Greencoat Renewables (GRP) H1 2024 earnings summary

Executive summary

• Achieved record H1 2024 revenue of €223.5 million, up 29% year-over-year, with strong cash generation and dividend cover at the top of the peer group.

• Portfolio scaled to over 1.5 GW across six countries, generating 1,927 GWh in H1 2024 and powering over 840,000 homes annually.

• Maintained a high contracted revenue profile (77%-86% contracted through 2028), supporting resilient cash flows and dividend growth.

• Benefiting from macro trends in decarbonization, energy security, and rising demand from data centers and AI, with new PPAs signed with major technology clients.

• Strategic focus on capital allocation, asset optimization, and leveraging PPA demand from Big Tech and AI.

Financial highlights

• H1 2024 cash generation reached €140 million, with net cash generation at €113.6 million and dividend cover at 3.0x despite lower wind speeds.

• NAV per share stable at 112.1 cents, with €1.3 billion net asset value and GAV at €2,572 million.

• Gearing at 49%-51%, with €1.3 billion aggregate debt and average cost of debt at 3.1%.

• Share buyback program 40% complete at June, with €25 million underway and 11.3 million shares bought back at a 21% discount to NAV.

• Dividend increased by 5% for 2024, with quarterly payments and €37.5 million paid in H1 2024.

Outlook and guidance

• Expecting €400 million of excess cash generation over dividends through 2028, supporting further capital allocation flexibility.

• Dividend cover projected to remain above 2x even under adverse power price scenarios, with €390 million in expected dividends through 2028.

• Ongoing focus on deleveraging, asset recycling, and potential for further share buybacks or dividend growth as market conditions improve.

• Availability expected to improve in H2 2024, trending back to 96%-97% long-term target.

• Management confident in long-term sector prospects and ability to capitalize on clean energy demand.