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The Renewables Infrastructure Group, a FTSE 250-listed in Financial Sector, reported a decrease in its net asset value (NAV) for the first half of 2024, attributing the decline to lower power prices and reduced energy generation. As of June 30, the group’s NAV per share had fallen from 127.7p to 123.4p, largely due to a drop in near-term power price forecasts, lower anticipated inflation, and energy generation that was 7% below budgeted levels.
Despite the challenges, The Renewables Infrastructure Group (LSE:TRIG) maintained a dividend cover of 1.1x during the period, although this was a decrease from the 1.7x cover reported in the same period a year earlier. The company highlighted that its financial resilience, despite the lower NAV, allowed it to continue supporting shareholder returns.
In addition to reporting on its financial performance, TRIG announced the launch of a £50.0 million share buyback program. This move is seen as a strategy to enhance shareholder value amid a challenging market environment. The trust also disclosed the sale of four wind farms located in Ireland, Scotland, and Germany. The assets were sold for a total of £189.0 million, with the average sale premium coming in at 10% above the book value of the assets, demonstrating the group's ability to capitalize on favorable market conditions.
TRIG’s performance in the first half of the year underscores the impact of fluctuating power prices and generation levels on renewable energy investments. However, the company’s proactive measures, including the share buyback and asset sales, indicate a strategic approach to managing these challenges while continuing to prioritize shareholder returns.
