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Greencoat Renewables (GRP)

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Monday 14 September, 2020

Greencoat Renewables

Interim Results to 30 June 2020

RNS Number : 8210Y
Greencoat Renewables PLC
14 September 2020
 

Greencoat Renewables PLC

Interim Results to 30 June 2020

Dublin, London | 14 September 2020: Greencoat Renewables PLC ("Greencoat Renewables" or the "Company"), the renewable infrastructure company invested in euro-dominated assets, is pleased to announce its Interim Results for the six month period ended 30 June 2020.

 

Highlights

 

· Portfolio generation was on budget at 688GWh, with asset availability also on budget.

 

· Power price capture was in line with expectations, with the highly contracted nature of the Group's revenues unaffected by price movements seen elsewhere in the sector.

 

· Net cash generation (Group and wind farm SPVs) was €40 million (gross of SPV level debt repayment), resulting in a gross dividend cover for the period of 2.1x.

 

· Successful entry into continental Europe with acquisition of 51.9MW French portfolio of wind farms at Pasilly, Sommette and Saint Martin. In addition, the Group continued its consolidation of the Irish wind market with acquisition of Letteragh wind farm. GAV grew to €1,139 million at 30 June 2020.

 

· Post-period acquisition of a 50 per cent investment in Carrickallen wind farm increasing the portfolio to 20 wind farms and net generating capacity to 538MW at 11 September 2020.

 

· The Company declared total dividends of 3.03 cent per share with respect to the period.

 

· €494.5 million as Aggregate Group Debt at 30 June 2020, equivalent to 43 per cent. of GAV.

 

 

Commenting on today's results, Ronan Murphy, Non-Executive Chairman of Greencoat Renewables, said:

 

"I am pleased to announce another strong six months of performance for Greencoat Renewables. Given the circumstances, I and the Board also feel fortunate that our company has been able to continue operating relatively unaffected, where many others have not.

 

In the first six months of the year, we have continued to grow the portfolio with ongoing consolidation in Ireland and our first acquisitions on the continent - a source of significant opportunity for the company. We have also delivered strong operational performance and robust dividend cover in keeping with the company's strategy. The outlook for the business remains positive with a strong pipeline for further growth both in Ireland and Northern Europe. 

 

Lastly, I am proud of the work done to support our staff, contractors, and local communities through the challenges of the past few months, whilst continuing to supply the grid and wider society with clean electricity."

 

Key Metrics

 

As at 30 June 2020:

Market Capitalisation

€763.0 million

Share price

121.0 cent

Dividends with respect to the period

€19.1 million

Dividends with respect to the period per share

3.03 cent

GAV

€1,138.7 million

NAV

€644.3 million

NAV per share

102.2 cent

 

Details of the conference call for analysts and investors:

A conference call for analysts and investors will be held at 10.00 am BST today, 14 September 2020. To register for the call please contact FTI Consulting by email at [email protected] .

 

Presentation materials will be posted on the Company's website, www.greencoat-renewables.com from 7.00 am.

 

  --- ENDS ---

 

For further details contact:

Greencoat Capital LLP (Investment Manager)

 

 

 

 

 

Bertrand Gautier

Paul O'Donnell

Tom Rayner

 

 

 

 

+44 20 7832 9400

 

 

 

 

 

 

 

 

 

 

 

 

 

FTI Consulting (Investor Relations & Media)

 

 

 

 

 

Jonathan Neilan

 

 

 

 

+353 1 765 0886

Melanie Farrell

 

 

 

 

[email protected]

 

Davy (Broker, NOMAD and Euronext Growth Adviser)

Fergal Meegan

Barry Murphy

Ronan Veale

 

 

 

 

 

 

 

+353 1 679 6363

 

RBC Capital Markets (Joint Broker)

Matthew Coakes

Jonathan Hardy

Elizabeth Evans

 

 

 

 

 

 

 

 

 

 

+44 20 7653 4000

 

 

About Greencoat Renewables PLC

Greencoat Renewables PLC is an investor in euro-denominated renewable energy infrastructure assets. Initially focused solely on the acquisition and management of operating wind farms in Ireland, the Company is now also investing in wind and solar assets in certain other Northern European countries with stable and robust renewable energy frameworks. It is managed by Greencoat Capital LLP, an experienced investment manager in the listed renewable energy infrastructure sector.

 

At a Glance

 

Summary

Greencoat Renewables PLC is a sector-focused listed renewable infrastructure company, investing in renewable electricity generation assets. The Company's aim is to provide investors with an annual dividend that increases progressively whilst growing the capital value of its investment portfolio in the long term through reinvestment of excess cash flow and the prudent use of portfolio leverage.

 

Chairman's Statement

 

I am pleased to present the Interim Report of Greencoat Renewables PLC for the six months ended 30 June 2020 .

 

In a very challenging period for the economy and society as a whole, we are fortunate to invest and operate in a sector that is largely insulated from the many challenges seen elsewhere. As a management team we have been striving to ensure the safety of staff, within our business but also those of our service providers, to support the local communities in which we operate, and to continue providing renewably-generated electricity to the grid.

 

It is now three years since the Company listed, and the Group has become one of the largest owners of onshore wind assets in Ireland while also successfully positioning itself to take advantage of the increasing market of secondary opportunities in Ireland and northern Europe. We have achieved this goal, while continuing to deliver target returns to investors, and annually displacing c.260,000 of tonnes of carbon emissions.

Performance

Portfolio generation and availability were both on budget for the first half of the year resulting in 688GWh of generation. Net cash generation from the Group and wind farm SPVs was €40.0 million(1) resulting in strong dividend cover for the period of 2.1x(1)

Wind speeds were high in the first half of the year for the Irish portfolio, however there was a higher than expected level of uncompensated grid curtailment mostly due to lower electricity demand as a result of the COVID-19 pandemic.

Dividend

In line with our policy of increasing the Company's annual dividend between 0 and CPI, the target dividend for 2020 was set at 6.06 cent per share.  The Company paid a quarterly dividend of 1.515 cent per share with respect to Q1 2020 and paid a dividend of the same amount with respect to Q2 2020, giving a total of 3.03 cent per share for the period. The Company also declared a quarterly dividend of 1.515 cent per share with respect to Q2 2020, which was paid on 28 August 2020.

NAV per share decreased slightly in the period from 101.6 cent per share (ex-dividend) on 31 December 2019 to 100.7 cent per share (ex-dividend) on 30 June 2020, primarily due to lower short-term inflation and higher short-term curtailment assumptions.

Acquisitions

The past 3 years have seen a period of sustained growth and net generating capacity stood at 528MW at 30 June 2020, with added geographical diversification through the Group's first investment into northern Europe, acquiring 3 French wind farms in June.

 

(1)  Net cash generation and dividend cover are shown gross of SPV level debt repayments. Net cash generation was €34.8 million and dividend cover was 1.8x net of SPV level debt repayment.

 

During the period, the Group acquired the 14.1MW Letteragh wind farm in County Clare, Ireland, which receives revenue contracted under the REFIT 2 scheme.

The Group also made a 50 per cent investment in the 20.5MW Carrickallen wind farm in County Cavan in July 2020, which further demonstrates the Group's continued and growing presence in the Irish secondary market.

 

Gearing

At the start of the period, Group and SPV borrowings amounted to €366.9 million (36 per cent of GAV). Following the acquisitions made in the period, Group and SPV borrowings amounted to €494.5 million equating to 43 per cent of GAV as at 30 June 2020, with average gearing at 40 per cent during the period.

