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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Started: Shaun_LSE, 30 May 2024 12:01
Last post: Gavster-NBC, 11 Jun 2024 17:36
Not that interesting IMO. "The trust generated net cash of 5.5p per share over the quarter."
That's 22p a year if annualised, not 5p. With 2.29 billion shares, that's equivalent to £126m a quarter, or £504m annualised. They can easily afford the buyback of less than £14m a quarter.
https://www.lse.co.uk/rns/UKW/flash-update-from-kepler-trust-intelligence-xrvykhxnxj292wf.html
Greencoat UK Wind (UKW) has released its net asset value (NAV) update for the first quarter of 2024. The trust announced a NAV of 160.0p per share for the end of March, marking a small 0.4% decline on the 164.1p per share at the start of the year.
The NAV decline was largely due to lower-than-expected power generation. This was due to lower availability, including an outage at the Hornsea 1 facility, and lower wind speeds.
The trust generated net cash of 5.5p per share over the quarter.
UKW continued its £100m buyback scheme into the quarter as well. The trust repurchased 13.8m shares during the quarter. Buybacks have now totalled 20.4m shares at a cost of £28m since being announced in October of last year.
The trust's strong cash generation mean it is well-placed to continue growing without tapping equity markets. Cash holdings totalled £250m at the end of March, with an additional £200m available via the trust's £600m credit facility.
This is interesting... NAV is 163p. But EPS is down to 5. They borrowed 500 million, perhaps for these buybacks? And have 1290 million liability.
Why would they take out such debt when rates are so high?
Well they must have a lot of cash lying about for all of these buybacks. CEO's haven't sold anything.
Took this drop to reinvest my dividends and buy back a small proportion of those I sold at 145p.
Let’s hope UKW doesn’t become the equivalent of an over indebted commercial property company and forced into a fire sale. The buyback won’t look so clever then.
Hello Shaun_LSE,
Eps is very volatile for these trusts because it includes changes in the value of the net assets, as assessed by the investment manager, as well as the cash generated over the year. These changes in net asset value can be positive or negative and quite large compared with one year's operating profit. Hence eps was 41p in 2022 and 5p in 2023. IMO it's more useful to look at the cash generated over the year in relation to the dividend declared.
The trust has been buying back its own shares because it believes, rightly in my view, that the shares are undervalued by the market. I doubt the impact on the share price has been great, given that less than 1% of the shares have been repurchased to date. If you're going to invest in anything other than an index-tracker, you've got to have an opinion on what the fundamental value of the share is.
Last post: spindok, 31 May 2024 13:14
I checked back and my first purchase was in March 21. Shares then were 138p. I have consistently added since today the sp is almost the same. I traded two small lots and took some dividends in cash but over all my upside is over 35 per cent. The latest dividend is being taken in shares and has not been included . Overall I am quite happy with the performance and have a sizeable holding for me. I just wish LSE would update their diary as no dividend is shown for payment today!!
Last post: Gavster-NBC, 16 May 2024 16:24
SP has done well today. Ex-div or 2.5p, and only down by 2p.
This too is down on dividend ... I would prefer if it stayed at this level until the dividend is paid as take it in shares and will get more...
Started: get_rich_quick, 31 Mar 2024 15:25
Last post: Troajan, 3 May 2024 16:04
You can't rely on the yield figure from DividendMax. I suspect they base it on their own automated estimate of the next year's dividends, and their robot probably doesn't realise that this year's total dividend is already fixed at 10p.
I usually do my own yield calculation.
Yes sotonspike, that agrees exactly with my figure. Of course if the share price changes significantly tomorrow, the yield will change as well!
"Chatroom" still hasn't explained how he/she is getting the figure of 6%, though.
Sorry should have said on HL it's 7.03% ...Hope that sorts that out.....
Thanks for putting me right I was only quoting what I read.....Should have added on HL the dividend is quoted at 7.3% ....
Started: Chatroom, 1 May 2024 07:24
Last post: Corryvreckan1, 1 May 2024 09:05
That UT trade is the Uncrossing Trade from the closing auction at end of day, so that's buyers and sellers both coming together to match as many shares as possible at an agreed price. UKW only bought 50,000 of the total shares during the auction, at a price of 139.90, because someone else was willing to sell them at that price.
