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Greencoat UK Wind PLC on Thursday said net asset value fell in the first half of 2023, amid higher interest rates and lower power prices.
The London-based renewable infrastructure fund, focused on UK wind farms, said net asset value on June 30 was 165.8 pence per share, down by 0.8% from 167.1p per share on December 31.
This was attributed to ‘an increase in discount rates and lower short term power prices offset by higher short-term inflation and valuation gains from recent and committed investments’, the company explained.
Pretax profit fell by 88% to £65.5 million from £551.6 million a year prior. This was driven by an unrealised movement in the fair value of investments of negative £132.6 million, swung from £258.8 million a year before. Additionally, investment income fell to £238.0 million, down from £323.4 million.
Greencoat declared an interim dividend of 4.38p per share, up 13% from 3.86p per share during the same period in 2022.
Chair Lucinda Riches said: ‘The outlook for the group is extremely encouraging. We operate in a mature and growing asset class and with our market leading position and self funding business model, we are well-placed to capitalise on NAV accretive investment opportunities and continue delivering superior returns to shareholders.’
Shares in Greencoat were up 1.9% at 148.06p each in London on Thursday midday.
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