REG - Renew Infra Grp Ld - Net Asset Value - Q1 2023

Renewables InfrastructureAnnouncement

04/05/2023 07:00

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RNS Number : 3348Y  Renewables Infrastructure Grp (The)  04 May 2023

 

 

4 May 2023

The Renewables Infrastructure Group Limited

"TRIG" or "the Company", a London-listed investment company advised by
InfraRed Capital Partners ("InfraRed") as Investment Manager and Renewable
Energy Systems ("RES") as Operations Manager

Net Asset Value - Q1 2023

TRIG announces that its estimated unaudited Net Asset Value as at 31 March
2023 is 134.8 pence per share, an increase of 0.2p to the Company's last
announced audited Net Asset Value as at 31 December 2022.

 

The key drivers of this movement in Net Asset Value per share are summarised
in the table with further details following:

 

                                                        Net Asset Value (pence per share)  Positive Movements  Negative Movements
 NAV per share at 31 December 2022                      134.6p
 Q1 generation & power prices compared to forecast                                                             (1.2)p
 Q1 inflation compared to forecast                                                         +0.4p
 Reduction in forecast power prices                                                                            (0.9)p
 Increase in forecast REGO prices                                                          +1.2p
 Value enhancements                                                                        +0.7p
 NAV per share at 31 March 2023                         134.8p

 

Q1 generation & power prices compared to forecast

Generation has been slightly below budget and achieved power prices have also
been lower than forecast at 31 December 2022, mitigated by higher realised
Renewable Energy Guarantees of Origin certificate (REGO) prices, resulting in
a negative impact of 1.2p/share. The impact of lower than forecast power
prices during the period is reduced by government interventions ("windfall"
taxes) provided for in the 31 December valuation as power prices generally
have remained above tax thresholds.

 

Q1 inflation compared to forecast

Actual inflation in the markets in which TRIG has investments has been ahead
of forecasts for the first quarter, resulting in positive movement of
0.4p/share. The Company's valuation assumptions for the remainder of 2023 and
thereafter are unchanged (at the annualised rates of UK RPI 5%, UK CPI 4.25%,
Eurozone 3% reducing to 2.75%/2%/2% respectively for 2024).

 

Over the next 10 years, 54% of the Company's forecast revenues per unit of
generation is directly indexed to inflation.

 

Reduction in forecast power prices

Across TRIG's markets, short and medium term power price forecasts have
decreased significantly, however they remain close to or above the thresholds
of the windfall taxes introduced in 2022. Accordingly the reductions in power
price forecasts have had the effect of reducing the taxes assumed to be
payable to governments, materially sheltering the effect of the reduction in
forecasts on the Company's NAV.  In addition the high level of fixed income
offered by TRIG's portfolio (estimated at 65% for 2023 as a whole) further
protects the NAV from power price falls. Longer-term forecasters have
generally remained at or slightly above previous forecasts for wholesale
prices adopted by the Company at 31 December 2022.

 

The overall impact was a reduction of 0.9p/share.

 

Increase in forecast REGO prices

Renewable Energy Guarantees of Origin is a UK Scheme whereby certificates
(REGOs) are issued to generators of renewable electricity that are sold to
purchasers to demonstrate that the electricity they are using has been
generated from renewable sources.

Pricing for these certificates has been performing well ahead of previously
forecast assumptions having increased significantly over the last year or so
and forecast prices have been updated to reflect this. The impact of this
change in forecasts increased the NAV per share by 1.2p/share.

 

Value enhancements

Power price risk management delivered 0.7p/share of value enhancement in the
period. This follows the Corporate PPA signed for Blary Hill onshore windfarm
in the UK announced in March, where a 10-year price was agreed, together with
other power price fixes.

 

Enquiries

InfraRed Capital Partners Limited
+44 (0) 20 7484 1800

Richard Crawford

Phil George

Minesh Shah

Mohammed Zaheer

 

H/Advisors
Maitland                                             +44
(0) 20 7379 5151

Charles Withey

 

Investec Bank Plc
                                               +44
(0) 20 7597 4000

Lucy Lewis

Tom Skinner

Denis Flanagan

 

BNP Paribas
                                                       +44
(0) 20 7595 9444

Virginia Khoo

Carwyn Evans

The Company

The Renewables Infrastructure Group ("TRIG" or the "Company") is a leading
London-listed renewable energy infrastructure investment company. The Company
seeks to provide shareholders with an attractive long-term, income-based
return with a positive correlation to inflation by focusing on strong cash
generation across a diversified portfolio of predominantly operating projects.

TRIG is invested in a portfolio of wind, solar and battery storage projects
across six countries in Europe with aggregate net generating capacity of over
2.8GW; enough renewable power for 1.9 million homes and to avoid over 2.4
million tonnes of carbon emissions per annum. TRIG is seeking further suitable
investment opportunities which fit its stated Investment Policy.

 

Further details can be found on TRIG's website at www.trig-ltd.com
(http://www.trig-ltd.com) .

 

Investment Manager

 

InfraRed Capital Partners is an international infrastructure investment
manager, with more than 180 professionals operating worldwide from offices in
London, New York, Sydney and Seoul. Over the past 25 years, InfraRed has
established itself as a highly successful developer and custodian of
infrastructure assets that play a vital role in supporting communities.
InfraRed manages US$14bn+ of equity capital(1) for investors around the globe,
in listed and private funds across both income and capital gain strategies.

A long-term sustainability-led mindset is integral to how InfraRed operates as
it aims to achieve lasting, positive impacts and deliver on its vision of
Creating Better Futures. InfraRed has been a signatory of the Principles of
Responsible Investment since 2011 and has achieved the highest possible PRI
rating(2) for its infrastructure business for seven consecutive assessments,
having secured a 5 star rating for the 2021 period. It is also a member of the
Net Zero Asset Manager's Initiative and is a TCFD supporter.

InfraRed is part of SLC Management, the institutional alternatives and
traditional asset management business of Sun Life. InfraRed represents the
infrastructure equity arm of SLC Management, which also incorporates
BentallGreenOak, a global real estate investment management adviser, and
Crescent Capital, a global alternative credit investment asset manager.

www.ircp.com (http://www.ircp.com/)

 

(1) Data as at Q3 2022. Equity Capital is calculated using a 5-year average FX
rate.

 

(2) Principles for Responsible Investment ("PRI") ratings are based on
following a set of Principles, including incorporating ESG issues into
investment analysis, decision-making processes and ownership policies. More
information is available at https://www.unpri.org/about-the-pri
(https://www.unpri.org/about-the-pri)

 

Operations Manager

 

TRIG's Operations Manager is RES ("Renewable Energy Systems"), the world's
largest independent renewable energy company.

RES has been at the forefront of wind energy development for over 40 years,
with the expertise to develop, engineer, construct, finance and operate
projects around the globe. RES has developed or constructed onshore and
offshore wind, solar, energy storage and transmission projects totalling more
than 23GW in capacity. RES supports over 12GW of operational assets worldwide
for a large client base. Headquartered in Hertfordshire, UK, RES is active in
11 countries and has over 2,500 employees engaged in renewables globally.

RES is an expert at optimising energy yields, with a strong focus on safety
and sustainability. Further details can be found on the website
at www.res-group.com (http://www.res-group.com/) .

 

 

 

 

 

 

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