REG - Octopus Renewables - Half-year Report
23/09/2025 07:00
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RNS Number : 3356A Octopus Renewables Infra Trust PLC 23 September 2025
23 September 2025
LEI: 213800B81BFJKWM2JV13
Octopus Renewables Infrastructure Trust plc
("ORIT" or the "Company")
Half-Year Results to 30 June 2025
Disciplined capital allocation over H1 2025
Revenue well protected, with 85% fixed over next two years
Octopus Renewables Infrastructure Trust plc ("ORIT" or the "Company"), the
diversified renewables infrastructure company, announces its unaudited interim
results for the period from 1 January 2025 to 30 June 2025.
Highlights
As at 30 June 2025 As at 31 December 2024
(unaudited) (audited)
NAV per Ordinary Share (p) 99.5 102.6
Ordinary Share Price (p) 73.4 68.0
Net asset value ("NAV") (£ million) 540 570
NAV total return since IPO on 10 December 2019 (%) 31.7 31.9
Gross asset value (£ million) 1,010 1,029
H1 2025 H1 2024
Dividends declared per Ordinary Share (p) 3.08 3.01
Dividend Cover 1.19x 1.33X
Dividend Yield(1) 8.4% 8.4%
Generation (including compensation from curtailment) (GWh) 654 658
Revenue (operational portfolio) (£m) 68.7 68.7
EBITDA (operational portfolio) (£m) 44.3 45.3
Financial Highlights
· NAV total return of -0.2% (H1 2024: +2.0%)
· NAV at £540m (31 December: £570m) primarily reflecting lower power
price forecasts, higher discount rates and fund-level items (running costs and
dividend payments), partially offset by positive adjustments to macroeconomic
assumptions and unwinding of the portfolio discount as future cashflows are
brought forward
· 3.08p per Ordinary Share dividend declared over first half of 2025 -
in-line with FY 2025 target of 6.17p
· Revenue well protected, with 85% fixed over the next two years; 47%
inflation linked for next ten years
· Operational portfolio generated revenue of £68.7m (unchanged YoY)
and EBITDA of £44.3m (broadly flat YoY)
Operational Highlights
Capital allocation strategy underway
· 12.3 million shares repurchased for a total consideration of £8.5m
and an average price of 66.9p
o A further £6.2m repurchased post-year end to 15 September 2025; average
price of 70.8p
o Brings total repurchased since programme began to £21.6m (as at 15
September 2025)
· Several sales processes advanced; on track to realise the £80m
target by year end
· Selective investments continued, with follow-ons into Nordic
Generation and BLC Energy and conditional acquisition of Irishtown
· Signed a new five-year term loan facility, enabling repayment of
£98.5m of the Revolving Credit Facility ("RCF")
· RCF term extended to June 2028 and reduced in size from £270.8m to
£150.0m
· Average cost of debt across the portfolio decreased to 3.5%, from
4.0% as at 31 December 2024
· Above changes projected to save approximately £850,000 per annum
· On track to reduce debt to below 40% of GAV by year end
Operational Portfolio and Impact Highlights
· 654 GWh of clean electricity generated (H1 2024: 658 GWh)
· Solar portfolio output increased 34% compared with H1 2024
· Overall output broadly flat; strong solar performance offset by low
winds
· 165K estimated equivalent tonnes of CO(2) avoided in H1 2025 (H1
2024: 150K)
· 158K estimated equivalent homes powered by clean energy from ORIT's
assets in H1 2025 (H1 2024: 147K)
Post Year End
· In August 2025, a reduced management fee was announced (effective 1
November 2025)
o The new fee will be based on an equal weighting of NAV and average market
capitalisation and equates to an annualised saving of approximately £0.7
million
Announced Separately Today - ORIT 2030: A strategic roadmap for growth
ORIT 2030 is a defined five-year strategy designed to deliver substantial NAV
growth, scale the company and generate attractive medium-to-long-term
shareholder returns. The high-level strategic priorities for ORIT 2030 are
summarised below. The Board has also recommended that the continuation vote
moves to a cycle of every three years, from the current five years. Please see
the separate stock market announcement for full details.
· Grow: Invest for NAV growth through disciplined deployment of capital
into higher-return construction and developer opportunities
· Scale: Target £1 billion net asset value by 2030 through organic and
inorganic growth, to create a more liquid and investable company
· Return: Target medium-to-long-term total returns of 9-11% through a
combination of capital growth and income
· Impact: Scale with purpose and resilience adding new clean capacity
and supporting the energy transition
Phil Austin, Chair of Octopus Renewables Infrastructure Trust plc, commented:
"During the first half of 2025 we have delivered resilient operational
performance, solid dividend yield and cover, and taken clear action to enhance
shareholder value through share buybacks, a lower cost of debt, and the
introduction of a reduced management fee. Alongside this, the portfolio
continues to create a tangible positive impact, avoiding 165,000 tonnes of
CO₂ - the equivalent of powering 158k homes with clean energy during the
period.
"We believe the fundamental investment case for renewables remains compelling
and we are optimistic about improving sector sentiment. ORIT is
well-positioned in this context, with a portfolio diversified across
geographies and technologies. With 85% of near-term revenues fixed or
contracted, and a growing share inflation-linked, this provides resilience and
visibility in a volatile environment. Looking ahead, the launch of our ORIT
2030 strategy provides a clear framework for growth, building on this strong
foundation to deliver sustainable income and long-term capital
appreciation."
Interim Report and Accounts
To view the Company's Annual Report and Accounts please visit ORIT's website
here:
https://www.octopusrenewablesinfrastructure.com/
(https://www.octopusrenewablesinfrastructure.com/) . The Interim Report and
Accounts will also shortly be available on the National Storage Mechanism,
which is situated at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) .
Capital Markets Session and Investor Meet Company
An interim results update, alongside details of ORIT 2030, will be presented
at today's in-person Capital Markets Session for sell-side analysts and
institutional investors in London. The presentations will be uploaded to the
ORIT website ahead of the event and a recording of the session will be made
available on the Company's website soon after.
Additionally, there will be an online presentation via the Investor Meet
Company platform on Wednesday 24 September 2025 at midday for all existing and
potential shareholders. Investors who already follow ORIT will automatically
be invited. Investors can sign up to Investor Meet Company for free via:
https://www.investormeetcompany.com/octopus-renewables-infrastructure-trust-plc/register-investor
(https://www.investormeetcompany.com/octopus-renewables-infrastructure-trust-plc/register-investor)
.
1 Dividend yield is calculated by dividing the target annual dividend per
share of 6 .17p for FY 2025 and 6.02p for FY 2024 by the market share price as
at 30 June 2025 and 31 December 2024, respectively.
For further information please contact:
Octopus Energy Generation (Investment Manager) Via Burson Buchanan or
Chris Gaydon, David Bird orit@octopusenergygeneration.com (mailto:orit@octopusenergygeneration.com)
Charlotte Edgar (Investor Relations)
Peel Hunt (Broker) 020 7418 8900
Liz Yong, Luke Simpson, Huw Jeremy (Investment Banking)
Alex Howe, Chris Bunstead, Ed Welsby, Richard Harris (Sales)
Burson Buchanan (Financial PR) 020 7466 5000
Charles Ryland, Nick Croysdill, Jude Stokes
Apex Listed Companies Services (UK) Limited (Company Secretary) 020 3327 9720
Notes to editors
About Octopus Renewables Infrastructure Trust
Octopus Renewables Infrastructure Trust ("ORIT") is a closed-ended investment
company incorporated in England and Wales admitted to the closed-ended
investment funds category of the official list and to trading on the London
Stock Exchange plc's main market for listed securities, focused on providing
investors with an attractive and sustainable level of income returns, with an
element of capital growth, by investing in a diversified portfolio of
renewable energy assets in Europe and Australia. As an impact fund, ORIT
is helping accelerate the transition to net zero by investing in green energy,
whilst also contributing to a broader set of UN Sustainable Development Goals
through its impact initiatives. ORIT's investment manager is Octopus Energy
Generation.
Further details can be found at www.octopusrenewablesinfrastructure.com
(http://www.octopusrenewablesinfrastructure.com/) .
About Octopus Energy Generation
Octopus Energy Generation is driving the renewable energy agenda by building
green power for the future. Its specialist renewable energy fund management
team invests in renewable energy assets and broader projects helping the
energy transition, across operational, construction and development stages.
The team was set up in 2010 based on the belief that investors can play a
vital role in accelerating the shift to a future powered by renewable energy.
It has a 14-year track record with approximately £7.0 billion of assets under
management (AUM) (as at 30 June 2025) across 21 countries and with a total 4.9
GW of capacity managed. Octopus Energy Generation is the trading name of
Octopus Renewables Limited.
Further details can be found at www.octopusenergygeneration.com
(http://www.octopusenergygeneration.com/) .
Chair's Statement
Philip Austin MBE
Chair, Octopus Renewables Infrastructure Trust plc
Dear Shareholder,
On behalf of the Board, I am pleased to present the Interim Report for Octopus
Renewables Infrastructure Trust plc ("ORIT" or "the Company") for the six
months ended 30 June 2025.
Strategic focus and shareholder engagement
During H1 2025, a core focus for the Company has been disciplined capital
allocation and improved operational performance. In March, the Board and
Investment Manager set clear objectives for the remainder of the year:
extending the share buyback programme to £30 million, reducing gross gearing
to below 40% of Gross Asset Value ("GAV"), and realising at least £80 million
from asset sales to fund selective reinvestment. We firmly believe these
actions will help drive long-term shareholder value and the Investment Manager
has been focused on delivering against them. We are materially advanced on
several fronts and remain confident in achieving these goals by this financial
year-end. Progress against each objective is provided later in my statement.
We have also strengthened our dialogue with shareholders. Alongside several
roadshows, meetings, and calls conducted by myself and the Investment Manager,
the Board commissioned an independent perception audit to seek candid feedback
from a broad base of investors. The results were encouraging - respondents
expressed confidence in ORIT's investment team, our impact credentials, and
the strength of the Octopus brand. Shareholders welcomed the clarity of our
communications and reaffirmed support for the overall strategy. However, the
findings also underscored the need for the Board to take more decisive action
and to deliver on our objectives around gearing, capital recycling, and
simplifying fee structures, as well as seeking ways to scale. All of these
areas are a continued focus for the Board. In August we were pleased to
announce a reduced management fee (effective 1 November 2025). The Board
continues to take an active role in shaping ORIT's future and remains
committed to delivering responsive and strategic oversight, while also
recognising the difficulty of meeting a broad range of investor objectives.
At our June AGM, we welcomed strong support for the continuation resolution,
with 90.84% of votes in favour. I also note that a minority of shareholders
voted against my re-election as Chair. The Board respects the views expressed
and I have personally engaged with those shareholders to better understand
their reasons. While the motivations were varied, we recognise that some
shareholders are looking for faster, more visible action, and we are committed
to responding constructively to that message. We are therefore pleased to
launch our five-year strategic roadmap: ORIT 2030.
ORIT 2030
ORIT 2030 is a clear five-year strategy aimed at delivering substantial NAV
growth, scaling the Company, and generating double-digit shareholder returns.
The plan is built around four strategic priorities:
1. Grow: Invest for NAV growth through disciplined deployment of capital
into higher-return construction and developer opportunities (see interim
report for more detail)
2. Scale: Build a larger, more investable company with the ambition to
grow to around £1 billion in NAV by 2030, through a combination of organic
and inorganic growth
3. Return: Deliver sustainable risk-adjusted returns targeting 9-11% over
the long term while maintaining progressive dividends and prudent balance
sheet management
4. Impact: Scale with purpose and resilience adding new clean capacity and
supporting the energy transition
Shareholders have been clear that they want ORIT to be larger, more
investable, and to stay true to its purpose. ORIT 2030 is a decisive focus on
growth, positioning the Company to deliver sustainable income alongside
long-term capital appreciation. By recycling capital into new construction and
developer opportunities, managing leverage with discipline, and drawing on the
expertise of our Investment Manager, Octopus Energy Generation ("OEGEN"), we
are setting a clear pathway to grow NAV, deliver resilient dividends, and
create enduring value for shareholders.
OEGEN has a strong track record, having overseen the reconstruction of 496 MW
of renewable capacity in the ORIT portfolio since inception and we are
confident that this renewed focus will unlock greater growth potential for
shareholders over the next five years. Our ambition is to scale ORIT into a
larger and more investable company in the renewables sector, continuing to
offer the market a differentiated proposition while also accelerating the
energy transition. However, we recognise that to achieve meaningful scale, and
to remain attractive to shareholders and new investors, we must look beyond
organic growth. A key part of ORIT 2030 will be to identify potential M&A
opportunities to achieve our ambitious growth targets.
More detail can be found in today's stock exchange announcement and will be
provided at both our Capital Markets Session and Investor Meet Company webinar
in the coming days.
Financial performance and dividends
NAV total return was broadly flat over the six-month period (-0.2%). The
positive contribution from macroeconomic updates, including revised UK
inflation forecasts, a reduction in Finnish corporate tax, and FX tailwinds,
combined with dividends and share buybacks, were offset by an increase in
discount rates and weaker power price forecasts. Revenues remain well
protected, with 85% fixed over the next two years, helping to mitigate much of
the power price volatility. Development-stage asset valuations also saw a
modest net decline, primarily due to headwinds in the floating offshore wind
sector affecting Simply Blue. Further details on the NAV per share movements
can be found in the interim report.
We continued to deliver against our progressive dividend policy, paying 3.08p
per Ordinary Share over the first half, in line with the full-year 2025 target
of 6.17p per share. This target, increased by 2.5% from FY 2024 in line with
UK CPI, marks the fourth consecutive year of inflation-linked increases and is
expected to be fully covered by operating cash flows. Total dividend payments
amounted to £16.8 million during H1 2025.
ORIT continues to offer shareholders an attractive income profile. Based on
the FY 2025 dividend target of 6.17p, and the share price of 73.4p as at 30
June 2025, the implied dividend yield is 8.4%. This supported a total
shareholder return of 12.9% over the first half of this financial year,
reflecting both income and share price appreciation. While the share price has
since retraced to 66.0p as at 15 September, the implied yield has
correspondingly increased to 9.3%, reinforcing the strength of ORIT's income
proposition in volatile markets.
Operational portfolio performance
The portfolio generated revenues of £68.7 million, flat year-on-year.
