Net Asset Value Update – Q2 2025
1 August 2025
The Renewables Infrastructure Group Limited
"TRIG" or "the Company", a London-listed renewables investment company advised by InfraRed Capital Partners ("InfraRed") as Investment Manager and Renewable Energy Systems ("RES") as Operations Manager.
Net Asset Value update - Q2 2025
TRIG announces an estimated unaudited Net Asset Value as at 30 June 2025 of 108.2 pence per share, a decrease of 4.5 pence per share in the quarter principally due to a reduction in revenue forecasts (-4.4p).
Dividend cover for H1 2025 was 2.2x gross or 1.0x net after the repayment of £105m portfolio-level debt across the Group. A further c. £85m portfolio-level debt is scheduled to be repaid in H2 2025.
The Board reaffirms the dividend target for 2025 of 7.55p per share for FY 20251. Low generation as a result of particularly poor wind speeds in H1 can be expected to impact H2 cash flows meaning that covering the FY 2025 dividend may be tight.
Q2 2025 movements in Net Asset Value per share
The key drivers of the movement in NAV per share over the quarter are summarised in the table below:
|
|
Net Asset Value
|
Positive Movements (p / share) |
Negative Movements (p / share) |
|
NAV per share at 31 March 2025 |
112.7 |
|
|
|
Q2 performance |
|
|
(1.0) |
|
Changes to revenue forecasts |
|
|
(4.4) |
|
Value enhancement and share buybacks |
|
1.0 |
|
|
NAV per share at 30 June 20252 |
108.2* |
|
|
*Balance does not cast due to rounding
Q2 performance
Generation was 6% below budget for the quarter driven by continued poor wind resource in the UK, France and Germany, partially offset by good wind resource in Sweden and strong solar resource in the UK; and 10% below budget in aggregate for the portfolio in H1 2025. Overall, underlying asset performance was consistent with budgets.
A fault on one of the two Beatrice offshore wind farm export cables occurring in Q2 2025 was repaired in July, prior to which output had been largely redirected via the offshore transmission owner's remaining cable to minimise losses. Commercial protections are in place.
Power price levels achieved in the quarter were broadly on budget across the portfolio.
Actual inflation continues to be marginally above TRIG's assumptions for 2025.
Sterling continued to weaken against the Euro in the quarter, increasing the value of Euro denominated investments. FX hedges slightly reduced the favourable impact from this movement.
Changes to revenue forecasts
TRIG uses the average of three leading power price forecasters' projections. These are adjusted for the lower price that a variable renewables project captures compared to a baseload generator and the resulting discount is known as cannibalisation3. This means that TRIG captures the breadth of views on the evolution of the electricity market and supply demand dynamics. This is important as forecasters' views may diverge.
Of particular note in this period, the lowest of the three forecasters used by TRIG has materially reduced their expectations for the growth of electricity demand resulting in lower power price projections. Of the other two forecasters, one broadly maintained price levels and the other slightly increased their projections overall, thus increasing the spread of power price forecasts. The additional caution introduced by the lowest forecaster during Q2 2025 is estimated to have negatively impacted NAV by c. 2.5p per share. The potential impact on projected portfolio returns from the spread of forecasts around the mid-point adopted by TRIG has:
· increased from (-0.8% p.a. to +0.9% p.a.) at December 2024 to (-1.4% p.a. to +1.0% p.a.) at June 2025 for the portfolio as a whole; and
· increased from (-1.5% p.a. to +1.5% p.a.) at December 2024 to (-2.2% p.a. to +1.6% p.a.) at June 2025 for the GB wind portfolio in isolation.
Value enhancement
One of TRIG's differentiating characteristics is the benefit secured through InfraRed's and RES's active management of TRIG's portfolio to enhance value for shareholders and reduce the impact of the macro environment and external factors on the portfolio valuation. This process was described in detail at the Company's Capital Markets Seminar in May 2025, a recording of which can be found on the TRIG website. This includes the following areas:
· Debt capacity and portfolio rotation
Debt issuance and further strategic disposals continue to be pursued, with the aim of raising £300m in 2025. During the quarter, progress has been made in converting £150m of floating-rate debt drawn on the Company's RCF to long-term, fixed interest rate debt, with NAB and NatWest appointed as joint placement agents to the Company.
