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Summary
- The Renewables Infrastructure Group reported higher dividend payout in 2020 owing to gains in its portfolio value and net assets.
- The company reported a pre-tax profit of £100 million in 2020, down from £162 million in the previous year, and earnings per share of 5.9 pence for 2020, down from 11.9 pence in 2019.
- The results come on the back of the company’s recent acquisition of the 67.2-megawatt Grönhult onshore wind farm from Sweden-based firm Vattenfall.
Green energy investor The Renewables Infrastructure Group (LON: TRIG) reported an increase in its dividend in 2020 on Wednesday, following gains in its portfolio value and net assets for the period. It declared a dividend of 6.76 pence per share, up from 6.64 pence paid last year.
However, the company expects a flat dividend for 2021 (6.76p per share) since its annual profits were impacted based on pandemic-related lower power price forecasts across the regions the company invests.
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Earnings results
The FTSE 250-listed company reported pre-tax profits of £100 million in 2020, down from £162 million the previous year. Additionally, its earnings per share also fell to 5.9 pence in 2020 from 11.9 pence a year ago. The pandemic had affected all the company’s key markets in Europe, however, the impact differed from country to country.
Besides, its portfolio had generated 3,953 GW hours of electricity in 2020 compared to 3,036 GW hours in the previous year, indicating a 30.20 per cent increase.
The company’s chairman Helen Mahy said the company’s resilient financial results were due to a diversified portfolio and robust operational performance which led to gains in its net asset value despite the pandemic.
Mahy added that public policy in areas such as energy supply decarbonisation, clean energy-friendly grid infrastructure and electrification of energy systems will witness some significant development ahead of the COP26 talks.
Want to know more? Do read: How Can UK’s New £10-Mn Green Finance Push Impact Climate Talks
Recent acquisition
The investment company announced the acquisition of the 67.2MW Grönhult onshore wind farm in Sweden from Vattenfall for an undisclosed amount on 12 February. The project is set to become operational by the end of 2022.
Furthermore, the wind farm investment is expected to account for a sizeable share of the company’s portfolio. It is estimated to account for 3 per cent of the company’s portfolio value on a fully committed basis, 6 per cent of its construction projects portfolio value and 10 per cent of its investments in Sweden.
Green financing has increasingly been accelerated across the UK and Europe following strict norms to adhere to climate friendly investments. It has been a focal point for the UK government owing to its upcoming hosting duties at the COP26 UN summit scheduled to be held in November.
Want to know more? Do read: UK to sell its first green bonds from 2021
Stock Price
The company’s (LON: TRIG) shares were trading flat at GBX 128.60 following the announcements as on 17 February at 1:37 PM GMT. Comparatively the FTSE 250 index price was at GBX 21,245.69, down by 0.80 per cent for the same period.