Following completion of the 50 per cent investment in Carrickallen, Group gearing was 44 per cent of GAV.

The Company's policy is to keep overall borrowings at a prudent level (limited to 60 per cent of GAV) in order to reduce risk, while ensuring that the Group is always at least fully invested, thus ensuring efficient use of shareholders' capital.

Principal Risks and Uncertainties

As detailed in the Company's Annual Report for the year ended 31 December 2019, the principal risks and uncertainties affecting the Group are unchanged:

· dependence on the Investment Manager;

· regulatory and Brexit risk;

· financing risk; and

· risk of investment returns becoming unattractive.

 

Also, as detailed in the Company's Annual Report for the year to 31 December 2019, the principal risks and uncertainties affecting the investee companies are as follows:

 

· changes in government policy on renewable energy;

· a decline in the market price of electricity after the period of contracted subsidy;

· risk of low wind resource;

· lower than expected lifespan of the wind turbines;

· risk of market structure change; and

· health and safety and the environment.

 

During the period, an additional principal risk was identified in relation to the ongoing COVID-19 pandemic. Electricity demand has reduced, and curtailment has noticeably increased in Ireland as a consequence. Wind farm availability has not been significantly affected nor has turbine operations and maintenance, which continues with appropriate social distancing and diligent use of personal protective equipment where major component changes have been necessary and social distancing has not been possible. Further detail regarding COVID-19 and its impact on the Group is included within the going concern section of Note 1 to the financial statements.

 

The principal risks outlined above remain the most likely to affect the Group and its investee companies in the second half of the year.

 

Outlook

Due to the contracted nature of the portfolio's revenue under the respective Irish and French subsidy schemes, there is no material exposure to the current low market power prices and dividend cover is expected to remain robust for the rest of the year, despite the difficulties presented by the COVID-19 pandemic.

 

The Board continues to view Ireland as a very attractive market for further investment, and believes the Company is very well placed to continue its aggregation strategy and deliver value for its shareholders.

 

Following the recent first successful auction, we expect the Group to target investments in RESS assets, both in wind and solar PV. Given the emergence of a growing pool of solar assets in Ireland, the Group intends to seek approval at The Company's next General Meeting to include Irish solar as part of the Company's investment policy.

 

The Group also recently completed its first successful investment outside of Ireland. With an attractive emerging pipeline in the Nordic region, the Company also amended its investment policy to add Denmark, Norway and Sweden to the list of jurisdictions the Group can invest in, approved by way of shareholder resolution at the Company's AGM in April.

 

The Board continues to be supportive of value-accretive growth through further investments, and believes such growth will be in the shareholders' interest, as it:

· provides additional economies of scale at Group level;

· supports diversification of both geographic and technological exposure;

· increases market power with service providers and asset sellers; and

· increases liquidity in our shares.

 

The Board remains confident in the Company's outlook for the future, and in the disciplined approach of the Investment Manager to future investment opportunities and the continued effective management of the Group's growing portfolio.

ESG

Sustainability is central to all activities the Group undertakes and we recognise that investing responsibly is critical to our performance and growth over the longer term. Given the nature of our business, our most significant impact is the displacement of carbon emissions and we are extremely proud to generate sufficient carbon-free electricity to power 357,000 homes.  

During the COVID-19 pandemic, we have taken all possible steps to support and protect employees, contractors and all affected stakeholders. We are fortunate that the nature of our work has allowed wind farm operations to continue uninterrupted, albeit with some alterations to our maintenance programme and optimisation initiatives to abide by government safety guidance.

From the outset of the pandemic, I am pleased that we were able to accelerate the release of funds from our Community Support Programme and have managed to prioritise initiatives that are actively aiding local communities surrounding our wind farms that have been adversely impacted by COVID-19.

The Board and Governance

Following the advice of the government on social distancing, travel and measures to prohibit public gathering in order to minimise the spread of COVID-19, the Company decided to  change the location of its AGM and hold it with the minimum necessary quorum of two shareholders present. A recording of the AGM was made and is available for shareholders on the Company's website (www.greencoat-renewables.com).

Conclusion

In conclusion, the Board is very pleased with the continued progress that the Company has made in the first half of 2020 and is reassured by its future growth prospects.

 

Rónán Murphy

Chairman

13 September 2020

 

Investment Manager's Report

 

Information about Investment Manager

The Investment Manager is responsible for the day-to-day management of the Company's investment portfolio in accordance with the Company's investment objective and policy, subject to the overall supervision of the Board.

The Investment Manager is an experienced manager of renewable infrastructure assets and is authorised and regulated by the Financial Conduct Authority in the UK.

Investment Portfolio

The Group's investment portfolio as at 30 June 2020 consisted of SPVs which hold the following underlying operating wind farms:

Wind Farm

Country

Turbines

Operator

PPA

Total MW

Ownership Stake

Net MW

Ballybane

Republic of Ireland

Enercon

EnergyPro

Energia

48.3

100%

48.3

Beam Hill

Republic of Ireland

Vestas

EnergyPro

Erova

14.0

100%

14.0

Cloosh Valley

Republic of Ireland

Siemens

SSE

SSE

108.0

75%

81.0

Garranereagh

Republic of Ireland

Enercon

Statkraft

Bord Gáis

9.2

100%

9.2

Glanaruddery

Republic of Ireland

Vestas

EnergyPro

Supplier Lite

36.3

100%

36.3

Gortahile

Republic of Ireland

Nordex

Statkraft

Energia

20.0

100%

20.0

Killala

Republic of Ireland

Siemens

EnergyPro

Electroroute

17.0

100%

17.0

Killhills

Republic of Ireland

Enercon

SSE

Brookfield

36.8

100%

36.8

Knockacummer

Republic of Ireland

Nordex

SSE

Brookfield

100.0

100%

100.0

Knocknalour

Republic of Ireland

Enercon

Statkraft

Naturgy / Energia

9.2

100%

9.2

Letteragh

Republic of Ireland

Enercon

Statkraft

SSE

14.1

100%

14.1

Lisdowney

Republic of Ireland

Enercon

EnergyPro

Naturgy

9.2

100%

9.2

Monaincha

Republic of Ireland

Nordex

Statkraft

Bord Gáis

36.0

100%

36.0

Pasilly

France

Gamesa

Greensolver

EDF

20.0

100%

20.0

Raheenleagh

Republic of Ireland

Siemens

ESB

ESB

35.2

50%

17.6

Sliabh Bawn

Republic of Ireland

Siemens

Wind Prospect

Supplier Lite

64.0

25%

16.0

Sommette

France

Nordex

Greensolver

EDF

21.6

100%

21.6

Saint Martin

France

Senvion

Greensolver

EDF

10.3

100%

10.3

Tullynamoyle II

Republic of Ireland

Enercon

Statkraft

Bord Gáis

11.5

100%

11.5

Total  

 

 

 

 

 

 

528.1

 

Portfolio Performance

Portfolio generation for the six months ended 30 June 2020 was on budget at 688GWh. Wind resource was above budget and availability was in line with expectations, however significant levels of curtailment across the portfolio were experienced during the period, which had an adverse impact on generation. Had curtailment been in line with budget, portfolio generation would have exceeded budget by c.10 per cent.

