TIDMGRP
RNS Number : 4846L
Greencoat Renewables PLC
13 September 2021
Greencoat Renewables PLC
Interim Results to 30 June 2021
Dublin, London | 13 September 2021: Greencoat Renewables PLC
("Greencoat Renewables" or the "Company"), the renewable
infrastructure company invested in euro-dominated assets, is
pleased to announce its Interim Results for the six-month period
ended 30 June 2021.
Highlights
-- The Group's investments generated 745GWh of electricity, net
cash generation was EUR40 million (gross of SPV level debt
prepayment), resulting in gross dividend cover for the period of
1.8x.
-- Acquisition of Cordal and Glencarbry wind farms in Ireland
increased the portfolio to 23 wind farms, total installed capacity
to 685.6MW and GAV to EUR1,442 million as at 30 June 2021.
-- Successful entry into the Nordic wind market with the
commitment to acquire the 43MW Kokkoneva wind farm, once
operational in Q2 2022.
-- The Company declared total dividends of 3.03 cent per share
with respect to the period.
-- EUR693.3 million Aggregate Group Debt at 30 June 2021,
equivalent to 48.1 per cent of GAV.
-- Against a supportive backdrop with renewables remaining a
highly attractive asset class, the Group has identified significant
near and medium term growth opportunities in both Ireland and
Europe.
Commenting on today's results, Rónán Murphy, Non-Executive
Chairman of Greencoat Renewables, said:
"The past six months have been a successful period for Greencoat
Renewables, marked by a strong operational performance and
continued expansion into Europe, including our first investment
into the Nordic market.
The business continues to deliver enhanced value from the
existing portfolio and I am pleased with the progress made across a
number of strategic initiatives. These include a significant
corporate PPA at attractive terms, evidencing the maturing market
for contracted renewable power, and the construction of our first
co-located battery project.
The overall outlook for the company remains positive, with good
dividend cover, appropriate gearing, and the ability to pursue a
strong near and medium term pipeline of opportunities in both
Ireland and Europe."
Key Metrics as at 30 June 2021:
Market capitalisation EUR867.2 million
Share price 117.0 cent
Dividends with respect to the period EUR22.5 million
Dividends with respect to the period per share 3.03 cent
GAV EUR1,442.4 million
NAV EUR749.1 million
NAV per share 101.1 cent
Details of the conference call for analysts and investors:
A conference call for analysts and investors will be held at
10.00 am BST today, 13 September 2021. To register for the call
please contact FTI Consulting by email at
greencoat@fticonsulting.com .
Presentation materials will be posted on the Company's
website:
www.greencoat-renewables.com from 7.00 am.
---S ---
For further information on the Announcement, please contact:
Greencoat Renewables PLC: +44 20 7832 9400
-- Bertrand Gautier
-- Paul O'Donnell
-- Tom Rayner
Davy (Joint Broker, Nomad and
Euronext Growth Adviser) +353 1 6796363
-- Ronan Veale
-- Barry Murphy
RBC (Joint Broker) +44 20 7653 4000
-- Matthew Coakes
-- Duncan Smith
-- Elizabeth Evans
FTI Consulting (Media Enquiries) greencoat@fticonsulting.com
-- Jonathan Neilan
-- Melanie Farrell
About Greencoat Renewables PLC
Greencoat Renewables PLC is an investor in euro-denominated
renewable energy infrastructure assets. Initially focused solely on
the acquisition and management of operating wind farms in Ireland,
the Company is now also investing in wind and solar assets in
certain other Northern European countries with stable and robust
renewable energy frameworks. It is managed by Greencoat Capital
LLP, an experienced investment manager in the listed renewable
energy infrastructure sector.
Chairman's Statement
I am pleased to present the Interim Report of Greencoat
Renewables PLC for the six months ended 30 June 2021. The period
has seen the business continue to deliver sustainable returns to
shareholders, while capturing significant growth opportunities in
Ireland and continental Europe.
The Company has this year become the largest owner of
operational wind assets in Ireland, powering over 500,000 homes
while saving c.590,000 tonnes of carbon emissions otherwise emitted
by thermal generation. I am delighted that we have reached this
milestone whilst expanding into new geographies and maintaining the
robust dividend cover that our shareholders value.
