Initiation from QuotedData

Aquila European Renewables PLC

15 June 2023

 

 

Aquila European Renewables - Initiation from QuotedData

15^th June 2023

Sunny days are here again

Aquila European Renewables (AERI) is about four years old. Since launch, it has built up a 464MW portfolio of operational solar, wind and hydropower projects, spread across six European power markets. It has also generated returns in line with the target that it set at launch, returning an average of 7.2% per year against a target of 6.0-7.5%.

For 2023, AERI is targeting a dividend of 5.51 cents per share (that is euro cents - given that it invests in Europe, it presents its figures in euros), 5% ahead of the target it had for 2022. Importantly, the board reckons that this will be covered 1.8x.

Like all other renewable energy funds currently, AERI's shares trade on a discount to net asset value (NAV). However, its board has been proactive in addressing this through share buybacks. On 14 June, shareholders voted in favour of the continuation of the company at this year's annual general meeting (AGM). Commendably, mindful of the share price discount to NAV, the board has brought forward the next vote scheduled for 2027 - to 2024.

With an established cash-generative portfolio, the prospect of adding further cover to the dividend, a healthy pipeline of new projects, and calmer conditions returning to markets, AERI's future looks bright.

Full Research:

https://quoteddata.com/research/aquila-european-renewables-sunny-days-qd/

This research is also available free on our website www.quoteddata.com where you will also find news, performance data and factsheets on every London listed Investment Company. QuotedData writes and distributes research on a number of quoted companies, facilitates meetings between those companies and existing and potential investors and assists in raising additional capital where required.

NB: Marten & Co was paid to produce this note on Aquila European Renewables Plc and it is for information purposes only. It is not intended to encourage the reader to deal in the security or securities mentioned in this report. Please read the important information at the back of this note. QuotedData is a trading name of Marten & Co Limited which is authorised and regulated by the Financial Conduct Authority. Marten & Co is not permitted to provide investment advice to individual investors categorised as Retail Clients under the rules of the Financial Conduct Authority.

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