22nd Feb 2023 11:32
(Alliance News) - Renewables Infrastructure Group Ltd on Wednesday reported much higher profit in 2022, benefiting from inflation correlation and higher energy prices in Europe.
Renewables Infrastructure is a Guernsey-based renewable energy infrastructure investment company, with a portfolio of wind, solar and battery storage projects across six countries in Europe.
Renewables Infrastructure reported a pretax profit of GBP520.7 million for 2022, more than doubled from GBP210.5 million in 2021. Operating income grew to GBP598.6 million from GBP204.3 million. Net asset value per share at December 31 climbed 13% to 134.6 pence from 119.3p a year ago. NAV total return doubled to 19% from 9.5%.
It said that in Great Britain, it had an average forward price of GBP121 per megawatt hour for the years 2023 to 2027 before the UK government's windfall tax on energy companies, up 78% from GBP68 in 2021's forward prices for 2022 to 2026. The forward price for 2023 to 2027 falls to GBP100 after the levy.
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.
In comparison, the average forward price of five jurisdictions with the euro, the average forward price for 2023 to 2027 is EUR89, up 56% from EUR57 a year prior. The jurisdictions are France, Ireland including Northern Ireland, Germany, Sweden and Spain.
Renewables Infrastructure declared a dividend per share of 6.84p, up 1.2% from 6.76p in 2021. It targets a dividend of 7.18p for 2023, an increase of 5.0%.
Looking ahead, Renewables Infrastructure expects a valuation reduction of GBP56.2 million due to short-term pricing in Great Britain to GBP120 per megawatt hour in 2023 and 2024 and GBP100 per megawatt hour in 2025.
Renewables Infrastructure shares were 0.2% higher at 130.19 pence each on Wednesday morning in London.
By Tom Budszus, Alliance News reporter
Comments and questions to [email protected]
Copyright 2023 Alliance News Ltd. All Rights Reserved.