REG - Aquila Eur Renwables Aquila Euro Rnw-AERI - NAV, Dividend, Managed Wind-Down and Factsheet

Aquila European RenewablesAnnouncement

06/02/2026 07:00

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RNS Number : 9241R  Aquila European Renewables PLC  06 February 2026

5 February 2026

Aquila European Renewables plc

 

Net Asset Value, Dividend, Managed Wind-Down and Factsheet

 

Summary

 

·       Net Asset Value (NAV): The Company's NAV as at 31 December 2025
was EUR 214.3 million, or 56.7 cents per Ordinary Share (30 September 2025:
EUR 221.5 million, or 58.6 cents per Ordinary Share).

·       NAV total return (Q4 2025): -2.2%, comprising -1.91 cents per
Ordinary Share movement in NAV and a dividend of 0.65 cents per Ordinary Share
paid during the quarter.

·       Dividend: No dividend is recommended in respect of Q4 2025.

·       Managed wind-down: The Company continues to progress asset
realisations and intends to return capital to shareholders as proceeds are
received. Following the first distribution in January 2026, completion of the
sale of Desfina is expected around end-February 2026, with a further return of
capital intended promptly thereafter.

·       Factsheet: The quarterly factsheet will be published shortly on
the Company's website: https://www.aquila-european-renewables.com

 

Net Asset Value

 

The Company's Net Asset Value (NAV) as at 31 December 2025 was EUR 214.3
million or 56.7 cents per Ordinary Share (30 September 2025: EUR 221.5 million
or 58.6 cents per Ordinary Share). Over Q4 2025, this represents a NAV total
return of -2.2% (-1.91 cents per Ordinary Share plus a dividend of 0.65 cents
per Ordinary Share).

 

Key drivers of the NAV movement in Q4 2025:

·    Operational performance below forecast: Performance in Q4 2025 versus
forecast was below budget. Imbalance prices in the Nordic and Baltic countries
became more volatile as the systems integrate higher shares of wind power and
move to finer time resolution and new pricing algorithms (e.g. 15-minute
imbalance settlement and automated activation introduced in 2025 in the
Nordics). As a result, production was curtailed to limit exposure to high
imbalance prices. In addition, production in Spain and Portugal was 15% below
forecast in Q4 2025.

·    Discount rate: The portfolio discount rate remained stable at 10.0%
p.a. versus the position as at the end of Q2 2025. However, over the full year
there was a substantial increase from 7.3% p.a. as at the end of Q4 2024.

·    Power price curves: Compared to previous quarter, there was little
change in power price curve forecasts. However, over the course of the full
year there was a significant downward revision across most European markets.
In the short term, the decline was driven by lower commodity prices in all the
relevant countries. In Iberia, solar PV prices were significantly revised
downwards due to higher expected capture effects resulting from higher solar
buildout/generation.

·    Full-year production below budget: Total portfolio production for the
remaining investments in the year ended 31 December 2025 was 24.1% below
budget. Solar PV production was 28.3% below budget, attributable 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 17.9% below forecast in 2025. Olhava underperformed by 29.4% in
2025 mainly due to extensive commercial curtailments, while technical losses
remained low and wind conditions were normal.

·    Olhava covenant position and potential equity cure: The performance
of Olhava in the year ended 31 December 2025 was also 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 EUR 0.5m, funded by
the Company, in return for the lock-up period being extended to June 2026. In
addition, the bank agreed that another equity cure would be acceptable if
there is another covenant breach in respect of the year ending 31 December
2025. While the full year results are not yet finalised, it is likely that
there will be a covenant breach, which would require an equity cure and
additional funding from the Company.

Dividend

As previously announced, the Company intends to continue paying dividends in
order to maintain the Company's investment trust status. However, as it
pursues the managed wind-down, the Board is unable to provide forward guidance
as to the level of dividend for the year ahead. Shareholders should also note
that the Board is no longer seeking to smooth the level of dividend over a
financial year and dividend payments are expected to decline as assets are
realised, gearing is reduced and capital is returned to shareholders.

No dividend is recommended in respect of Q4 2025. Cash generated by the
Company's investments, available for upstreaming to the Company, was under
significant pressure in the second half of 2025 due to Olhava's lender
prohibiting payments to shareholders and to challenging market conditions in
Spain and Portugal. In addition, there may also be calls on the Company's
capital to support investments including potential equity cures for the Olhava
investment.

Managed wind-down and capital returns

Following completion of the Sagres disposal in June 2025 for EUR14.7 million
and the Holmen II and Svindbaek disposals for EUR 36.6 million in December
2025, the Company completed its first capital distribution to Shareholders
under the approved B Share Scheme totalling approximately EUR 34 million in
January 2026.

The sale of the Company's Greek asset, Desfina, for a total consideration of
approximately EUR 26 million is now expected to complete  around the end of
February 2026. The Company intends to execute another return of capital
promptly following the completion of the sale which will represent the
majority of proceeds received.

Factsheet

 

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

 

Enquiries:

 

 Apex Listed Companies Services (UK) Limited (Company Secretary)   +44 (0) 20 3327 9720

 Deutsche Numis (Corporate Broker)

 Hugh Jonathan

 George Shiel

 

LEI: 213800UKH1TZIC9ZRP41

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