Greencoat Renewables has reported a modest uplift in net asset value following a recent strategy reset.
The Dublin-listed wind and solar energy group is overhauling its operation to reduce debt and boost shareholder value.
The strategy involves a €100 million share buyback and a series of asset disposals.
In a trading update, the company said net asset value rose by 0.5 cent to 99.5 cent per share or €1.1 billion overall.
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Net cash generation for the first quarter was €45.5 million “in line with budget” despite weaker output.
Generation volumes were 10 per cent down due to “lower wind resources” but this was offset by higher power prices.
“Portfolio’s ability to capture near term power price increases offsetting generation underperformance in Q1,” the company said.
In March, Greencoat announced the launch of a new green digital infrastructure platform along with its first investment, Drogheda Energy Park.
Total debt amounted to €1.2 million. The company also said the initial €25 million share buyback programme was in progress with 7.5 million shares bought back as of the end of March.
“Greencoat Renewables has reported a modest uplift in Q1 net asset value (NAV), reinforcing momentum following its March strategy reset,” Davy said in a research note.
“Underlying portfolio performance remains in line with expectations, with potential upside to full‑year cash generation should recent strength in power price markets persist into Q2," it said.
“While the stock has clearly benefited from its refreshed capital allocation plans (+15 per cent year-to-date), successful execution of planned disposals remains key,” the brokerage said.
