REG - Greencoat Renewables - Final Results Announcement

Greencoat RenewablesAnnouncement

06/03/2025 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:20250306:nRSF5450Za&default-theme=true

RNS Number : 5450Z  Greencoat Renewables PLC  06 March 2025

Greencoat Renewables 2024 Final Results

 

Dublin, London | 6 March 2025: Greencoat Renewables PLC ("Greencoat
Renewables" or the "Company") today announces its results for the year ended
31 December 2024, which have been published in full on the Company's
website: www.greencoat-renewables.com (http://www.greencoat-renewables.com/)
.

 

4.5% NAV Total Return Including Dividends Paid

 

 

2024 Highlights

 

·    3,443 GWh of clean electricity generated in the period with total
capacity of 1.5GWh across 39 renewable generation and storage assets in five
European countries

 

·    Cash generation of €148.6(1) million (2023: €196.7 million),
delivering gross dividend cover of 2.0x (2023: 2.7x)

 

·    NAV per share of 110.5 cents (2023: 112.4 cents) with +4.5% total
return including dividends paid

 

·    €100m distributed to shareholders via dividends and share buyback
representing c.8% of opening NAV

 

·    Completed first asset sale of Kokkoneva wind farm in Finland at a
premium to NAV with proceeds used to repay debt

 

·    Completed the acquisition of the South Meath solar farm, the
company's first investment into the Irish solar market, under forward sale
agreement committed to in July 2022

 

·    Aggregate Group Debt reduced to €1,263 million (2023: €1,342
million), equivalent to 51% of GAV, as a result of debt repayments using a
combination of operating cashflow and proceeds from disposals

 

·    New €150 million 5-year term debt facility agreed in the period
used to repay RCF and early agreement to extend €235 million of Facility A
maturing in October 2025 for additional 5-year term

 

·    Two long-term power purchase agreements ("PPAs") with strong
counterparties in Ireland, highlighting growing presence in the market and the
increasing demand for clean energy from Big Tech and AI

 

·    The portfolio generated renewable energy sufficient to power
approximately 775,000 homes, preventing around 1.4 million tonnes(2) of CO₂
emissions - a 7% increase from 2023

 

·    Post year end, agreed an amendment to the Investment Management
Agreement ("IMA") with 50% of fees payable on NAV and the other 50% based on
the lower of NAV and market capitalisation, effective 1 April 2025

 

 

(1)Gross cash generation is stated gross of scheduled SPV level debt
repayments amounting to €7.8 million. After taking into account SPV level
debt repayments, net cash generation amounted to €140.8 million equating to
1.9x dividend cover.

 

(2) Estimated emissions avoided are calculated assuming that renewable energy
generation replaces the marginal generator (i.e., the generation that is most
likely to be displaced as the next dispatch option in the electricity system)
in each region. The marginal generators in each country are listed here:
combined cycle gas turbine (CCGT) generation for Ireland and
Spain, nuclear generation for France and Sweden, biomass generation for
Finland, and coal generation for Germany. The "Operating margin" approach
is the preferred option under PCAF guidance for measuring carbon avoided.
Carbon emissions factors (gCO2/kWh) for the marginal generator in each region
is sourced from an IEA dataset (2024). Nuclear carbon emissions
factor is sourced from IPCC.

 

Commenting on the results, Ronan Murphy, Non-Executive Chairman of Greencoat
Renewables, said:

 

 

"I am pleased to report continued strong operating performance in a year where
a range of macro-economic headwinds unsettled the sector. A combination of
intensive asset management, a balanced approach to power price risk and a
robust balance sheet underpinned cash generation of €148.6(1) million and
2.0x dividend cover.

 

Importantly, the Company's structural cash generation capacity allowed us to
allocate capital in a highly disciplined manner in line with our strategic
objectives.  Accordingly, in addition to meeting our dividend target for the
year, we used operating cashflow and disposal proceeds to make material debt
repayments, fund an accretive share buyback and part-fund our sole
acquisition.

 

I am also pleased to communicate that a revision of the terms of the
Investment Management Agreement ("IMA") has been agreed. Under the terms of
the revised IMA, 50% of the investment management fee will remain based on NAV
and the other 50% will be based on the lower of NAV and market capitalisation.
The existing tiered fee structure will remain in place. The revised
arrangements will be effective from 1 April 2025.

 

Overall, the Company continues to explore ways in which it can achieve its
strategic aims of diversifying its shareholder base and positioning itself to
take advantage of growth opportunities as market conditions improve, including
the possibility of an additional listing to enhance the Company's profile,
improve liquidity and support future growth".

 

(1)Gross cash generation is stated gross of scheduled SPV level debt
repayments amounting to €7.8 million. After taking into account SPV level
debt repayments, net cash generation amounted to €140.8 million equating to
1.9x dividend cover.

 

 

Key Metrics - Year Ended 31 December 2024

 

 Market capitalisation                                     €916 million
 Share price                                               82.3 cent
 Dividends with respect to the year                        €75.2 million
 Dividend with respect to the year per share               6.74 cent
 GAV                                                       €2,493 million
 NAV                                                       €1,230 million
 NAV per share                                             110.5 cent
 Discount to NAV                                           25.5%
 Renewable energy generated                                3,443 GWh
 CO2 emissions avoided per annum                           c.1.4 million tonnes
 Homes powered per annum                                   c.775,000
 Funds committed in community funds and social projects    €1.3 million

 

 

A copy of the Final Results has been submitted to the National Storage
Mechanism and will shortly be available for inspection at:
https://www.fca.org.uk/markets/primary-markets/regulatory-disclosures/national-storage-mechanism
(https://www.fca.org.uk/markets/primary-markets/regulatory-disclosures/national-storage-mechanism)
.

 

 

Conference call for analysts and investors

 

A conference call and webcast for analysts and investors will be held at
09.00am GMT today, 6 March 2025. To register please contact FTI Consulting by
email at greencoat@fticonsulting.com (mailto:greencoat@fticonsulting.com) .

 

Presentation materials are available on the Company's
website: www.greencoat-renewables.com (http://www.greencoat-renewables.com/)
.

 

 

--- ENDS ---

 

 

 

                For further information, please contact:

 

 Schroders Greencoat LLP (Investment Manager)
 Bertrand Gautier                                                   +44 20 7832 9400

 Paul O'Donnell

 John Musk

 FTI Consulting (Investor Relations & Media)
 Sam Moore                                                          +353 87 737 9089
 Aoife Mullen                                                       greencoat@fticonsulting.com (mailto:greencoat@fticonsulting.com)
                                                                    +44 20 7623 2323

 Barclays Bank PLC (Joint Broker)

 Dion Di Miceli

 Stuart Muress

 James Atkinson
 Davy (Broker, NOMAD and Euronext Growth Listing Sponsor)

 Brian Garrahy

 Ronan Veale

                                                                    +353 1 679 6363

 RBC Capital Markets (Joint Broker)                                 +44 20 7653 4000

 Matthew Coakes

 Elizabeth Evans

 

 

 

About Greencoat Renewables PLC

Greencoat Renewables PLC is an investor in euro-denominated renewable energy
infrastructure assets. Initially focused solely on the acquisition and
management of operating wind farms in Ireland, the Company has also invested
in wind and solar assets in other European countries with stable and robust
renewable energy frameworks. It is managed by Schroders Greencoat LLP, an
experienced investment manager in the listed renewable energy infrastructure
sector.

 

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  ACSBCGDXUDGDGUU