But the market never reports the direction of a trade, it just reports it as 'a trade', and every trade must be both a buy and a sell or it wouldn't happen. The Buy/Sell indicator on here and other sites is just running an algo trying to guess what the origin of the trade was. It does that based on the where the trade price is within the spread - below mid and it marks it as a 'sell', above and it's marked as a 'buy', in the middle it can't 'guess' so it's marked as unknown (late reported trades are also marked a unknown). It's also highly fallible and best ignored most of the time.
This trade at the end of the day.
30-Apr-24 16:35:15 139.90 664,019 Sell 140.20 140.40 928.96k UT.
Can be seen by UKW in the UKW live news in the tab above as a buy back.
So purchased buy UKW and not a sell.
Is this the normal way for it to be shown in trades or just a fault ????
GLA LTH
Started: Troajan, 29 Feb 2024 14:56
Last post: newyorksaint, 28 Apr 2024 20:02
In terms of growth I am a bit surprised he mentions Hydrogen production over vanadium redox flow battery storage
Well done
Good future
Started: MikeM14, 24 Apr 2024 20:47
Last post: Chatroom, 26 Apr 2024 19:18
MikeM14.
Thank you
Hi Chatroom,
No, it's a bit more fundamental than which stock exchange the shares are listed on. Basically what the 11% have voted for is that the company (UKW) should cease to exist in its present form and be restructured or even wound up, so all assets (ie the various wind farms) would be sold off, and UKW would just be a pile of cash that then gets distributed to all the shareholders in proportion to how many shares they own. The company's Articles of Association basically require that such a vote takes place in any financial year in which the share price is at a discount of more than 10% to the Net Asset Value. If you want any more detail, probably best you go on the UKW website, find the recent Notice of AGM, and read the resolution in full rather than risking me misquoting any of it.
Is That a case of there are quite a few share holders promoting other exchanges in favour of the London Exchange?
It seems to me a bit worrying that, at the recent AGM, there were so many votes (some 11%) for discontinuation of UKW as a company! I wonder how many of them didn't read the resolution properly before voting. Whilst the discount to NAV is still significant, UKW is far from alone in that amongst infrastructure/renewables investment trusts. I've seen continuation votes in AGMs of some of my other IT holdings, and there certainly weren't votes for discontinuation that were anything like as high as this!
Because people don't seem to realise that higher inflation is actually a good reason to buy funds like UKW which have good inflation protection! They'd rather own bonds that pay a very low real (inflation-adjusted) yield.
Inflation & interest rates to go up! thats why!
Why price plunging?
The wind has been blowing non stop for weeks here. The turbines are flying.....
Thanks Gerry. Will check settings which I guess also would be cash.
I would check what you have selected on your brokers settings. I expected you have cash selected. It will also just sit there again unless you have selected it to be paid automatically.
This might take up to a few working days depending on the broker.
My first div due for these apparently today? , do they pay money or in shares?
Last post: tichtich, 29 Feb 2024 09:34
Well, I think they decided to increase the 2024 dividend by more than RPI, and then for some reason decided to give shareholders an extra bonus and make up the 2023 dividend to the same amount as 2024, by having an extra large 2023 final dividend. Now they don't want people interpreting this as meaning that they've failed in their policy of increasing their dividend by RPI every year, when in reality they've increased it by more than RPI over this period. Personally, I think they should have just stuck with the existing policy.
I doubt that they will increase the dividend any more in 2024, given the big fall in power prices that's been happening.
They dont make it easy to register for the conference call. So many hoops to jump through and so many technical issues.
Yes as expected really. Although I find it funny how they mention the dividend. Its 10p target, same as last year so instead of saying "flat" they focus on the "target dividend"
10p dividends declared in 2023, increase on 8.76p target
2024 dividend target 10p, 14.2% increase on 2023 target
Of course if things go well it could be upped and my flat comment would be mute
Results look very good, couldn't have done much more
Started: get_rich_quick, 27 Feb 2024 12:48
Last post: get_rich_quick, 27 Feb 2024 12:48
All the best on here, chaps.
