The Renewables Infrastructure Group ends year on a high

Renewable energy-focussed investment firm The Renewables Infrastructure Group issued its results for the year ended 31 December on Tuesday, reporting “strong” financial performance, with portfolio generation close to budget at 2,011GWh, up from 1,766GWh year-on-year.

The FTSE 250 firm said its net asset value per ordinary share stood at 108.9p at year-end, rising from 103.6p, with the directors' portfolio valuation improving to £1.27bn from £1.08bn following new acquisitions.

Total return for the year was 11.6%, and was now 7.8% since its initial public offering on an annualised basis.

Earnings per ordinary share grew to 11.7p from 9.8p, with the company’s profit before tax rising to £123.2m from £90.2m, which the board said reflected the uplift in its portfolio valuation.

Its declared dividends of 6.50p per share were in line with the target for 2018, and were up from 6.40p year-on-year.

The board said an aggregate dividend of 6.64p was targeted for the year ending 31 December 2019 - a 2.2% increase.

Looking at the portfolio, TRIG said its generating capacity increased by 33% to 1,110MW, with a total of 62 portfolio projects in the UK, Ireland, France and Sweden.

Four construction projects commenced operations during the year, with an aggregate generating capacity of 67MW.

TRIG also made its first investment in the Nordic region during the period, with the acquisition of the Ersträsk wind farm in Sweden.

On the funding front, it raised £236m of new equity capital before issue costs, and extended its revolving acquisition facility to £340m, with lending capacity provided by existing lenders RBS, NAB and ING.

“2018 is TRIG's fifth year of operations and was another strong year,” said chairman Helen Mahy.

“Once again, we have been able to deliver attractive returns to our investors with a total net asset value and dividends return in the year of 11.6%.”

Mahy said the period saw ongoing diversified growth through acquisitions, good asset availability and healthy levels of cash generation.

“In the years ahead we are confident of TRIG's ability to continue to provide its investors with long-term, sustainable dividends whilst contributing to a lower carbon future.”

Richard Crawford, director of infrastructure at TRIG’s investment adviser InfraRed Capital Partners, added that he was “pleased” to report another year with good asset performance and increases in the scale and diversification of the portfolio.

“With a strong pipeline of potential acquisitions, we have today announced that we are planning the launch of a fresh share issuance programme in the coming weeks,” Crawford said.

“Over the longer term, we believe TRIG is well placed to take advantage of the drive towards global decarbonisation and continued investor appetite for long-term yield.”