Greencoat Renewables almost doubles profit in six months

Renewable infrastructure company Greencoat Renewables almost doubled its profit in the first half of the year when compared with the six months previous, its interim results show.

The company made a profit after tax of €22.7 million in the six months to June 30th, 2021, as against €13.3 million in the six months to December 31st, 2020.

The group’s revenue for the period was €73 million, while it recorded a net cash generation of €32 million.

The company declared total dividends of 3.03 cent per share with respect to the first half of the year. Its aggregate group debt at June 30th was €693.3 million, equivalent to 48.1 per cent of gross asset value.

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Commenting on the results, Rónán Murphy, non-executive chairman of Greencoat Renewables, said it had been a successful period for the group.

“The past six months have been a successful period for Greencoat Renewables, marked by a strong operational performance and continued expansion into Europe, including our first investment into the Nordic market,” he said.

“The business continues to deliver enhanced value from the existing portfolio and I am pleased with the progress made across a number of strategic initiatives.

“These include a significant corporate PPA at attractive terms, evidencing the maturing market for contracted renewable power, and the construction of our first co-located battery project.

“The overall outlook for the company remains positive, with good dividend cover, appropriate gearing, and the ability to pursue a strong near and medium term pipeline of opportunities in both Ireland and Europe.”

Wind resource

Portfolio generation for the six months was 11 per cent below budget, producing 745GWh in the period. This was a result of lower wind resource, with availability, constraint, and curtailment in line with or above expectations.

Electricity demand increased over the period as Europe continued to recover from the pandemic.

Power prices in Ireland have “recovered strongly”, the group said, and the forecast for power prices is expected to “track close to the Refit reference price for the next 12 months”.

The group’s portfolio benefits from market price upside, where the average capture power price is above the Refit strike price. “We have also seen a more modest uplift in the medium-term power price forecasts,” it added.

Cash balances, which include the group and the SPV wind farms, was €49.2 million, which was an increase of €7.8 million over the six months.