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, with portfolio value at £3,358m and robust operational cash flows supporting a 1.1x dividend cover after debt repayment.

• Portfolio generated 2.9TWh of renewable electricity in H1 2024, powering 1.8 million homes and displacing 2.2 million tonnes of carbon annually, with 121MW new onshore wind capacity commissioned and a 1GW development pipeline to 2030.

• Four wind farms were disposed of for £189m at a 10% premium to carrying value, supporting a £50m share buyback programme and validating portfolio valuation.

• Dividend guidance for FY 2024 reaffirmed at 7.47p per share (4% year-on-year growth), with strong cash generation and disciplined capital allocation.

• Strategic focus remains on responsible investment, portfolio diversification, and leveraging expertise in renewables and storage.

Financial highlights

• Portfolio value at £3,358m as of 30 June 2024, with NAV per share at 123.4p, down from 127.7p at 31 December 2023.

• Earnings per share for H1 2024 were -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.

• Dividend cover was 1.1x net and 2.2x gross before project-level debt amortization; ongoing charges ratio at 1.03%.

• Project-level debt repayments of £103m in H1 2024; RCF drawn at £334m as of 30 June 2024.

Outlook and guidance

• Dividend cover expected to normalize to 1.2–1.3x from 2025, with gross cover above 2x.

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

• 1GW development pipeline targeted for construction by 2030, focusing on batteries and solar to increase portfolio diversification.

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

• Share buyback programme of up to £50m commenced, reflecting confidence in value and progress on disposals.