Greencoat Renewables sees net cash generation decline by nearly 10%

Dublin-listed wind and solar energy group Greencoat Renewables saw its net cash generation fall by almost 10 per cent in first half of 2024 compared with the same period last year, its interim results show.
Greencoat Renewables, which floated on the market in 2017, delivered net cash generation of €113.6 million in the six months to June 30th, down from €125.5 million in the first half of 2023.
The group generated 1,927 gigawatt hours (GWh) of clean electricity during what it described as a period of “low wind”, up from 1,489GWh the year before.
It said it would pay a dividend to shareholders of 3.37 cent per share. The net asset value per share dropped marginally from 113.2 cent to 112.1 cent.
Aggregate group debt amounted to €1.3 billion, equivalent to 51 per cent of gross asset value.
Greencoat agreed a new €150 million five-year term debt facility in the first half of the year and said that “disciplined capital allocation with operating cashflows” funded €33 million in debt repayments. The company has a €25 million share buyback scheme in progress.
The company said “big tech” and AI are driving “increased demand” for clean energy in the power purchase agreements market. It signed a 10-year agreement with a data centre owner in Ireland.
It has also completed the purchase of a 50 per cent share of an 80 megawatt peak solar farm in Co Meath since the end of June, which includes a 15-year power purchase agreement with an unnamed “leading technology company”.
Chairman Rónán Murphy said the group was “pleased to present another strong set of results … continuing to benefit from strong cash generation and sector leading dividend cover”.
“Disciplined capital allocation has remained a key focus for the board in a period where the company has continued to deleverage through operating cash flow whilst also initiating a share buyback programme of up to €25 million,” he said.
“As one of the largest listed owners of European renewables, with a diversified portfolio across six European countries, we have the knowledge and the ability to capitalise on long-term positive trends in the sector.
“Proactive revenue management has enabled us to enter into power purchase agreements with reputable corporates, as we leverage the increasing demand from big tech for clean energy.”
He added that the “opportunity and investment case” for renewables “remains strong” with operating assets “attractively priced in historical terms”.
“We are well positioned to take advantage of opportunities as they arise through our on the ground experts and active approach to asset management,” he said. “As such, we are confident and determined to continue to play a leading role in enabling the energy transition while delivering for our shareholders.”
Greencoat Renewables was set up and floated in 2017 by Schroders Greencoat, the London-based renewable energy asset manager that acts as its investment manager.