Greencoat Renewables (GRP) H2 2023 earnings summary

Executive summary

• €2.6bn GAV portfolio across 39 operating assets in six countries; capacity reached 1.5GW, up 332MW YoY.

• €196.7m net cash generation supported €72.6m of dividends and 2.6x net dividend cover.

• NAV per share was 112.1c at year-end, down 0.3c; cash generation offset depreciation and dividends.

Financial highlights

• FY2023 revenue was €379.2m, up 15% YoY; EBITDA was €251.2m, up 4%.

• Operating expenses increased to €128.0m from €89.8m; finance costs rose to €33.3m from €17.9m, and tax to €21.2m from €7.8m.

• Net cash generation was €196.7m, down 9% YoY, including €39.7m of power-price upside versus €78.2m in 2022; figure is gross of €7.2m SPV debt repayments.

• GAV increased 18% to €2,621.5m; NAV was €1,279.4m versus €1,282.5m in 2022.

Outlook and guidance

• 2024 dividend target is 6.74c per share, a 5% increase; projected dividend cover remains above 2.0x through 2028.

• Forecast post-dividend operating cash flow exceeds €400m through 2028; projections assume 60% of excess cash is reinvested and 40% used for debt repayment.

• 75% of revenues are contracted to 2028, with 69% of contracted revenues index-linked; 66% of portfolio revenues are contracted to 2032.

• Use of post-dividend cash flow could reduce debt below €1bn and gearing to 42% by 2028.