The Irish portfolio experienced high levels of curtailment during the period through a combination of high wind speeds, and a decrease in electricity demand as a result of the COVID-19 pandemic. Scheduled maintenance and upgrade works to the transmission network were also postponed due to the transformer failure at Moneypoint. These rescheduled works are commencing at present and are expected to cause further grid disruptions until 2022, when curtailment is expected to revert back to our long-term forecast.

The Investment Manager has been actively involved in the industry consultation on the EU Clean Energy Package with a view to achieving compensation for curtailed volumes for renewable generators in Ireland.

Notable issues and asset management activities during the period were:

· low availability at Lisdowney due to lightning striking a turbine in March, which required a turbine blade to be replaced. The turbine returned to full operation in May and it is expected that the repair cost and lost revenue will be claimed through insurance;

· an asset management services tender process was initiated during the period and framework management services agreements were agreed for 8 SPVs achieving cost savings through increased economies of scale;

· specific response funds were made available to local communities surrounding some wind farms following the COVID-19 outbreak. For example, at Glanaruddery, these funds were used to purchase a van to make food deliveries to locals, who were self-isolating and unable to leave their homes.

Changes to work procedures and certain work restrictions were applied across the portfolio, following government guidelines in response to the COVID-19 pandemic. Some maintenance works were delayed as a result, however, portfolio performance was not materially impacted.

 

An Bord Pleanála has recently determined that the underground grid connection in respect of Raheenleagh wind farm and Knockacummer wind farm constitutes development which is not exempted development. Such determinations have been made in respect of a number of wind farms over the last few years. As was common in the industry at the time the wind farm was constructed, planning permission was not obtained for the grid connection, albeit declarations were obtained from either the local County Council or An Bord Pleanála to confirm that planning permission was not required. The recent determinations of An Bord Pleanála is therefore at odds with those pre-existing declarations. There are a number of routes open to regularise the planning status of the grid connection and the Company is considering currently how best to do so.

 

Health and safety

Health and safety is of paramount importance to both the Company and the Investment Manager. The Investment Manager also has its own health and safety forum where best practices are discussed and key learnings from incidents from across the industry are shared.

 

There were no major incidents in the period ended 30 June 2020. Independent health and safety audits are planned for the second half of the year covering sites not previously audited.

 

Acquisitions

In February 2020, the Group acquired the 14.1MW Letteragh wind farm in County Clare, Ireland, for €34 million (excluding acquired cash, including acquisition costs).

In June 2020, the Group completed its acquisition of a portfolio of 3 operating wind farms in France for an enterprise value of €95 million. The portfolio consisted of the 20.0MW Pasilly wind farm in the Burgundy region, the 21.6MW Sommette wind farm in the Picardy region and the 10.3MW Saint Martin wind farm in the Saint-Martin-l'Ars region. The Group retained €66.9 million of project level debt as part of the acquisition.

These assets benefit from 100 per cent of their revenue being contracted under the French FIT scheme until 2033 and are the Group's first investment outside of Ireland.

In July 2020, the Group made a 50 per cent investment in the 20.5MW Carrickallen wind farm for €21 million. The wind farm is located in County Cavan, Ireland and benefits from revenues contracted under the REFIT 2 scheme.

Financial Performance

Dividend cover for the six months ended 30 June 2020 was 1.8x net and 2.1x gross of project level debt repayment.

 

Cash balances (Group and wind farm SPVs) increased by €6.9 million to €41.5 million.

 

Group and wind farm SPV cash flows

For the six months ended
30 June 2020

 

Net (1)

Gross (1)

 

€ 000

€ 000

 

 

 

Net cash generation (1)

34,760

40,026

Dividends paid

(19,060)

(19,060)

 

 

 

Project Capex & PSO Cashflow (2)

(11,137)

(11,137)

Project level debt repayment

-

(5,266)

 

 

 

Acquisitions (3)

(58,626)

(58,626)

Acquisition costs

(835)

(835)

 

 

 

Equity issuance

-

-

Equity issuance costs

(142)

(142)

 

 

 

Net drawdown under debt facilities

66,000

66,000

Upfront finance costs

(4,033)

(4,033)

 

 

 

Movement in cash (Group and wind farm SPVs)

6,927

6,927

Opening cash balance (Group and wind farm SPVs)

34,547

34,547

Ending cash balance (Group and wind farm SPVs)

41,474

41,474

 

 

 

Net cash generation (1)

34,760

40,026

Dividends

19,060

19,060

Dividend cover

1.8x

2.1x

(1)  The dividend cover tables above are shown as two scenarios: the first reflects cash generation net of the Group's share of project level debt repayment at Cloosh Valley, Raheenleagh and Sliabh Bawn (€5,266k), and the second shows the net cash generation gross of these SPV level debt repayments.

(2)  Cashflows reflect residual capital expenditure from acquired SPVs (covered by the vendor of the SPVs) plus REFIT working capital movements with the PSO relating to wind farm SPVs.

(3)  Acquisition consideration is net of the acquired SPV cash of €7,852k.

 

Net Cash Generation - Breakdown  

For the six months ended
30 June 2020

 

Net

Gross

 

€'000

€'000

 

 

 

Revenue

66,279

66,279

Operating expenses

(17,892)

(17,892)

Tax / VAT

481

481

Wind farm operating cashflow

48,868

48,868

Project level debt interest

(2,891)

(2,891)

Project level debt repayment

(5,266)

-

Wind farm cashflow

40,711

45,977

 

 

 

Management fee

(3,029)

(3,029)

Operating expenses

(901)

(901)

Ongoing finance costs

(1,819)

(1,819)

VAT

(202)

(202)

Group cashflow

(5,951)

(5,951)

 

 

 

Net cash generation

34,760

40,026

 

 

Net Cash Generation - Reconciliation to Net Cash Flows from Operating Activities

For the six months ended
30 June 2020

 

Net

Gross

 

€'000

€'000

 

 

 

Net cash flows from operating activities (1)

10,108

10,108

Movement in cash balances of wind farm SPVs (2)

(3,367)

(3,367)

SPV capex and PSO cashflow (3)

11,108

11,108

Repayment of debt at SPV level (2)

-

5,266

Repayment of shareholder loan investment (1)

18,704

18,704

Finance costs (1)

(5,854)

(5,854)

Upfront finance costs (cash) (4)

4,061

4,061

Net cash generation

34,760

40,026

 

(1)  Condensed Consolidated Statement of Cash Flows

(2)  Note 8 to the Financial Statements

(3)  €11,137k cashflows reflect residual capital expenditure from acquired SPVs and REFIT working capital movements with the PSO relating to wind farm SPVs less €29k SPV working capital

(4)  €238k facility arrangement fees plus €1,164k professional fees (note 12 to the Financial Statements) plus €2,659k capitalised loan costs being the difference between the €272,000k drawn revolving credit facility at 30 June 2020, and €269,341k of Group loans and borrowings (note 12 to the Financial Statements).

The decrease in portfolio valuation of €10.9 million is predominately due to portfolio depreciation and adjustments to short term inflation.

A dividend of €9.5 million (1.5075 cent per share) was paid in February 2020 with respect to the quarter ended 31 December 2019. A dividend of €9.6m (1.515 cent per share) was paid in May 2020 with respect to the quarter ended 31 March 2020.

A further dividend of €9.5m (1.515 cent per share) was paid on the 28 August 2020 with respect to the quarter ended 30 June 2020.

The share price at 30 June 2020 was 121.0 cent, representing an 18.4 per cent. premium to NAV.