Operating expenditure rose in line with the growth in installed capacity, with
some savings versus budget achieved through timing differences. EBITDA for the
period totalled £44.3 million, broadly unchanged versus the same period last
year. The Company's operating income for the period was £22.6 million (H1
2024: £18.9 million). However, this was fully offset by a net decrease in the
fair value of the assets and resulted in a net loss for the period of £1.1m
(H1 2024: £11.3 million profit).
Total clean electricity generation reached 654 GWh in H1 2025, broadly similar
to the 658 GWh generated in H1 2024. While overall output was 7.9% below
budget (primarily due to low winds and uncompensated grid curtailments), this
represented an improvement from -11.3% in H1 2024, reflecting stronger
operational availability and effective asset management actions across the
portfolio. Notably, the solar portfolio ended the period with a 34% increase
in output compared with H1 2024, demonstrating the value of technological
diversification (see interim report for more detail).
Capital allocation and share buybacks
During the six months to 30 June 2025, the Company repurchased 12.3 million
shares for a total consideration of £8.5 million and an average price of
66.9p. The buyback programme continues to deliver NAV accretion (+0.7p per
ordinary share), but the share price discount to NAV persists.
On the capital recycling front, discussions are advanced on several assets,
progressing towards our £80 million FY 2025 target. The sale of select assets
will support both buybacks and deleveraging, while reaffirming their fair
value.
We have taken meaningful steps to reduce our borrowing costs and extend our
debt maturity profile. As a result of actions taken in the first half of the
financial year, the average cost of debt across the portfolio has fallen to
3.6% as at 30 June 2025, from 4.0% at the end of FY 2024, and exposure to
short-term interest rate volatility has been reduced. This reflects measures
taken in Q1 2025, including the signing of a new five-year term loan facility
which enabled the repayment of £98.5 million of the higher-cost Revolving
Credit Facility ("RCF"). The new term loan facility carries an all-in hedged
interest rate of 5.3%, materially lower than the previous all-in RCF rate of
approximately 6.5%. In addition, the Investment Manager extended the RCF term
to June 2028 and reduced its size from £270.8 million to £150.0 million.
Combined, these changes are projected to save the Company around £850,000 per
annum and reduce exposure to short-term interest rate volatility, while
maintaining appropriate liquidity to support future opportunities.
While total leverage as a percentage of GAV increased slightly from 45% to
47%, largely as a result of the share buyback programme, we remain confident
of reaching our objective of <40% by year end, supported by the portfolio
sales.
Selective investments
Consistent with our strategy to reinvest selectively into potentially
higher-return opportunities, ORIT committed an additional €3.4 million
(£2.8 million equivalent) to Nordic Generation ("Norgen"), supporting its
continued development of wind and solar projects in Finland. Additionally,
£1.5 million was invested in BLC Energy, a UK-based solar and battery
development business. These investments align with our long-term strategy of
securing access to pipeline opportunities and construction-stage assets.
In June we announced the conditional acquisition of Irishtown, a 32.6 MW solar
site and the sixth project at the operational Ballymacarney complex that ORIT
already owns. The acquisition is structured as a forward purchase agreement,
with no capital outlay required until expected completion in H2 2026.
Impact and ESG progress
Impact remains central to ORIT's value proposition. In H1 2025, electricity
generation from our assets led to the avoidance of approximately 165 kt of
CO(2) emissions. Our ongoing partnerships with Earth Energy Education and
BizGive continue to deliver meaningful benefits, while our dedicated impact
budget ensures that ORIT contributes far beyond financial returns. As part of
this, we are excited to have collaborated with the Energy Skills Partnership
to expand access to clean energy careers. This initiative includes the launch
of a structured online course and the use of virtual reality headsets to
support accessible offshore wind training - helping to equip a more diverse
and ready workforce for the net zero economy (see interim report for more
detail). We also launched a new ESG case studies page on our website which
will showcase our real-world impact across communities, education, and
biodiversity.
Governance and Board developments
We were pleased to welcome Sally Duckworth to the Board during the period. Her
expertise brings valuable insight to our strategic thinking. Sally replaces
Audrey McNair who, as intended and previously reported, stepped down at the
June AGM as part of ongoing succession planning. Sally has assumed the role of
Chair of the Audit and Risk Committee, whilst Sarim Sheikh has taken on the
position of Senior Independent Director.
Separately, an independent Board effectiveness review is now underway and
expected to conclude in Q4 2025; this will help inform and enhance our future
approach to governance and we will report the findings in the Annual Report
and Accounts.
Investment management fees
On 28 August 2025, the Company announced a revised AIFM agreement with Octopus
Energy AIF Management Limited, resulting in a reduction in investment
management fees, effective from 1 November 2025. Under the new arrangement,
fees will be calculated using an equal weighting of NAV and average market
capitalisation, with a cap ensuring they do not exceed the previous NAV-only
model. Based on recent figures, this would equate to an annualised saving of
approximately £0.7 million. This change reflects the Board's ongoing
commitment to cost efficiency, improved alignment with shareholders, and
delivering long-term value.
Outlook
Looking ahead, the Board remains committed to delivering sustainable long-term
value for shareholders and we are pleased to formally launch ORIT 2030. At its
core, ORIT 2030 marks a return to the Company's original mandate of
constructing new renewable energy assets to sit alongside a diversified
portfolio of operational assets, thereby offering investors both capital
appreciation and yield, while also supporting the energy transition.
Despite market headwinds, the fundamental investment case for renewables
remains compelling and we are optimistic about improving sector sentiment,
particularly as falling interest rates may help restore the relative appeal of
income‑generating infrastructure offerings. ORIT is well-positioned in this
context. Our portfolio is diversified across geographies, technologies, and
revenue types, with 85% of near-term revenues fixed or contracted, and a
growing share inflation-linked, providing resilience and visibility in a
volatile environment. We are differentiated by our ability to combine stable,
cash-generative assets with construction-stage and developer investments,
creating upside potential while supporting the energy transition. In OEGEN, we
have a best-in-class Investment Manager with deep sector expertise and a
strong track record of origination, delivery, and portfolio management.
Through our strategic roadmap, ORIT 2030, we intend to unlock further value
for shareholders by scaling the Company, continuing to recycle capital, and
focusing on high-quality growth opportunities. With the strategic framework
now set, supported by disciplined capital allocation, we are confident in
ORIT's ability to deliver long-term value and to remain an attractive
proposition for investors seeking sustainable returns with growth potential.
As always, we thank you for your continued support
Investment Manager's Report
Investment Manager: Octopus Energy Generation
Octopus Energy Generation ("OEGEN", trading name of Octopus Renewables
Limited), part of the Octopus Energy Group, is a specialist clean energy
investment manager with a mission to accelerate the transition to a future
powered by renewable energy.
£7.0bn 21 >4.9 GW >150
OEGEN AUM as at 30 June 2025(1) Invested in internationally(1) Capacity managed Renewable energy professionals
(1 ) Assets under management defined as the sum of Gross
Asset Value and capital committed to existing investments and signed (yet to
be completed) deals and excludes capital available, yet to be deployed. Number
of countries includes countries of assets under management, countries in which
asset investments have been exited, countries of head offices of developer
company investments, and countries of presence for OEGEN origination teams.
Solar & wind construction is defined as total committed costs of assets
either currently in construction or constructed under OEGEN management. Some
of these assets are now operational within the portfolio.
Capital Allocation During H1 2025
Capital Allocation Objectives
Value-accretive investments
To be considered where it is believed they will support the Company's ability
to deliver attractive returns
Realise at least £80m
From asset sales by the end of this financial year to fund capital allocation
initiatives
£20m buyback extension
Announced in March 2025, taking the programme to £30 million
<40% leverage target
Bring total gearing down to below 40% GAV by year end
Capital Allocation
Six months to 30 June 2025 Post year end
(as at 15 September 2025)
3 0
Investments/commitments made during the period New investments made post period
Follow-on investments into developers BLC Energy and Norgen and conditional
acquisition of 33 MW Irish solar site
£27.4 million £0
Total allocated capital to new investments/commitments in the period Total allocated capital to new investments/commitments
For the investments noted above
£8.5 million £6.2 million
Shares repurchased (by value) Shares repurchased post period (by value)
47% leverage 47% leverage
As a % of GAV As a % of GAV
(31 December 2024: 45%)
Company Developments During H1 2025
Portfolio Activity
February Norgen commitment
Committed an additional €3.4 million (£2.8 million equivalent) to Nordic
Generation ("Norgen"), a specialist developer focused on the Finnish wind and
solar market and converted its existing holding into a direct 30% stake in the
integrated Norgen development business.
March Follow-on investment into BLC Energy Limited
Made a follow-on investment of £1.5 million into BLC Energy Limited ("BLCe"),
a renewable energy development company, specialising in developing solar PV
and co-located battery storage projects across the UK. This follows the
initial investment on 31 July 2023, where ORIT secured preferential rights for
development funding to the new pipeline. The new funding will support BLCe's
most advanced projects, leveraging the UK's reformed grid queue process.
April Simply Blue Group carve out
Simply Blue Group's Canadian sustainable fuel project was carved out to form
Nova Sustainable Fuels ("Nova"), with new investment provided by two other
funds managed by Octopus Energy Generation; ORIT retains a 22.5% stake in the
Nova business.
June Conditional acquisition of sixth Irish solar site
Agreed to conditionally acquire a 32.6 MW Irish solar site for €27 million
through a forward purchase agreement. This project, Irishtown, is the sixth at
the Ballymacarney complex, and will increase total capacity by 14% to 274 MW.
Construction is set to begin soon, with ORIT completing the purchase after
operational testing, expected in the second half of 2026. No capital is
required until then.
Impact highlights
£340,000
FY 2025 Impact budget
£1,023,000
Funding for local communities for specific projects(1)
(1 ) Relates to the assets' community benefit funds, which
are separate to the £340,000 Impact Budget.
Debt management
£100m
New term loan
Signed five-year facility on attractive terms with net proceeds used to reduce
RCF
£150m
Total RCF Facility
RCF reduced from £270.8m. Maturity date extended to June 2028
3.6%
All-in borrowing cost
(31 December 2024: 4.0%)
71%
% Hedged
(31 December 2024: 62%)
Capital Recycling Programme
ORIT's capital recycling programme, launched in 2023 as part of a broader
capital allocation strategy, has remained a central focus in the six months to
30 June 2025. The programme's key aim to date has been to recycle capital into
paying down debt or into other NAV‑accretive opportunities, all while
maintaining a well-diversified portfolio.
As part of a capital allocation update in March 2025, ORIT announced it would
realise at least £80 million from further asset sales by the end of the
current financial year. The cash received from these will be recycled into
paying down debt, reducing it to <40% of GAV, as well as buying back a
further £20 million shares, alongside making selected accretive investments
as part of the ongoing capital recycling programme.
During the period, no asset sales had completed and leverage increased,
largely due to borrowing for share buybacks. ORIT remains committed to selling
strategically selected assets to support its capital allocation objectives.
The Company has identified several portfolio assets the sales of which should
enhance the future return profile of the Company, whilst also preserving the
strong diversification. The proceeds from these sales will be used to buy back
shares and pay down debt, driving value for shareholders. Several processes
are well advanced and the Company remains on track to realise £80 million by
the year end.
Share buybacks continued, and a total of £8.5 million was repurchased during
the reporting period, adding 0.7 pence to NAV per share. Since the period end,
to 15 September, a further £6.2 million shares were bought back, taking the
further total gain on NAV per share, year to date, to 1.1 pence.
While the programme is still ongoing, the results of the capital recycling
programme to date support the validity of ORIT's asset valuations, suggesting
that the share price discount to NAV does not accurately reflect the Company's
intrinsic value.
Post period: ORIT 2030
Building on this programme, the Company launched its five-year strategic
roadmap, ORIT 2030, on 23 September 2025. The plan is built around four
strategic priorities as highlighted in the Chair's statement (see interim
report for more detail), with a core focus of investing for growth, funded by
disciplined capital recycling in the near term. ORIT 2030 sets out a pathway
to NAV growth by redeploying the proceeds from select assets into
higher-return opportunities, in particular construction-stage projects
(targeting ~20% of the portfolio over the next five years) and developer
investments (~5%), which provide access to future pipelines. This strategy
builds on OEGEN's proven track record in construction, and active investment
approach.
Reinvestment will be weighed against other capital allocation tools, ensuring
that proceeds are directed to where they can deliver the strongest combination
of yield, growth and risk-adjusted returns. This includes prudent balance
sheet management - reducing debt when while retaining flexibility to use
leverage for value-accretive investments - and using share buybacks as a tool,
subject to market conditions and capital availability. This disciplined
approach is intended to grow the portfolio efficiently, increase dividends and
maintain cover and allow financial flexibility to respond to opportunities as
they arise.
Further details are provided in our London Stock Exchange announcement issued
on 23 September 2025.
