(Alliance News) - Renewables Infrastructure Group Ltd said on Friday it had delivered a "robust" performance in 2021, as net asset value grew, and profit more than doubled during the year.
The Guernsey-based renewable energy investment company said net asset value per share was 119.3 pence at year-end, up 3.5% from 115.3p at the end of 2020. The growth was primarily driven by high near-term power prices, increased near-term inflation, and the active management of its portfolio, it said.
Total NAV return for the year was 9.5%, and from its initial public offering in 2013 to December 31 has been 8.3%, including dividends. NAV return for 2021 was lifted by consistent demand for renewable assets, and near-term power price increases, but offset by reduced power price forecasts for the medium and long-term, expected cuts to solar feed-in tariffs in France, and a hike to corporation tax rates to come in the UK.
Profit before tax soared to GBP210.5 million, over double that of GBP100.2 million in the previous year, generating earnings per share of 10.0p up from 5.9p in 2020. The company's net assets were up 23% year-on-year to GBP2.71 billion from GBP2.19 billion.
The company is targeting a dividend of 6.84p per share, up 1.2% on 6.76p delivered in 2021.
An unusually poor performance in wind energy was the main reason that its portfolio production came in 13% below budget, Renewables Infrastructure said. The total portfolio production was 4,125 gigawatt-hours, down from the target of 4,719 GWh.
"Active portfolio management by InfraRed and RES has delivered robust financial performance from TRIG in a year characterised by the ongoing Covid-19 pandemic, volatile commodity markets, and the lowest wind resource in the company's history," said Chair Helen Mahy.
Looking ahead, the company said Europe's transition to a net-zero carbon economy will be the foundation for sustainable returns for shareholders in the long term.
"Renewables play an essential role in providing affordable and clean electricity. This backdrop continues to ensure a bright outlook for the company," Mahy said.
The FTSE 250-listed investment company's shares were up 0.4% to 130.55 pence each in London on Friday morning.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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Renewables Infrastructure Group (TRIG)