The Directors of The Renewables Infrastructure Group Limited announce the results for the year ended 31 December 2017.
Highlights for the year to 31 December 2017
Good performance during the year with above-budget portfolio generation
· Portfolio generated 1,766GWh of electricity in the year (2016: 1,469GWh)
· NAV per share1 of 103.6p as at 31 December 2017 (2016: 100.1p)
· Total return of 10.1% for the year and 7.1% since IPO (annualised)2
· Profit before tax of £90.2 million (2016: £67.9 million), including an uplift in portfolio valuation
· Directors’ portfolio valuation of £1,081.2 million as at 31 December 2017 (2016: £818.7 million) including new acquisitions of £230 million
· Earnings per share of 9.8p (2016: 8.8p)
· Met 2017 aggregate dividend target of 6.40p per share3
· 2018 aggregate dividend target set at 6.50p
Further acquisitions increasing the scale and diversity of the portfolio
· £230 million invested during the year
· Portfolio output capacity increased by 15.5% to 821MW with a total of 57 portfolio projects in the UK, Ireland and France
· First investments made in offshore wind (Sheringham Shoal) and battery storage (Broxburn), further diversifying the portfolio
· First onshore wind construction project successfully competed (Freasdail, in Scotland)
· Raised £110 million of new equity capital (before issue costs)
Post year-end activities
· Invested in Clahane wind farm in the Republic of Ireland, adding 55MW in capacity
· Expansion of revolving acquisition facility to £240 million, with lending capacity provided by RBS, NAB and ING
1 The NAV per share at 31 December 2017 is calculated on the basis of the 947,342,959 Ordinary Shares in issue at 31 December 2017 plus a further 946,862 Ordinary Shares to be issued to the Managers in relation to part-payment of Managers’ fees for 2017 in the form of Ordinary Shares.
2 Based on NAV growth and dividends paid.
3 The 6.40p per share dividend relates to performance during the 2017 financial year.
Helen Mahy CBE, Chairman of TRIG said:
“The Board is pleased to report a strong performance by TRIG in 2017, supported by the breadth and diversity of its portfolio. Generation exceeded expectations, with TRIG’s wind sites in Great Britain performing particularly well. 2017 was an active year for TRIG in terms of investment activity, which totalled £230m including new investments in different technologies, adding scale and diversification to the portfolio. The Board remains confident of the company’s long-term outlook and, having delivered its 2017 aggregate dividend target of 6.40p, has announced a target dividend of 6.50p for 2018.”
Richard Crawford, Director, Infrastructure, InfraRed Capital Partners said:
“TRIG has had a good year, as a result of above budget production in its portfolio, coupled with operational enhancement initiatives. We also successfully completed the construction of Freasdail onshore wind farm and delivered a year of steady expansion including accretive investments in our two new sectors, battery storage and offshore wind. Sustained keen competition for renewables projects, on the back of a high level of institutional allocations, has necessitated a selective approach when evaluating investments. As a result of the TRIG team’s broad relationships across the sector – combined with the right of first offer on projects sourced from RES, TRIG continues to have access to an attractive pipeline of investment opportunities for consideration.”