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Octopus Renewables raises dividend despite poor portfolio performance

25th Mar 2024 09:09

(Alliance News) - Octopus Renewables Infrastructure Trust PLC on Monday said that "difficult macroeconomic conditions" had taken their toll on its annual results, but reported an increase to its annual dividend in line with the company's target.

Octopus Renewables is a London-based investment company, focused on renewable energy assets across Europe and Australia.

As at December 31, Octopus's total net asset value had decreased 3.1% to GBP599.0 million from GBP618.3 million a year prior.

NAV per share dropped 3.1% to 106.0 pence from 109.4p.

NAV total return was 2.1% in 2023, down from 12.4% a year before.

Revenues of GBP117.4 million were achieved in the year, up 4.8% from GBP112.0 million.

Earnings before interest, tax, depreciation and amortisation were GBP73.8 million, down 3.3% from GBP76.3 million.

Pretax profit fell 82% to GBP12.7 million from GBP69.8 million the year before.

Earnings per share dropped 82% to 2.24p from 12.36p.

Chair Phillip Austin said that the firm's results had been impacted by "difficult macroeconomic conditions", including falling power prices and weak wind speeds across Europe.

However, in line with the company's remuneration targets, Octopus delivered dividends of 5.79p per share for the year, up 10% from 5.24p in 2022.

Looking ahead, Octopus is targeting 6.02p in dividends for 2024.

Towards the end of 2023, the company said it was considering a combination with peer Aquila European Renewables plc.

Austin added that "a larger, more liquid combined vehicle would benefit both sets of shareholders and help address some of the continuing challenges in the investment trust sector".

Shares in Octopus were up 0.4% at 72.70 pence each in London on Monday morning.

By Hugh Cameron, Alliance News reporter

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