Construction track-record
496 MW
Constructed since inception
Figure 3: Assets invested into at construction stage and subsequently exited
Site name Technology Country Capacity Date of acquisition Date of exit IRR over lifetime of investment
(MW, pro-rata for ORIT ownership)
Ljungbyholm Onshore wind Sweden 48 Mar-2020 Aug-2024 c.11%
Krzecin Onshore wind Poland 19 Oct-2021 Dec-2023 c.30%
Kuslin Onshore wind Poland 40 Oct-2021 Dec-2023
Portfolio Breakdown
(30 June 2025)
Whole site Remaining
capacity Start of asset life
Technology Country Site name (MW) Phase operations (years) Stake % Key info
Onshore wind UK Cumberhead 50 Operational 31/03/2023 27.8 100% Corporate PPA
Crossdykes 46 Operational 30/06/2021 26.0 51%
France Cerisou 24 Operational 15/11/2022 27.3 100% French CfD
Finland Saunamaa 34 Operational 28/08/2021 26.3 100% Fixed pricing until end of 2025
Suolokangas 38 Operational 29/12/2021 26.5 100%
Germany Leeskow 35 Operational 30/09/2022 27.3 100% German CfD
Offshore wind UK Lincs 270 Operational 31/10/2013 23.3 15.5% ROC Subsidised
Penhale 4 Operational 18/03/2013 27.7 100%
Solar UK Wilburton 2 (Mingay) 19 Operational 19/03/2014 18.7 100% ROC Subsidised
Abbots Ripton 25 Operational 28/03/2014 28.8 100%
Ermine Street 32 Operational 29/07/2014 19.1 100%
Ottringham 6 Operational 07/08/2014 29.1 100%
Wiggin Hill 11 Operational 10/03/2015 24.7 100%
Westerfield 13 Operational 25/03/2015 19.7 100%
Chisbon 12 Operational 03/05/2015 25.2 100%
Breach 67 Operational 25/06/2024 39.0 100% Corporate PPA
France Charleval 6 Operational 26/03/2013 27.7 100% French FiT
Cuges 7 Operational 17/04/2013 27.8 100%
Istres 8 Operational 18/06/2013 28.0 100%
La Verdière 6 Operational 27/06/2013 28.0 100%
Brignoles 5 Operational 26/06/2013 28.0 100%
Saint Antonin du Var 8 Operational 28/11/2013 28.4 100%
Chalmoux 10 Operational 01/08/2013 28.1 100%
lovi 1 6 Operational 17/07/2014 29.0 100%
lovi 3 6 Operational 17/07/2014 29.0 100%
Fontienne 10 Operational 02/07/2015 30.0 100%
Ollieres 1 12 Operational 19/03/2015 29.7 100%
Ollieres 2 11 Operational 19/03/2015 29.7 100%
Arsac 2 12 Operational 05/03/2015 17.7 100%
Arsac 5 12 Operational 30/01/2015 16.6 100%
Ireland Ballymacarney(1) 54 Operational 18/12/2023 38.5 100% Corporate PPA
Fidorfe(1) 68 Operational 18/12/2023 38.5 100%
Muckerstown(1) 48 Operational 18/12/2023 38.5 100%
Kilsallaghan(1) 29 Operational 18/12/2023 38.5 100%
Harlockstown(1) 42 Operational 23/09/2024 39.5 100%
Irishtown(1) 33 Conditional acquisition - - - Completion expected H2 2026
Developer UK (HQ) Wind 2 - Developer - - 25% Onshore wind
UK (HQ) HYRO - Developer - - 25% Green hydrogen
Ireland (HQ) Simply Blue - Developer - - 19% Floating offshore wind / E-fuels
Finland (HQ) Norgen - Developer - - 30% Onshore wind/solar
UK (HQ) BLCe serviced platform - Developer - - 100% Solar/co-located battery storage
(1 ) The first five sites listed in Ireland are sometimes (in
this report and elsewhere) collectively referred to as 'the Ballymacarney
solar complex'. The sixth site, Irishtown, is currently under conditional
acquisition and will be part of the complex once acquired.
Weighted average remaining asset life by capacity (years)
Technology Weighted average remaining asset life (years)
Onshore wind 26.9
Offshore wind 23.3
Solar 32.3
Total 31.2
( )
551 MW 203 MW 42 MW
Across 28 solar plants(1) Across six onshore wind farms Across one offshore wind farm
5 85% 47%
Investments in developers Fixed revenue for the next two years (up to 30 June 2027) Inflation-linked revenue for the next ten years (up to 30 June 2035)
(1 ) Excludes Irishtown which is a conditional acquisition.
£1,026m
Total value of all investments
Portfolio composition broken down by total value of all investments in
accordance with the Company's investment policy (including the amount
committed to the conditional acquisition of Irishtown). The investments are
valued on an unlevered basis and including amounts committed but not yet
incurred. Totals may not add up due to rounding.
Country
UK: 41%
Ireland: 20%
France: 16%
Finland: 12%
Germany: 6%
Developer: 4%
Technology
Solar: 48%
Onshore wind: 35%
Offshore wind: 13%
Developer: 4%
Asset phase
Operational: 96%
Developer: 4%
797 MW
Capacity owned(1)
Portfolio composition broken down by MW of capacity pro rata for ORIT's
ownership on a current invested basis.
Country
UK: 38%
Ireland: 30%
France: 18%
Finland: 9%
Germany: 4%
Technology
Solar: 69%
Onshore wind: 26%
Offshore wind: 13%
Asset phase
Operational: 100%
(1 ) Excludes Irishtown, the sixth site within the
Ballymacarney solar complex in Ireland, currently under conditional
acquisition. Capacity breakdown excludes developers and development stage
assets.
£1,026m
Total value of all investments
Portfolio composition broken down by offtaker and O&M providers as a
percentage of total value of all investments(1)
Offtaker
Microsoft: 21%
EDF: 17%
British Gas: 13%
Esti Energi: 12%
Kimberly Clark: 8%
Npower/Axpo: 7%
Alpix: 6%
Iceland Foods: 5%
N/a: 4%
Octopus Energy: 4%
Sky Media: 4%
Having multiple offtakers offers advantages such as risk diversification and
offers local expertise in ORIT's key geographical markets.
O&M provider
Statkraft: 21%
Nordex: 18%
Orsted: 13%
Vestas: 12%
Engie: 11%
PSH: 6%
RES: 5%
SGRE: 5%
Goldbeck: 5%
N/a: 4%
BayWa: 1%
A diversified group of O&M providers allows ORIT to leverage competitive
pricing and specialised expertise.
(1 ) Npower/Axpo: Sites sell ROCs and power to NPower but also
have a price-fixing arrangement with Axpo.
Portfolio Performance
Operational portfolio technical and financial performance
H1 2025 Actuals H1 2025 Variance
Technology (MWh) against the budget
Solar 293,932 -0.4%
Onshore wind 291,308 -14.6%
Offshore wind 68,301 -7.2%
Total 653,541 -7.9%
In the six months to 30 June 2025, ORIT's portfolio generated 654 GWh of clean
electricity compared with 658 GWh(1) for the same period the previous year.
While overall output was broadly flat, low winds and grid curtailments were
behind the 8% shortfall in the compensated generation versus budget across the
ORIT portfolio in H1 2025. By comparison, H1 2024 ended with -11% generation
variance. This year-on-year improvement reflects the higher operational
availability as well as the effectiveness of asset management actions over the
period.
Over the six months to 30 June, revenues of £68.7 million were achieved, flat
versus the same period last year, and 6% below budget. Operating expenditure
("Opex") increased compared with the same period last year, primarily due to
the growth in installed capacity. Opex savings compared with budget are
largely due to timing differences. The resulting EBITDA across the operating
portfolio totalled £44.3 million, 7% below budget.
Figure 4: Performance of the Company's underlying operational investments
Output(1) Revenue Opex EBITDA
Operational portfolio 654 GWh £68.7m £24.4m £44.3m
-1% vs 2024 0% vs 2024 +4% vs 2024 -2% vs 2024
-8% vs budget -6% vs budget 4% favourable to budget -7% vs budget
(H1 2024: 658 GWh) (H1 2024: £68.7m) (H1 2024: £23.4m) (H1 2024: £45.3m)
Solar 294 GWh £33.1m £7.8m £25.3m
+34% vs 2024 +32% vs 2024 +20% vs 2024 +37% vs 2024
0% vs budget +3% vs budget 1% favourable to budget +4% vs budget
(H1 2024: 220 GWh) (H1 2024: £25.0m) (H1 2024: £6.5m) (H1 2024: £18.5m)
Onshore wind 291 GWh £16.7m £4.8m £11.9m
-18% vs 2024 -26% vs 2024 -9% vs 2024 -32% vs 2024
-15% vs budget -17% vs budget 13% favourable to budget -18% vs budget
(H1 2024: 354 GWh) (H1 2024: £22.7m) (H1 2024: £5.3m) (H1 2024: £17.4m)
Offshore wind 68 GWh £18.9m £11.8m £7.1m
-19% vs 2024 -10% vs 2024 +2% vs 2024 -24% vs 2024
-7% vs budget -10% vs budget 2% favourable to budget -19% vs budget
(H1 2024: 84 GWh) (H1 2024: £21.0m) (H1 2024: £11.6m) (H1 2024: £9.4m)
Note: Totals may not add up due to rounding.
(1 ) Generation quoted is post-compensation (actual output
+ compensation for equivalent lost production ORIT is entitled to under
curtailment and/or contractual mechanisms). H1 2024 generation figures differ
from the published figures in the June 2024 Interim Report as they have been
restated to include compensated generation from curtailment, making for a
like-for-like comparison with the H1 2025 figures.
Solar
ORIT's solar portfolio ended H1 2025 in line with budget and a 34% increase in
output compared with the same period the prior year(1). The UK assets
outperformed expectations, with high irradiance being the main driver.
Grid curtailment and several technical issues offset much of the uplift from
irradiance, with curtailments on the Irish grid exceeding 30 GWh. Currently
around 5 GWh of the lost generation from curtailments in Ireland are
compensated. However, the right to compensation may change as it is a subject
of a legal dispute that is currently before the European Court of Justice. The
dispute concerns the interpretation of Article 13(7) of the EU Electricity
Regulation, which governs compensation to generators for output reductions
caused by system constraints or non-market reasons. The decision is expected
next year and has the potential to lead to an improvement in the amount of
lost generation being compensated compared with what is currently accrued
potentially on a retrospective basis.
Another loss event was the shutdown of the 7.3 MW Cuges site in France at the
end of April due to a known panel defect. The budget assumed that the site
would be able to export at reduced levels until the panels could be replaced,
however for safety reasons a full shutdown was required. This resulted in a
c.2.3 GWh production loss vs budget. Following a successful warranty claim the
site is scheduled for repowering in H2 2025.
Losses categorised under "Other" comprise a series of smaller downtime events.
Among them, the most material was underperformance at two French solar sites
(24 MW combined) due to lichen growth on panel surfaces.
A tailored solution is being deployed in October, with performance recovery
expected in Q4 2025.
Our UK portfolio outperformed the budget, although work is ongoing to further
improve efficiency and reduce technical faults, such as the transformer
failure (0.4 GWh loss) detailed in the case study (see interim report for more
detail). The UK portfolio demonstrated improved weather-adjusted performance
year-on-year.
(1 ) H1 2024 generation figures differ from the published
figures in the June 2024 Interim Report as they have been restated to include
compensated generation from curtailment, making for a like-for-like comparison
with the H1 2025 figures.
Revenues and EBITDA:
Over the six-month period, the solar portfolio generated revenues of £33.1
million, +3% versus budget of £32.2 million, and 32% more than the same
period the prior year(1). Although generation was slightly below budget,
revenues exceeded expectations, driven by higher constraint payments in the
Irish portfolio and the successful negotiation of a fixed PPA for one of the
UK solar sites at a unit rate above budget.
Operating expenditure amounted to £7.8 million, largely in line with budget
(£7.9 million), but a 20% increase over 2024. The resulting EBITDA was £25.3
million, +4% versus budget (£24.3 million), as a consequence of the higher
revenues achieved.
H1 2025 solar output variance to budget (GWh) (see figure 5 in the Interim
Report for more detail)
Onshore wind
Production:
The onshore wind portfolio underperformed against budget, mainly due to low
winds (15% below expectations). Economic curtailments, relating mainly to the
Balancing Mechanism and negative pricing periods, limited export but were
compensated adding to the overall output. There are no unresolved technical
issues affecting the onshore wind portfolio.
Generation in absolute terms was down versus the same period last year,
largely due to the sale of Ljungbyholm wind farm in the second half of 2024.
Despite fewer assets, year-on-year performance of the onshore wind portfolio
improved on weather-adjusted figures by 3%, which demonstrates recovery from
the technical issues that affected performance in FY 2024. In Finland, the
final main bearing rectification works were completed in Q1 2025, with high
technical availability across this portfolio in Q2 2025. The most significant
events within the "Other" category include a high voltage fault (1.5 GWh) and
a turbine issue at Cumberhead in Q1 2025 (1.8 GWh) resolved by the end of the
same quarter.
Revenues and EBITDA:
The onshore wind portfolio delivered total revenues of £16.7 million for the
six-month period, -17% vs budget (£20.1 million), and 26% less than the same
period last year given we have fewer turbines than in H1 2024. The budget
variance was primarily driven by lower-than-expected generation, and weaker
power prices in Finland, although this was partially offset through receipt of
grid and economic curtailment compensation across the sites. While curtailed
MWh are included in reported generation figures, not all associated revenues
have been recognised within the period due to reporting cut-off timing.
Operational expenditure totalled £4.8 million, 13% favourable to budget
(£5.5 million). The resulting EBITDA was £11.9 million, -18% vs budget
(£14.6 million), due to the lower than anticipated revenues.
H1 2025 onshore wind output variance to budget (GWh) (see figure 6 in the
Interim Report for more detail)
Offshore wind
Production:
Low winds were the main reason for underperformance of the offshore wind
portfolio. Adjusting for the impact of weather, exported generation was around
1% below budget. The remaining generation losses were mainly a result of
gearboxes and generator replacements being required on more turbines than
budgeted for in the period. Replacement of these major components on all
turbines at Lincs are included in the valuations to the extent they have not
already been completed, and we have worked with the operator over the last
year to ensure sufficient spares and increased availability of a vessel. As a
result, the rectification works were swift, minimising downtime, and have
allowed for proactive replacement to prevent future failures.
Revenues and EBITDA:
Lincs generated revenues of £18.9 million, -10% vs budget (-£2.0 million)
and down the same amount versus the same period last year.
Operational expenditure totalled £11.8 million, 2% lower than budgeted
(£12.1 million). This resulted in EBITDA of £7.1 million, -19% vs budget
(-£1.7 million).
H1 2025 offshore wind output variance to budget (GWh) (see figure 7 in the
Interim Report for more detail)
Asset management
Octopus Energy Generation actively manages ORIT's assets and follows a
proactive approach of identifying and mitigating risks to secure the long-term
performance of its growing and diverse global portfolio of renewable energy
assets.
Case study
Penhale - Proactive risk management and swift recovery
In late May 2025 one of ORIT's UK solar assets, Penhale, experienced a
full-site outage following a failure at the client substation transformer
("CSS"). This was attributed to radiator-related issues. With lead times for
procuring a replacement transformer currently exceeding 40 weeks, the incident
posed a material risk to the site's operational availability and revenue
generation. In response, the OEGen asset management team led a coordinated
recovery effort, working closely with the O&M contractor, owner's
engineer, and external asset manager to design and implement a temporary
technical solution. This involved the procurement and installation of
second-hand radiators to stabilise the CSS transformer's thermal performance.
