Greencoat UK Wind's loss widens in "further challenging year"

(Alliance News) - Greencoat UK Wind PLC on Thursday reported an increased full-year dividend, but its net asset value declined.

The UK wind farm-focused investor's NAV per share declined to 133.5 pence as at December 31, from 151.2p one year prior.

Shares in Greencoat UK Wind were down 0.8% at 92.75 pence each around noon on Thursday in London.

London-based Greencoat UK Wind's total dividend for 2025 was 10.35p per share, including a 2.59p fourth-quarter payout, up from the prior year's total of 10.00p per share.

The firm said it generated net cash of GBP290.6 million for the year, providing 1.3 times cover for the annual dividend, and up 4.3% from GBP278.7 million in 2024.

Investment income edged up to GBP394.8 million from GBP394.7 million. Greencoat's loss in fair value of investments widened to GBP445.6 million from GBP341.2 million, helping to flip the total income and movement in fair value of investments to a GBP45.4 million loss from a GBP61.7 million gain. Its pretax loss widened to GBP192.6 million from GBP55.4 million.

"The board and the investment manager recognise that this has been a further challenging year for investors and have been working tirelessly to protect and build shareholder value," commented Chair Lucinda Riches. "Net cash generation remained robust at GBP291 million. Material progress has been made on capital allocation in 2025, having delivered a 12th consecutive year of dividend increases with or ahead of inflation, significant divestments at prevailing NAVs, a sector-leading share buyback programme and a material reduction in debt principal."

Looking ahead, Greencoat UK Wind "sees a significant opportunity to invest in wind farms", citing "a backdrop of increasing demand for electricity and a focus on energy security". However, it acknowledged that "NAV returns across the renewable energy investment trust sector...have suffered against the headwinds of lower power prices, under-budget generation and regulatory intervention."

Nonetheless, Greencoat UK Wind added: "The board believes that the company is well positioned in the sector to navigate the current challenges with its advantages of scale and robust cash generation."

"We recognise the need to continue to take further action to rebuild shareholder value and we have clear priorities for capital allocation during 2026 which include further divestments, reducing gearing, continuing share buybacks and a disciplined return to reinvestment," Riches said. "Beyond that, our structurally high dividend cover model is expected to deliver around GBP1 billion of excess cashflow over the next five years which, when supported by further strategic disposals, provides significant optionality to enhance value for shareholders."

By Emma Curzon, Alliance News reporter

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