Greencoat Renewables generates €13.4m in cash in first half of 2018
But company said its portfolio generation was 9% below budget
Renewable infrastructure firm Greencoat Renewables said it generated €13.4 million in cash in the first six months of 2018.
The company’s contracted payments mean the group has no exposure to wholesale power price fluctuations, Greencoat said in an update to the stock exchange this morning.
But its total portfolio generation failed to hit its targets, with the 195.3GWh 9 per cent below its budget, as persistently low wind speeds in May and June impacted figures.
The company has acquired a number of wind farms, including Lisdowney, Tullynamoyle II and Dromadda More, which increased its net generating capacity, and has since signed a deal with Coillte to acquire a further four farms. That will bring its total number to nine, and increase its net generating capacity 299MW, from 194MW previously.
Its gross asset value was €459.7 million at June 30th, and had €198 million outstanding borrowings.
The firm, which raised €111 million in July through the placing of 11 million shares, said operating expenditure was in line with expectations
“The outlook for the Company is positive, we have a high quality operating portfolio and a capital structure aligned for growth in an attractive secondary market for wind assets,” said chairman Ronan Murphy.
Analysts at Davy reiterated the company’s outperform recommendation on the stock.
“For us, the key year-to-date highlight has been the company’s demonstration of its ability to grow assets, underpinning its dividend and NAV growth objectives,” analysts said in a note.