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Highlights
- Stable EBITDA: £493m portfolio EBITDA, reflecting normalised power prices after 2022/23 highs.
- Capital Discipline: £185m raised through asset sales, with gearing reduced by £340m.
- Shareholder Returns: Dividend target raised to 7.55p/share for 2025, with a tripled buyback program.
The Renewables Infrastructure Group (LSE:TRIG) has announced its financial results for the year ended 31 December 2024, highlighting a robust underlying performance despite external valuation pressures. The company reported a pro-forma portfolio EBITDA of £493m, down from £610m in 2023, as power prices in the UK and Europe returned to more typical levels after the record highs of the previous two years.
Despite third-party grid outages, TRIG maintained healthy cash flow generation, with a 2.1x gross cash cover and 1.0x net dividend cover after repaying £206m in project-level debt.
However, the company’s Net Asset Value (NAV) per share declined by 11.8p to 115.9p, primarily due to lower power price forecasts, operational adjustments, and a higher portfolio valuation discount rate, which rose to 8.6% (2023: 8.1%).
Strategic Capital Management and Shareholder Returns
TRIG remained focused on balance sheet strength and returning value to shareholders. The company completed the sale of four wind farms — Little Raith, Forss, Pallas, and a partial stake in Gode 1 — for £185m, achieving an average premium of over 10%. This contributed to a £340m gearing reduction, with project-level debt fixed and systematically repaid within contract terms.
To enhance shareholder value, TRIG tripled its share buyback program from £50m to £150m, representing 8% of shares in issue. As of 21 February 2025, 36 million shares had been repurchased for £33m.
The 2025 dividend target was set at 7.55p per share, a 1.1% increase from 2024, aligning with TRIG’s commitment to delivering steady, inflation-linked returns to investors.
Outlook: Stable Cash Flows and Further Capital Optimisation
TRIG’s long-term cash flow visibility remains significant, with 80% of projected 2025 revenues at fixed prices and 60% of forecast revenues over the next 10 years linked to inflation indices. The company is progressing over £300m of additional divestments and financings to fund the expanded buyback program, reduce floating-rate debt, and meet ongoing investment commitments.
With the current share price implying a 10% dividend yield and a 12% base case annualised return, TRIG presents an attractive risk-adjusted opportunity, offering a 7% and 9% equity risk premium relative to UK and European risk-free rates, respectively.
