Overview
Greencoat UK Wind PLC recorded a net asset value (NAV) per share of 134.1p at June 30, producing a 1.9% total return over the second quarter and a 4.4% total return for the first half of the year. The fund attributed the quarter's NAV movement to several discrete components, with net cash generation the principal positive contributor.
Drivers of Q2 NAV movement
The company reported net cash generation equivalent to 2.6% of the opening NAV during the quarter. In addition, higher power price assumptions contributed 1.2% to NAV. These gains were partially offset by a 1.0% reduction from lower inflation assumptions, a 0.4% negative impact from debt mark-to-market movements, and other factors totalling a 0.3% drag.
Generation and pricing
Portfolio generation for the second quarter came in 5.5% above budget, lifting first-half generation to 4.9% above budget. The average power price achieved for the half was £82.1 per megawatt hour, which the company noted is a 12% discount to the N2EX index average price of £92.8 per megawatt hour over the same period.
The outperformance versus budget occurred even though portfolio availability was slightly lower than expected. Management reported that weather-related events in the first quarter prevented access to two offshore wind farms, weighing on availability metrics.
Cash generation, dividends and guidance
Net cash generation for the half amounted to £222 million, delivering dividend cover of 1.9 times for the period. By comparison, dividend cover was 1.4 times in the first half of fiscal year 2025. The company's guidance for full-year net cash generation ranges from £350 million to £410 million, which implies dividend cover for fiscal 2026 of between 1.5 and 1.8 times. Management indicated that net cash generation is tracking towards the top end of that guidance. The company also disclosed that 66% of revenues for the remainder of the year are on fixed-price contracts.
Balance sheet and refinancing
During the period the company refinanced its term debt maturing in 2026 by replacing it with facilities from its existing lender group that now expire between 2032 and 2034. The replacement tranches carry coupons in the range of 5.6% to 5.9%.
As of June 30, Greencoat UK Wind held £244 million in cash and reported £2,070 million of aggregate gross debt, equivalent to 41.7% of gross asset value. Strong organic cash generation enabled the company to repay £53.5 million of debt during the half.
Contextual note
The company presented these figures as its financial and operational performance for the reporting period, including updated guidance and capital structure changes described above.