TIDMGRP
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 EUR40
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 EUR1,139 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.
-- EUR494.5 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 EUR763.0 million
Share price 121.0 cent
Dividends with respect to the period EUR19.1 million
Dividends with respect to the period 3.03 cent
per share
GAV EUR1,138.7 million
NAV EUR644.3 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
greencoat@fticonsulting.com .
Presentation materials will be posted on the Company's website,
www.greencoat-renewables.com from 7.00 am.
---S ---
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 greencoat@fticonsulting.com
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 EUR40.0
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 EUR34.8 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
EUR366.9 million (36 per cent of GAV). Following the acquisitions
made in the period, Group and SPV borrowings amounted to EUR494.5
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 Ownership Net
MW Stake MW
Republic
Ballybane of Ireland Enercon EnergyPro Energia 48.3 100% 48.3
Republic
Beam Hill of Ireland Vestas EnergyPro Erova 14.0 100% 14.0
Republic
Cloosh Valley of Ireland Siemens SSE SSE 108.0 75% 81.0
Republic
Garranereagh of Ireland Enercon Statkraft Bord Gáis 9.2 100% 9.2
Republic Supplier
Glanaruddery of Ireland Vestas EnergyPro Lite 36.3 100% 36.3
Republic
Gortahile of Ireland Nordex Statkraft Energia 20.0 100% 20.0
Republic
Killala of Ireland Siemens EnergyPro Electroroute 17.0 100% 17.0
Republic
Killhills of Ireland Enercon SSE Brookfield 36.8 100% 36.8
Republic
Knockacummer of Ireland Nordex SSE Brookfield 100.0 100% 100.0
Republic Naturgy
Knocknalour of Ireland Enercon Statkraft / Energia 9.2 100% 9.2
Republic
Letteragh of Ireland Enercon Statkraft SSE 14.1 100% 14.1
Republic
Lisdowney of Ireland Enercon EnergyPro Naturgy 9.2 100% 9.2
Republic
Monaincha of Ireland Nordex Statkraft Bord Gáis 36.0 100% 36.0
Pasilly France Gamesa Greensolver EDF 20.0 100% 20.0
Republic
Raheenleagh of Ireland Siemens ESB ESB 35.2 50% 17.6
Republic Supplier
Sliabh Bawn of Ireland Siemens Wind Prospect 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 Republic
II 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 EUR34 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
EUR95 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 EUR66.9 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 EUR21 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 EUR6.9
million to EUR41.5 million.
Group and wind farm SPV cash flows For the six months ended
30 June 2020
Net (1) Gross (1)
EUR 000 EUR 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 (EUR5,266k), 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
EUR7,852k.
For the six months ended
Net Cash Generation - Breakdown 30 June 2020
Net Gross
EUR'000 EUR'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
--------------------------------- ------------- ------------
For the six months ended
Net Cash Generation - Reconciliation to Net Cash Flows from Operating Activities 30 June 2020
Net Gross
EUR'000 EUR'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) EUR11,137k cashflows reflect residual capital expenditure
from acquired SPVs and REFIT working capital movements with the PSO
relating to wind farm SPVs less EUR29k SPV working capital
(4) EUR238k facility arrangement fees plus EUR1,164k
professional fees (note 12 to the Financial Statements) plus
EUR2,659k capitalised loan costs being the difference between the
EUR272,000k drawn revolving credit facility at 30 June 2020, and
EUR269,341k of Group loans and borrowings (note 12 to the Financial
Statements).
The decrease in portfolio valuation of EUR10.9 million is
predominately due to portfolio depreciation and adjustments to
short term inflation.
A dividend of EUR9.5 million (1.5075 cent per share) was paid in
February 2020 with respect to the quarter ended 31 December 2019. A
dividend of EUR9.6m (1.515 cent per share) was paid in May 2020
with respect to the quarter ended 31 March 2020.
A further dividend of EUR9.5m (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 As at
30 June 2020 31 December 2019
EUR'000 EUR'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 EUR222,451k
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 EUR272,000k of amounts drawn
under the Group's revolving credit facility, gross of EUR2,659k
capitalised finance costs. It also includes EUR222,451k 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 EUR494.5 million of debt
outstanding, equating to 43 per cent of GAV. This debt outstanding
comprised EUR272.0 million of amounts drawn under the Group's
revolving credit facility as well the EUR222.5 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 EUR21 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.EUR15 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
For the six months ended For the six months ended
Note 30 June 2020 30 June 2019
EUR'000 EUR'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
EUR'000 EUR'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 Other
months Distributable Retained
ended 30 June Share capital Share premium Reserves earnings Total
2020 Note EUR'000 EUR'000 EUR'000 EUR'000 EUR'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 EUR75,300,316, the total reserves
distributable by way of a dividend as at 30 June 2020 were
EUR176,985,497.