The intervention enabled 50% of site generation to be restored by late June
and 80% by early July. Following continued thermal monitoring, full
operational capacity was safely reinstated as of 11 July 2025. This
fast-tracked solution not only minimised potential revenue loss but also
demonstrated effective risk management and collaboration across delivery
partners. The incident highlights the value of proactive asset stewardship and
ORIT's ability to safeguard operational performance under pressure.
Construction and development portfolio
ORIT classifies itself as an impact fund with a core objective to accelerate
the transition to net zero through its investments in building and operating a
diversified portfolio of renewable energy assets. Central to ORIT's strategy
is the principle of additionality - actively increasing renewable energy
capacity. By investing in construction assets and developer companies, ORIT
not only supports existing infrastructure but also expands the sector's
capacity. This ensures ORIT's investors directly contribute to new renewable
energy projects, driving the energy landscape towards net zero.
Construction portfolio
Investing in construction projects creates new renewable capacity and offers
the potential for enhanced returns through a construction premium as projects
are completed.
During the period there was no construction activity, but ORIT made a
conditional acquisition of a sixth solar site, Irishtown, at the Ballymacarney
solar complex (see interim report for more detail). ORIT will complete the
purchase after the project has completed operational testing, which is
expected in the second half of 2026.
Developer portfolio
Investing in developers offers the potential for higher returns than operating
assets, while providing preferential access to construction-ready projects
Simply Blue · 19% stake During the period, progress was made on discussions with potential long-term
strategic partners for the floating offshore wind business, and the
Group · Floating offshore wind / e-Fuels restructuring of the e-fuels platform (Nova) was completed. Post-period the
100 MW Salamander project in Scottish waters received planning consent, and
· UK, Europe and Canada secured a new 80% funding partner.
Nova Sustainable Fuels
Wind2 · 25% stake The nine-project pipeline totals ~1 GW. Several planning submissions were made
in H1 2025, with further progress expected later this year. The first projects
· Onshore wind are targeted to reach RTB from 2026 onwards, subject to land and grid
negotiations.
· UK
BLC Energy · 100% stake BLC has grown its pipeline to ~0.7 GW. ORIT committed an additional £1.5
million during the period to accelerate advanced projects. These are expected
· Solar and BESS to be among the first to benefit from the UK's reformed grid connection
process, with Ready to Build ("RTB") expected in 2026 for some of the
· UK pipeline, subject to planning consent.
Nordic Generation · 30% stake The partnership, with a pipeline of ~0.8 GW, was restructured in early 2025 to
give ORIT a stake in the development team along with the underlying pipeline.
· Solar and onshore wind Development progressed in line with expectations, with the most advanced
project targeting RTB in early 2026.
· Finland
HYRO · 25% stake HYRO advanced its flagship Northfleet hydrogen project through key milestones
in H1 2025.
· Green hydrogen
· UK
5 10 GW 2026
Developer investments Combined pipeline of renewable projects First project expected to reach Ready-to-Build ("RTB")
Breakdown of pipeline capacity by stage (GW) (See Figure 8 in the Interim
Report for more detail)
Expected capacity reaching Ready-to-Build (See Figure 9 in the Interim Report
for more detail)
Our c.10 GW development pipeline spans all stages. While most capacity is at
early stages, we expect a material tranche to reach RTB from 2026 onwards,
providing preferential access to new operating assets.
Market Outlook
Macroeconomic environment
In the UK, CPI inflation rose over H1 2025 from 3.0% to 3.6%, marking a
reversal of the longer-term trend seen across much of 2023-24. Despite this,
the Bank of England implemented two rate cuts during the period, from 4.75% to
4.25% by the end of June, with a further cut to 4% in August. In parallel,
10-year UK gilt yields fell from c. 4.9% at the start of the year to c.4.5% by
the end of June.
In the Eurozone, inflation eased from 2.5% to 2.0% during the period, and the
European Central Bank base rate has been reduced from 3.0% to 2.0%. 10-year
government bond yields were volatile, but fell back towards 2.6% by the end of
June.
Although these modest downward moves in rates and yields have marginally
improved the macroeconomic backdrop for listed infrastructure funds, a more
substantial and sustained decline in both base rates and long-end yields will
likely be needed to trigger a broader re-rating across the sector.
Renewables market outlook
In H1 2025, the UK government made meaningful progress in advancing its Clean
Power 2030 agenda. Central to this has been the reform of the grid connection
regime, with active reordering and rationalisation of the connection queue now
underway. The Contracts for Difference ("CfD") support scheme now has strong
momentum: AR6 in 2024 was a success after the failure of AR5, and the next
three CfD rounds are expected to support at least 12 GW of new projects.
Notably, AR7 will also be the first round to extend the CfD duration from 15
to 20 years.
In July 2025, the government confirmed that it would not pursue zonal or
locational pricing under the Review of Electricity Market Arrangements
(REMA).(1) While the wider REMA programme remains ongoing, with potential
reforms expected in areas such as transmission charging, the decision to
retain a national pricing structure removes a key source of uncertainty in the
market.
Internationally, Q1 and Q2 2025 saw the United States impose high import
tariffs on solar components sourced from China and other countries where large
proportions of key components are manufactured. To date, these trade barriers
do not appear to have had a noticeable impact on ORIT's key markets.
Across Europe, policy support for renewables remains generally strong. In
February 2025, the European Commission launched the Clean Industrial Deal,
targeting the deployment of 100 GW of new renewables annually to 2030.(2)
However, progress and level of challenge varies across countries. In France,
for example, a June 2025 amendment proposing a temporary moratorium on new
wind and solar projects passed through the National Assembly but was
subsequently dropped from final legislation following firm opposition from the
renewables sector and broader political consensus.
Investment trust landscape
While the second quarter of 2025 saw a modest recovery in share prices,
UK-listed renewable energy investment companies continue to trade at
significant discounts to NAV. As a result, equity fundraising remains
effectively closed, and the sector continues to execute share buy-back
programmes and in some cases progress asset disposal strategies to manage
leverage and support asset valuations.
A notable shift during the period has been the acceleration of M&A
activity across the sector. Key transactions include the sale of Atrato Onsite
Energy to Brookfield,(3) and the acquisition of Harmony Energy Income Trust by
funds managed by Foresight Group.(4)
Shareholder activism remains a prominent theme. While a US hedge fund was
unsuccessful in its efforts to drive board changes across several UK-listed
investment trusts in late 2024 and early 2025,(5) the threat remains with
instances of pressure for governance and strategic changes across the broad
investment trust sector. With ongoing structural discounts, both organic and
activist-led consolidation is expected to remain a key feature of the sector
through the remainder of the year.
Another headwind to the broader sector has been a rise in popularity of
lower-cost exchange-traded funds, which are potentially drawing capital away
from investment trusts.
Commentary on power prices can be found in the Investment Manager's section
(see interim report for more detail).
(1 )
https://www.gov.uk/government/publications/review-of-electricity-market-arrangements-rema-summer-update-2025
(2 )
https://ec.europa.eu/commission/presscorner/detail/en/ip_25_550
(3 )
https://www.solarpowerportal.co.uk/brookfield-acquires-atrato-onsite-energy-in-220-million-deal/
(4 )
https://www.solarpowerportal.co.uk/foresight-buys-harmony-energy-income-trust-takes-fund-private/
(5 )
https://citywire.com/wealth-manager/news/end-of-round-one-as-seventh-trust-sees-off-saba/a2459809
Financing
ORIT continues to actively manage its capital structure in line with its
disciplined approach to capital allocation. The Group's debt structure
consists of three key components:
1. RCF: A short term, flexible revolving credit facility held by the
Company's immediate 100% subsidiary
2. UK HoldCo Facility: A five-year bullet repayment facility secured
against a portfolio of UK operational assets
3. Project Term Loans: Long-term amortising debt facilities secured at the
individual asset level
During the first half of 2025, ORIT resized and extended the maturity of its
RCF, enhancing near-term flexibility while reducing the total committed
facility size to £150 million (from £270.8 million) to reflect expected
funding needs. In parallel, £98.5 million of drawn balance from the RCF was
repaid using the new UK HoldCo Facility. This facility, supported by three of
ORIT's existing lenders, is secured against assets with long-term contracted
revenues and benefits from a lower interest rate than the RCF, and this
together with the reduced RCF commitment are projected to save the Company
around £850,000 per annum. The average cost of debt across the portfolio has
decreased from 4.0% to 3.6% as at 30 June 2025, while exposure to
short‑term interest rate volatility has also been reduced.
As at 30 June 2025, the Company's gearing had temporarily increased to 47%
from 45%, primarily due to the ongoing share buyback programme. Nonetheless,
the Investment Manager remains focused on reducing short-term debt where
appropriate. Proceeds from targeted asset sales in the second half of the year
are expected to support further deleveraging. The Company remains on track to
reduce total gearing to below 40% by the end of 2025 - a level the Board
considers sustainable over the long term. While temporary fluctuations above
this target may occur, ORIT does not expect to remain above this level for an
extended period.
ORIT debt summary as at 30 June 2025:
Total Debt RCF UK HoldCo Project
Facility
Term Loans
Debt as a % of GAV 47% 7% 10% 30%
% Hedged 71% 0% 75% 85%
Average cost of debt 3.6% 6.0% 5.3% 2.5%
Average remaining term (years) 10.3 2.7 4.8 13.9
Summary of ORIT debt facilities as at 30 June 2025:
Project Term Loans
UK HoldCo UK Offshore
Asset RCF Facility FR Solar FR Wind IRE Solar GER Wind Wind
Debt Terms
Currency GBP or EUR GBP EUR EUR EUR EUR GBP
Drawn at 30 June 2025 £m £68.0m £100.0m £72.4m £36.2m £82.9m £44.8m £63.5m
Initial Term (years) 3 5 18 20 20 18 15
Expiry Date Jun-28 Mar-30 Dec-38 Sep-42 Dec-42 Mar-41 Sep-32
Facility date Nov-20 Mar-25 Jan-21 Apr-21 Jul-21 Sep-22 Dec-17
Margin 2.0% 1.35% 1.25% 1.30% 2024-2029 0.83%-1.75% 2017-2022:
1.30%
1.45%
2030-2039
2023-2027:
1.40%
1.65%
2040+ 1.65%
2028+ 1.85%
Variable interest % SONIA SONIA EURIBOR EURIBOR EURIBOR EURIBOR SONIA
Hedging
% hedged - 75% 85% 90% 75% 100% 85%
Swap rate n/a 3.90% -0.12% 0.51% 3.30% 0.12% 1.27%
Portfolio Valuation
£540m 99.5p £1,010m £1,026m
Net Asset Value NAV per Ordinary Share Gross Asset Value Total value of all investments
(31 December 2024: £570m) (31 December 2024: (31 December 2024:
102.6p)
£1,029m)
(31 December 2024:
£1,029m)
In calculating the Company's NAV, quarterly valuations are undertaken for the
Company's underlying portfolio of assets. The process follows International
Private Equity Valuation Guidelines using a discounted cashflow ("DCF")
methodology for operational assets. DCF is deemed the most appropriate
methodology where a detailed projection of likely future cash flows is
possible. Due to the asset class, availability of market data and the ability
to project the asset's performance over the forecast horizon, a DCF valuation
is typically the basis upon which renewable assets are traded in the market.
Investments into developers and development-stage projects are held at cost or
the price of recent investment, with adjustments for material changes such as
milestone outcomes, further investment rounds, or other developments that
reflect progress or risk.
Key macroeconomic and fiscal assumptions for the valuations are set out in
Note 7 of the financial statements.
Including the Company's and its intermediate holding companies' net
liabilities (which mostly comprises Holding Company debt and cash), the total
NAV as at 30 June 2025 is £540.4 million or 99.5 pence per Ordinary Share.
The key valuation drivers are shown below:
Plc NAV Bridge
Movements in the fair value of the underlying portfolio of assets
1( ) New PPAs
(+0.0 pence per Ordinary Share)
A small uplift was recognised from newly contracted power purchase agreements.
While immaterial in the context of the overall NAV, this reflects continued
progress in revenue certainty across the portfolio.
2( ) Changes in economic assumptions
(+2.0 pence per Ordinary Share)
Macroeconomic updates contributed positively to NAV across the period. The
principal drivers were:
- An upward revision to the UK near-term Retail Price Index ("RPI")
forecasts for 2026 to 2028 from approximately 3.0% to 3.25%, while the
long-term RPI assumption remained unchanged at 2.25%. Inflation forecasts for
other jurisdictions that ORIT's assets are located in remained broadly
unchanged;
- A planned reduction in Finland's corporation tax rate from 20% to
18%, effective from 2027; and
- Foreign exchange movements, primarily the weakening of sterling
against the euro, also contributed positively in the period, though partially
offset by the Company's currency hedging.
Together, these factors supported portfolio valuations resulting in a
valuation uplift of 2.0 pence per Ordinary Share.
3( ) Adjustments to Developer Valuations (-0.7 pence per
Ordinary Share)
Valuations of early-stage investments were adjusted to reflect prevailing
conditions. In Q2 2025, the fair value of ORIT's investment in Simply Blue
Group ("SBG") was reduced, driven by headwinds in the floating offshore wind
sector and the anticipated outcome of funding discussions for Simply Blue's
project pipeline. This was partially offset by a valuation gain following the
successful restructuring of the Norgen investment, announced in February 2025.
These adjustments resulted in a net reduction in the portfolio valuation of
development-stage assets of approximately 0.7 pence per Ordinary Share.
Despite these adjustments, ORIT continues to see long-term value in its
development exposure. The broader development pipeline continues to mature,
with the first projects expected to become construction-ready in 2026.
4( ) Power Prices, Green Certificates and Capacity Market
(-1.2 pence per Ordinary Share)
Movements in power prices and green certificate forecasts resulted in a net
negative impact on valuations during the first half of the year.
Most of the reduction was driven by updated forward pricing curves, which now
incorporate an additional year of lower-priced market forwards compared with
the year-end valuations. The annual extension is a standard part of ORIT's
valuation methodology, ensuring that near-term pricing reflects transparent,
market-observable data. Forward prices are applied to the first few years as
they represent the most objective indicator of current market expectations;
beyond this, the valuation transitions to long-term forecasts, which are used
where forward markets become less liquid or representable.
Of the overall power price movement, approximately 75% related to changes in
forward prices - with over half of that impact attributable to the
roll-forward of an additional pricing year. The remainder reflects declines in
medium‑ to long‑term power price forecasts across most of ORIT's core
markets.
