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Greencoat UK Wind dividend on track; outlook encouraging

Published 24/07/2024, 07:40
© Reuters.  Greencoat UK Wind dividend on track; outlook encouraging
UKWG
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Proactive Investors - Greencoat UK (LON:UKWG) declared a 5p interim dividend, putting it on track for 10p for the 12 months and an 11th consecutive year of increasing the payout by RPI or more.

The sustainable energy fund also pointed out it had returned a further £82 million of capital to investors through share buybacks and dividends since October 2023.

The announcement was made alongside financial results for the first half of 2024 that showed the business brought in £165.4 million of cash.

Portfolio generation for the period was 2,654 gigawatt-hours, 15% below budget owing to low wind and lower availability, principally from an export cable failure at Greencoat's Hornsea 1 operation.

The company's net asset value dropped marginally (by 2.9%) to 159.3p, reflecting lower net cash generation in the period, and a fall in forecast power prices. The shares trade at an 11% discount to the NAV.

Chairman Lucinda Riches said the outlook for the group remains "very encouraging".

"Portfolio returns have been adjusted over the past two years to reflect the macro environment, and are now set to deliver net returns to investors of 10% on NAV," she added.

"We operate in a mature and growing asset class and, as the market for UK wind assets is expected to grow to threefold over the next decade, we are well placed to capitalise on our leading position, continuing to deliver superior returns and supporting the UK Government's net-zero targets."

Read more on Proactive Investors UK

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