 

cent per share

 

 

NAV at 31 December 2019

103.1

Less February 2020 dividend

(1.5)

NAV at 31 December 2019 (ex dividend)

101.6

 

 

NAV at 30 June 2020

102.2

Less August 2020 dividend

(1.5)

NAV at 30 June 2020 (ex dividend)

100.7

 

 

Movement in NAV (ex dividend)

(0.9)

 

Reconciliation of Statutory Net Assets to Reported NAV

 

 

As at
30 June 2020

 

As at
31 December 2019

 

€'000

€'000

 

 

 

DCF valuation

1,080,249

982,411

Other relevant assets (wind farm SPVs)

17,941

111

Cash (wind farm SPVs)

33,011

28,527

Fair value of investments (1)

1,131,201

1,011,049

Cash (Group)

8,463

6,020

Other relevant liabilities

(952)

(127)

GAV

1,138,712

1,016,942

Aggregate Group Debt (2)

(494,451)

(366,942)

NAV

644,261

650,000

 

 

 

Reconciling items

-

-

Statutory net assets

644,261

650,000

 

 

 

Shares in issue

630,619,469

630,619,469

NAV per share (cent)

102.2

103.1

 

(1)   The fair value of investments are shown gross of €222,451k debt and swap fair values held at wind farm SPV level that are not included in the equivalent figure in the Consolidated Statement of Financial Position.

(2)   Aggregate Group debt reflects €272,000k of amounts drawn under the Group's revolving credit facility, gross of €2,659k capitalised finance costs. It also includes €222,451k of debt and swap fair values held at wind farm SPV level that are not included in the equivalent figure in the Consolidated Statement of Financial Position.

 

Gearing

As at 30 June 2020, the Group had €494.5 million of debt outstanding, equating to 43 per cent of GAV. This debt outstanding comprised €272.0 million of amounts drawn under the Group's revolving credit facility as well the €222.5 million of the Group's proportionate share of asset level, long-term project finance debt (including the fair value of associated interest rate swaps).

In July 2020, the Group drew a further €21 million from its revolving credit facility to acquire a 50 per cent interest in Carrickallen, leaving Group gearing at 44 per cent of GAV.

 

Outlook

The outlook for the Group remains very positive, with strong performance from the existing portfolio and a healthy pipeline of further attractive investment opportunities, both in Ireland and in northern Europe.

In the wider electricity market, short and medium term power prices have been impacted by the COVID-19 pandemic. However, as 98% of the portfolio's revenues are contracted until 2028 at the earliest, these power price fluctuations have a negligible short-term impact on the portfolio's cash flows. This combined with the Company's business model has led to resilient cashflows and robust dividend cover during the COVID-19 pandemic.

Irish Wind Market

The Irish wind market remains a very attractive jurisdiction for growth with over 4.2GW of operating capacity installed.

The successful completion of the first RESS auction in August 2020 further evidenced the Irish government's commitment to generate 70 per cent of electricity from renewable sources by 2030, with subsequent auctions expected to take place annually. This year's auction process saw 400MW of wind and 800MW of solar PV awarded fixed price support contracts guaranteeing the price of wholesale electricity until 2038. Achieving Ireland's 2030 commitment would increase capacity of onshore wind to 8GW, as well as 3.5GW of offshore wind and 1.5GW of solar PV and therefore a further c.€15 billion of investment opportunities.

The Group will target investments in new RESS assets, both in wind and solar, and we believe the Group is very well placed to find value and continue its growth strategy. 

In addition to increasing its generation capacity, Ireland is still expected to experience growth in the demand for electricity in the medium and long term, particularly from the development of a substantial number of datacentres, which are seeking to source their power requirements exclusively from renewables. It is currently estimated that there will be 1.2 GW of datacentre capacity in Ireland by 2025. We are continuing to observe a growing number of renewable generation assets enter into direct corporate PPAs with large datacentre users and we believe this opportunity will continue to grow. 

Potential Market Entry into Continental Europe

The Group is continuing to explore investment opportunities in the very large asset pools of Belgium, France, Germany, the Netherlands and the Nordics. We have an active pipeline in these countries and the Group is benefitting from the strong relationships with asset owners and advisors in northern Europe.

We are considering assets with a range of revenue contracts, including government support regimes and corporate PPAs. These assets may provide the opportunity to capture additional value for Group, particularly in the Nordic markets where unsubsidised renewables development has seen significant growth. It is expected that the portfolio will continue to have a significant proportion of fixed-price revenue underpinning its cash flows.

Condensed Consolidated Statement of Comprehensive Income (unaudited)

For the six months ended 30 June 2020

 

 

Note

For the six months ended

30 June 2020

For the six months ended

30 June 2019

 

 

€'000

€'000

 

 

 

 

Return on investments

3

21,756

20,147

Other income

 

39

37

Total income and gains

 

21,795

20,184

 

 

 

 

Operating expenses

4

(4,382)

(3,188)

Investment acquisition costs

 

(835)

(234)

Operating profit

 

16,578

16,762

 

 

 

 

Finance expense

12

(3,257)

(3,052)

 

 

 

 

Profit for the period before tax

 

13,321

13,710

 

 

 

 

Taxation

5

-

-

 

 

 

 

Profit for the period after tax

 

13,321

13,710

 

 

 

 

Profit and total comprehensive income attributable to:

 

 

 

Equity holders of the Company

 

13,321

13,710

 

 

 

 

Earnings per share

 

 

 

Basic and diluted earnings from continuing operations during the period (cent)

6

2.11

3.00

 

The accompanying notes form an integral part of the condensed consolidated interim financial statements.

 

Condensed Consolidated Statement of Financial Position (unaudited)

As at 30 June 2020

 

Note

30 June 2020

31 December 2019

 

 

€'000

€'000

 

 

 

 

Non current assets

 

 

 

Investments at fair value through profit or loss

8

 

908,750

 

850,107

 

 

908,750

850,107

Current assets

 

 

 

Receivables

10

286

3,343

Cash and cash equivalents

 

8,463

6,020

 

 

8,749

9,363

Current liabilities

 

 

 

Payables

11

(3,897)

(3,470)

Loans and borrowings

12

-

(206,000)

 

 

 

 

Net current assets/(liabilities)

 

4,852

(200,107)

 

 

 

 

Non current liabilities

 

 

 

Loans and borrowings

12

(269,341)

-

Net assets

 

644,261

650,000

 

 

 

 

Capital and reserves

 

 

 

Called up share capital

14

6,306

6,306

Share premium account

14

385,669

385,669

Other distributable reserves

 

180,876

199,936

Retained earnings

 

71,410

58,089

Total shareholders' funds

 

644,261

650,000

 

 

 

 

Net assets per share (cent)

15

102.2

103.1

 

Authorised for issue by the Board on 13 September 2020 and signed on its behalf by:

 

Rónán Murphy  Kevin McNamara

Chairman  Director

 

The accompanying notes form an integral part of the condensed consolidated interim financial statements.

 

Condensed Consolidated Statement of Changes in Equity (unaudited)

For the six months ended 30 June 2020

 

For the six months

ended 30 June 2020

Note

Share capital €'000

Share premium €'000

Other Distributable

Reserves

€'000

Retained earnings €'000

Total

€'000

 

Opening net assets attributable to shareholders (1 January 2020)

 

6,306

385,669

199,936

58,089

650,000

 

Issue of share capital

 

-

-

-

-

-

 

Share issue costs

 

-

-

-

-

-

 

Interim dividends paid in the period

7

-

-

(19,060)

-

(19,060)

 

Profit and total comprehensive income for the period

 

-

-

-

13,321

13,321

 

Closing net assets attributable to shareholders

 

6,306

385,669

180,876

71,410

644,261

 

                     

 

After taking account of cumulative unrealised gains in fair value of investments of €75,300,316, the total reserves distributable by way of a dividend as at 30 June 2020 were €176,985,497.