Despite these headwinds, ORIT's portfolio remains highly protected against
short-term volatility. As at 30 June 2025, 85% of forecast revenues over the
next 24 months were fixed or contracted. This level of contracted cash flow
offers a high degree of visibility and stability in returns.
The decline in power prices was partially offset by revised upward forecasts
for medium-to long-term Capacity Market and Green Certificate values,
including Renewable Energy Guarantees of Origin ("REGOs") and Guarantees of
Origin.
5( ) Changes in discount rates
(-1.3 pence per Ordinary Share)
During the period, the weighted average discount rate applied to the portfolio
valuations increased, reflecting a continued high interest environment and the
impact of new project-level financing. This adjustment aligned the Company's
valuation inputs with broader market benchmarks and was supported by
transaction evidence observed by the Investment Manager (see interim report
for more detail).
6( ) Balance of portfolio return
(+2.5 pence per Ordinary Share)
This refers to the balance of portfolio valuation movements in the period
excluding the factors noted above and represents a net increase of 2.5 pence
per Ordinary Share.
It reflects a 4.5 pence per Ordinary Share uplift from the net present value
of future cashflows being brought forward from 31 December 2024 to 30 June
2025, which was partially offset by lower-than-expected cash generation,
principally due to low wind speeds, and a refresh of Capex and Opex
assumptions at some sites.
Movements in the fair value of the Plc and Holding Companies
7 Dividends paid in the period
Dividends totalling £16.8 million in respect of Q4 2024 and Q1 2025 were paid
during the 6-month period to 30 June 2025.
8 Plc and Holding Company running costs
Running costs of the plc and Holding Companies totalling £11.1 million were
paid during the period, mostly comprising RCF interest and financing costs,
management fees and general running costs.
9 Share buybacks
During the period, £8.5 million has been spent on the repurchase of Ordinary
Shares at a discount to NAV, which has resulted in an increase in NAV per
Ordinary Share of +0.7 pence.
Key Valuation Assumptions
See below a summary of the key inputs that drive ORIT's portfolio value
Long-term inflation Taxation
UK 2.25%(1) 25.0%
France 2.00% 25.0%
Ireland 2.00% 12.5%
Finland 2.00% 18.0%(2)
Germany 2.00% 15.8%
Power price forecasts
Where not fixed under PPAs or hedged, we use forward market prices in the near
term before transitioning to a blend of two independent consultants' long-term
forecasts. Capture prices are updated regularly to reflect cannibalisation
effects. For solar, we apply generic country-level capture prices, while for
wind we reflect site-specific curves to account for greater variation in
output and pricing.
Asset lives and decommissioning
Operational lives are assessed on an asset-by-asset basis, taking into account
lease terms, planning consents, extension rights and technical performance. We
also include decommissioning and land restoration costs as end-of-life
outflows, ensuring valuations capture the full lifecycle economics of each
project.
(1 ) UK RPI (annual average): 3.6% during 2025, 3.25% to 2029
and then 2.25% from 2030 onwards. The RPI forecast for 2026 to 2029 were
revised upwards during the period from 3.0% to 3.25%.
(2 ) Valuation movement reflects a planned reduction in
Finland's corporation tax rate from 20% to 18%, effective from 2027.
Discount Rates
A range of discount rates are applied in calculating the fair value of the
investments, reflecting factors such as the location, technology and lifecycle
stage of each asset as well as capital structure and the split of fixed and
variable revenues.
The high interest rate environment persisted into the first half of 2025, with
bond yields remaining elevated across ORIT's core markets. While inflation has
shown signs of stabilisation, central banks have maintained relatively tight
monetary policy conditions. These macroeconomic factors continue to influence
discount rate benchmarks for infrastructure and renewable assets.
During the period, the weighted average discount rate ("WADR") implied by
ORIT's portfolio valuations increased to 7.9% (7.5% on a basis excluding the
benefit of FX hedging) at 30 June 2025, compared with 7.4% (7.0%) as at 31
December 2024. This uplift reflects alignment with prevailing market
conditions and was supported by transaction evidence observed by the
Investment Manager. In addition to external market movements, the completion
of new project-level financing (the UK HoldCo Facility) introduced additional
debt into parts of the portfolio, increasing the blended cost of capital
excluding RCF borrowings and contributing to the WADR uplift.
The Investment Manager will continue to actively monitor market transactions,
movements in risk-free rates, and sector benchmarks to ensure that the
discount rate assumptions remain appropriately calibrated within each
quarterly valuation.
30-Jun-25 31-Dec-24
UK Assets
Levered IRR (GBP) 8.4% 7.6%
Gross Asset Value (GAV) (£m) 467 460
Asset Leverage %GAV 35% 16%
European Assets
Levered IRR (GBP) 7.5% 7.2%
Levered IRR (EUR) 6.9% 6.6%
Gross Asset Value (GAV) (£m) 544 569
Asset Leverage %GAV 43% 42%
Total Portfolio
Levered IRR (GBP) 7.9% 7.4%
Levered IRR (local currency) 7.5% 7.0%
Gross Asset Value (GAV) (£m) 1,010 1,029
Total Leverage %GAV 47% 45%
The WADR does not include any contribution from the following, each of which
is expected to enhance the returns ultimately delivered to shareholders:
- The return expected on the Company's development stage assets, which
are not valued on a discounted cash flow basis; and
- The return associated with additional leverage from the Company RCF.
7.9%
Weighted average discount rate as at 30 June 2025
(i) Return expected on the Company's investments into development stage assets +0.3%
(ii) Increase in return associated with the additional leverage from the RCF +0.1%
Adjusted average discount rate as at 30 June 2025 8.2%
Total may not sum due to rounding
Portfolio Valuation Sensitivities
As part of ongoing valuation monitoring, the Investment Manager continues to
assess the impact of changes in key assumptions on NAV per share. These
sensitivities are based on the portfolio as at 30 June 2025, including
committed acquisitions, and assume changes occur independently.
They are not additive and do not reflect any diversification benefits across
the portfolio.
1. Discount rate (levered cost of equity)
A range of discount rates is applied in the valuation of investments,
reflecting the specific location, technology, revenue structure and gearing.
While this is not the most material driver of NAV, this sensitivity remains an
important indicator of how external market shifts, particularly in the cost of
capital, could affect valuations.
2. Volumes (Energy Yield P90/P10)
Yield assumptions are derived from independent P50 assessments for each asset,
with P90 and P10 scenarios used to illustrate variability in long-term output.
This is the most material NAV sensitivity, reflecting the importance of
production performance to asset value. The Company continues to prioritise
robust yield analysis and diversification to manage this exposure effectively.
The P50 output is the estimated annual amount of electricity generation that
has a 50% probability of being exceeded - both in any single year and over the
long-term - and a 50% probability of being underachieved. The P50 provides an
expected level of generation over the long term. The P90 (90% probability of
exceedance over a 10-year period) and P10 (10% probability of exceedance over
a 10-year period) sensitivities reflect the future variability of wind speed
and solar irradiation and the associated impact on output, along with the
uncertainty associated with the long-term data sources used to calculate the
P50 forecast. The sensitivities shown assume that the output of each asset in
the portfolio is in line with the P10 or P90 output forecast respectively for
each year of the asset life.
3. Power price curve
The power price forecasts for each asset are based on a number of inputs (see
interim report for more detail). The sensitivity assumes a 10% increase or
decrease in power prices relative to the base case for each year of the asset
life.
The sensitivity reflects the market-linked proportion of portfolio revenues,
which varies by asset and jurisdiction. This exposure is actively managed
through a combination of contracted revenues and geographical diversification.
4. Inflation
The sensitivity assumes a 0.5% increase or decrease in inflation relative to
the base case for each year of the asset life.
The inflation sensitivity reflects the balance of fixed and inflation-linked
revenues across the portfolio. Exposure varies by asset, depending on
contractual terms and regulatory regimes. The portfolio as a whole offers
moderate protection against changes in inflation assumptions, contributing to
its resilience in different macroeconomic environments.
5. Foreign exchange
As at 30 June 2025, 48% of the portfolio NAV is euro denominated. The
sensitivity applied above shows the impact on NAV per share of a +/- 10%
movement in the EUR/GBP exchange rate.
Exposure to FX movements is managed through a structured hedging programme
covering both forecast distributions and construction commitments (where
relevant). The resulting NAV sensitivity to currency movements is limited, and
the hedging approach continues to provide effective mitigation of short-term
exchange rate volatility.
NAV sensitivities per Ordinary Share (including Conditional Acquisitions)
Power Prices and Green Certificates
The combination of forward market prices and independent long-term power price
forecasts, together with the power purchase agreements ("PPAs") which the
Investment Manager has originated, make up the portfolio's forecast power only
generation-weighted price ("Power only GWP"). The generation-weighted price,
including subsidies and additional benefits ("Total GWP"), is derived by
including subsidies and additional benefits, such as green certificates. The
Power only GWP and Total GWP for the period to 2050 are shown in Figure 12
below. The curves are blended across the markets in which the portfolio's
generation assets are located, weighted by the portfolio generation mix and
converted into £/MWh. On average, the graph shows power only GWP of
£57.48/MWh in the period 2025-2029 and £48.51/MWh in the period 2030-2050.
While short-term movements in electricity market forward prices (which are
incorporated into our assets' valuations) have resulted in a slight decrease
in the GWP over the short term relative to six months prior, the high
proportion of fixed revenues in the portfolio (detailed further in the
Portfolio Revenue Forecasts section in the interim report) helps to limit the
portfolio's exposure to volatility in the power market. Longer term, the
portfolio's GWP remains broadly unchanged.
Sources: Forward prices based on ICIS, Nasdaq, EEX and TGE data. (Q2 2025).
Forecast data from independent market advisers.
A summary of the capture price discounts utilised in the assets' valuations is
presented below in Figure 13(1). The percentages are the average differences
between the generation-weighted and time-weighted power prices.
These assumptions are provided by third party advisors and use site-specific
assumptions for onshore and offshore wind.
Figure 13: Capture price discounts assumptions
Value Market Technology Units 2025-2029 2030-2034 2035-2039 2040-2044 2045-2050
Baseload price GB NA £/MWh (real 2025) 73 73 73 68 66
Capture price discount GB Solar % 21% 24% 24% 25% 28%
Capture price discount GB Onshore Wind % 11% 19% 22% 25% 26%
Capture price discount GB Offshore Wind % 13% 18% 22% 24% 25%
Baseload price FR NA EUR/MWh (real 2025) NA 77 80 77 73
Capture price discount FR Onshore Wind % NA NA NA 11% 11%
Capture price discount FR Solar % NA 41% 41% 41% 42%
Baseload price FI NA EUR/MWh (real 2025) 43 64 65 66 64
Capture price discount FI Onshore Wind % 18% 19% 21% 22% 22%
Baseload price DE NA EUR/MWh (real 2025) NA NA NA 81 78
Capture price discount DE Onshore Wind % NA NA NA 23% 27%
Baseload price I-SEM NA EUR/MWh (real 2025) NA NA NA 88 88
Capture price discount I-SEM Solar % NA NA NA 21% 23%
Source: Forecast data from independent market advisers.
(1 ) Values are not shown where the relevant asset has no
merchant exposure in three or more years in the relevant period.
Portfolio Revenue Forecasts
Figure 14 in the interim report presents ORIT's forecast revenues to 2050
categorised by price structure and presented as a proportion of the relevant
year's total forecast revenues. Fixed revenues derive from either fixed price
subsidies ("Fixed - Subsidy") or fixed price via PPA or other revenue hedging
tool ("Fixed - Power"), and variable revenues derive from power being sold on
a merchant basis ("Variable - Power") or other sources of variable revenue
(green certificates being one example) ("Variable - Other").
For the 24 months to 30 June 2027 85% of total forecast revenues are fixed (an
increase of 1% from six months prior) due to a decrease in the value of
near-term variable revenues as well as hedges placed across ORIT's GB solar
portfolio. On a net present value basis, 50% of the portfolio's value is
derived from fixed price revenues, and 50% from variable revenues.
All of ORIT's power price hedges are structured on a pay-as-produced basis.
This contrasts with other commonly observed hedge structures - such as
baseload or fixed shape hedges - which require the asset to assume additional
(often costly) risks, especially during periods of underproduction, given the
need to buy back power at the market price in order to deliver under the
hedge's baseload or fixed shape generation profile.
In addition, ORIT's portfolio continues to retain a high proportion of
contractually inflation-linked revenues, shown in Figure 15 in the interim
report. These not only derive from government subsidies, but also from
inflation-linked corporate PPAs which the Investment Manager has originated
in-house, such as the PPAs between Crossdykes wind farm and Sky UK, and Breach
solar farm and Iceland Foods. Over the 10 years to 30 June 2035, 47% of the
portfolio's forecast revenues are inflation-linked.
These are forward-looking statements based upon certain assumptions. Actual
events may differ materially from those assumed.
Financial Review
The financial statements of the Company for the period ended 30 June 2025 are
set out below (see interim report for more detail). These financial statements
have been prepared in accordance with international accounting standards in
conformity with the requirements of the Companies Act 2006 and the applicable
legal requirements of the Companies Act 2006. In order to continue providing
useful and relevant information to its investors, the financial statements
also refer to the "intermediate holding companies", which comprise the
Company's wholly owned subsidiary, ORIT Holdings II Limited and its indirectly
held wholly owned subsidiaries ORIT UK Acquisitions Limited, ORIT Holdings
Limited, and ORIT UK Acquisitions Midco Limited.
Net assets
Net assets have decreased from £570.4 million as at 31 December 2024 to
£540.4 million as at 30 June 2025, largely due to a decrease in the fair
value of portfolio of assets as described in the Portfolio Valuation section
above.
The net assets as at 30 June 2025 comprise the fair value of the Company's
investments of £532.3 million (FY 2024: £561.3m), the Company's cash balance
of £0.2 million (2024: £11.9m), and £7.9 million of the Company's other net
assets (2024: £2.8 million net liabilities).
