Thursday 17 October 2019

Greencoat swings into profit in 2018

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Ellie Donnelly

Ellie Donnelly

Dublin-listed Greencoat Renewables has reported a profit of €43.5m for 2018, a swing on the loss of €2.5m reported in 2017.

Income at the group rose to €58.4m in 2018, from €14.5m the previous year, according to annual results from Greencoat.

The group’s net cash generation stood at €23.1m.

Greencoat has increased its 2019 target dividend to 6.03 cent per share.

Last year the company delivered dividends of 6.0 cent per share, paying dividends of €17.9m. Greencoat had market capitalisation of €391m at year end.

Meanwhile, the group increased its generating capacity to 384MW in 2018 from 137MW.

In what was the first set of results for a full year following Greencoat Renewable's listing in July 2017, the company’s assets generated 440.5 giga watt of electricity in 2018, which was 9pc below budget primarily due to low wind speeds.

Ronan Murphy, chairman of Greencoat Renewables, said: "The past 12 months have been transformational for the company, delivering on all of our strategic goals and diversifying the portfolio, whilst continuing to achieve operational excellence.”

“The secondary market for wind assets in Ireland has been very active with a number of value accretive opportunities sought and executed, growing our asset base from two to 12 wind farms and our capacity from 137MW to 384MW. We continue to see a significant aggregation opportunity for the business.”

Looking forward the company said the Irish wind market remains “very attractive” with a stable and supportive regulatory regime.

Wind remains the dominant renewable technology and Greencoat is in an “excellent position” to benefit as wind becomes an increasing proportion of Ireland's generation mix, it added.

Separately the group has proposed the placing of approximately 100 million new shares under a share issuance programme to finance acquisition and attractive M&A pipeline in Ireland.

The shares will be placed at a price of €1.055 per share. This price represents a discount of 3.2pc to the closing share price on 1 March 2019 and a premium of 2pc to the last reported net asset value of 103.4 cent per share.

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