26th Jul 2019 10:01
(Alliance News) - Greencoat UK Wind PLC on Friday raised its dividend and posted a very marginal rise in net asset value for the first half of the year.
The company's net asset value per share on June 30 was 121.5 pence, compared to 121.4p per share on December 31. The company's NAV on December 31 was GBP1.39 billion, rising to GBP1.87 billion on June 30.
Investments added GBP611.1 million to NAV, while there was a GBP46.3 million decrease in portfolio valuation due to depreciation and "adverse movements in the long term power price forecast".
The FTSE 250-listed renewable infrastructure fund declared a second dividend of 1.735 pence per share for the second quarter, lifting its dividend for the first half by 2.7% to 3.47 pence per share from 3.38p per share.
Portfolio generation was 9% below budget at 1,145 gigawatt hours "due to low wind speed, particularly in May".
Greencoat UK Wind Chair Tim Ingram said: "I am pleased to report another good first half performance, which reflects the continued delivery of our simple, low risk and proven strategy. The solid performance and cash generative nature of our portfolio has enabled us once more to increase our dividend in line with RPI whilst maintaining strong dividend cover.
"During the period we made three high quality investments, including a GBP452 million investment in Stronelairg and Dunmaglass wind farms and GBP145 million in Tom nan Clach, which have grown our generating capacity to 979 megawatts. We were also pleased to raise over GBP500 million from existing and new shareholders, and we are grateful for their continued support.
"The pipeline of acquisitions remains healthy and with gearing at 24% of [gross asset value], we are well placed to take advantage of the attractive growth opportunities available to us."
Shares in Greencoat UK Wind were down 0.1% at 139.02 pence on Friday morning.
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