Included in the fair value of the Company's investments are net liabilities of
£160.8 million (2024: net liabilities of £138.3m) held in the intermediate
holding companies. The net liabilities comprise cash of £15.3 million (FY
2024: £7.1m), the positive mark-to-market value of the FX hedges taken out to
minimise the volatility of cashflows associated with non-UK portfolios of
£0.3 million (FY 2024: £7.1m), other debtors of £0.5 million (FY 2024:
£nil) and are offset by amortised transaction costs associated with bank
loans of £3.1 million (2024: £1.1m), principal and interest outstanding on
the bank loans of £168.4 million (FY 2024: £152.4m), other liabilities of
£1.6 million (FY 2024: £0.9m) predominantly relating to accrued transaction
costs not yet paid and outstanding VAT liabilities, and dividend payable of
£10.0 million (FY 2024: £nil). The dividend payable of £10.0 million from
ORIT Holdings II Limited to the Company was approved on 30 June 2025 and paid
on 1 July 2025.
Results as at 30 June 2025
30 June 2025 31 December 2024
£m £m
Fair value of portfolio of assets 693.1 699.6
Cash held in intermediate holding companies 15.3 7.1
Bank loans and accrued interest held in the intermediate holding companies (168.4) (151.2)
Fair value of other net (liabilities)/assets in intermediate holding companies (7.7) 5.8
Fair value of Company's investments 532.3 561.3
Company's cash 0.2 11.9
Company's other net assets/(liabilities) 7.9 (2.8)
Net asset value as at the reporting date 540.4 570.4
Number of shares (excluding treasury shares) (million) 543.4 555.7
Net asset value per share (pence) 99.46 102.65
Income
In accordance with the Statement of Recommended Practice: Financial Statements
of Investment Trust Companies and Venture Capital Trusts ("SORP") issued in
July 2022 by the Association of Investment Companies ("AIC"), the statement of
comprehensive income differentiates between the 'revenue' account and the
'capital' account, and the sum of both items equals the Company's profit for
the year. Items classified as capital in nature either relate directly to the
Company's investment portfolio or are costs deemed attributable to the
long-term capital growth of the Company (such as a portion of the Investment
Manager's fee).
In the six-month period ended 30 June 2025, the Company's operating income was
£22.6 million (HY 2024: £18.9m), including interest income of £12.5 million
(HY 2024: £12.7m), dividends receivable of £10.0 million (HY 2024: £6.0m)
and a net loss on the movement of fair value of investments of £23.7 million
(HY 2024: loss of £4.1m). The operating expenses included in the statement of
comprehensive income for the year were £3.4 million (HY 2024: £3.5m). These
comprise £2.6 million of Investment Manager fees (HY 2024: £2.8m), and other
operating expenses of £0.8 million (HY 2024: £0.7m). The details on how the
Investment Manager's fees are charged are set out in notes 5 and 17 to the
financial statements for the year ended 31 December 2024.
Ongoing charges
The ongoing charges ratio ("OCR") is a measure of the regular recurring annual
costs of running the Company, expressed as a percentage of average net assets.
It has been calculated and disclosed in accordance with the AIC methodology,
as the annualised ongoing charges (i.e. excluding acquisition costs and other
non-recurring items) divided by the average published undiluted Net Asset
Value in the year. For the year ended 31 December 2024, the ratio was 1.21%
and it is anticipated that the full-year ratio for the year ended 31 December
2025 will be 1.25%.
Dividends
During the six months to 30 June 2025, interim dividends totalling £16.8
million were paid - 1.51p per share paid in respect of the quarter to
31 December 2024 (paid in February 2025) and 1.54p per share in respect of
the first quarter of 2025 (paid in May 2025).
Post-period end, a further interim dividend of 1.54p per share was paid on 29
August 2025, to shareholders recorded on the register on 15 August 2025, in
respect of the quarter ended 30 June 2025.
Dividend cover - operational cash flows (portfolio level)
For the first half of 2025, the Company's net cash flows from operations, pre
debt amortisation of £30.5 million, and post external debt amortisation of
£20.0 million supported the payment of £16.8 million dividends to
shareholders for the period, resulting in a dividend coverage of 1.81x and
1.19x respectively. ORIT's key portfolio characteristics of diversification,
high proportion of fixed revenues and inflation-linkage help maintain a
growing, covered dividend.
Full year dividends, based on the stated target of 6.17 pence per share(1),
are expected to remain fully covered for the full year. While the Company
remains confident in its ability to meet its dividend targets for the year,
actual coverage will ultimately depend on a range of factors, including
asset-level performance, power market conditions and the scale and timing of
further buybacks. The Investment Manager continues to monitor these dynamics
closely as part of its active portfolio and capital management strategy.
(1 ) The dividend target is a target only and not a profit
forecast. There can be no assurance that this target will be met, or that the
Company will make any distributions at all and it should not be taken as an
indication of the Company's expected future results. The Company's actual
returns will depend upon a number of factors, including but not limited to the
Company's net income and level of ongoing charges. Accordingly, potential
investors should not place any reliance on this target and should decide for
themselves whether or not the target dividend is reasonable or achievable.
Investors should note that references in this announcement to "dividends" and
"distributions" are intended to cover both dividend income and income which is
designated as an interest distribution for UK tax purposes and therefore
subject to the interest streaming regime applicable to investment trusts.
Six-month period ended 30 June 2025
6 months to 6 months to
£ million unless stated 30 June 2025 30 June 2024
Operational cash flows
UK Solar 14.1 9.5
French Solar 4.9 5.2
Swedish Wind (includes lock-box interest only to 30-Jun-24) - 2.3
Finnish Wind 4.1 5.4
French Wind 1.6 1.3
German Wind 1.2 1.8
UK Wind 4.9 6.0
UK Offshore Wind 6.2 9.4
Irish Solar 6.3 3.8
Total 43.2 44.8
SPV level taxes
French Solar, Finnish Wind, UK Offshore Wind(1) -1.0 -1.3
Interest payable on external debt
French Solar, French Wind, German Wind, UK Offshore Wind -4.5 -4.2
Operational cash flow pre debt amortisation 37.8 39.3
Company and intermediate holding company level income and expenses(2) -1.0 1.0
Interest and fees payable on RCF -6.3 -7.5
Net cash flow from operating activities pre debt amortisation 30.5 32.9
Dividends paid in respect of year 16.8 17.0
Portfolio level operational cash flow dividend cover pre debt amortisation 1.8x 1.9x
External debt amortisation
French Solar, French Wind, German Wind, UK Offshore Wind -10.5 -10.3
Net cash flow from operating activities 20.0 22.6
Dividends paid in respect of year 16.8 17.0
Portfolio level operational cash flow dividend cover 1.19x 1.33x
Note: Totals may not add up due to rounding.
(1 ) Taxes falling due on operational asset trading profits
(e.g. Corporation Tax in the UK).
(2 ) Company and intermediate holding company level income
and expenses includes receipt of favourable mark-to-market movements on
foreign currency forward contracts.
ESG & Impact Report
ESG & Impact Strategy
ORIT classifies itself an impact fund with a core impact objective to
accelerate the transition to net zero through its investments, building and
operating a diversified portfolio of renewable energy assets.
ORIT enables individuals and institutions to participate in the energy
transition. The renewable energy generated from its portfolio of assets
supports the transition to net zero by replacing unsustainable energy sources
with clean power. This intended outcome is the Company's core impact
objective.
The ESG & Impact Strategy considers ORIT's culture, values and activities
through three lenses: Performance, Planet and People - to ensure that ORIT's
activities integrate ESG risks and promote additional impact opportunities.
For a more in-depth understanding of ORIT's ESG & Impact Strategy,
encompassing definitions of ESG and Impact, along with detailed insights into
four impact themes: stakeholder engagement, equality and wellbeing,
innovation, and sustainable momentum), please refer to the separately
published ESG & Impact Strategy.
Stewardship and Engagement
The Investment Manager manages ORIT's investments in line with its Engagement
and Stewardship Policy. More detail can be found in the Company's 2024 Annual
Report on page 67 and the Investment Manager's full Engagement and Stewardship
Policy can be viewed at:
https://assets.octopusenergygeneration.com/x/d557d65717/oegen-engagement-and-stewardship-policy-august-2024-v-f.pdf
(https://assets.octopusenergygeneration.com/x/d557d65717/oegen-engagement-and-stewardship-policy-august-2024-v-f.pdf)
Regulatory Disclosures
ORIT is a supporter of the recommendations of the Task Force on
Climate-related Financial Disclosures ("TCFD") and makes a TCFD disclosure in
its 2024 Annual Report on page 93.
ORIT is classified as an Article 9 product under the EU Sustainable Finance
Disclosure Regulation ("SFDR"). ORIT's most recent SFDR-related disclosures,
including its Principal Adverse Impact Statement is available on its website:
https://www.octopusrenewablesinfrastructure.com/sustainability-related-disclosures
(https://www.octopusrenewablesinfrastructure.com/sustainability-related-disclosures)
The breakdown of ORIT's investments' alignment to the EU Taxonomy can be found
in the 2024 Annual Report on page 73.
Objective & Commitments Metrics H1 2025 H1 2024
Performance
Build and operate a diversified portfolio of renewable energy assets, Total value of sustainable investments, 100% of which committed into £1,026m £1,118m
mitigating the risk of losses through robust governance structures, rigorous renewables
due diligence, risk analysis and asset optimisation activities to deliver
investment return resilience and the maximum amount of green energy.
Number of assets 40 41
% investments that adhere to ORIT ESG policy and minimum ESG matrix threshold 100% 100%
Renewable energy generated in H1 (excluding compensated generation) 608 GWh 605 GWh
Potential annual renewable energy generation once fully operational 1,397 GWh 1,394 GWh
Potential annual renewable energy generation from assets where ORIT has 832 GWh 825 GWh
invested and committed at construction
Planet
Consider environmental factors to mitigate risks associated with the In reference to renewable energy generated in H1
construction and operation of assets, enhancing environmental potential where
possible.
Estimated annual equivalent tonnes of CO(2) avoided in H1 165k 150k
Estimated equivalent new trees required to avoid same CO(2) in H1 0.8m 0.7m
Estimated equivalent cars off the road to avoid the same CO(2) in H1 82k 76k
In reference to potential annual generation once fully operational
Estimated equivalent tonnes of CO(2) avoided once fully operational 384k 383k
Estimated equivalent new trees required to avoid same CO(2) once fully 1.9m 1.9m
operational
Estimated equivalent cars off the road required to avoid same CO(2) once fully 190k 194k
operational
Other environmental metrics
ORIT LSE Green Economy Mark demonstrating Company's significant contribution ✔ ✔
to transition to a zero-carbon economy.
% Generating sites on renewable import tariffs 94% 91%
Number of environmental incidents 1 2
( )
People
Evaluate social considerations to mitigate risks and promote a 'Just Health and Safety
Transition' to clean energy.
This includes:
• Effectively managing ORIT's health and safety risks.
• Ensuring diversity and inclusion in board appointments and subsidiary
directorships.
• Supporting decent jobs that uphold equal opportunity, workplace
standards, diversity, and local employment.
• Empowering communities through benefit schemes, school engagement, local
charity support, and early stakeholder engagement to build social license.
• Delivering affordable, clean energy to enhance energy security and
reduce costs for end users.
RIDDORs 0 0
Lost time injuries (>7 days) 0 0
Near misses 5 9
Personal Injuries (first aid) 4 1
Minor equipment damage incidents 4 15
Diversity & Inclusion
Compliance with the FCA's Diversity and inclusion targets for Company boards ✔ ✔
Just Transition
Estimated FTE jobs supported 42 51
£ per year of community benefit funds £1,013,000 £1,203,000
£ of annual impact budget £343,000 £340,000
Number of people benefitting from social initiatives(1) 4,034 148
Estimated equivalent homes powered by renewable electricity generation by 158k 147k
ORIT's assets in H1.
(1) H1 2024 metric reflects only student beneficiaries, whereas H1
2025 encompasses both student beneficiaries and all other beneficiary groups
Case study
Delivering skills for the energy transition
As part of its commitment to a just transition, ORIT partnered with the Energy
Skills Partnership ("ESP") to help deliver practical training for careers in
clean energy. ESP is a national organisation that connects industry needs with
skills development. It creates and runs initiatives that provides people with
the knowledge needed to work in the net zero economy. All of ESP's work is
focused on supporting a fair and inclusive shift to a low-carbon future.
This partnership is delivering two targeted initiatives:
1 The creation of 'Futures in Offshore Wind', a structured online course
designed to familiarise new entrants with how the offshore wind sector works
and
2 The deployment of virtual reality headsets to support inclusive
technical training in offshore wind.
These initiatives aim to improve access to renewable energy careers and
technical training, with a focus on workforce readiness and inclusion. While
ESP currently operates mainly in Scotland, its accessibility-based structure
means that the benefits of these initiatives have the potential to expand
across the UK and into Europe. For the full impact story, please visit:
https://www.octopusrenewablesinfrastructure.com/esg-impact-case-studies
(https://www.octopusrenewablesinfrastructure.com/esg-impact-case-studies)
4 - QUALITY EDUCATION
4.1, 4.5 & 4.7 - Provide free, quality education leading to effective
learning outcomes that can also promote sustainable development. Implement
this whilst eliminating gender disparities and ensuring equal access to all
levels of education
ESP-led initiatives provide accessible, technical training through online and
immersive learning tools, equipping individuals with skills for employment in
the clean energy sector. Long-term partnership with the Good Bee Company and
Earth Energy Education to provide free education programmes and site visits to
local schools. Funding of multiple charities through BizGive supporting
projects that drive STEM learning, climate action, biodiversity conservation,
and community renewables.
7 - AFFORDABLE AND CLEAN ENERGY
7.1, 7.2 & 7.3 - By 2030, ensure universal access to affordable, reliable
and modern energy services, increase the share of renewable energy in the
global energy mix, and increase the global rate of energy efficiency 7.a -
Cooperation with regards to research and investment in clean energy
infrastructure and technology
Provided renewable energy to the grid and provided renewable investment
opportunities.
8 - DECENT WORK AND ECONOMIC GROWTH
8.5 - Provide full and productive employment and decent work for all
Extensive Health and Safety measures ensures employees are not exposed to
risk. Supply chain analysis and strengthened policies to ensure labour rights
upheld across ORIT's suppliers.
10 - REDUCED INEQUALITIES
10.2 - By 2030, empower and promote the social, economic and political
inclusion of all, irrespective of age, sex, disability, race, ethnicity,
origin, religion or economic or other status
ORIT promotes inclusion through core business practices and financial support
to other initiatives like the ESP-led programmes that further reduce barriers
by offering free, flexible, and location-independent training pathways,
enabling broader participation from underrepresented and remote communities.
