28th Apr 2020 12:44
(Alliance News) - Aquila European Renewables Income PLC on Tuesday said it was "pleased" with its initial progress as it published its first annual report since its June float.
The investment company reported net assets of EUR158.9 million at December 31 and a net asset value per share of 102.7 cents. Aquila European noted that its December 31 NAV was up by 4.8% since the June initial public offering.
The IPO in June raised EUR154.3 million and about 71% of capital raised in the float has been invested. A further 24% of the proceeds were committed by December 31.
"The investment opportunity for the company arises from the energy transition which is underway, with the urgent need to reduce carbon emissions driving a shift to low-carbon sources of energy generation and an increasing electrification of energy use," the investment firm said.
"Europe is a leading participant in this transition, with renewable energy capacity expected to almost double over 2019 to 2040."
In its IPO, Aquila European said it targetted a dividend of 1.5 cents share for the period to December 31. The company paid two 0.75 cents dividends, in line with its target payout.
The firm added: "The company is targeting a dividend of 4.0 cents per ordinary share in relation to the year ending December 31, 2020, subsequently increasing to 5.0 cents per orrdinary share thereafter.
"Despite recent movements in power prices and the Covid-19 pandemic, the company's portfolio benefits from both diversification and a strong mix of current contracted revenues. The board is pleased with the initial progress made by the company in delivering against its investment objectives. Despite a difficult market backdrop, the board believes that this positions the company well for achieving its dividend and return targets in both the short and long-term."
Shares in the company were marginally lower at 88.00 pence each in London on Tuesday morning.
By Eric Cunha; [email protected]
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