Announcement of Final Results.
· Strong earnings and NAV performance:
o Earnings per ordinary share of 21.5p (2021: 10p)
o NAV per ordinary share of 134.6p1 as at 31 December 2022 (2021: 119.3p)
o Portfolio valuation2 of 3,737m as at 31 December 2022 (2021: 2,726m)
· Healthy operational cash generation:
o 2022 dividend target of 6.84p/share delivered and 2023 dividend target3 set at 7.18p/share, a 5% increase
o Dividend cover of 1.55x (2021: 1.12x), or 2.6x before the repayment of project level debt which was £174m during the year
o Strong reinvestment cashflows
o £694m of investments made
o A renewed Revolving Credit Facility, extended to £750m
· A diversified, 2.8GW portfolio of renewables assets:
o Portfolio generated 5,376GWh of electricity in the year (2021: 4,125GWh)
o 1.9m tonnes of CO2 avoided in 20224
o 1.6m homes (equivalent) powered with renewable electricity4
On 2 February 2023, the Company declared an interim dividend of 1.71 pence per share for the period 1 October 2022 to 31 December 2022. The total dividend, £42,456,300, payable on 31 March 2023, is based on a record date of 10 February 2023 and the number of shares in issue at that time being 2,482,824,562.
Financial highlights
The Company's Net Asset Value as at 31 December 2022 was 134.6p/share (31 December 2021: 119.3p/share) and the Company's Portfolio Valuation was £3,737 million. Earnings for 2022 were 21.5p/share (2021: 10.0p/share). Dividends of 6.84p per share were declared, giving an increase in NAV per share of 15.3p (2021 NAV per share increase: 4.0p).
The earnings of 21.5p/share in the year were a result of:
· Continued delivery of the investment strategy and active portfolio management
· The high revenues generated in the year as a result of particularly high wholesale power prices coupled with higher subsidies as a result of inflation indexation passing through
· Increases in the portfolio valuation as a result of expectations for power prices and inflation to continue to be elevated over the short to medium term compared to expectations last year
· The portfolio valuation increase has been offset to some extent by an increase in the portfolio weighted average discount rate of 0.5%, recognising the increased levels of government bond yields. The discount rate applied to UK cash flows were increased by 0.8%, whilst the equivalent rate applied in Europe was increased by 0.3%, recognising the increased macro-economic volatility in the UK in the second half of the year.
https://www.investegate.co.uk/renew-inf ... 00086373Q/Ian (I hold).