Greencoat UK Wind's NAV growth offset by lower premium

(Sharecast News) - Renewable energy investor Greencoat UK Wind said on Thursday that shareholder returns had slipped in 2020 as a lower premium offset an increase to the group's overall net asset value.
Greencoat reported a 0.6% increase in its net asset value during the year to 120.4p but shareholders saw their return drop 6.2% as the group's premium fell, likely reflecting recent share issuance and falling power prices across the sector.

The FTSE 250-listed firm generated 2,952-gigawatt hours of zero-carbon electricity in 2020, enough to power 1.2m homes and reduce carbon dioxide emissions by approximately 1.5m tonnes per year.

Portfolio generation was 3% below budget, while power prices were also below budget, primarily due to low gas prices and low power demand as a result of the Covid-19 pandemic and its associated lockdowns, especially in the first half.

However, Greencoat noted that dividends of 7.1p per share were covered by cash generated by 1.3x.

Chairman Shonaid Jemmett-Page said: "We are pleased to report another good performance, building on the track record we have established since coming to market in 2013.

"Our simple, low risk and proven strategy has enabled us to grow the portfolio through the acquisition of high-quality assets and to increase our dividend in line with RPI, once more."

As of 1010 GMT, Greencoat shares were down 0.46% at 130.80p.