REG - Aquila Eur Renwables Aquila Euro Rnw-AERI - Net Asset Value(s)

Aquila European RenewablesAnnouncement

Yesterday 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20251105:nRSE1931Ga&default-theme=true

RNS Number : 1931G  Aquila European Renewables PLC  05 November 2025

5 November 2025

Aquila European Renewables plc

 

Net Asset Value and Factsheet

 

Aquila European Renewables plc (the Company), a Euro income fund, announces
its unaudited net asset value ("NAV") as of 30 September 2025 was EUR 221.6
million or 58.59 cents per Ordinary Share (30 June 2025: EUR 279.3 million or
73.87 cents per Ordinary Share).

 

Key drivers of the NAV movement in Q3 2025 were:

-     An increase to the portfolio discount rate to 10.0% up from 8.8% as
at 30 June 2025. The increase recognizes the Managed Wind-Down status of the
Company and the goal to realise the Company's investments in an expeditious
manner. The current market return requirements for potential acquirers of the
Company's remaining investments are perceived to be higher than the discount
rates used for "business as usual" valuation purposes, which historically have
been based on holding the investments for the foreseeable future. Such return
requirements vary by reference to then current market conditions and may
therefore be higher depending on the timing at which any further realisations
are concluded. In addition, the NAV includes the sale values of the Holmen,
Svindbaek & Desfina investments, which were 17% below the aggregate values
as at 30 June 2025, and estimated sale costs. As at 30 September 2025 there
had also been smaller increases in discount rates to address increases in risk
premia for certain assets within the portfolio to reflect local market issues.
In addition, there was an increase in beta and risk free rates across
financial markets. The overall increase in discount rates and adopting the
sale values of the Holmen, Svindbaek & Desfina investments accounted for a
11.1% decline in NAV per share in the period.

-     Compared to previous quarter, the power price curve forecasts show a
downward revision across most European markets, which is more pronounced in
Iberia than in the Nordics. In the short term, the decline is driven by lower
commodity prices in all the relevant countries. In Iberia, solar PV prices
have been significantly revised downwards due to higher expected capture
effects, especially in the short term, resulting from higher solar
buildout/generation. The overall effect of changes to power price curve
forecasts reduced NAV per share by 6.8% in the period.

-     Total portfolio production was 19.8% below budget. Solar PV
production was 24.6% below budget, attributable in particular to curtailment
of the Iberian solar PV assets due to several hours of negative electricity
market prices, which prompted solar PV parks such as Albeniz, Tiza, and Greco
to shut down, resulting in lower production. Wind power production was 12.6%
below forecast in Q3. Both Holmen and The Rock performed ahead of forecast,
+3.5% and +2.8% respectively, while Desfina, Svindbaek and Olhava were 0.8%,
20.3% and 55.0% below forecast. Svindbaek was adversely affected by
availability losses caused by technical issues. Olhava underperformed mainly
due to extensive commercial curtailments lasting over 60% of September, while
technical losses remained low and wind conditions were normal.

-     The performance of Olhava in the first nine months of 2025 was
negatively impacted by depressed power prices and high grid balancing costs,
which resulted in a breach of the financial covenants of the senior debt
facility as at 30 June 2025. The bank agreed to accept an equity cure payment
of €0.5m, funded by the Company, in return for the lock-up period being
extended to June 2026. In addition, the bank has indicated that it will accept
another equity cure if there is another covenant breach in respect of the year
ending 31 December 2025, which may require additional funding from the Company
if market conditions do not improve.

 

Further details will shortly be available in the quarterly factsheet on the
Company's website at: https://www.aquila-european-renewables.com.

 

For further details contact:

Corporate Broker

Numis Securities 020 7260 1000

 

Hugh Jonathan

George Shiel

 

Media contacts:

Edelman Smithfield

 

Ged Brumby 07540-412301

 

www.aquila-european-renewables.com (http://www.aquila-european-renewables.com)

 

LEI: 213800UKH1TZIC9ZRP41

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  NAVUPGUUGUPAGBC



            Copyright 2019 Regulatory News Service, all rights reserved