Greencoat Renewables returns to profit despite below-budget generation

Greencoat Renewables ($GRP) reported a €11.9 million first-half profit after tax, compared with a €68 million loss a year earlier. Net cash generation of €59.8 million covered dividends 1.6 times, and distributions paid or declared totaled 3.41 cents per share. Electricity production reached 1,851 GWh, although weaker wind conditions left generation 6% below budget.

NAV per share fell to 97.2 cents from 99 cents at the preceding year-end. Group debt was €1.203 billion, or 53.3% of gross asset value. A new short-term German power-purchase agreement subsequently increased its illustrative five-year contracted cash-flow coverage to 75%. The report combines improved accounting profit and dividend coverage with continuing production variability, leverage and valuation pressure.

Sources:

• Greencoat Renewables — interim results