February NAV and Asset Life Assumption Update
05 March 2019
This announcement has been determined to contain inside information for the purposes of the market abuse regulation (EU) No.596/2014.
The Renewables Infrastructure Group Limited
("TRIG" or the "Company", a London-listed investment company advised by InfraRed Capital Partners as Investment Manager and Renewable Energy Systems (RES) as Operations Manager)
February NAV and Asset Life Assumption Update
The Board noted in the Company's Annual Report and Accounts for the period ending 31 December 2018, published on 19 February 2019, that in light of recent market commentary on extended asset life assumptions, the Company's Operations Manager, RES, would undertake a detailed technical review of these assumptions to consider if longer lives should be assumed in respect of the assets within the Company's portfolio. The outcome of this review has now been reflected in an updated unaudited NAV per Ordinary Share as at 28 February 2019.
The unaudited NAV per Ordinary Share as at 28 February 2019 was 111.6p (ex-dividend*) (the "February 2019 NAV") and 113.2 pence on a cum-dividend basis. This compares to a NAV of 108.9p pence per Ordinary Share as at 31 December 2018 (the "December 2018 NAV").
This uplift of 2.7p per share in the February 2019 NAV (on an ex dividend basis) principally reflects an increase in the assumed asset lives within the wind portfolio, as well as portfolio production levels, foreign exchange movements and the unwinding of the discount rate in the two-month period since 31 December 2018.
The Board and the Managers consider asset life on an asset-by-asset basis, taking into account technical advice. As well as the structural durability of the asset in question, consideration is given to maintenance costs, asset down-time and power price capture rates, which advisers anticipate will reduce over time compared to base-load prices due to the expected increase in low marginal-cost renewables generation (an effect which is also referred to as "cannibalisation"). In addition, the Board and the Managers evaluate the likelihood of obtaining planning and lease extensions.
At IPO in 2013, the assumed operating life of an asset was 25 years. Assumptions adopted in the December 2018 NAV typically ranged from 25 years to 30 years from the date of commissioning, with an average of 26 years for the wind portfolio and 30 years for the solar portfolio. The overall average across the December 2018 Portfolio was 27 years (31 December 2017: 27 years).
As a result of the technical review, the overall asset life across the Current Portfolio as at 28 February 2019 was increased to 29 years, with an average of 29 years for the wind portfolio and an unchanged average of 30 years for the solar portfolio.
*The Ordinary Shares went ex-dividend on 14 February 2019: a dividend of 1.625 pence per Ordinary Share was declared in respect of the 3-month period to 31 December 2018 and will be paid on 29 March 2019.
LEI: 213800N06Q7Q7HMOMT20
Enquiries
InfraRed Capital Partners Limited +44 (0) 20 7484 1800
Richard Crawford
Phil George
Tulchan Communications +44 (0) 20 7353 4200
Martin Pengelley
Toby Bates
Notes
The Company
The Renewables Infrastructure Group ("TRIG" or the "Company") is a leading London-listed renewable energy infrastructure investment company. The Company seeks to provide shareholders with an attractive long-term, income-based return with a positive correlation to inflation by focusing on strong cash generation across a diversified portfolio of predominantly operating projects. TRIG is targeting an aggregate dividend of 6.64 pence per Ordinary Share for the year to 31 December 2019.
TRIG is invested in a portfolio of 63 onshore wind and solar PV generation projects in the UK, France, the Republic of Ireland and Sweden with aggregate net generating capacity in excess of 1,323MW. TRIG is seeking further suitable investment opportunities which fit its stated Investment Policy.
Further details can be found on TRIG's website at www.trig-ltd.com.
Investment Manager
TRIG's Investment Manager is InfraRed Capital Partners Limited ("InfraRed") which has successfully invested in over 200 infrastructure projects since 1997. InfraRed is a leading international investment manager focused on infrastructure and real estate. It operates worldwide from offices in London, Hong Kong, New York, Seoul and Sydney. With over 150 professionals it manages in excess of USD 12 billion of equity capital in multiple private and listed funds, primarily for institutional investors across the globe. InfraRed is authorised and regulated by the Financial Conduct Authority.
The infrastructure investment team at InfraRed consists of over 80 investment professionals, all with an infrastructure investment background and a broad range of relevant skills, including private equity, structured finance, construction, renewable energy and facilities management.
InfraRed implements best-in-class practices to underpin asset management and investment decisions, promotes ethical behaviour and has established community engagement initiatives to support good causes in the wider community. InfraRed is a signatory of the Principles of Responsible Investment.
Further details can be found on InfraRed's website at www.ircp.com.
Operations Manager
TRIG's Operations Manager is Renewable Energy Systems (RES), the world's largest independent renewable energy company.
RES has been at the forefront of wind energy development for over 35 years, with the expertise to develop, engineer, construct, finance and operate projects around the globe. RES has developed or constructed onshore and offshore wind, solar, energy storage and transmission projects totalling more than 16GW in capacity. RES' operational asset portfolio exceeds 3.5GW worldwide for a large client base. Headquartered in Hertfordshire, UK, RES is active in 10 countries and has over 2,000 employees engaged in renewables globally.
RES is an expert at optimising energy yields, with a strong focus on safety and sustainability. Further details can be found on the website at www.res-group.com.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
Latest directors dealings
- 1 day ago Savannah Energy
- 1 day ago Buccaneer Energy PLC
- 1 day ago Savannah Energy
- 1 day ago Carclo
- 1 day ago Schroder Japan Growth Fund