The interim results of Greencoat Renewables, a Dublin-based wind and solar power group listed on the market, indicate a nearly 10 per cent drop in net cash generation in the first six months of 2024, compared to the same time frame in 2023. Capitalising on its 2017 market entry, Greencoat Renewables saw €113.6 million in net cash generation to June 30th, a decrease from 2023’s first half’s €125.5 million.
During what Greencoat labels a “low wind” duration, the company produced 1,927 gigawatt hours (GWh) of eco-friendly power, marking an increase from the previous year’s 1,489GWh. While the entity declared a shareholder dividend of 3.37 cent per share, it also experienced a slight drop in the net asset value per share from 113.2 cent to 112.1 cent.
The overall group debt was reported to be €1.3 billion, representing 51 per cent of the gross asset value. The first half of the year saw Greencoat securing a fresh €150 million debt facility for a period of five years, indicating that a controlled capital allocation and operational cash flows made possible €33 million in debt repayments. Furthermore, the company has a buyback programme in place amounting to €25 million.
There’s an uptick in clean energy demand driven by “big tech” and artificial intelligence in the power purchase agreements market, as per the company’s insights. This was backed by a 10-year contract signed with an Irish data centre owner. Meanwhile, a 50 per cent acquisition of an 80-megawatt peak solar farm in Co Meath was tied up just after the end of June, which involved a 15-year power purchase pact with a notable “technology company”.
Rónán Murphy, the Chairman, expressed satisfaction with Greencoat’s strong financial performance, appreciating the steady cash generation and sector-leading dividend coverage. Guided by disciplined capital allocation, the company continued its deleveraging via operational cash flow while launching a substantial share buyback programme. Murphy stated Greencoat’s position as one of the top listed owners of European renewable energy assets across six countries, asserting its competency to leverage the sector’s enduring positive trends.
“Proactive administration of revenue has provided us the capability to form electricity procurement contracts with esteemed enterprises, capitalising on the rising requirement for green energy from major technology companies.”
He further stated that the “prospects and potential returns” for renewable energies “continue to be robust” with operating assets “historically favourably valued”.
“Our expert team on the ground and active approach to asset stewardship place us in a favourable position to seize opportunities as they surface” he expressed. “With this in mind, we remain assured and resolute to persistently hold a dominant position in promoting the shift to renewable energy whilst delivering value to our shareholders.”
Established and initially public offered in 2017 by Schroders Greencoat, Greencoat Renewables is managed by this renewable energy asset management firm which is based in London.