· Operational enhancements
TRIG continues to harness RES's operational and commercial capabilities to enhance and optimise performance of existing assets. During the quarter the positive impact of technical enhancements relating to turbine hardware and software upgrades on several projects across the portfolio, added £19m (0.8p per share) to portfolio valuation.
· Development and construction
Construction of the Ryton battery storage project in the UK remains on time and on budget with all batteries having arrived on site and installation having begun ahead of energisation towards the end of the year.
The final investment decision for the repowering of the Cuxac onshore wind farm in France was approved, which will see the site benefit from a new 20-year inflation-linked Feed-in-Tariff and its generation capacity doubled from 12MW to 25MW, as the six existing turbines are replaced with six new and larger turbines.
· Revenue management
The management team continues to progress securing a 10-year corporate PPA for 2% of the Group's annual generation at a price consistent with TRIG's long term power price forecast, which is expected to be signed in Q3 2025.
Share buybacks
As at 31 July 2025, £66m of the current £150m share buyback programme has been deployed in the repurchase of TRIG shares. During the quarter to 30 June 2025, 21m shares were repurchased for an aggregate consideration of £17m. Share buybacks added 0.2p per share to NAV in the quarter.
1 Past performance is not a reliable indicator of future results. There can be no assurance that targets will be met or that the Company will make any distributions, or that investors will receive any return on their capital. Capital and income at risk.
2 NAV per share at 30 June 2025 presented after unwind of the discount rate, company costs and payment of the quarterly interim dividend.
3 Cannibalisation describes the effect that renewables (a variable generator) can have on the overall power prices, whereby the marginal cost of generation, which in turn drives the power prices, is lower than the average which would be expected of a continuous base load generator as a result of the additional supply when renewables are generating. Rates differ over time and between markets but all are affected.
Enquiries
InfraRed Capital Partners Limited +44 (0) 20 7484 1800
Minesh Shah
Phil George
Mohammed Zaheer
Brunswick +44 (0) 20 7404 5959 / TRIG@brunswickgroup.com
Diana Vaughton
Charles Malissard
Investec Bank Plc +44 (0) 20 7597 4000
Lucy Lewis
Tom Skinner
BNP Paribas +44 (0) 20 7595 9444
Virginia Khoo
Carwyn Evans
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 invested in a portfolio of wind, solar and battery storage projects across six markets in Europe with a net operational capacity of 2.3GW; enough renewable power for 1.6 million homes and to avoid 2.0 million tonnes of carbon emissions per annum.
Further details can be found on TRIG's website at www.trig-ltd.com.
Investment Manager
InfraRed Capital Partners is an international infrastructure asset manager, with more than 160 professionals operating worldwide from offices in London, New York, Madrid, Germany,2 Sydney and Seoul. Over the past 25 years, InfraRed has established itself as a highly successful developer and steward of infrastructure assets that play a vital role in supporting communities. InfraRed manages US$13bn of equity capital1 for investors around the globe, in listed and private funds across both core and value-add strategies.
InfraRed is part of SLC Management, the institutional alternatives and traditional asset management business of Sun Life.
For more information, please visit www.ircp.com.
1 Uses five-year average FX as at 31 December 2024 of GBP/USD of 1.2818; EUR/USD 1.1092.
2 Being launched in 2025
Operations Manager
TRIG's Operations Manager is RES ("Renewable Energy Systems"). RES is the world's largest independent renewable energy company, working across 24 countries and active in wind, solar, energy storage, biomass, hydro, green hydrogen, transmission, and distribution. An industry innovator for over 40 years, RES has delivered more than 24GW of renewable energy projects across the globe and plans to bring more than 22GW of new capacity online in the next five years.
As a service provider, RES has the skills and experience in asset management, operations and maintenance (O&M), and spare parts - supporting 41GW of renewable assets across 1,300 sites. RES brings to the market a range of purposeful, practical technology-based products and digital solutions designed to maximise investment and deployment of renewable energy. RES is the power behind a clean energy future where everyone has access to affordable zero carbon energy bringing together global experience, passion, and the innovation of its 4,500 people to transform the way energy is generated, stored and supplied.
Further details can be found on the website at www.res-group.com.
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