Renewable energy group Greencoat UK Wind PLC (LSE:UKW) said there was an “attractive pipeline” of potential onshore and offshore investment that would allow it to pursue its “buy and build” strategy.
The comments were made alongside the interim results and following two transactions – the acquisitions of the Twentyshilling wind farm in Scotland and the purchase of a 12.5% stake in Hornsea 1, off the east coast from England.
This latest transaction will be completed in the current quarter at a price of £400 million, Greencoat confirmed.
The group’s investments generated 2,175 gigawatt hours of electricity, or 1% ahead of budget.
On the finance side, Greencoat generated net cash of £328.8m in the six months to June 30, enabling it to pay a stock dividend of 3.86pa, up from 7.5% over one year. Net asset value, a benchmark for infrastructure companies, rose 15% to 153.6p.
Its gross assets were nearly £4.5bn, while net debt, at £900m, was 20% of gross assets, well below its 40% limit.
“We are delighted to report another solid performance, with continued solid cash generation, as we stick to our simple, low-risk strategy and build on our well-established track record,” said Chairman Shonaid Jemmett. -Page.