 

For the six months ended 30 June 2019

 

For the six months

ended 30 June 2019

Note

Share capital €000

Share premium €000

Other Distributable

Reserves

€'000

Retained earnings €'000

Total

€'000

 

Opening net assets attributable to shareholders (1 January 2019)

 

3,800

120,009

229,153

40,992

393,954

 

Issue of share capital

 

1,400

146,300

-

-

147,700

 

Share issue costs

 

-

(2,431)

-

-

(2,431)

 

Interim dividends paid in the period

 

-

-

(13,539)

-

(13,539)

 

Profit and total comprehensive income for the period

 

-

-

-

13,710

13,710

 

 

 

 

 

 

 

 

 

Closing net assets attributable to shareholders

 

5,200

263,878

215,614

54,702

539,394

 

                     

 

After taking account of cumulative unrealised gains in fair value of investments of €68,765,871, the total reserves distributable by way of a dividend as at 30 June 2019 €201,550,071.

 

The accompanying notes form an integral part of the condensed consolidated interim financial statements.

 

Condensed Consolidated Statement of Cash Flows (unaudited)

For the six months ended 30 June 2020

 

 

Note

For the six months ended
30 June 2020

For the six months ended
30 June 2019

 

 

€'000

€'000

 

 

 

 

Net cash flows from operating activities

16

10,108

4,459

 

 

 

 

Cash flows from investing activities

 

 

 

Acquisition of investments

 

(66,478)

  (34,452)

Investment acquisition costs

 

(835)

(4,457)

Repayment of shareholder loan investments

8

18,704

  14,733

Net cash flows from investing activities

 

(48,609)

(24,176)

 

 

 

 

Cash flows from financing activities

 

 

 

Issue of share capital

 

-

147,700

Payment of issue costs

 

(142)

(2,443)

Dividends paid

7

(19,060)

(13,539)

Amounts drawn down on loan facilities

12

306,000

-

Amounts repaid on loan facilities

12

(240,000)

(111,031)

Finance costs

 

(5,854)

(2,948)

Net cash flows from financing activities

 

40,944

17,739

 

 

 

 

Net increase/(decrease) in cash and cash equivalents during the period

 

2,443

(1,978)

 

 

 

 

Cash and cash equivalents at the beginning of the period

 

6,020

3,036

 

 

 

 

Cash and cash equivalents at the end of the period

 

8,463

1,058

 

The accompanying notes form an integral part of the condensed consolidated interim financial statements.

 

Notes to the Unaudited Condensed   Consolidated Financial Statements

For the six months ended 30 June 2020

 

1. Significant accounting policies

 

Basis of accounting

The condensed consolidated financial statements included in this Interim Report have been prepared in accordance with IAS 34 "Interim Financial Reporting".

 

The interim financial statements have been prepared in accordance with IFRS to the extent that they have been adopted by the EU and with those parts of the Companies Act 2014 (including amendments by the Companies (Accounting) Act 2017) applicable to companies reporting under IFRS. The financial statements have been prepared on the historical cost basis, as modified for the measurement of certain financial instruments at fair value through profit or loss.

 

These condensed consolidated financial statements are presented in Euro ("€") which is the currency of the primary economic environment in which the Group operates and are rounded to the nearest thousand, unless otherwise stated.

 

These condensed financial statements do not include all information and disclosures required in the annual financial statements and should be read in conjunction with the Group's consolidated annual financial statements as of 31 December 2019. The audited annual accounts for the year ended 31 December 2019 have been delivered to the Companies Registration Office. The audit report thereon was unmodified.

 

Review

The Interim Report has not been audited or formally reviewed by the Company's Auditor in accordance with the International Standards on Auditing (ISAs) (Ireland) or International Standards on Review Engagements (ISREs).

 

Going concern

As at 30 June 2020, the Group had net assets of €644.3 million (31 December 2019: €650.0 million) and cash balances of €8.5 million (31 December 2019: €6.0 million) which are sufficient to meet current obligations as they fall due.

 

In the period prior to 30 June 2020 and up to the date of this report, the outbreak of COVID-19 has had a negative impact on the global economy. As this situation is both unprecedented and evolving, it raises some uncertainties and additional risks for the Group.

 

The Directors and Investment Manager are actively monitoring this and its potential effect on the Group and its SPVs. In particular, they have considered the following specific key potential impacts:

 

· Unavailability of key personnel at the Investment Manager or Administrator;

· Increased volatility in the fair value of investments;

· Disruptions to maintenance or repair at the investee company level.

 

In considering the above key potential impacts of COVID-19 on the Group and SPV operations, the Directors have assessed these with reference to the mitigation measures in place. At the Group level, the key personnel at the Investment Manager and Administrator have successfully implemented business continuity plans to ensure business disruption is minimised, including remote working, and all staff are continuing to assume their day-today responsibilities.

 

SPV revenues are derived from the sale of electricity and is received through power purchase agreements in place with reputable providers of electricity to the market and also through government subsidies. Therefore the Directors and the Investment Manager do not expect a significant impact on revenue and cash flows of the SPVs. The SPVs also have various risk mitigation plans in place to ensure, as far as possible, electricity generation from the sites are maintained. The SPVs have contractual operating and maintenance agreements in place with large and reputable providers. Wind farm availability has not been significantly affected: wind farms may be accessed and operated remotely in some instances; otherwise social distancing has been possible in large part and personal protective equipment has been used where not possible, for instance where major component changes have been necessary. The Investment Manager is confident that there are appropriate continuity plans in place at each provider to ensure that the underlying wind farms are maintained appropriately and that any faults would continue to be addressed in a timely manner.

 

Based on the assessment outlined above, including the various risk mitigation measures in place, the Directors do not consider that the effects of COVID-19 have created a material uncertainty over the assessment of the Group as a going concern.

 

On the basis of this review, and after making due enquiries, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for at least 12 months from the date of approval of this report. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

 

Segmental reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors, as a whole.

 

The key measure of performance used by the Board to assess the Group's performance and to allocate resources is the total return on the Group's net assets, as calculated under IFRS, and therefore no reconciliation is required between the measure of profit or loss used by the Board and that contained in the condensed consolidated financial statements.

 

For management purposes, the Group is organised into one main operating segment, which invests in wind farm assets.

 

All of the Group's income is generated within Ireland and France. All of the Group's non-current assets are located in Ireland and France.

 

Seasonal and cyclical variations

The Group's results do not vary significantly during reporting periods as a result of seasonal activity.

 

2. Investment management fees

 

Under the terms of the Investment Management Agreement, the Investment Manager is entitled to a management fee from the Company, which is calculated quarterly in arrears and remains at 1 per cent of NAV per annum on that part of NAV up to and including €1 billion, as disclosed in the Company's Annual Report for the year ended 31 December 2019.

 

Investment management fees paid or accrued in the period were as follows:

 

 

For the six

 months ended

30 June 2020

For the six

months ended

30 June 2019

 

€'000

€'000

Investment management fees

3,247

2,415

 

3,247

2,415

 

As at 30 June 2020, €1,627,104 was payable in relation to investment management fees (31 December 2019: €1,409,550).

