The Renewables Infrastructure Group (TRIG)

[kempiejon]

Thanks for the info daveh.
The dividend announcement was expected, the same as the previous 3Qs, I do hope, again as per previous, the next edges upwards. Unlike the recent sp, my capital was doing OK (covid excepted) for the first few years, since then decline, though if I hadn't seen this post and checked I wouldn't have known it had fallen to below purchase levels.

[daveh]

Thanks for the info daveh.
The dividend announcement was expected, the same as the previous 3Qs, I do hope, again as per previous, the next edges upwards. Unlike the recent sp, my capital was doing OK (covid excepted) for the first few years, since then decline, though if I hadn't seen this post and checked I wouldn't have known it had fallen to below purchase levels.

I wasn't expecting the dividend announcement until the end of the month with the full year results.

Yes the share price of all the renewable infrastructure companies seem to have been badly hit over the last few months, though the big energy produces such as TRIG and UKW less so than the BESS companies such as GRID and GSF. A lot of the share price under performance has been down to what was small premiums to NAV falling to large discounts to NAV. For me TRIG is still sitting at breakeven taking account of dividends, but dividends received now ~ matches capital lost.

I think they (renewable infrastructure trusts) may be a good buy, but may get cheaper before prices start to improve. Maybe we will have to wait to see interest rates coming down before their share prices start to rise back towards NAV.

[kempiejon]

Last year looks like they announced the div in February.
TRIG Renewables Infrastructure Group FTSE 250 1.795p Q1 04-May-23TRIG 04-May-23 Dividend Announcement 11-May-23 30-Jun-23
TRIG Renewables Infrastructure Group FTSE 250 1.71p Q4 02-Feb-23TRIG 02-Feb-23 Dividend Announcement 09-Feb-23 31-Mar-23
https://dividenddata.co.uk/ex-dividend- ... hTerm=TRIG details
https://www.londonstockexchange.com/new ... n/15821859
As you say the sector is in decline, like you the TRIG income has balanced for the capital. I have UKW too.

[daveh]

Final results:
https://www.investegate.co.uk/announcem ... s-/8059673

Highlights

For the year ended 31 December 2023

Strong underlying performance with modest decline in valuation

- Robust pro-forma portfolio EBITDA of £610m1 (2022: £677m) reflecting strong achieved power prices.

- Healthy cash flow generation with dividend cover of 1.6x (2022:1.5x); or 2.8x (2022: 2.6x) before the repayment of £219m of project-level debt.

- 6.9p reduction in NAV per share2 to 127.7p (31 December 2022: 134.6p) driven by lower power price forwards and higher valuation discount rates.

- Power prices trended down during 2023 following reductions in gas prices. Since the balance sheet date, forwards for 2024-2026 have further reduced by c. 20%. Over a five-year horizon, a 10% reduction in power prices would reduce the Company's NAV by 2.2p/share4.

- The weighted average Portfolio Valuation3 discount rate as at 31 December 2023 has increased to 8.1% (31 December 2022: 7.2%), reflecting the higher return environment.

Disciplined capital allocation

- Reduction in project-level gearing to 37% (31 December 2022: 38%), following debt repayment of £219m. Project-level debt is fixed rate and amortises over the subsidy periods.

- Retained cashflows and disposals helped reduce Revolving Credit Facility ("RCF") drawings by £34m. In 2024, the Company expects to be able to reduce RCF drawings to about £150m.

- Construction projects completed, with 301MW of capacity delivered during the year across five projects. All construction spend in 2023 was funded from retained cash flows.

- 2024 dividend target5 set at 7.47p/share, a 4% increase on 2023's achieved dividend of 7.18p/share, balancing the strength of the Company's inflation-correlated cash flows with moderating power prices and inflation.

Opportunity for capital growth

- TRIG has an exclusive development pipeline of 1GW by 2030 from repowering, co-location & extensions and new site developments.

- Investing in development activities offers strong prospective risk-adjusted returns, significantly ahead of the portfolio weighted average discount rate, and provides optionality to take projects forward through build and into operations.

- Investment decisions consider an elevated return hurdle rate, which includes the return offered by the buying back the Company's own shares, portfolio construction and the Company's funding position.

- TRIG has the potential to fund the delivery of the development pipeline without the need for equity issuance, through retained cash, divestment proceeds and structural debt capacity. Company's durable balance sheet and amortising debt is projected to see portfolio gearing reduce to 23% by 2030 on the current portfolio, whilst 38% of the portfolio remains ungeared.

- Operational and technical enhancements deliver capital growth through improving the generation output of TRIG's existing portfolio. Examples include AeroUp, which has delivered a 5% energy yield increase at the initial trial site.

Results look good. Dividend covered by income, dividend to be increased next year. Debt being reduced and cash for new investment coming from retained earnings.

[idpickering]

Thanks for the above. I hold TRIG and topped up my holdings recently. I missed this announcement earlier as I was busy with posting other ones.

Ian.

[daveh]

Sale of Irish onshore windfarm:
https://www.investegate.co.uk/announcem ... rm/8082232

Disposal of an Irish onshore wind farm

TRIG is pleased to announce that it has exchanged contracts for the sale of its 100% equity interest in Pallas, an onshore wind farm located in the Republic of Ireland, for a consideration of €62m. The proceeds from the sale represent a 15% premium to that included in the Company's last published Portfolio Valuation as at 31 December 2023 and will be applied to reduce borrowings under the Company's Revolving Credit Facility.

[daveh]

TRIG sells two onshore windfarms:
https://www.investegate.co.uk/announcem ... s-/8102846

Two Scottish onshore windfarms (Total capacity 32MW) sold for £51m, at a premium to valuation at 31st Dec 23. Proceeds to be used to pay down floating rate debt.