Dublin-listed wind and solar energy group Greencoat Renewables reported a drop in revenue of 5.8 per cent in 2024 as the company generated 10 per cent less energy over the period.
The group said low wind speeds across Europe were mainly to blame for the lower than expected generation, with Finland hit hardest at 14 per cent less than the previous year.
The company’s portfolio generated enough renewable energy to power approximately 775,000 homes, Greencoat said.
In total, 3,443 GWh of clean electricity was generated during the period with total capacity of 1.5GWh across assets in five European countries.
Revenue was €357.2 million, down from €379.2 million a year earlier.
Cash generation for the year was €148.61 million, down from €196.7 million in 2023. That delivered gross dividend cover of 2.0x.
Net asset value per share was 110.5 cents last year, down from 112.4 cents in 2023, with a total return of 4.5 per cent, including dividends paid.
Aggregate group debt was cut to €1.26 billion.
Non-executive chairman Ronan Murphy said the company had put in a strong performance in a year of unsettling macroeconomic headwinds.
“A combination of intensive asset management, a balanced approach to power price risk and a robust balance sheet underpinned cash generation of €148.6 million and 2.0x dividend cover,” he said.
“Importantly, the company’s structural cash generation capacity allowed us to allocate capital in a highly disciplined manner in line with our strategic objectives. Accordingly, in addition to meeting our dividend target for the year, we used operating cash flow and disposal proceeds to make material debt repayments, fund an accretive share buyback and part-fund our sole acquisition.”
Greencoat has also agreed a revision of the terms of the investment management agreement, effective from April 1st. Under the new terms, 50 per cent of the investment management fee will remain based on NAV (net asset value), with the other 50 per cent based on the lower of NAV and market capitalisation.
During the period, the company completed the first asset sale of Kokkoneva wind farm in Finland, and the acquisition of the South Meath solar farm, the company’s first investment into the Irish solar market.
“Overall, the company continues to explore ways in which it can achieve its strategic aims of diversifying its shareholder base and positioning itself to take advantage of growth opportunities as market conditions improve, including the possibility of an additional listing to enhance the company’s profile, improve liquidity and support future growth,” Mr Murphy said.