Sustainability remains at the heart of everything the Company
does, and I am pleased with our increasing sophistication in terms
of ESG strategy and reporting. We will continue to drive this
agenda and will be communicating our full year results in line with
the relevant Task Force on Climate-Related Financial Disclosures,
Sustainable Finance Disclosure Regulation, and EU Taxonomy
recommendations.
In summary, this has been a successful period benefitting from
the hard-work and dedication required to ensure our best-in-class
operational standards have been maintained and extended. The
Company is in a strong position with a significant pipeline of
growth opportunities across the continent.
Performance
Overall, the portfolio generated 745GWh over the period, up from
688GWh in the corresponding period last year, which translated to
EUR40.2 million(1) of net cash generation. This resulted in a
dividend cash cover ratio for the period of 1.8x(1) .
(1) Net cash generation and dividend cover are gross of SPV
level debt repayment and were EUR31.9 million and 1.4x, net of SPV
level debt repayment.
Wind speeds fluctuated month on month causing production to be
down 11% overall. The impact of this was mitigated by the
portfolio's increased geographical diversification, and excellent
availability despite pandemic restrictions over the winter.
Our portfolio optimisation strategy continued with increased
revenues from system services, and a number of turbine enhancement
measures in Ireland and our new French portfolio which have been
implemented with our O&M partners.
It was pleasing to note the progress made in our fixed price PPA
strategy over the period, with the Company executing its first
medium-term PPA for assets outside of the REFIT period, as well as
a long-term fixed price PPA signed with Finland's state utility for
the Kokkoneva wind farm which is due to become operational in Q2,
2022
The asset management team, within the Investment Manager,
continue to work alongside our appointed operations managers to
monitor grid curtailment and constraint which remains above
pre-pandemic levels, while the Company has been actively involved
in the industry consultation on the EU Clean Energy Package with a
view to achieving compensation.
We have seen power price forecasts increase to above
pre-pandemic levels as a result of higher gas and carbon prices and
while our existing portfolio is predominately shielded from
near-term power price movements this provides a good opportunity as
we evaluate investment opportunities in Europe.
Dividend and Returns
We are pleased to advise that there has been no change in the
Company's annual dividend policy, with increases to be within the
range of zero to CPI. Despite CPI being negative in Ireland for
2020, we were pleased to hold our target dividend unchanged at 6.06
cent per share for 2021. This is supported by our continued cash
generation and proportionally high dividend cover.
The Company paid a quarterly dividend of 1.515 cents per share
with respect to Q4, 2020 on 26 February 2021 and another 1.515
cents per share on 1 June 2021, with future dividend payments
scheduled for August and November 2021.
NAV per share increased slightly in the period from 101.0 cents
per share on 31 December 2020 to 101.1 cents per share on 30 June
2021.
Acquisitions
The Investment Manager continues to identify a wide range of
opportunities and during the period an additional two investments
were made while maintaining our disciplined approach to investing.
Acquisitions in the period included:
-- The 89.6MW Cordal wind farm located in County Kerry, Ireland;
and
-- The 35. 6MW Glencarbry wind farm located in County Tipperary,
Ireland.
Both operational wind farms have contracted revenues under the
REFIT 2 scheme and provide a long-term guaranteed minimum floor
price for the electricity generated until 2032.
This brings total installed capacity to 686MW, up from 557MW as
at December 2020.
To complement the above, a forward sale agreement to acquire the
43.2 MW Kokkoneva wind farm in Siikalatva, Finland was entered into
in February 2021. The Finnish wind market is well-established and
characterised by high wind speeds, large capacity turbines
facilitated by high hub heights along with a correspondingly low
cost of electricity generation. The transaction will complete once
Kokkoneva is fully operational which is expected in Q2, 2022.
Diversification
The expansion into France last year and Finland this year is
indicative of the Company's intentions, seeing opportunities to
aggregate significant investments in diversified geographies, as we
have demonstrated in Ireland. In addition to geographic diversity,
the Company is expanding into other renewable technologies and has
considered a number of solar opportunities in the period,
benefitting from the leading expertise of the Investment Manager
and the extensive relationships that have been formed with solar
developers in the industry. This underpins our ability to acquire
on a pan-European basis, with access to the widest set of
transactions in the marketplace.
