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Greencoat UK Wind profit soars in 2022 amid high energy prices

23rd Feb 2023 14:44

(Alliance News) - Greencoat UK Wind PLC on Thursday reported a surge in profit for 2022, boosted by investments and high energy prices, as it increased its dividend.

The London-based renewable infrastructure fund, focused on UK wind farms, said pretax profit in 2022 jumped to GBP953.9 million from GBP363.2 million in 2021. Total income rose to GBP1.03 billion from GBP423.5 million, as investment income increased to GBP577.2 million from GBP266.1 million.

Earnings per share jumped to 41.16 pence from 18.30p.

Greencoat UK paid a windfall tax of GBP176.9 million in 2022. The UK government's energy levy is a windfall profit tax imposed in response to rising consumer energy bills amid the cost of living crisis. It came into effect in May 2022. The company expects to pay more tax over the next few years which it said will help lower the cost to consumers.

The company declared a 2022 dividend of 7.72p each, up 7.5% from 7.18p a year prior. It is aiming for a 2023 dividend of 8.76p, which would be an annual increase of 13%.

Looking ahead, the company said: "Wind continues to be the most mature and widely deployed renewable energy technology in the UK, 27% of GB electricity generation in 2022, with an offshore wind target of 50 gigawatts for 2030 being an important government target in the delivery of 2050 net zero emissions targets."

Greencoat UK added: "Through strong cash flow and dividend cover, coupled with our disciplined approach, we are confident in our ability to continue to meet the objectives of dividend growth in line with retail price index and capital preservation in real terms."

Greencoat shares were 1.4% lower at 156.94 pence each in London on Thursday afternoon.

By Tom Budszus, Alliance News reporter

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