REG - Octopus Renewables - Q2 2025 Factsheet and Net Asset Value

Octopus Renewables Infrastructure TrustAnnouncement

04/08/2025 07:00

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RNS Number : 7157T  Octopus Renewables Infra Trust PLC  04 August 2025

4 August 2025

 

LEI: 213800B81BFJKWM2JV13

 

Octopus Renewables Infrastructure Trust plc

("ORIT" or the "Company")

 

Q2 2025 Factsheet and Net Asset Value

 

Octopus Renewables Infrastructure Trust PLC, the diversified renewables
infrastructure company, announces that its unaudited Net Asset Value ("NAV")
as at 30 June 2025, on a cum-income basis, was £540.4 million or 99.46
pence per Ordinary Share (31 March 2025: £560.5 million or 101.62 pence per
Ordinary Share).

 

                                                              Pence per Ordinary Share*  £m
 Unaudited NAV as at 31 March 2025                            101.62                     560.5
 Power prices and green certificates                          (1.20)                     (6.6)
 Macroeconomic assumptions                                    0.83                       4.6
 Share buybacks                                               0.41                       (5.9)
 Updates to developer valuations                              (1.04)                           (5.7)
 Q1 2025 interim dividend                                     (1.54)                           (8.5)
 Other movements                                              0.39                             2.1
 Unaudited NAV as at 30 June 2025                             99.46                      540.4

 

* Totals may not sum exactly due to rounding

 

Power prices and green certificates

 

Net movements in power prices and green certificates reduced NAV by £6.6
million over the quarter. 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 31 March 2025 valuations. The annual
extension is a standard part of ORIT's valuation approach, ensuring 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.

 

In addition, medium- to long-term power price forecasts declined across most
markets, with the exception of Ireland and Finland, further contributing to
the overall valuation reduction.

 

These headwinds were partially mitigated by ORIT's high level of contracted
revenues. As at 30 June 2025, 85% of the Company's forecast revenue over the
next 24 months is fixed or contracted, up from 84% at the end of March. This
high degree of revenue visibility continues to provide meaningful protection
against short-term market volatility.

 

The impact of falling power prices was partially offset by an uplift in
valuations driven by revised medium- to long-term forecasts for green
certificate pricing, including Renewable Energy Guarantees of Origin
("REGOs") and Guarantees of Origin.

 

Macroeconomic assumptions

 

Macroeconomic updates contributed positively to valuations during the quarter.
In particular:

·    The planned reduction in Finland's corporate tax rate from 20% to 18%
(effective from 2027) resulted in a £1.7 million uplift (0.31 pence per
Ordinary Share)

·    Sterling depreciated against the Euro during Q2 2025, contributing a
gross valuation gain of £5.3 million before currency hedging. After
accounting for the portfolio's FX hedges, the net impact of foreign exchange
movements was a gain of £2.8 million.

 

Inflation forecasts across ORIT's jurisdictions remained broadly stable over
the quarter, resulting in a minimal net impact on valuations.

 

The combined impact of updates to macroeconomic assumptions was a net
valuation increase of £4.6 million, equivalent to 0.83 pence per Ordinary
Share.

 

Share buybacks

( )

During 2024, the Company launched a share buyback programme with an initial
tranche of up to £10 million, which was subsequently increased to £30
million.  During Q2 2025, ORIT repurchased 8.2 million shares for
approximately £5.9 million at an average price of 71.9 pence per share. As at
30 June 2025, ORIT had deployed c. £15.4 million of capital for share
buybacks.

 

Following these repurchases, the total number of voting rights in the Company
stood at 543,370,568. The reduction in shares in issue has been accretive to
NAV per share, resulting in an uplift of 0.41 pence in Q2 2025, and a cumulate
increase of 1.1 pence since the programme began.

 

Update to developer valuations

 

During the quarter, the fair value of our investment in Simply Blue Group
("SBG"), a developer focused on offshore wind and sustainable fuels, was
reduced by £5.7 million, bringing the carrying value to £15.1 million. This
reduction reflects a combination of sector-wide headwinds currently affecting
the floating offshore wind industry and the anticipated outcome of advanced
discussions with potential long-term funding partners for SBG's offshore wind
portfolio.

 

The broader floating offshore wind sector has experienced increased pressure
on project economics and investor appetite, which has contributed to a general
softening of valuations for development-stage assets. As is typical in
early-stage infrastructure and clean energy investing, fair value adjustments
are expected as projects mature and market dynamics evolve.

 

In the period, SBG'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.

 

The overall value of ORIT's development portfolio now stands at £35.2
million, compared with an invested cost to date of £39.9 million. The broader
development pipeline continues to mature, with the first projects expected to
reach the key value generation milestone of becoming ready to build in 2026.

 

Other movements

 

An increase of £2.1 million or 0.39 pence per Ordinary Share was recorded
from other valuation movements.

 

This increase reflects a £12.7 million uplift relating to the expected return
on the assets, driven by the net present value of future cash flows being
brought forward from 31 March 2025 to 30 June 2025. However, this gain was
largely offset by lower-than-expected cash generation, principally due to low
wind speeds, a refresh of future Capex and Opex assumptions for some sites,
and fund-level expenses, mainly related to the Company's operating and
transaction costs (including RCF interest).

 

Gearing

 

As at 30 June 2025, ORIT had total gearing (total debt drawn as a percentage
of Gross Asset Value ("GAV"¹) of 46.5%, slightly up since 45.6% at 31 March
2025. The temporary increase reflects the continued execution of the Company's
share buyback programme. ORIT remains on track to reduce total gearing to
below 40% by the end of 2025, supported by scheduled debt amortisation of
project-level term loans and active portfolio management through the ongoing
asset recycling programme.

 

Notes

 

1              "Gross Asset Value" means the aggregate of (i) the
fair value of the Company's underlying investments (whether or not
subsidiaries), valued on an unlevered basis, (ii) the relevant assets and
liabilities of the Company (including cash) valued at fair value (other than
third party borrowings) to the extent not included in (i) or (ii) above.

 

Factsheet

 

The Company's Q2 2025 factsheet has been published today and is available to
download at:

https://www.octopusrenewablesinfrastructure.com/all-reports-publications
(https://www.octopusrenewablesinfrastructure.com/all-reports-publications)

 

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 premium-listed,
closed-ended investment company incorporated in England and Wales 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 £6.8 billion of assets under
management (AUM) (as at 31 March 2025) across 21 countries and with a total
5.0 GW of capacity managed. These renewable projects generate enough green
energy to power 2.6 million homes every year, the equivalent of taking over
1.4 million petrol cars off the road. Octopus Energy Generation is the trading
name of Octopus Renewables Limited. Further details can be found
at www.octopusenergygeneration.com (http://www.octopusenergygeneration.com/)
.

 

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