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    Greencoat UK Wind plc - Greencoat UK Wind Half Yearly Report - 28 July 2022


    July 28, 2022 - UKI Equity Markets (Web Disclosure) via PUBT

     

      G RE ENCOAT

      UK WIND

      Greencoat UK Wind PLC

      Half Year Report

      For the six months ended 30 June 2022

      GREE NCOAT

      UK WIND

      Contents

      Summary

      01

      Chairman's Statement

      02

      Investment Manager's Report

      04

      Statement of Directors' Responsibilities

      14

      Unaudited Condensed Consolidated Financial Statements

      15

      Notes to the Unaudited Condensed Consolidated Financial Statements

      19

      Company Information

      29

      De?ned Terms

      30

      Alternative Performance Measures

      32

      Cautionary Statement

      33

      All capitalised terms are de?ned in the list of de?ned terms on pages 30 to 31 unless separately de?ned.

      GREE NCOAT

      UK WIND

      Summary

      Greencoat UK Wind PLC is the leading listed renewable infrastructure fund, invested in UK wind farms. The Company's aim is to provide investors with an annual dividend that increases in line with RPI in?ation while preserving the capital value of its investment portfolio in the long term on a real basis through reinvestment of excess cash ?ow.

      The Company provides investors with the opportunity to participate directly in the ownership of UK wind farms, so increasing the resources and capital dedicated to the deployment of renewable energy and the reduction of greenhouse gas emissions.

      Highlights

      • The Group's investments generated 2,175GWh of renewable energy.
      • Net cash generation (Group and wind farm SPVs) was £328.8 million.
      • Acquisition of Twentyshillingincreased the portfolio to 44 operating wind farm investments and net generating capacity to 1,460MW as at 30 June 2022.
      • Agreement to acquire a net 12.5 per cent stake in Hornsea 1 offshore wind farm, with the transaction expected to complete in Q3 2022.
      • The Company declared total dividends of 3.86 pence per share with respect to the period.
      • £900 million outstanding borrowings as at 30 June 2022, equivalent to 20 per cent of GAV.

      Key Metrics

      As at 30 June 2022

      Market capitalisation

      £3,566.8 million

      Share price

      153.9 pence

      Dividends with respect to the period

      £89.5 million

      Dividends with respect to the period per share

      3.86 pence

      GAV

      £4,459.7 million

      NAV

      £3,559.7 million

      NAV per share

      153.6 pence

      Alternative Performance Measures are de?ned on page 32.

      01

      Greencoat UK Wind PLC Half Year Report for the six months ended 30 June 2022

      Chairman's Statement

      I am pleased to present the Half Year Report of Greencoat UK Wind PLC for the six months ended 30 June 2022.

      Performance

      Portfolio generation for the period was 2,175GWh, 1 per cent above budget. Net cash generated by the Group and wind farm SPVs was £328.8 million, above budget due to high power prices, primarily re?ecting high gas prices, providing cover of 3.8x dividends paid during the period.

      Dividends and Returns

      The Company's aim is to provide investors with an attractive and sustainable dividend that increases in line with RPI in?ation while preserving capital on a real basis. In line with its stated target of 7.72 pence per share for 2022, the Company has paid a quarterly dividend of 1.93 pence per share with respect to Q1 2022 and has declared a dividend of the same amount per share with respect to Q2 2022, giving a total of 3.86 pence per share for the period (compared to 3.59 pence per share for the ?rst half of 2021). NAV per share increased in the period from 131.7 pence per share (ex-dividend) on 31 December 2021 to

      151.7 pence per share (ex-dividend) on 30 June 2022, re?ecting an increase in forward power prices over the period 2022-2025 and an increase in short term in?ation.

      Investment

      During the period, the Group invested £50 million to acquire the Twentyshilling wind farm from Statkraft, increasing net generating capacity to 1,460MW. During the period, the Group also provided a further £18 million of construction ?nance to the Kype Muir Extension wind farm project (target commissioning in Q4 2022).

      In Q3 2022, we expect to complete on our £400 million investment in the Hornsea 1 wind farm, through reinvestment of cash ?ow alongside a modest utilisation of our revolving credit facility, increasing generating capacity to 1,610MW.

      Gearing

      As at 30 June 2022, the Group had £900 million of debt outstanding, equating to 20 per cent of GAV (limit 40 per cent).

      Debt outstanding comprised £900 million of ?xed rate term debt at Company level. There was zero outstanding under the Company's £600 million revolving credit facility (the £250 million balance at the beginning of the period having been re?nanced with £200 million AXA term debt and £50 million repaid from excess cash ?ow during the period).

      Principal Risks and Uncertainties

      The principal risks and uncertainties affecting the Group were identi?ed in detail in the Company's Annual Report to 31 December 2021, summarised as follows:

      • dependence on the Investment Manager;
      • ?nancing risk; and
      • risk of investment returns becoming unattractive.

      Also, the principal risks and uncertainties affecting the investee companies were identi?ed in detail in the Company's Annual Report to 31 December 2021, summarised as follows:

      • changes in government policy on renewable energy;
      • a decline in the market price of electricity;
      • risk of low wind resource;
      • lower than expected asset life; and
      • health and safety and the environment.

      The principal risks outlined above remain the most likely to affect the Group and its investee companies in the second half of the year.

      Outlook

      The Company is investing in a mature and growing market, and the Board believes that there should continue to be further opportunities for investments that are bene?cial to shareholders. The Company will continue to maintain a strictly disciplined approach to acquisitions, only investing when it is considered to be in the interests of shareholders to do so.

      02

      GREE NCOAT

      UK WIND

      Chairman's Statement continued

      The Board and Governance

      The Board was pleased that the Company could hold its AGM in person for the ?rst time in 3 years in April 2022. At the AGM, Willy Rickett retired and Lucinda Riches assumed the role of Senior Independent Director. I would like to thank Willy once again for his wisdom and service to the Company since 2013.

      The Company and its Investment Manager also renewed the Investment Management Agreement, reducingthe management fee on NAV above £3 billion.

      Shonaid Jemmett-Page

      Chairman

      27 July 2022

      03

      This is an excerpt of the original content. To continue reading it, access the original document here.

      Disclaimer

      Greencoat UK Wind plc published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 06:09:21 UTC.

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