I've decided to sell all of my holding, which has been a painful thing, as I've been very attached to UKW.
I've been invested here for a long time, and I may mlt have made loads from a share price increase, but I've made healthy dividends along the way.
I've only sold due to other commitments in my life, and as you all know, they must come before squirrelling my money away each month on buying shares.
All the best, and long live UKW. I am sure it will be a bigger success than what it already is.
Started: get_rich_quick, 24 Feb 2024 13:29
Last post: get_rich_quick, 24 Feb 2024 13:29
Last post: tichtich, 20 Feb 2024 12:25
It seems that part of the reason for the current low gas prices is strong wind generation. So for UKW that should partly offset the pain of lower electricity prices, especially given that only about half of UKW's generation is subject to market prices.
From today's Telegraph:
--------------------
Gas prices muted as wind power whirls
Wholesale gas prices have remained subdued amid unusually mild weather and strong wind power generation.
Europe’s benchmark contract was last up 1pc but remains below €24 per megawatt hour after nearing an eight-month low on Monday.
Dutch front-month futures have fallen 40pc since October amid robust wind generation and warm temperatures keeping a lid on demand.
In Britain, wind turbines accounted for more than 45pc of the nation’s energy needs, above 24pc for gas. The UK equivalent gas contract was last up 0.9pc but trading below 59p per therm.
--------------------
Surely that should be "45pc of the nation's electric power needs", shouldn't it?
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
Along with BATS i added more UKW today !
Started: Midgemagoo, 15 Feb 2024 08:55
Last post: get_rich_quick, 15 Feb 2024 11:01
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.
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.
Started: Shaun_LSE, 7 Feb 2024 12:05
Last post: get_rich_quick, 13 Feb 2024 14:14
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!
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.
Started: tichtich, 6 Feb 2024 09:42
Last post: tichtich, 6 Feb 2024 09:42
Started: R9505571, 6 Feb 2024 00:52
Last post: R9505571, 6 Feb 2024 00:52
Started: Treven, 29 Jan 2024 15:04
Last post: TheLoaf, 5 Feb 2024 19:36
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'.
Started: get_rich_quick, 31 Jan 2024 05:57
Last post: get_rich_quick, 31 Jan 2024 05:57
Just wish I had more!!
Hi. UKW is my largest holding, so I obviously think it's good. The 2 main risks I can think of:
1. In the long term there might be a surplus of intermittent electricity and/or government is unsupportive, leading to lower prices for UKW's electricity. But UKW's NAV estimate already assumes the electricity price will fall 2% p.a. in real terms over the long term, which seems pretty conservative.
2. Wind turbines wear out sooner than expected and/or maintenance/repair costs become excessive.
Both of these are longer term risks. In the shorter term it seems pretty safe.
This came up on my radar, so have got some in my SIPP. They seem to have good dividend cover and growth. What is the downside/risk here? They seem pretty solid
Started: Monkshood, 25 Jan 2024 21:24
Last post: Monkshood, 25 Jan 2024 21:24
12.5% over the long term average.
The higher winds for December made up for the lower ones in November (and to a lesser extent October) to leave the last quarter only 1% below the long term average.
It is unusual to get the Government data before the company releases its quarterly results so UKW are clearly running a bit late with them this month.
Last post: Tigsdad, 24 Jan 2024 13:27
When will the Divi value be announced, Dividend Max saying it would be 22nd Jan but no news yet
Agree. The Feb divi will be a bumper one to get us to 10p this year , so 3.43p by my calculations, and then 2.5p a quarter thereafter.
With the share buyback, inflation (mainly) falling vs the dividend increasing, and the NPV much higher than the SP i thought this would be steadily rising .
Happy to hold and top up as and when possible
Topped up at below 144. Surely will seem under valued when the 10p/y dividend hits.
Until the new tax year window opens, I can't buy anymore. I'm also itching to at todays price.
With the buybacks going on still expect to get an opportunity to buy more of these so happy about the 146p that came up just now.
A very interesting post. I knew nothing about this problem. What we need more is a consensus on where to put the pylons.