The Renewables Infrastructure Group (TRIG) H1 2024 earnings summary

Executive summary

• Net asset value per share declined to 123.4p at 30 June 2024, mainly due to lower near-term power price forecasts, reduced inflation expectations, and below-budget generation.

• Portfolio value at £3,358m as of 30 June 2024, with 2.9TWh renewable electricity generated in H1 2024, powering 1.8 million homes and displacing 2.2 million tonnes of carbon.

• Disposals of £210m since June 2023 at an average 11% premium, supporting a £50m buyback programme and validating portfolio valuation.

• Dividend guidance for FY 2024 reaffirmed at 7.47p per share, a 4% year-on-year increase, with cash generation and dividend cover in line with expectations.

• 1GW development pipeline to 2030, including battery storage and repowering projects, with the first 78MW battery project under construction.

Financial highlights

• Earnings per share for H1 2024 at -0.6p, reflecting valuation losses from lower power prices and below-budget generation.

• Operational cash flow of £203m in H1 2024, with distributable cash flow of £100m after debt repayment and expenses.

• Portfolio valuation at £3,358m as of 30 June 2024, down from £3,509m at 31 December 2023.

• Dividend cover was 1.1x net and 2.2x gross before project-level debt amortization.

• Ongoing charges ratio at 1.03%.

Outlook and guidance

• Dividend target for 2024 reaffirmed at 7.47p per share, with net dividend cover expected to normalize to 1.2x–1.3x from 2025.

• RCF borrowings projected to reduce to c.£220m by end-2024 and c.£100m during 2025, assuming completion of disposals and buybacks.

• Focus remains on reducing floating rate debt and disciplined capital allocation, benchmarking new investments to buybacks.

• Short-term power price pressures expected to subside, with medium-term recovery anticipated.

• Portfolio well positioned for growth with a 1GW development pipeline, including battery storage and repowering projects.