 

3. Return on investments

 

For the six

 months ended
30 June 2020

For the six

 months ended
30 June 2019

 

€'000

€'000

Dividends received (note 17)

8,551

-

Unrealised movement in fair value of investments (note 8)

7,226

14,301

Interest on shareholder loan investment

5,979

5,846

 

21,756

20,147

 

4. Operating expenses

 

For the six

months ended
30 June 2020

For the six

months ended
30 June 2019

 

€'000

€'000

Investment management fees (note 2)

3,247

2,415

Other expenses

561

476

Group and SPV administration fees

401

157

Non-executive Directors' remuneration

129

100

Fees to the Company's Auditor:

 

 

  for audit of the statutory financial  statements

41

37

for other services

3

3

 

4,382

3,188

 

The fees to the Company's Auditor include €3,000 (2019: €3,000) payable in relation to a limited review of these interim financial statements, and estimated accruals apportioned across the year for the audit of the statutory financial statements.

 

5. Taxation

 

Taxable income during the period was offset by management expenses and the tax charge for the period ended 30 June 2020 is €nil (30 June 2019: €nil). The Group has tax losses carried forward available to offset against current and future profits as at 30 June 2020 of €399,458 (30 June 2019: €505,879).

 

6. Earnings per share

 

For the six

months ended
30 June 2020

For the six

months ended
30 June 2019

Profit attributable to equity holders of the Company - €'000

13,321

13,710

Weighted average number of ordinary shares in issue

630,619,469

Basic and diluted earnings from continuing operations in the period (cent)

2.11

3.00

 

 

7. Dividends declared with respect to the period

Interim dividends paid during the period ended 30 June 2020

Dividend per

Share cent

Total

Dividend

With respect to the quarter ended 31 December 2019

1.5075

9,506

With respect to the quarter ended 31 March 2020

1.5150

9,554

 

3.0225

19,060

 

Interim dividends declared after 30 June 2020 and not accrued in the period

Dividend per

Share cent

Total

Dividend

With respect to the quarter ended 30 June 2020

1.5150

9,554

 

1.5150

9,554

 

As disclosed in note 18, the Board approved a dividend of 1.515 cent per share on 30 July 2020 in relation to the quarter ended 30 June 2020, bringing total dividends declared with respect to the period to 3.03 cent per share. The record date for the dividend was 7 August 2020 and the payment date was 28 August 2020.

 

8. Investments at fair value through profit or loss

For the period ended 30 June 2020

Loans

Equity interest

Total

 

€'000

€'000

€'000

 

 

 

 

Opening balance

435,336

414,771

850,107

Additions (note 17)

57,182

9,440

66,622

Shareholder loan interest capitalised (note 17)

1,339

-

1,339

Repayment of shareholder loan investments (note 17)

(18,704)

-

(18,704)

Unrealised movement in fair value of investments (note 3)

2,160

7,226

9,386

 

477,313

431,437

908,750

 

For the period ended 30 June 2019

Loans

Equity interest

Total

 

€'000

€'000

€'000

 

 

 

 

Opening balance

419,016

338,383

757,399

Additions

2,895

31,557

34,452

Repayment of shareholder loan investments

(14,733)

-

(14,733)

Unrealised movement in fair value of investments (note 3)

379

14,301

14,680

 

407,557

384,241

791,798

 

The unrealised movement in fair value of investments of the Group during the period was made up as follows:

 

For the six

months ended

 30 June 2020

€'000

For the six

months ended

30 June 2019

€'000

Decrease in valuation of investments

(10,842)

  (7,364)

Movement in swap fair values at SPV level

129

-

Repayment of debt at SPV level

5,266

-

Loan interest capitalised (note 17)

(1,339)

-

Repayment of shareholder loan investments (note 17)

18,704

14,733

Movement in cash balances of SPVs

(3,367)

7,077

Acquisition costs

835

234

 

9,386

14,680

 

Fair value measurements

As disclosed in the Company's Annual Report for the year ended 31 December 2019, IFRS 13 "Fair Value Measurement" requires disclosure of fair value measurement by level. The level of fair value hierarchy within the financial assets or financial liabilities ranges from level 1 to level 3 and is determined on the basis of the lowest level input that is significant to the fair value measurement.

 

The fair value of the Group's investments is ultimately determined by the underlying fair values of the SPV investments. Due to their nature, they are always expected to be classified as level 3, as the investments are not traded and contain unobservable inputs. There have been no transfers between levels during the six months ended 30 June 2020. All other financial instruments are classified as level 2.

 

Sensitivity analysis

The fair value of the Group's investments is €908,749,884 (31 December 2019: €850,106,884). The following analysis is provided to illustrate the sensitivity of the fair value of investments to a change in an individual input, while all other variables remain constant. The Board considers these changes in inputs to be within reasonable expected ranges. This is not intended to imply the likelihood of change or that possible changes in value would be restricted to this range.

 

Input

Base case

Change in input

Change in  fair value of investments

Change in NAV per share

 

 

 

€'000

cent

 

 

 

 

 

Discount rate

6 - 7 per cent

+ 0.25 per cent

(21,055)

(3.3)

 

 

- 0.25 per cent

21,772

3.5

 

 

 

 

 

Energy yield

P50

10 year P90

(59,633)

(9.5)

 

 

10 year P10

59,273

9.4

 

 

 

 

 

Power price

Forecast by leading consultant

- 10 per cent

(44,587)

(7.1)

 

+ 10 per cent

44,464

7.1

 

 

 

 

 

Inflation rate

2.0 per cent

- 0.5 per cent

(32,198)

(5.1)

 

 

+ 0.5 per cent

34,539

5.5

 

 

 

 

 

Asset Life

30 years

- 5 years

(81,458)

(12.9)

 

 

+ 5 years

66,087

10.5

 

The sensitivities above are assumed to be independent of each other. Combined sensitivities are not presented.

 

9.  Unconsolidated subsidiaries, associates and joint ventures

The following table shows subsidiaries of the Group acquired during the period. As the Company is regarded as an investment entity under IFRS, these subsidiaries have not been consolidated in the preparation of the financial statements:

 

Investment

Place of Business

 

Ownership Interest as at
30 June 2020

Registered

Office

 

 

 

 

Seahound Wind Developments Limited

Ireland

Riverside One, Sir John Rogerson's Quay, Dublin 2

100%

 

 

 

 

Société d'Exploitation du Parc Eolien du Tonnerois

France

20, Avenue de la Paix, 67000 Strasbourg, France

100%

 

 

 

 

Parc Eolien Des Tournevents SAS

France

20, Avenue de la Paix, 67000 Strasbourg, France

100%

 

 

 

 

Parc Eolien Des Courtibeux SAS

France

20, Avenue de la Paix, 67000 Strasbourg, France

100%

 

There are no changes to unconsolidated subsidiaries of the Group and there is no changes to associates and joint venture of the group as disclosed in the Company's Annual Report for the year ended 31 December 2019.

 

There have been no changes to security deposits or guarantees as disclosed in the Company's Annual Report for the year ended 31 December 2019.

