REG - Renew Infra Grp Ld - Net Asset Value Update – Q2 2025

Renewables InfrastructureAnnouncement

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RNS Number : 4952T  Renewables Infrastructure Grp (The)  01 August 2025

 

 

1 August 2025

The Renewables Infrastructure Group Limited

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

Net Asset Value update - Q2 2025

TRIG announces an estimated unaudited Net Asset Value as at 30 June 2025 of
108.2 pence per share, a decrease of 4.5 pence per share in the quarter
principally due to a reduction in revenue forecasts (-4.4p).

Dividend cover for H1 2025 was 2.2x gross or 1.0x net after the repayment of
£105m portfolio-level debt across the Group. A further c. £85m
portfolio-level debt is scheduled to be repaid in H2 2025.

The Board reaffirms the dividend target for 2025 of 7.55p per share for FY
2025(1). Low generation as a result of particularly poor wind speeds in H1 can
be expected to impact H2 cash flows meaning that covering the FY 2025 dividend
may be tight.

Q2 2025 movements in Net Asset Value per share

The key drivers of the movement in NAV per share over the quarter are
summarised in the table below:

                                       Net Asset Value  Positive Movements  Negative Movements

                                       (p / share)      (p / share)         (p / share)
 NAV per share at 31 March 2025        112.7
 Q2 performance                                                             (1.0)
 Changes to revenue forecasts                                               (4.4)
 Value enhancement and share buybacks                   1.0
 NAV per share at 30 June 2025(2)      108.2*

*Balance does not cast due to rounding

Q2 performance

Generation was 6% below budget for the quarter driven by continued poor wind
resource in the UK, France and Germany, partially offset by good wind resource
in Sweden and strong solar resource in the UK; and 10% below budget in
aggregate for the portfolio in H1 2025. Overall, underlying asset performance
was consistent with budgets.

A fault on one of the two Beatrice offshore wind farm export cables occurring
in Q2 2025 was repaired in July, prior to which output had been largely
redirected via the offshore transmission owner's remaining cable to minimise
losses. Commercial protections are in place.

Power price levels achieved in the quarter were broadly on budget across the
portfolio.

Actual inflation continues to be marginally above TRIG's assumptions for 2025.

Sterling continued to weaken against the Euro in the quarter, increasing the
value of Euro denominated investments. FX hedges slightly reduced the
favourable impact from this movement.

Changes to revenue forecasts

TRIG uses the average of three leading power price forecasters' projections.
These are adjusted for the lower price that a variable renewables project
captures compared to a baseload generator and the resulting discount is known
as cannibalisation(3). This means that TRIG captures the breadth of views on
the evolution of the electricity market and supply demand dynamics. This is
important as forecasters' views may diverge.

Of particular note in this period, the lowest of the three forecasters used by
TRIG has materially reduced their expectations for the growth of electricity
demand resulting in lower power price projections. Of the other two
forecasters, one broadly maintained price levels and the other slightly
increased their projections overall, thus increasing the spread of power price
forecasts. The additional caution introduced by the lowest forecaster during
Q2 2025 is estimated to have negatively impacted NAV by c. 2.5p per share. The
potential impact on projected portfolio returns from the spread of forecasts
around the mid-point adopted by TRIG has:

·      increased from (-0.8% p.a. to +0.9% p.a.) at December 2024 to
(-1.4% p.a. to +1.0% p.a.) at June 2025 for the portfolio as a whole; and

·      increased from (-1.5% p.a. to +1.5% p.a.) at December 2024 to
(-2.2% p.a. to +1.6% p.a.) at June 2025 for the GB wind portfolio in
isolation.

Value enhancement

One of TRIG's differentiating characteristics is the benefit secured through
InfraRed's and RES's active management of TRIG's portfolio to enhance value
for shareholders and reduce the impact of the macro environment and external
factors on the portfolio valuation. This process was described in detail at
the Company's Capital Markets Seminar in May 2025, a recording of which can be
found on the TRIG website. This includes the following areas:

·      Debt capacity and portfolio rotation

Debt issuance and further strategic disposals continue to be pursued, with the
aim of raising £300m in 2025. During the quarter, progress has been made in
converting £150m of floating-rate debt drawn on the Company's RCF to
long-term, fixed interest rate debt, with NAB and NatWest appointed as joint
placement agents to the Company.

