The Renewables Infrastructure Group has published results covering the year ended 31 December 2015. The NAV per share was 99p at 31 December 2015, down from 102.4p at the end of 2014. They say this reflects the impact of the removal of LECs (subsidies) in the Summer Budget. Total distributions of 6.19p per share were declared, up from 6.08p. They are moving to paying quarterly dividends, commencing with Q1 2016 (payable in June 2016), with target aggregate dividends for 2016 of 6.25p per share. There is a plan to ask shareholders to approve an extension of the company’s remit to include up to 20% in assets other than onshore solar and wind – the hint is that they are looking at buying into offshore wind. The reason is the probable dearth of available investment opportunities in their original sectors following the government’s U-turn on renewable energy.
The measures announced in the July UK Summer Budget (predominately the removal of the benefit to renewables generators of selling Levy Exemption Certificates from 1 August 2015) reduced their portfolio valuation and profit for the year by £20.2m and reduced earnings per share by 3.9p.
Total electricity production (pro rata to TRIG’s equity interests in each project) in 2015 increased by 65% to 1,344GWh (2014: 814GWh), reflecting mainly the increase in the scale of TRIG’s generating portfolio, as well as strong underlying operating performance. Total portfolio production was 2.3% above forecasts for the year, with the British Isles onshore wind projects contributing well-above forecast levels of production partly offset by below-forecast performance for solar PV and French wind, reflecting lower prevailing radiation levels and wind speeds in those sectors across the year as a whole.
The dividend was covered 1.2x, lower than last year, as the subsidy cuts and lower power prices hit home.
The fund got quite a bit bigger over the year as they raised total equity capital of £316m.
The purchase of 15 French solar PV projects announced recently increased TRIG’s portfolio of solar assets to 51 investments with 680MW generating capacity, making solar PV 31%, by value, of the fund.
TRIG : Renewables Infrastructure looking at offshore wind