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 reached 1.5 GW across six countries, generating 1,927 GWh in H1 2024, with 39 assets and annualized production of 3.5 TWh, equivalent to 10% of Ireland's electricity production.

• High level of contracted revenue (77% through 2028, 86% currently), underpinning resilience and cash flow certainty.

• Benefiting from macro trends in decarbonization, energy security, and rising demand from data centers and AI, with strategic focus on leveraging PPA demand from Big Tech.

• Strong cash generation supports progressive dividends and share buybacks, with €113.6 million net cash generated in H1 2024.

Financial highlights

• H1 2024 revenue: €223.5 million (+29% YoY); EBITDA at €145.2 million; net cash generation: €113.6 million.

• Dividend cover at 3.0x, with €37.5 million paid in dividends in H1 2024.

• NAV per share stable at 112.1 cents; net asset value at €1.3 billion.

• Gearing at 51%; weighted average cost of debt at 3.1%.

• Share buyback of €25 million initiated, 40% completed by June, at 21% discount to NAV.

Outlook and guidance

• Expecting €400 million of cash generation above dividend payout through 2028, with over €100 million to be returned to shareholders in 2024.

• Dividend growth set at 5% for 2024, with quarterly payments and yield of 7.8%.

• Dividend cover projected above 2x even in adverse power price scenarios.

• 77% of revenues contracted through 2028, supporting secure, inflation-linked income.

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