22nd Feb 2016 10:21
LONDON (Alliance News) - Greencoat UK Wind PLC on Monday said it would pay a total dividend of 6.26 pence per share for 2015, up from 6.16p, and expects to increase its payout again in 2016 after its cash generation for the full year came in line with expectations, despite "the more difficult market conditions".
The renewable infrastructure fund, which is solely invested in operating UK wind farms, said in the year ended-December it had generated 799.3 gigawatts of electricity in 2015, 8.0% above its budget, owing to high wind resources. However, its net cash generation was in line with budget at GBP48.3 million, up from GBP32.4 million last year, due to the average power price coming in below expectations. The reason for this was lower gas prices, it said.
Greencoat said it expects to raise its dividend to 6.34p per share in 2016.
It now has a portfolio of 17 wind farms after investing in one more wind farm during 2015. Greencoat said that meant it saw an increase in its net generating capacity, which stood at 301.4 megawatts at the end of that year, from 271.5 megawatts the year before.
Greencoat's net asset value at December 31 was GBP529.8 million, up from GBP486.2 million. However, its net asset value per share was 104.5p, down from 105.5p.
"The announcement of the immediate loss of the Climate Change Levy exemption for renewable electricity in July's Budget had a negative impact on NAV, although this was largely offset by the reduction in the Corporation Tax rate announced at the same time," Chairman Tim Ingram said in the statement.
"At the time of writing, world markets are displaying some turmoil. However, the company's assets are long term with an anticipated remaining life of an average of 21 years and only 40% of revenue from generation is subject to floating power prices. The outlook for the group is very encouraging, with proven operational and financial performance from the existing portfolio combined with a healthy pipeline of attractive further investment opportunities," Ingram added.
The company's annual general meeting will take place on April 27.
Greencoat shares were up 0.3% at 101.44p on Monday.
By Hannah Boland; [email protected]; @Hannaheboland
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