28th Jul 2015 10:43
LONDON (Alliance News) - Greencoat UK Wind PLC Tuesday said that growth in its net asset value in the first half of 2015 was stinted due to lower forecast power prices and the government's announcement to end the climate change levy exemption for renewable electricity.
The renewable infrastructure fund which is solely invested in operating UK wind farms said its net asset value at June 30 was GBP480.8 million, down from GBP486.2 million at December 31, while its NAV per share was 104.2 pence, down from 105.5p. Adjusting for dividends however, its NAV grew by 0.2p to 102.6p from 102.4p.
Greencoat will pay a total dividend of 3.13p for the period.
Greencoat said its investments generated 408 gigawatts of electricity in the period, 10% above budget due to high wind resource, while net cash generation was GBP29.2 million.
"We anticipate continued substantial growth in the UK wind farm secondary market, providing further value enhancing investment opportunities for the company from an anticipated market of approximately GBP60 billion. As an investor in up and running UK wind farms, we are not significantly affected by the closure of the Renewables Obligation for new onshore wind farms from March 2016, and remain encouraged by the outlook for investment opportunities," Chairman Tim Ingram said in a statement.
"The board is also pleased to announce that the company has entered into longer term financing and refreshed its acquisition facility, ahead of potential new acquisitions," he added.
Shares in Greencoat were trading up 0.1% at 112.86 pence Tuesday afternoon.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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