For the six months ended 30 June 2019
For the six Other
months Distributable Retained
ended 30 June Share capital Share premium Reserves earnings Total
2019 Note EUR000 EUR000 EUR'000 EUR'000 EUR'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 EUR68,765,871, the total reserves
distributable by way of a dividend as at 30 June 2019
EUR201,550,071.
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
For the six months ended For the six months ended
Note 30 June 2020 30 June 2019
EUR'000 EUR'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 nancial 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 nancial statements are presented in
Euro ("EUR") 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 nancial statements do not include all
information and disclosures required in the annual nancial
statements and should be read in conjunction with the Group's
consolidated annual nancial 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 unmodi ed.
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 EUR644.3 million
(31 December 2019: EUR650.0 million) and cash balances of EUR8.5
million (31 December 2019: EUR6.0 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 signi cantly 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
EUR1 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 For the six
months ended months ended
30 June 2020 30 June 2019
EUR'000 EUR'000
Investment management fees 3,247 2,415
---------------------------- -------------- --------------
3,247 2,415
---------------------------- -------------- --------------
As at 30 June 2020, EUR1,627,104 was payable in relation to
investment management fees (31 December 2019: EUR1,409,550).
3. Return on investments
For the six For the six
months ended months ended
30 June 2020 30 June 2019
EUR'000 EUR'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 For the six
months ended months ended
30 June 2020 30 June 2019
EUR'000 EUR'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 EUR3,000 (2019:
EUR3,000) 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
EURnil (30 June 2019: EURnil). The Group has tax losses carried
forward available to offset against current and future profits as
at 30 June 2020 of EUR399,458 (30 June 2019: EUR505,879).
6. Earnings per share
For the six For the six
months ended months ended
30 June 2020 30 June 2019
Profit attributable to equity holders of the Company - EUR'000 13,321 13,710
Weighted average number of ordinary shares in issue 630,619,469 457,348,066
---------------------------------------------------------------------------- -------------- --------------
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 Total
Share cent 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 Total
Share cent 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
EUR'000 EUR'000 EUR'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
EUR'000 EUR'000 EUR'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 For the six
months ended months ended
30 June 2020 30 June 2019
EUR'000 EUR'000
Decrease in valuation of investments (10,842) (7,364)
Movement in swap fair values at SPV 129 -
level
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 EUR908,749,884 (31
December 2019: EUR850,106,884). 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.
Change in fair value of
Input Base case Change in input investments Change in NAV per share
EUR'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
Forecast by leading
Power price 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:
Registered Ownership Interest as at
Investment Place of Business Office 30 June 2020
Seahound Wind Developments Riverside One, Sir John
Limited Ireland Rogerson's Quay, Dublin 2 100%
Société d'Exploitation 20, Avenue de la Paix, 67000
du Parc Eolien du Tonnerois France Strasbourg, France 100%
20, Avenue de la Paix, 67000
Parc Eolien Des Tournevents SAS France Strasbourg, France 100%
20, Avenue de la Paix, 67000
Parc Eolien Des Courtibeux SAS France 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
EUR'000 EUR'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
EUR'000 EUR'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
EUR'000 EUR'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 For the six
30 June 2020 months ended
30 June 2019
EUR'000 EUR'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 EUR280 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 EUR305 million with no change to
margin or commitment fee.
As at 30 June 2020, the principal balance of the facility was
EUR272,000,000 (31 December 2019: EUR206,000,000), accrued interest
was EUR156,684 (31 December 2019: EUR123,600) and the outstanding
commitment fee was EUR38,806 (31 December 2019: EUR36,540).
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 EUR2,500,000,
Killala: EUR2,000,000, and Knocknalour EUR489,000.
During 2019, the Group acquired Killala wind farm for an initial
consideration of EUR37.2 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 EUR0.01 each.
Date Issued and fully paid Number of shares issued Share capital Share premium Total
EUR'000 EUR'000 EUR'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 - EUR'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 For the six months ended
30 June 2020 30 June 2019
EUR'000 EUR'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 EURnil (30 June 2019: EUR145,397,635), and Holdco made
repayments of EUR18,150,000 (30 June 2019: EUR14,200,000). During
the period, the Company also received shareholder loan repayments
from Knockacummer of EUR1,994,445 (30 June 2019: EURnil) and
Killhills of EUR573,187 (30 June 2019: EURnil).
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 Management
Fee income Dividend Income Fee income Dividend Income
EUR000 EUR000 EUR000 EUR000
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 Loans Loan interest Loan Repayments Loans Accrued Total
at 1 advanced capitalised at 30 interest
January in the in the June at 30
2020 period period 2020 June 2020
(1) (2)
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'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 EUR90,210.
(2) During the period, shareholder loans across some SPVs were
restructured resulting in the capitalisation of EUR1,339k 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 EUR9.6
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
4(th) 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR UOOBRRWUKAAR
(END) Dow Jones Newswires
September 14, 2020 02:00 ET (06:00 GMT)
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