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Aquila European Renewables results reflect effect of falling power prices

Aquila European Renewables results reflect effect of falling power prices – Aquila European Renewables has published results covering the year ended 31 December 2020. Highlights are:

  • The year end NAV was €316.9m or 99.96 cents per share down from 102.7 cents. This translates as a total return of 0.7%.
  • The return to shareholders was 2.0%
  • In line with the prospectus, the company declared or paid dividends of 4.0 cents, this was covered by revenue by 1.1x.
  • Five new investments for €156.2m: three additional wind investments in Denmark, Norway and Greece and the first solar additions to the portfolio, with two acquisitions in Spain and Portugal
  • The portfolio had 31 assets at the year end with a total generating capacity of 301.3 MW (31 December 2019: 132.3 MW)
  • Over €167.5m of new equity raised, the majority of which has already been deployed or committed in 2020
  • The portfolio provides electricity to over 203,000 households annually, as well as saving over 238,700 tonnes of CO2 annually.
  • Over 2020, the portfolio produced 459.9 GWh, 6.5% above budget, largely due to Sagres and Olhava’s strong performance, which were both up 10.4% and 16.1% respectively.
  • Ongoing efficiencies reduced ongoing charges to 1.4% of NAV from 1.7%

The disappointing returns reflect weak power prices. In the short term these were impacted by COVID-19-related falls in demand for electricity. Forecast power prices are now based on the average of two forecasters. The fall in power prices was partially offset by a reduction in the discount rate used to value the future cash flows generated by the assets to 6.6%.

New loan facility

Aquila European Renewables has agreed a €40m revolving credit facility with a consortium of lenders including ING and The Royal Bank of Scotland. The facility has a margin of 1.85% over EURIBOR, can be upsized to €100m and can be extended for two years. There is a limit of 25% loan to value on the facility.

AERI : Aquila European Renewables results reflect effect of falling power prices

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