Greenhouse gas abatement, and Site infrastructure, management and other. Its Renewable electricity segment is engaged in the installation of power generation systems on landfills. The company is engaged in the sale of electricity, Large-scale Generation certificates (LGCs), and Australian Carbon Credit Units (ACCUs). Its Greenhouse gas abatement segment is engaged in the installation of flaring systems on landfills at its option for the creation of ACCUs. Its Site infrastructure and management segment is engaged in the installation, operation, and maintenance of biogas extraction infrastructure and flaring systems for landfill owners. Its subsidiary is LGI Financial Service Pty Ltd.
Strong EBITDA Growth: EBITDA increased by 33% compared to the same period last year, driven by strong operational performance in biogas recovery and new site additions.
Revenue & Margins: Revenue grew over 20% year-on-year, and the EBITDA margin improved to 51%, up from 47% last year.
Dividend Increase: The company declared a fully franked dividend of $0.0125 per share, a slight increase from $0.012 in the prior half.
Operational Expansion: Biogas recovery rose 37%, renewable electricity generation was up 41%, and ACCU creation increased 19%, reflecting strong project execution and new sites coming online.
Guidance Reaffirmed: Management reaffirmed full-year EBITDA guidance of 25%-30% growth over FY '25, with expectations of a stronger second half.
Regulatory Certainty: Recent regulatory changes, including the new ACCU methodology and Permanent Exit Arrangements, are expected to modestly increase ACCU volumes and cash flows.
Capital Management: Recent capital raise enabled full repayment of debt facility and strengthened the balance sheet, with gearing currently at zero.
Battery Projects On Track: Key battery and hybrid projects in Canberra, Belrose, and Nowra are progressing as planned and are expected to significantly boost capacity in coming years.
