Greencoat UK Wind reports that its NAV growth during 2016 was 4.1 pence per share (after adjusting for dividends). NAV per share increased from 102.9 pence (ex dividend) on 31 December 2015 to 107.0 pence (ex dividend) on 31 December 2016. They paid total dividends of 6.34 pence per share for the year and are targeting 6.49p for 2017.
During the year, portfolio power generation was 6 per cent. below budget at 978.1GWh owing to average wind speed across the UK being 6 per cent. below the long term mean. In the first three quarters of the year we also saw lower power prices before prices increased in the fourth quarter. Despite this, net cash generated by the Group and wind farm SPVs was GBP49.0 million and dividend cover was 1.4x. The current average production provides enough electricity to power 375,000 homes.
The Group made two acquisitions during the year for a total of GBP223.5m increasing the portfolio to 19 wind farm investments, net generating capacity to 420MW and GAV to GBP900.1 million as at 31 December 2016. In March, the Group acquired a 28.2 per cent. stake in the 350MW Clyde wind farm, one of the largest windfarms in the UK. Clyde is the fourth wind farm to be acquired from SSE and maintains a longstanding relationship between both companies. The acquisition also brought in the Greater Manchester Pension Fund and the London Pensions Fund Authority as co-investment partners. In June, the Group acquired Screggagh, a 20MW wind farm in Northern Ireland.
UKW : Greencoat UK Wind powers 375,000 homes