13 - CLIMATE ACTION
13.1 - Strengthen resilience and adaptive capacity to climate related hazards
and natural disasters.
13.3 - Improve education, awareness-raising and human and institutional
capacity on climate change mitigation, adaptation, impact reduction and early
warning
Biodiversity and habitat management plans proposed for most sites as planning
requirement. Physical climate change risks considered and mitigated (e.g.
flood risk mitigation strategy) and transition risks forecasted (e.g. low
power price scenarios). Participation in working groups to improve climate
risk assessment and disclosure. Through many of its initiatives, ORIT strives
to increase education and awareness related to climate change and impact
reduction.
15 - LIFE ON LAND
15.5 - Take urgent and significant action to reduce the degradation of natural
habitats, halt the loss of biodiversity and, by 2020, protect and prevent the
extinction of threatened species
Threatened and non-threatened species monitored through ecological surveys and
biodiversity plans. Additional biodiversity initiatives implemented beyond
planning requirement. Biodiverse pocket forests planted in partnership with
SUGi to restore native biodiversity in urban areas and biodiversity-barren
areas.
Interim Management Report
The Directors are required to provide an Interim Management Report in
accordance with the Financial Conduct Authority ("FCA") Disclosure Guidance
and Transparency Rules ("DTR"). The Chair's Statement and the Investment
Manager's Report in this interim report provide details of the important
events which have occurred during the period and their impact on the financial
statements. The following statements on principal risks and uncertainties,
related party transactions, going concern and the Directors' Responsibility
Statement below, together constitute the Interim Management Report for the
Company for the six months ended 30 June 2025. The outlook for the Company for
the remaining six months of the year ending 31 December 2025 is discussed in
the Chair's Statement and the Investment Manager's Report.
Risk and Risk Management
The Company's approach to risk governance and its risk review process are
described in the Risk and Risk Management section of the 2024 Annual Report.
The Board has reviewed the principal risks to the achievement of the Company's
objectives as at 30 June 2025. Whilst the overall risk profile is considered
to be materially unchanged from that reported in the 2024 Annual Report,
certain developments have influenced individual risk areas during the period.
The Company's key risks continue to relate to energy markets and asset yields.
Although wholesale price volatility has moderated during the reporting period,
structural pressures such as capture price cannibalisation remain relevant.
Weather variability also continues to affect generation yields. These risks
are actively managed through a combination of revenue hedging and
diversification across technologies and geographies, which together provide
resilience to short-term movements.
Sector-wide market sentiment towards the renewables investment trust sector
has weakened further over the past year, influenced by higher financing costs
and broader investor caution. While not a direct operational risk for the
Company, the Board recognises that market sentiment can affect valuation
levels and access to capital.
Alongside these core risks, the Board has also noted developments in other
areas. Regulatory risk has eased following confirmation that the UK government
will not proceed with zonal pricing, while the broader policy environment
continues to be monitored closely. Cyber security continues to be an area of
heightened focus across the infrastructure sector, with the Company working
alongside the Investment Manager and service providers to strengthen
protections. Although the Company has limited construction and development
exposure, wider sector trends continue to show pressures from permitting
delays and cost inflation.
The Company continues to manage these risks through active portfolio
oversight, diversification across technologies and geographies, and the
expertise of the Investment Manager. The Impact Report, published on 27 March
2025, provides examples of targeted initiatives undertaken in the period to
address certain risk areas.
Task Force on Climate-related Financial Disclosures ("TCFD")
The Company is acutely aware of the risks of climate change and through its
investment mandate, believes it is well placed to contribute to solutions and
harness the opportunities that arise from a transition to net zero.
However, no company is isolated from climate change, and the TCFD disclosures
we make outline the climate-related risks ORIT faces. Our TCFD approach is
detailed on pages 93 to 107 of the 2024 Annual Report. The Company is pleased
to confirm that it has included climate-related financial disclosures aligned
with the four recommendations and the eleven recommended disclosures provided
in the TCFD's 2021 report 'Implementing the Recommendations of the Task Force
on Climate-related Financial Disclosures', which included additional guidance
for Asset Owners and Asset Managers.
Related Party Transactions
The Company's AIFM is considered a related party under the Listing Rules.
Under the Management Agreement, the AIFM receives from the Company a
management fee of 0.95% per annum of Net Asset Value up to and including
£500 million and 0.85% per annum of Net Asset Value in excess of £500
million, payable quarterly in arrears. No performance fee or asset level fees
are payable to the Investment Manager under the Management Agreement.
Management fees amounting to £2,568,000 were payable to the Investment
Manager for the six months ended 30 June 2025 (six months ended 30 June
2024: £2,749,000).
Going Concern
The Directors have reviewed detailed cash flow forecasts prepared by the
Investment Manager, based on prudent assumptions, and consider it appropriate
to prepare the Company's financial statements on a going concern basis.
As at 30 June 2025 the Company held unrestricted cash of £15.5 million and
had available headroom of £82.0 million under its RCF. The RCF, which was
successfully refinanced in 2025, was decreased to £150 million and its
maturity extended to 30 June 2028. At period end the Company's net assets
were £540 million, while total expenses for the period were £3.4 million
(c.1.2% of average net assets on an annualised basis). Covenant compliance has
been tested and remains robust, with sufficient headroom even under downside
scenarios.
The Company's revenues are generated from dividends and interest from the
portfolio of investments, with cashflows underpinned by long-term power
purchase agreements with established counterparties. While risks such as lower
power prices, reduced output, or higher discount rates could affect valuations
and distributions, the Directors do not consider there to be any immediate
material risk to the Company's investment portfolio or income. Stress testing
indicates the Company would continue to remain viable under such scenarios.
The Company's principal cash outflows relate to dividends, commitments to
developer investments and contingent acquisitions. As at 30 June 2025,
outstanding commitments of c. £33 million can be funded through a combination
of existing cash balances and undrawn RCF capacity. The Directors are
confident these resources are sufficient to meet obligations as they fall due.
On 13 June 2025, shareholders voted in favour of the continuation of the
Company, with over 90% support. This provides additional reassurance of strong
investor backing for the Company's strategy and long-term prospects.
Taking these factors into account, the Directors have concluded that it is
appropriate to prepare the financial statements on a going concern basis.
Responsibility Statement of the Directors
The Directors acknowledge responsibility for the interim results and approve
this Interim Report. The Directors confirm that to the best of their
knowledge:
a) the condensed financial statements have been prepared in accordance
with IAS 34 "Interim Financial Reporting" and give a true and fair view of the
assets, liabilities and financial position and the profit of the Company as
required by the FCA's Disclosure Guidance and Transparency Rules. DTR 4.2.4R;
b) the interim management report, included within the Chair's Statement
and Investment Manager's Report, includes a fair review of the information
required by DTR 4.2.7R and DTR 4.2.8R.
This responsibility statement has been approved by the Board.
Philip Austin MBE
Chair
22 September 2025
Financial Statements
Income Statement
For the six months ended 30 June 2025 (unaudited)
For the six months ended For the six months ended For the year ended
30 Jun 2025 (unaudited) 30 Jun 2024 (unaudited) 31 Dec 2024 (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
Notes £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Losses on investments - (23,715) (23,715) - (4,106) (4,106) - (24,030) (24,030)
Income from investments 3 22,478 - 22,478 18,724 - 18,724 42,541 - 42,541
Other interest receivable and similar income 3 120 - 120 159 - 159 301 - 301
Gross return/(loss) 22,598 (23,715) (1,117) 18,883 (4,106) 14,777 42,842 (24,030) 18,812
Investment management fees (1,926) (642) (2,568) (2,062) (687) (2,749) (4,104) (1,368) (5,472)
Other expenses (793) - (793) (728) - (728) (1,563) - (1,563)
Net return/(loss) before taxation 19,879 (24,357) (4,478) 16,093 (4,793) 11,300 37,175 (25,398) 11,777
Taxation 4 - - - (171) 171 - (342) 342 -
Net return/(loss) after taxation 19,879 (24,357) (4,478) 15,922 (4,622) 11,300 36,833 (25,056) 11,777
Return/(loss) per share 5 3.61p (4.42)p (0.81)p 2.82p (0.82)p 2.00p 6.55p (4.45)p 2.10p
The "Total" column of this statement is the profit and loss account of the
Company. The "Revenue" and "Capital" columns represent supplementary
information prepared under guidance issued by The Association of Investment
Companies. The Company has no other items of other comprehensive income, and
therefore the net return/(loss) after taxation is also the total comprehensive
income/(loss) for the period. All revenue and capital items in the above
statement derive from continuing operations. No operations were acquired or
discontinued in the period.
Statement of Financial Position
at 30 June 2025 (unaudited)
30 Jun 2025 30 Jun 2024 31 Dec 2024
(unaudited) (unaudited) (audited)
Notes £'000 £'000 £'000
Fixed assets
Investments at fair value through profit or loss 7,11 532,318 582,665 561,296
Current assets
Other debtors 8 10,049 138 23
Cash and cash equivalents 176 11,822 11,852
10,225 11,960 11,875
Creditors: amounts falling due within one year
Other creditors and accruals (2,110) (1,839) (2,801)
Net current assets 8,115 10,121 9,074
Total assets less current liabilities 540,433 592,786 570,370
Net assets 540,433 592,786 570,370
Capital and reserves
Share capital 9 5,649 5,649 5,649
Share premium 217,283 217,283 217,283
Special reserve 323,978 338,613 332,590
Capital reserve (35,657) 9,134 (11,300)
Revenue reserve 29,180 22,107 26,148
Total equity shareholders' funds 540,433 592,786 570,370
Net asset value per share 10 99.46p 105.15p 102.65p
Statement of Changes in Equity
Six months ended 30 June 2025 (unaudited)
Share Share Special Capital Revenue
capital premium reserve reserve reserve Total
Notes £'000 £'000 £'000 £'000 £'000 £'000
At 31 December 2024 5,649 217,283 332,590 (11,300) 26,148 570,370
Repurchase of the Company's own shares into treasury - - (8,542) - - (8,542)
Costs of share repurchases - - (70) - - (70)
(Loss)/return for the period - - - (24,357) 19,879 (4,478)
Dividends paid in the period 6 - - - - (16,847) (16,847)
At 30 June 2025 5,649 217,283 323,978 (35,657) 29,180 540,433
Six months ended 30 June 2024 (unaudited)
Share Share Special Capital Revenue
capital premium reserve reserve reserve Total
Notes £'000 £'000 £'000 £'000 £'000 £'000
At 31 December 2023 5,649 217,283 339,500 13,756 22,851 599,039
Repurchase of the Company's own shares into treasury - - (883) - - (883)
Costs of share repurchases - - (4) - - (4)
(Loss)/return for the period - - - (4,622) 15,922 11,300
Dividends paid in the period 6 - - - - (16,666) (16,666)
At 30 June 2024 5,649 217,283 338,613 9,134 22,107 592,786
Year ended 31 December 2024 (audited)
Share Share Special Capital Revenue
capital premium reserve reserve reserve Total
Notes £'000 £'000 £'000 £'000 £'000 £'000
At 31 December 2023 5,649 217,283 339,500 13,756 22,851 599,039
Repurchase of the Company's own shares into treasury - - (6,837) - - (6,837)
Costs of share repurchases - - (73) - - (73)
(Loss)/return for the year - - - (25,056) 36,833 11,777
Dividends paid in the year 6 - - - - (33,536) (33,536)
At 31 December 2024 5,649 217,283 332,590 (11,300) 26,148 570,370
Statement of Cash Flows
For the six months ended 30 June 2025 (unaudited)
Six months Six months
ended ended Year ended
30 Jun 2025 30 Jun 2024 31 Dec 2024
(unaudited) (unaudited) (audited)
Notes £'000 £'000 £'000
Operating activities
Net (loss)/return before taxation (4,478) 11,300 11,777
Movement in fair value of investments 7 23,715 4,106 24,030
Income from investments 3 (22,478) (18,724) (42,541)
(Increase)/decrease in other debtors (10,026) 5 120
Decrease in other creditors (691) (1,398) (436)
Net cash outflow from operating activities (13,958) (4,711) (7,050)
Investing activities
Distributions from investments 7 28,079 24,627 49,913
Additional investments (338) (553) (577)
Net cash inflow from investing 27,741 24,074 49,336
Financing activities
Dividends paid 6 (16,847) (16,666) (33,536)
Repurchase of the company's own shares into treasury 9 (8,542) (883) (6,837)
Costs of share repurchases 9 (70) (4) (73)
Net cash outflow from financing (25,459) (17,553) (40,446)
(Decrease)/increase in cash (11,676) 1,810 1,840
Cash and cash equivalents at start of period 11,852 10,012 10,012
Cash and cash equivalents at end of period 176 11,822 11,852
Notes to the Accounts
For the period ended 30 June 2025
1. Financial statements
The information contained within the financial statements in this half year
report has not been audited or reviewed by the Company's independent auditor.
The figures and financial information for the year ended 31 December 2024 are
extracted from the latest published financial statements of the Company and do
not constitute statutory financial statements for that year. Those financial
statements have been delivered to the Registrar of Companies and included the
report of the auditor which was unqualified and did not contain a statement
under either section 498(2) or 498(3) of the Companies Act 2006.
This half year report will be made available to the public at the registered
office of the Company. The report will be available in electronic format on
the Company's website (https://octopusrenewablesinfrastructure.com).
2. Accounting policies
(a) Basis of preparation
The financial statements have been prepared in accordance with International
Accounting Standard 34 "Interim Financial Reporting" and the accounting
policies set out in the statutory accounts of the Company for the year ended
31 December 2024. Where presentational guidance set out in the Statement of
Recommended Practice (the "SORP") for investment trusts issued by the
Association of Investment Companies in July 2022, is consistent with the
requirements of International Financial Reporting Standards, the financial
statements have been prepared on a basis compliant with the recommendations of
the SORP.
(b) Basis of non-consolidation
The Company has one wholly owned direct subsidiary, ORIT Holding II Limited,
whose purpose is to invest the funds of ORIT. The Company and its subsidiary
both meet the requirements to be classified as an investment entity as defined
in International Financial Reporting Standard 10 "Consolidated Financial
Statements". Consequently, the Company measures its subsidiary at fair value
through profit or loss and does not prepare consolidated financial statements.
