Aquila European Renewables (AERI) H2 2024 earnings summary

Executive summary

• Shareholders approved a Managed Wind-Down and new investment objective to realize all existing assets in an orderly manner as of 30 September 2024.

• Net assets declined to €320.2m (from €372.5m in 2023), with NAV per share at 84.7 cents and a total NAV return of -8.2% year-over-year.

• Dividends paid per share were 5.13 cents, below the 2024 target of 5.79 cents, reflecting lower operating performance and asset sales.

• The company sold its 25.9% stake in the Tesla wind asset for €27m, repaying the revolving credit facility and furthering the wind-down process.

• Rothschild & Co was appointed as financial advisor to support the asset sale process.

Financial highlights

• Net assets: €320.2m (2023: €372.5m); NAV per share: 84.7 cents (2023: 98.5 cents).

• Ordinary share price: 66.0 cents (2023: 78.5 cents), trading at a 22.1% discount to NAV.

• Total NAV return per share: -8.2% (2023: -6.0%).

• Dividend yield: 7.8% (2023: 7.4%).

• Ongoing charges: 1.1% (unchanged from 2023).

• Revenue for the year: €54.6m, down 11.6% year-over-year.

• Loss after tax: €29.7m (2023: €29.9m loss).

Outlook and guidance

• No forward dividend guidance due to the wind-down; dividends will be paid as covered by earnings and liquidity.

• Asset sales to continue with the aim of maximizing value and returning capital to shareholders efficiently.

• Management expects continued volatility in power prices and macroeconomic uncertainty, but sees long-term sector resilience.