 

10.  Receivables

 

30 June 2020

31 December 2019

 

€'000

€'000

Sundry receivables

184

180

Prepayments

62

77

Accrued income

29

2,959

VAT receivable

11

127

 

286

3,343

 

 

 

11.  Payables

 

 

 

30 June 2020

31 December 2019

 

€'000

€'000

Investment management fees payable

1,627

1,410

Acquisition costs payable

1,115

1,007

Other payables

952

722

Loan interest payable

157

124

Commitment fee payable

39

36

Other finance costs payable

7

-

Share issue costs payable

-

171

 

3,897

3,470

       

 

12.  Loans and borrowings

30 June 2020

31 December 2019

 

€'000

€'000

Opening balance

206,000

362,031

Revolving Credit Facility

 

 

  Drawdowns

306,000

80,900

  Repayments

(240,000)

(236,931)

Finance costs capitalised

 

 

  Finance costs capitalised

(2,898)

-

  Amortisation

239

-

Closing balance

269,341

206,000

 

 

 

Reconciled as:

 

 

 

 

 

Current liabilities

-

206,000

 

 

 

Non current liabilities

269,341

-

 

 

 

For the six months ended
30 June 2020

For the six

months ended
30 June 2019

 

€'000

€'000

Loan interest

1,562

2,749

Professional fees

1,164

17

Commitment fees

293

242

Facility arrangement fees

238

44

Finance expense

3,257

3,052

 

The loan balance as at 30 June 2020 is measured at amortised cost whereas the 31 December 2019 has not been adjusted to reflect amortised cost, as the amount was not materially different to the outstanding balance.

 

On the 1 April 2020, the Group entered into a new €280 million revolving credit facility with CIBC, RBC and Santander, refinancing the previously drawn facility. The new facility has a refreshed 3 year tenor and a margin of 1.30 per cent per annum and commitment fee of 0.46 per cent per annum.

On 17 June 2020, the Group amended its revolving credit facility to increase the facility size to €305 million with no change to margin or commitment fee.

As at 30 June 2020, the principal balance of the facility was €272,000,000 (31 December 2019: €206,000,000), accrued interest was €156,684 (31 December 2019: €123,600) and the outstanding commitment fee was €38,806 (31 December 2019: €36,540). 

 

13. Contingencies & Commitments

 

At the time of acquisition, wind farms which had less than 12 months' operational data may have a wind energy true-up applied, whereby the purchase price for these wind farms may be adjusted so that it is based on a 2 year operational record, once operational data has become available.

The following wind energy true-ups remain outstanding and the maximum adjustments are as follows: Letteragh €2,500,000, Killala: €2,000,000, and Knocknalour €489,000.

During 2019, the Group acquired Killala wind farm for an initial consideration of €37.2 million for the 5 operating turbines on the site. An additional turbine is currently under construction and the Group has agreed to pay further consideration to the existing developer contingent on the final turbine becoming operational, which is expected to be in the final quarter of 2020.

14. Share capital - ordinary shares

 

At 30 June 2020, the Company had authorised share capital of 2,000,000,000 ordinary shares of €0.01 each.

 

Date

Issued and fully paid

Number of shares issued

Share capital

Share premium

Total

 

 

 

€'000

€'000

€'000

 

 

 

 

 

 

1 January 2020

  Opening balance

630,619,469

6,306

385,669

391,975

 

 

 

 

 

 

30 June 2020

 

630,619,469

6,306

385,669

391,975

 

Shareholders are entitled to all dividends paid by the Company and, on a winding up, provided the Company has satisfied all of its liabilities, the Shareholders are entitled to all of the residual assets of the Company.

 

15. Net assets per share

 

30 June 2020

31 December 2019

Net assets - €'000

644,261

650,000

Number of ordinary shares issued

630,619,469

630,619,469

Total net assets - cent

102.2

103.1

 

16. Reconciliation of operating profit for the period to net cash from operating activities

 

For the six months ended
30 June 2020

For the six months ended
30 June 2019

 

€'000

€'000

Operating profit for the period

16,578

16,762

Adjustments for:

 

 

Unrealised movement in fair value of investments (notes 3 & 8)

(7,226)

(14,301)

Investment acquisition costs

835

234

Loan interest capitalised

(1,339)

-

Decrease in receivables

812

1,297

Increase in payables

448

467

Net cash flows from operating activities

10,108

4,459

 

17. Related party transactions

During the period, the Company advanced interest-free loans to Holdco of €nil (30 June 2019: €145,397,635), and Holdco made repayments of €18,150,000 (30 June 2019: €14,200,000). During the period, the Company also received shareholder loan repayments from Knockacummer of €1,994,445 (30 June 2019: €nil) and Killhills of €573,187 (30 June 2019: €nil).

The below table shows the Group's dividend and management fee income:

 

For the six months ending 30 June 2020

For the six months ending 30 June 2019

Management

Fee income

Dividend Income

Management

Fee income

Dividend Income

€000

€000

€000

€000

Cloosh Valley

-

5,028

-

-

Ballybane

13

2,750

12

-

Beam Hill

-

773

-

-

Knockacummer

13

-

12

-

Killhills

13

-

13

-

 

39

8,551

37

-

 

The table below shows the Group's shareholder loans with the wind farm investments

 

 

Loans at 1 January 2020 (1)

 

Loans advanced in the period

Loan interest capitalised in the period (2)

Loan Repayments

Loans

at 30 June 2020

Accrued interest

at 30 June 2020

Total

 

 

€'000

€'000

€'000

€'000

€'000

€'000

Knockacummer

120,329

-

-

 (3,163)

117,166

1,337

118,503

Monaincha

69,668

-

373

 (2,004)

68,037

113

68,150

Glanaruddery

51,310

-

 213

 (1,390)

 50,133

 84

50,217

Ballybane

41,773

-

 218

 (1,883)

 40,108

 67

40,175

Letteragh

-

 29,979

 - 

 (1,130)

 28,849

 160

29,009

Killhills

24,946

-

 175

 (574)

 24,547

 73

24,620

Killala

27,006

 - 

 - 

 (3,309)

 23,697

 133

23,830

Gortahile

 19,632

-

 102

 (2,045)

 17,689

 29

17,718

Kostroma

 16,473

-

 104

 - 

 16,577

 28

16,605

Tullynamoyle II

 16,239

-

 80

 (1,158)

 15,161

 26

15,187

Sommette

-

13,590

-

 - 

13,590

45

13,635

Garranereagh

 13,659

-

 74

 (662)

 13,071

 21

13,092

Lisdowney

 11,282

 - 

 - 

 (659)

 10,623

 54

10,677

Sliabh Bawn

 9,224

 1,050

 - 

 - 

 10,274

 5

10,279

Pasilly

-

9,020

-

 - 

9,020

30

9,050

Cloosh Valley

 7,015

 - 

 - 

 - 

 7,015

 - 

 7,015

Knocknalour

 6,522

 - 

 - 

 (727)

 5,795

 33

 5,828

Saint Martin

-

3,543

-

 - 

3,543

12

3,555

Raheenleagh

168

-

-

 - 

168

-

168

 

435,246

57,182

1,339

(18,704)

475,063

2,250

477,313

 

(1)  Excludes accrued interest at 31 December 2019 of €90,210.

(2)  During the period, shareholder loans across some SPVs were restructured resulting in the capitalisation of €1,339k of accrued shareholder loan interest.

 

18.  Subsequent events

 

On 8 July 2020, the Group announced the 50 per cent acquisition of the 20.5MW Carrickallen wind farm in County Cavan, Ireland.

On 30 July 2020, the Company announced a dividend of €9.6 million, equivalent to 1.515 cent per share. The record date for the dividend was 7 August 2020 and the payment date was 28 August 2020.

 

19.  Board approval

 

The Group's Interim Report and Financial Statements were approved by the Board of Directors on 13 September 2020.