·      Operational enhancements

TRIG continues to harness RES's operational and commercial capabilities to
enhance and optimise performance of existing assets. During the quarter the
positive impact of technical enhancements relating to turbine hardware and
software upgrades on several projects across the portfolio, added £19m (0.8p
per share) to portfolio valuation.

·      Development and construction

Construction of the Ryton battery storage project in the UK remains on time
and on budget with all batteries having arrived on site and installation
having begun ahead of energisation towards the end of the year.

The final investment decision for the repowering of the Cuxac onshore wind
farm in France was approved, which will see the site benefit from a new
20-year inflation-linked Feed-in-Tariff and its generation capacity doubled
from 12MW to 25MW, as the six existing turbines are replaced with six new and
larger turbines.

·      Revenue management

The management team continues to progress securing a 10-year corporate PPA for
2% of the Group's annual generation at a price consistent with TRIG's long
term power price forecast, which is expected to be signed in Q3 2025.

Share buybacks

As at 31 July 2025, £66m of the current £150m share buyback programme has
been deployed in the repurchase of TRIG shares. During the quarter to 30 June
2025, 21m shares were repurchased for an aggregate consideration of £17m.
Share buybacks added 0.2p per share to NAV in the quarter.

(1) Past performance is not a reliable indicator of future results. There can
be no assurance that targets will be met or that the Company will make any
distributions, or that investors will receive any return on their capital.
Capital and income at risk.

(2) NAV per share at 30 June 2025 presented after unwind of the discount rate,
company costs and payment of the quarterly interim dividend.

(3) Cannibalisation describes the effect that renewables (a variable
generator) can have on the overall power prices, whereby the marginal cost of
generation, which in turn drives the power prices, is lower than the average
which would be expected of a continuous base load generator as a result of the
additional supply when renewables are generating. Rates differ over time and
between markets but all are affected.

Enquiries

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

Minesh Shah

Phil George

Mohammed Zaheer

 

Brunswick
+44 (0) 20 7404 5959 / TRIG@brunswickgroup.com

Diana Vaughton

Charles Malissard

 

Investec Bank
Plc
+44 (0) 20 7597 4000

Lucy Lewis

Tom Skinner

 

BNP
Paribas
+44 (0) 20 7595 9444

Virginia Khoo

Carwyn Evans

Notes

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 markets in Europe with a net operational capacity of 2.3GW; enough
renewable power for 1.6 million homes and to avoid 2.0 million tonnes of
carbon emissions per annum.

 

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 asset manager,
with more than 160 professionals operating worldwide from offices in London,
New York, Madrid, Germany,(2) Sydney and Seoul. Over the past 25 years,
InfraRed has established itself as a highly successful developer and steward
of infrastructure assets that play a vital role in supporting communities.
InfraRed manages US$13bn of equity capital(1) for investors around the globe,
in listed and private funds across both core and value-add strategies.

InfraRed is part of SLC Management, the institutional alternatives and
traditional asset management business of Sun Life.

For more information, please visit www.ircp.com. (https://www.ircp.com)

 

(1) Uses five-year average FX as at 31 December 2024 of GBP/USD of 1.2818;
EUR/USD 1.1092.

(2) Being launched in 2025

 

Operations Manager

TRIG's Operations Manager is RES ("Renewable Energy Systems"). RES is the
world's largest independent renewable energy company, working across 24
countries and active in wind, solar, energy storage, biomass, hydro, green
hydrogen, transmission, and distribution. An industry innovator for over 40
years, RES has delivered more than 24GW of renewable energy projects across
the globe and plans to bring more than 22GW of new capacity online in the next
five years.

As a service provider, RES has the skills and experience in asset management,
operations and maintenance (O&M), and spare parts - supporting 41GW of
renewable assets across 1,300 sites. RES brings to the market a range of
purposeful, practical technology-based products and digital solutions designed
to maximise investment and deployment of renewable energy. RES is the power
behind a clean energy future where everyone has access to affordable zero
carbon energy bringing together global experience, passion, and the innovation
of its 4,500 people to transform the way energy is generated, stored and
supplied.

Further details can be found on the website at www.res-group.com
(http://www.res-group.com/) .

 

 

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