Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
To invest mostly in operating UK wind farms with the aim to provide investors with an annual dividend that increases in line with RPI inflation while preserving the capital value of its investment portfolio.
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Gavster,
I've been keeping a close eye on Next Energy. I feel that maybe worth a punt as it's hit an all time low, and it's got a healthy dividend.
Sorry all for the unrelated topic.
I bought a significant amount today at just below 128p. I like the protection from inflation, so I sold something which was more vulnerable to inflation to buy these.
All renewable energy stocks are down, because the price of gas (and therefore electricity) has plumetted back to pre-covid levels. But I reckon UKW will do OK even if we don't see any more windfall profits.
Ex-div today: 3.43p /share payable on 29th Feb. Already recovering from the original drop this morning.
Dividend.. Always falls in line.. Panic NOT
Plenty of high yielding ftse shares are having a dire time lately, as it seems most investors are staying away from the market or piling into the overpriced U.S market.
If earnings are strong, just keep buying the dips.
Below 130p I'd rate UKW as a buy
Buying back shares is their way of covering up their poor performance !
Their salaries are not at the expense of the share price, especially since the company are doing a daily buyback, but I understand the sentiment if one bought shares and the capital has now been depreciated with the recent sell off. I am in the same boat and It has happened across the sector. Bluefield (BSIF) have announced a share buyback program today as they also have a large discount to NAV. I would not be surprised if Next Energy follows, as their share price is also been sold down.
This really is a dire time for UKW.
This is yet another company for the directors to take excessive salaries at the expense of the share price.
Greencoat are hosting a Capital Market Events to potential investors and analysts on 01/05/2024.
I was hoping to find out of names of investors who had registered to attend but I can't find that info out.
If anyone else is aware, I'd be grateful if you could share.
ATB.
Buybacks, increase in q4 div, going as cheap as chips!
Https://uk.finance.yahoo.com/news/dividend-stock-blew-away-151720882.html
For some reason there is a lot of selling going on today in the tens of thousands of shares bracket.
I know the annual results are due this month so maybe some people are betting on them being not great?
UWK just bought back 200k shares, and lots of 15-20k buys on the live trades. This is the ..786 pullback from the October lows and VERY oversold on RSI. Nice div coming up this month and 10p next year apparently. Just topped up a little, but Bond ETFs and dropping dates offers a lot more potential capital gains.
If we see 131p I'll top up some more.
Interesting article:
https://www.pensionsage.com/pa/Majority-of-UK-pension-schemes-expected-to-increase-renewable-allocations.php?utm_source=jsrecent
Anyone selling UKW should really have sold out above 150p.
I'm in for the long haul & hopefully this is another safe dividend bet for retirement (I'm 54) & i'll add more shares in my ISA if the SP goes to 130p or below when my monthly payment is made.
As much as I love thos share, as soon as the ex dividend date comes on 15/02, I'm selling up.
I can only see the share price pulling back while they buy back their own shares, and then they may look to raise funds are start investing again in new projects.
I've been invested here for a long time, and I've picked up a few grands worth of dividends over the last 5 years, but I have my own commitments with cash this year, and I need this money.
This company has a great future, and I know later down the line I'll regret selling out, but share investing is a financial hobby and now I need my £30k back.
ATB folks.
Apologies -I woke up, thought is the net cash is low because of buybacks, then read the budget update (0.9) as buybacks and thought that the numbers looked more in keeping with what I was expecting for net cash, it will teach me to have breakfast and find my glasses before I post anything!
I agree the 0.1 is most likely because they have purchased beneath the nav.
However, this then leads back to why was net cash so low for the last quarter? I thought that mentioning production was 13% down for year was a bit of a deflection as the results were all about Q4 where wind speeds were around average.
P.S. Oops, that should have been "... cash spent on share buybacks is not deducted from..." If it is, then I think they've made a mistake, since such a deduction would make no sense, as far as I can see.
Buybacks at NAV would have no effect on the NAV per share. As they've been done below NAV they've increased the NAV per share, and I believe that's recognised by the listed +0.1p for 'Share buybacks'. I'm pretty sure that cash from buybacks is not included in 'Net cash generation'.
Actuary63,
If we accept the assumptions in the NAV model, then reinvestment of surpluses should cover the replacement of existing assets. Alternatively (if accretive investment opportunities are not available) the surpluses could be paid out as extra dividends, allowing shareholders to invest elsewhere to replace the eventual loss of dividend income as the assets wear out.
Personally, I think the best way to value UKW shares is to look at its DCF NAV calculation, and ask whether its assumptions are reasonable. If they are, then the expected return on the current assets is 10% p.a. Any accretive investment would be a bonus on top of that. (Of course, with this approach I have to assume that they've done their DCF maths correctly, as I'm not going to check it myself!)
It is a topic that comes up at some of the conference calls.
June 2022 report pg12 (it is in others).
'Over the life of the portfolio, fixed cashflows are forecast to contribute 50 per cent of the total DCF value
(50 per cent merchant).'
Monkshood,
PPAs are 'merchant pricing', but it looks like I was mistaken in assuming that PPAs are at fixed (predetermined) prices. They can be 'variable', which I think means linked to current market prices.
I don't know whether the market prices they are linked to are 'spot' prices. But this link shows spot prices over the last year:
https://tradingeconomics.com/united-kingdom/electricity-price
FWIW the spot prices in Q4 look like they were no lower than in the previous 2 quarters.