TIDMJLEN
RNS Number : 2248B
Jlen Environmental Assets Grp
29 January 2020
29 January 2020
JLEN ENVIRONMENTAL ASSETS GROUP LIMITED
("JLEN" or the "Company")
Net Asset Value and Dividend announcement
NAV
JLEN, the listed environmental infrastructure fund, announces
its unaudited Net Asset Value ("NAV") as at 31 December 2019 and
interim dividend for the quarter ended on that date.
The Company's unaudited NAV as at 31 December 2019 was GBP505.8
million or 101.8 pence per share, compared to GBP520.2 million or
104.7 pence per share as at 30 September 2019.
Portfolio update
In aggregate, energy generation from the renewables portfolio is
1.8% below budget for the financial year to date.
The AD portfolio continued its track record of out-performance,
with energy generation 3.0% above budget for the year to date. The
Vulcan upgrade project to double the capacity of the plant has
completed in the quarter to 31 December and it is now consistently
meeting expected levels of increased gas output.
The wind portfolio is 5.5% down on budget for the financial year
to date. October and November were low wind speed months which
impacted upon generation. Availability has improved since the half
year, with the sites previously serviced by Senvion returning to
expected levels. The Carscreugh wind farm has also demonstrated
sustained increased availability following an improvement programme
initiated in 2018.
The solar portfolio is 2.5% down on budget for the financial
year to date, having experienced two outages in the quarter to 31
December, one of which was unplanned due to a lightning strike and
is covered by insurance, and one of which was to allow a contractor
to carry out improvements under warranty. Allowing for these events
which will not reoccur, the financial year to date variance to
budget is 1.3% down.
The water and wastewater processing assets continue to perform
strongly against contractual targets and to deliver distributions
in line with expectations.
JLEN has continued to diversify its portfolio during the quarter
to 31 December, having acquired a 70% stake in Bio Collectors
Holdings Limited in December which holds the rights and operational
assets of a food waste fed AD plant and Bio Collectors waste
collections business. This is the Company's first investment into
the food waste AD sector and builds on management experience in
both the AD and waste sectors.
Portfolio valuation
The largest impact on portfolio valuation has come from the
update of power price forecasts from the previous quarter. JLEN
uses a blended curve informed by the central case forecasts from
two established market consultants, with adjustments for
project-specific arrangements as appropriate. Electricity price
forecasts have reduced by c. 7.5% from the Half Year report on a
fairly uniform basis across the forecast curve, reflecting the
consultants' views on continuing deployment of off-shore wind and
strong supply of natural gas. This has reduced the portfolio
valuation by GBP21.6m (4.3p per share) compared to the Half Year
valuation.
JLEN's diversified portfolio has one of the lowest exposures to
wholesale power prices in the sector, with 64% of the Fund's
underlying revenues coming from subsidies and concession-based
payments that are fixed in nature and have explicit inflation
linkage. Of the remaining 36% of revenues that come from sale of
wholesale electricity and gas, JLEN currently has fixed price or
floor arrangements covering 55% of electricity generation for the
remainder of the current Winter Season, 46% for the upcoming Summer
20 season and 44% for Winter 20.
Value enhancements have been recognised in respect of the Vulcan
upgrade project, improved long term availability at the Carscreugh
wind farm, and improved PPA terms across the wind portfolio. These
added GBP4.1m to the portfolio valuation (0.8p per share) in the
period to 31 December.
Discount rates have been reduced on selected AD projects that
have now shown a consistent pattern of out-performance as well as
having good potential for upgrades that increase output, improve
efficiency or earn ancillary revenues. The Investment Adviser is
also aware of increased market competition for established
operating assets with strong track records. This has added GBP7.4m
to the portfolio valuation (1.5p per share).
The weighted average discount rate for the portfolio as a whole
is 7.5% (30 September 2019: 7.6%), and the discount rate range
remains unchanged at 6.5%-9.2%.
Dividend
The Company announces a quarterly interim dividend of 1.665
pence per share for the quarter ended 31 December 2019, in line
with the dividend target of 6.66p per share for the year to 31
March 2020(1) , as set out in the 2019 Annual Report. The Company
reiterates its expectation of meeting that target.
Dividend Timetable
Ex-dividend date 13 February 2020
Record date 14 February 2020
Payment date 13 March 2020
This announcement contains information that is inside
information for the purposes of the Market Abuse Regulation (EU)
No. 596/2014.
For further details contact:
Foresight Group +44(0)20 3667 8100
Chris Tanner
Chris Holmes
Winterflood Investment Trusts +44(0)20 3100 0000
Neil Langford
Chris Mills
Newgate Communications +44 (0)20 3757 6880
Elisabeth Cowell
Ian Silvera
Praxis Fund Services +44(0)1481 755530
Matt Falla
Gemma Woods
About JLEN
JLEN's investment policy is to invest in environmental
infrastructure projects that have the benefit of long-term,
predictable, wholly or partially inflation-linked cash flows
supported by long-term contracts or stable regulatory
frameworks.
Environmental Infrastructure is defined by the Company as
infrastructure projects that utilise natural or waste resources or
support more environmentally-friendly approaches to economic
activity. This could involve the generation of renewable energy
(including solar, wind, hydropower and biomass technologies), the
supply and treatment of water, the treatment and processing of
waste, and projects that promote energy efficiency.
JLEN aims to provide investors with an annual dividend that is
sustainable and increases in line with inflation. The target
dividend for the year to 31 March 2020 is 6.66 pence per share (1)
. The dividend is payable quarterly.
Further details of the Company can be found on its website
www.jlen.com
LEI: 213800JWJN54TFBMBI68
(1) These are targets only and not profit forecasts. There can
be no assurance that these targets will be met or that the Company
will make any distributions at all.)
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.
END
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