Interim underlying EBITDA of $32.8m was up strongly on 1H18, with recently acquired Contract Power providing both annuity and one-off construction earnings. PEA recently upgraded FY19 EBITDA guidance to $60-61m (prior $54-55m), and our revised forecast falls into this range. Although the large Newmont contract ends this half, we maintain expectations of growth in contracted capacity in forecast periods, and have upped our FY20 EBITDA forecast to $57.5m. PEA has a well-managed, strong business model that provides healthy recurring revenue under long-term contract. It was one of our key picks going into 2019, and this result strengthens our positive view. BUY maintained on a $0.78 valuation (increased from $0.73).
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