Company Information

 

Directors (all non-executive)

Registered Company Number

Rónán Murphy

598470

Emer Gilvarry

 

Kevin McNamara

 

Marco Graziano (appointed 30 January 2020)

Registered Office

 

Riverside One

Investment Manager

Sir John Rogerson's Quay

Greencoat Capital LLP

Dublin 2

4th Floor The Peak

 

5 Wilton Road

 

London SW1V 1AN

Registered Auditor

 

BDO

 

Beaux Lane House

Company Secretary

Mercer Street Lower

Ocorian Administration (UK) Limited

Dublin 2

27/28 Eastcastle Street

London W1W 8DH

 

Legal Advisers

 

McCann Fitzgerald

Administrator

Riverside One

Northern Trust International Fund

Sir John Rogerson's Quay

Administration Services (Ireland) Limited

Dublin 2

Georges Court

 

54-62 Townsend Street

 

Dublin 2

Euronext Growth Advisor, NOMAD and Broker

 

J&E Davy

Depositary

Davy House

Northern Trust International Fiduciary 

49 Dawson Street

Services (Ireland) Limited

Dublin 2

Georges Court

 

54-62 Townsend Street

 

Dublin 2

Account Banks

 

Allied Irish Banks plc.

 

40/41 Westmoreland Street

Registrar

Dublin 2

Computershare Investor Services

 

(Ireland) Limited 

Northern Trust International Fiduciary 

3100 Lake Drive

Services (Ireland) Limited

Citywest Business Campus

Georges Court

Dublin 24

56-62 Townsend Street

 

Dublin 2

 

 

 

 

Defined Terms

Admission Document means the Admission Document of the Company published on 31 December 2019

 

Aggregate Group Debt means the Group's proportionate share of outstanding third party debt.

 

AGM means Annual General Meeting of the Company

 

Ballybane means Ballybane Windfarms Limited

 

BDO means the Company's Auditor as at the reporting date

 

Beam Hill means Beam Wind Limited

 

Brexit mean the withdrawal of the United Kingdom from the European Union

 

Board means the Directors of the Company

 

Carrickallen means Carrickallen Wind Farm

 

Cloosh Valley means Cloosh Valley Wind Farm Holdings DAC and Cloosh Valley Wind Farm DAC

 

Company means Greencoat Renewables PLC

 

CPI means Consumer Price Index

 

DCF means Discounted Cash Flow

 

ESG means the Environmental, Social and Governance

 

EU means the European Union

 

Euronext means the Euronext Dublin, formerly the Irish Stock Exchange

 

FIT means Feed-In Tariff

 

GAV means Gross Asset Value as defined in the Admission Document

 

Garranereagh means Sigatoka Limited

 

Glanaruddery means Glanaruddery Windfarms Limited and Glanaruddery Energy Supply Limited

 

Gortahile means Gortahile Windfarm Limited

 

Group means Greencoat Renewables PLC, Holdco, Holdco 2 and Holdco 3

 

Holdco means GR Wind Farms 1 Limited

 

Holdco 2 means Greencoat Renewables 1 Holdings Limited

 

Holdco 3 means Greencoat Renewables 2 Holdings Limited

 

IAS means International Accounting Standards

 

IFRS means International Financial Reporting Standards

 

Investment Management Agreement means the agreement between the Company and the Investment Manager

 

Investment Manager means Greencoat Capital LLP

 

Killala means Killala Community Wind Farm DAC

 

Killhills means Killhills Windfarm Limited

 

Knockacummer means Knockacummer Wind Farm Limited

 

Knocknalour means Knocknalour Wind Farm Holdings Limited and Knocknalour Wind Farm Limited

 

Kostroma Holdings means Kostroma Holdings Limited

 

Letteragh means Seahound Wind Developments Limited

 

Lisdowney means Lisdowney Wind Farm Limited

 

Monaincha means Monaincha Wind Farm Limited

 

NAV means Net Asset Value as defined in the Admission Document

 

NAV per Share means the Net Asset Value per Ordinary Share

 

NOMAD means a company that has been approved as a nominated advisor for the Alternative Investment Market (AIM), by Euronext Dublin and London Stock Exchange

 

Pasilly means Société d'Exploitation du Parc Eolien du Tonnerois

 

PPA means Power Purchase Agreement entered into by the Group's wind farms 

 

PSO means Public Support Obligation

 

Solar PV means solar photovoltaic

 

Raheenleagh means Raheenleagh Power DAC

 

RBC means Royal Bank of Canada

 

REFIT means Renewable Energy Feed-In Tariff

 

RESS means Renewable Energy Support Scheme

 

Review Section means the front end review section of this report (including but not limited to the Chairman's Statement and the Investment Manager's Report)

 

Santander means Abbey National Treasury Services Plc (trading as Santander Global Corporate Banking)

 

Sliabh Bawn means Sliabh Bawn Holding DAC, Sliabh Bawn Supply DAC and Sliabh Bawn Power DAC

 

Sommette means Parc Eolien Des Tournevents SAS

 

Solar PV means a solar photovoltaic system, which is a power system designed to supply usable solar power by means of photovoltaics.

 

SPVs means the Special Purpose Vehicles, which hold the Group's investment portfolio of underlying operating wind farms  

 

Saint Martin means Parc Eolien Des Courtibeux SAS

 

TSR means Total Shareholder Return

 

Tullynamoyle II means Tullynamoyle Wind Farm II Limited

 

UK means United Kingdom of Great Britain and Northern Ireland

 

Forward Looking Statements and other Important Information

This document may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "may", "plans", "projects", "will", "explore" or "should" or, in each case, their negative or other variations or comparable terminology or by discussions of strategy, plans, objectives, goals, future events or intentions.

 

These forward-looking statements include all matters that are not historical facts. They may appear in a number of places throughout this document and may include, but are not limited to, statements regarding the intentions, beliefs or current expectations of the Company, the Directors and/or the Investment Manager concerning, amongst other things, the investment objectives and investment policy, financing strategies, investment performance, results of operations, financial condition, liquidity, prospects, and distribution policy of the Company and the markets in which it invests.

 

By their nature, forward-looking statements involve risks and uncertainties because they relate to future events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. The Company's actual investment performance, results of operations, financial condition, liquidity, distribution policy and the development of its financing strategies may differ materially from the impression created by, or described in or suggested by, the forward-looking statements contained in this document.

 

In addition, even if actual investment performance, results of operations, financial condition, liquidity, distribution policy and the development of its financing strategies, are consistent with any forward looking statements contained in this document, those results or developments may not be indicative of results or developments in subsequent periods. A number of factors could cause results and developments of the Company to differ materially from those expressed or implied by the forward looking statements including, without limitation, general economic and business conditions, global renewable energy market conditions, industry trends, competition, changes in law or regulation, changes in taxation regimes, the availability and cost of capital, currency fluctuations, changes in its business strategy, political and economic uncertainty. Any forward-looking statements herein speak only at the date of this document.

 

As a result, you are cautioned not to place any reliance on any such forward-looking statements and neither the Company nor any other person accepts responsibility for the accuracy of such statements.

 

Subject to their legal and regulatory obligations, the Company, the Directors and the Investment Manager expressly disclaim any obligations to update or revise any forward- looking statement contained herein to reflect any change in expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based.

 

In addition, this document may include target figures for future financial periods. Any such figures are targets only and are not forecasts. Nothing in this document should be construed as a profit forecast or a profit estimate.

 

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