(c) Fair value calculations
The underlying investments are valued by the investment manager, using
discounted cash flow techniques. The policy on valuation of investments is
consistent with that detailed in note 2 to the financial statements for the
year ended 31 December 2024, presented on pages 167 - 170 of the annual
report and note 9(c) on pages 178 - 179 of the annual report.
(d) Accounting estimates
In common with many other investment companies, the Board has chosen to adopt
the 'allocation approach', as set out in the SORP, and has determined that the
basis of allocation of certain expenses to capital should reflect the
Directors' estimate of the future long-term split of returns in the form of
capital gains and income. Accordingly, the Company allocates 25% of the
management fee and 25% of any finance costs to capital and the remaining 75%
to revenue. The Board monitors the assumptions that underpin the basis of
allocation.
3. Income
Six months ended Six months ended Year ended
30 Jun 2025 30 Jun 2024 31 Dec 2024
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Dividends 10,000 6,000 17,000
Investment interest income 12,478 12,724 25,541
Income from investments 22,478 18,724 42,541
Interest from money market funds 120 159 301
Total income 22,598 18,883 42,842
4. Taxation
The Company's effective corporation tax rate is nil, as deductible expenses
and interest distributions exceed taxable income. Any tax relief obtained on
expenses allocated to capital is credited to the capital account in accordance
with the requirements of the SORP.
5. Return/(loss) per share
Six months ended Six months ended Year ended
30 Jun 2025 30 Jun 2024 31 Dec 2024
(unaudited) (unaudited) (audited)
Revenue return after taxation (£'000) 19,879 15,922 36,833
Capital loss after taxation (£'000) (24,357) (4,622) (25,056)
(Loss)/return after tax (£'000) (4,478) 11,300 11,777
Weighted average number of shares in issue during the period 550,764,715 564,806,017 562,473,374
Revenue return per share 3.61p 2.82p 6.55p
Capital loss per share (4.42)p (0.82)p (4.45)p
Total (loss)/return per share (0.81)p 2.00p 2.10p
There are no diluted returns per share as there are no dilutive or potentially
dilutive instruments in issue.
6. Dividends paid
Six months ended Six months ended Year ended
30 Jun 2025 30 Jun 2024 31 Dec 2024
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Q4 2024 dividend paid of 1.51p (2023: 1.45p) 8,380 8,191 8,191
Q1 2025 dividend paid of 1.54p (2024: 1.50p) 8,467 8,475 8,475
Q2 2024 dividend paid of 1.51p - - 8,493
Q3 2024 dividend paid of 1.50p - - 8,377
16,847 16,666 33,536
An interim dividend of 1.54p (2024: 1.51p) per share, amounting to £8,279,866
(2024: £8,493,000), has been declared payable in respect of Q2 2025. This
dividend was paid on 29 August 2025 to shareholders on the register on 15
August 2025.
7. Investments at fair value through profit or loss
(a) Changes in the valuation of the Company's direct holding in its
subsidiary, ORIT Holdings II Limited ("the subsidiary")
Six months ended Six months ended Year ended
30 Jun 2025 30 Jun 2024 31 Dec 2024
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Opening balance of the subsidiary at fair value 561,296 592,121 592,121
Additional investment 338 553 577
Distributions received (28,079) (24,627) (49,913)
Investment income 22,478 18,724 42,541
Movement in fair value (23,715) (4,106) (24,030)
Closing balance of the subsidiary at fair value 532,318 582,665 561,296
(b) Reconciliation of movement in the fair value of the Company's underlying
portfolio of investments
Six months ended Six months ended Year ended
30 Jun 2025 30 Jun 2024 31 Dec 2024
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Opening balance 699,604 705,970 705,970
Purchases of investments 8,901 87,566 104,229
Sales of investments - - (62,077)
Distributions received from investments (27,029) (41,596) (69,006)
Movement in fair value of investments 11,588 14,784 20,488
Fair value of the underlying portfolio of investments at the end of the period 693,064 766,724 699,604
Cash held in the intermediate holding companies 15,333 7,262 7,075
Bank loan drawn down by the intermediate holding companies (168,365) (196,243) (151,243)
Fair value of other net assets and (liabilities) held by the intermediate (7,714) 4,922 5,860
holding companies
Fair value of the Company's investments at the end of the period 532,318 582,665 561,296
8. Other debtors
30 Jun 2025 30 Jun 2024 31 Dec 2024
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Dividend receivable from subsidiary 10,000 - -
Other prepayments and receivables 49 138 23
10,049 138 23
9. Share capital
Changes in called-up share capital during the period were as follows:
Six months ended Six months ended Year ended
30 Jun 2025 30 Jun 2024 31 Dec 2024
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Ordinary shares of 1p each, allotted, called-up and fully paid
Opening balance of shares of 1p each, excluding shares held in treasury 5,557 5,649 5,649
Repurchase of shares into treasury (123) (12) (92)
Subtotal of shares of 1p each, excluding shares held in treasury 5,434 5,637 5,557
Shares held in treasury 215 12 92
Closing balance of shares of 1p each, including shares held in treasury 5,649 5,649 5,649
Changes in the number of shares in issue during the period were as follows:
Six months ended Six months ended Year ended
30 Jun 2025 30 Jun 2024 31 Dec 2024
(unaudited) (unaudited) (audited)
Opening balance of shares in issue, excluding shares held in treasury 555,658,774 564,927,536 564,927,536
Repurchase of shares into treasury (12,288,206) (1,200,962) (9,268,762)
Closing balance of shares in issue, excluding shares held in treasury 543,370,568 563,726,574 555,658,774
Closing balance of shares held in treasury 21,556,968 1,200,962 9,268,762
Closing balance of shares in issue, including shares held in treasury 564,927,536 564,927,536 564,927,536
During the period, the Company made market purchases of 12,288,206 of its own
shares, nominal value £122,882, to hold in treasury, representing 2.2% of the
shares outstanding at the beginning of the period. The total consideration
paid for these shares amounted to £8,612,000, including transaction costs of
£70,000. The reason for these purchases was to seek to manage the volatility
of the share price discount to net asset value per share and to provide a
degree of liquidity to the market.
10. Net asset value ("NAV") per share
30 Jun 2025 30 Jun 2024 31 Dec 2024
(unaudited) (unaudited) (audited)
NAV (£'000) 540,433 592,786 570,370
Closing balance of shares in issue, excluding shares held in treasury 543,370,568 563,726,574 555,658,774
NAV per share 99.46p 105.15p 102.65p
11. Financial Instruments measured at fair value
The Company's financial instruments that are held at fair value comprise its
investment portfolio. The recognition and measurement policies for financial
instruments measured at fair value have not changed from those set out in the
statutory accounts of the Company for the year ended 31 December 2024.
IFRS 13 requires that financial instruments held at fair value are categorised
into a hierarchy comprising the following three levels:
Level 1 - valued using quoted prices in active markets.
Level 2 - valued by reference to valuation techniques using observable inputs
other than quoted market prices included within Level 1.
Level 3 - valued by reference to valuation techniques using inputs that are
not based on observable market data.
Categorisation within the hierarchy has been determined on the basis of the
lowest level input that is significant to the fair value measurement of the
relevant asset.
At 30 June 2025, the Company's investment portfolio was categorised as
follows:
30 Jun 2025 30 Jun 2024 31 Dec 2024
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Level 1 - - -
Level 2 14,505 8,801 10,496
Level 3 517,813 573,864 550,800
Total 532,318 582,665 561,296
There have been no transfers between Levels 1, 2 or 3 during the period
(period ended 30 June 2024: nil). During the year ended 31 December 2024,
there were transfers from Level 2 to Level 3 amounting to £22,700,000.
12. Events after the interim period that have not been reflected in the
financial statements for the interim period
Since the interim date and up to (and including) 15 September 2025, which is
the latest practicable date before publication of this report, the Company has
made market purchases of 8,756,748 of its own shares to hold in treasury, for
a total consideration of £6,224,690.
A dividend amounting to £10,000,000 was paid up to the Company by its
subsidiary company, ORIT Holdings II Limited, on 1 July 2025. This amount is
included as a debtor in these accounts, as referred to in note 8 above.
The Directors have evaluated the period since the interim date and have not
noted any other events which have not been reflected in the financial
statements.
Other Information
Alternative Performance Measures ("APMs")
The financial measures below are classified as APMs as defined by the European
Securities and Markets Authority. Under this definition, APMs include a
financial measure of historical performance or financial position, other than
a financial measure defined or specified in the applicable financial reporting
framework. These measures are commonly used by investment companies to assess
values, investment performance and operating costs. Numerical calculations are
given where appropriate.
Performance of the Company's underlying operations investments
Output Revenue Opex EBITDA
Operational portfolio 30 June 2025: 30 June 2025: 30 June 2025: 30 June 2025:
654 GWh £68.7 million £24.4 million £44.3 million
(30 June 2024: (30 June 2024: (30 June 2024: (30 June 2024:
658 GWh) £68.7 million) £23.4 million) £45.3 million)
Solar 30 June 2025: 30 June 2025: 30 June 2025: 30 June 2025:
294 GWh £33.1 million £7.8 million £25.3 million
(30 June 2024: (30 June 2024: (30 June 2024: (30 June 2024:
220 GWh) £25.0 million) £6.5 million) £18.5 million)
Onshore wind 30 June 2025: 30 June 2025: 30 June 2025: 30 June 2025:
291 GWh £16.7 million £4.8 million £11.9 million
(30 June 2024: (30 June 2024: (30 June 2024: (30 June 2024:
354 GWh) £22.7 million) £5.3 million) £17.4 million)
Offshore wind 30 June 2025: 30 June 2025: 30 June 2025: 30 June 2025:
68 GWh £18.9 million £11.8 million £7.1 million
(30 June 2024: (30 June 2024: (30 June 2024: (30 June 2024:
84 GWh) £21.0 million) £11.6 million) £9.4 million)
Discount
The amount by which the share price of an investment trust is lower (discount)
or higher (premium) than the NAV per share. The discount or premium is
expressed as a percentage of the NAV per share. If the shares are trading at a
discount, investors would be paying less than the value attributable to the
shares as calculated in accordance with generally accepted accounting
practice. The discount or premium is expressed as a percentage of the NAV per
share. The discount at the period end was as follows:
30 Jun 2025 30 Jun 2024 31 Dec 2024
NAV per share a 99.46p 105.15p 102.65p
Share price b 73.40p 72.00p 68.00p
Discount (b/a)-1 (26.2%) (31.5%) (33.8%)
Gross asset value ("GAV")
The Company's gross assets comprises the Company's NAV plus the total debt
held in (unconsolidated) subsidiaries.
30 Jun 2025 30 Jun 2024 31 Dec 2024
£m £m £m
NAV a 540.4 592.8 570.4
Total debt b 469.9 504.7 458.4
GAV a+b 1,010.3 1,097.5 1,028.8
Leverage
Total leverage represents total debt in the table above, expressed as a
percentage of GAV.
Total value of all investments
A measure of committed asset value including total debt and equity
commitments.
30 Jun 2025 30 Jun 2024 31 Dec 2024
GAV a 1,010.3 1,097.5 1,028.8
Commitments on existing portfolio b 10.2 15.5 12.5
Commitments on conditional acquisitions c 23.1 36.9 0
GAV before adjusting for cash available for commitments (a+b+c)=d 1,043.6 1,149.9 1,041.3
Less minimum of current commitments and Group cash e -17.2 -32.4 -12.5
Total value of all investments d+e 1,026.4 1,117.5 1,028.8
Dividend yield
Dividend yield represents the target annual dividend for the year, expressed
as a percentage of the share price at 30 June 2025.
30 Jun 2025 30 Jun 2024 31 Dec 2024
Target annual dividend a 6.17p 6.02p 6.02p
Share price b 73.40p 72.00p 68.00p
Dividend yield a/b 8.4% 8.4% 8.9%
Ongoing charges ratio ("OCR")
The OCR is calculated in accordance with The Association of Investment
Companies' recommended methodology and represents the annualised management
fee and all other recurring operating expenses excluding any finance costs and
transaction costs, expressed as a percentage of the average net asset values
during the period.
Six months Six months
ended ended Year ended
30 Jun 2025 30 Jun 2024 31 Dec 2024
Annualised expenses (£'000) a 6,834 6,992 7,035
Average NAV (£,000) b 545,445 591,331 583,198
Ongoing charges Ratio ("OCR") a/b 1.25% 1.18% 1.21%
Total return
Total return is the combined effect of any dividends paid, together with the
rise or fall in the NAV per share or share price. Total return statistics
enable the investor to make performance comparisons between investment
companies with different dividend policies. Any dividends received by a
shareholder are assumed to have been reinvested in either the assets of the
Company at its NAV per share at the time the shares were quoted ex-dividend
(to calculate the NAV per share total return) or in additional shares of the
Company (to calculate the share price total return).
Total returns for the six months ended 30 June 2025 are calculated as follows:
NAV
Share price per share
Value at 31 December 2024 a 68.00p 102.60p
Dividends paid from IPO to 31 December 2024 b 23.72p 23.72p
Value plus dividends paid to 31 December 2024 a+b=c 91.72p 126.32p
Value at 30 June 2025 d 73.40p 99.46p
Benefit of reinvesting dividends e 3.38p (0.10)p
Dividends paid in the six months ended 30¸June 2025 f 3.05p 3.05p
Total returns for the six months ended 30 June 2025 (b+d+e+f)/c -1 12.9% (0.2)%
Total returns from IPO to 30 June 2025 are calculated as follows:
NAV
Share price per share
Value at IPO (10 December 2019) a 100.00p 98.00p
Value at 30 June 2025 b 73.40p 99.46p
Benefit of reinvesting dividends c (1.78)p 2.81p
Dividends paid from IPO to 30 June 2025 d 26.77p 26.77p
Total returns from IPO to 30 June 2025 (b+c+d)/a -1 (1.6)% 31.7%
Dividend cover
Dividend cover is calculated using net operational cash flows from the
portfolio after debt service and company and intermediate holding company
expenses, as follows:
Six months ended Six months ended
30 June 2025 30 June 2024
Net operational cash flows (£'000) 20.0 22.6
Dividends declared (£'000) 16.8 17.0
Dividend cover 1.19x 1.33x
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