Higher electricity prices power Greencoat Wind H1 profits

(Sharecast News) - Higher electricity prices helped power first half pre-tax profits at renewables infrastructure fund Greencoat UK Wind to £61.4m from £32m. The jump also came despite power generation during the period being 6% under budget at 951GWh, mainly due to lower wind speeds in May and June, Greencoat said.Wholesale electricity prices were higher than expected, and net cash generated by the group and wind farm special purpose vehicles was on budget at £67.4m providing cover of 2.0x dividends paid during the period.Total income was up to £75.8m from £40.93m. Net asset value rose to 112.4p a share from 111.2p.The fund declared a quarterly dividend of 1.69p for the three months to June 30."The key value driver affecting operating UK wind farms is the wholesale power price. In general, independent forecasters expect the UK wholesale power price to rise in real terms, driven by higher gas and carbon prices," Greencoat said.It added that it did not expect any material change to its business as a result of Brexit."Being solely UK focused and deliberately low risk, all of the group's assets and liabilities are within the UK and sterling denominated. In addition, the regulatory regime under which the assets operate is robust, longstanding and rooted in UK legislation," the company said."In general, the outlook for the group is very encouraging, with proven operational and financial performance from the existing portfolio combined with a healthy pipeline of attractive further investment opportunities."