The Company has progressed the development and construction of a
battery storage facility co-located at Killala wind farm. The
facility is expected to be operational in H1, 2022, and will act as
a strategic pilot for the Company. Whilst battery storage as an
asset class is not yet sufficiently mature for the Company's
institutional approach, the DS3 system in Ireland provides a strong
investment case for co-located battery and wind with a short
payback period which is value accretive to the wind farm. We
continue to explore new opportunities to add further value to
existing and new assets.
Gearing
Acquisitions during the period were financed in first instance
by the 3-year Revolving Credit Facility ("RCF"). During the period,
an additional EUR75 million was refinanced following a step-up in
our 5-year tranche, which included the introduction of a new
lender. Total debt, including the Company and SPV's as at 30 June
2021 amounted to EUR693 million, which is 48 per cent of GAV. The
continued prudent use of low-cost debt (limited to 60% of GAV) has
further enhanced cash yield, with debt levels still well within the
maximum permitted under the Company's Investment Policy.
Principal Risks and Uncertainties
As detailed in the Company's Annual Report for the year ended 31
December 2020, the principal risks and uncertainties affecting the
Company are unchanged:
-- dependence on the Investment Manager;
-- regulatory risk;
-- financing risk; and
-- risk of investment returns becoming unattractive.
Also, as detailed in the Company's Annual Report for the year to
31 December 2020, the principal risks and uncertainties affecting
the investee companies are as follows:
-- changes in government policy on renewable energy;
-- a decline in the market price of electricity after the period of contracted subsidy;
-- risk of low wind resource;
-- lower than expected lifespan of the wind turbines;
-- risk of market structure change; and
-- health and safety and the environment.
The principal risks outlined above remain the most likely to
affect the Company and its investee companies in the second half of
the year.
Outlook
The Board continues to view Ireland as an attractive market for
further investment, and believes the Company is very well placed to
continue its aggregation strategy and deliver value for its
Shareholders. Following the successful partnership with Statkraft
to acquire assets under a "forward sale" structure, we expect the
Company to continue to target investments in REFIT and RESS assets,
across both wind and solar PV.
With our portfolio well established in our home market of
Ireland there is now additional focus on investment opportunities
in continental Europe, following our entry into France and Finland.
The Company is clearly benefiting from having access to the widest
opportunity set, and our core focus remains the acquisition of
contracted wind assets.
The scale of our Company and geographic reach is also allowing
us to access a wider range of opportunities whilst maintaining a
highly contracted overall portfolio.
We are seeing increased opportunities in offshore wind where the
Investment Manager's history of relationships and co-investment is
particularly valuable. In the Nordics, we continue to see
significant opportunities in large-scale unsubsidised assets in a
well-developed corporate PPA market. In Iberia, we are seeing the
emergence of an attractive pipeline, with similar characteristics
to the Nordics, given the regions' increasing ability to produce
very low-cost renewable energy.
Environmental, Social and Governance
Central to the Company's strategy is growing a successful
business that supports the transition to a net-zero carbon economy,
in a way that positively impacts the communities and local
environment in which we operate. This past year has been a
particularly challenging time with the ongoing effects of the
global pandemic on the economy and wider society. The Company's
swift response and implementation of COVID-19 related safe
practices to keep our asset management teams and wider stakeholders
safe, has been of the utmost importance to the Board. As the focus
on climate change challenges increases, fully engaging in global
decarbonisation initiatives is a priority for the Company and the
Board.
The Company continues to step up its participation in ESG
initiatives such as the Carbon Disclosure Project and supporting
the Task Force on Climate Related Financial Disclosures. Work is
ongoing to gather and analyse the potential impact, including risks
and opportunities, of climate change on the Company and its wider
portfolio in line with TCFD recommendations, which will be detailed
in the Company's 2021 Annual Report. We firmly believe that our
dedication to meeting our sustainability goals alongside a strong
governance framework will ensure the long-term success of our
business and protect the interests of all stakeholders.
The Company published our annual ESG Report for 2020 which
provides comprehensive information covering our dedication to ESG
initiatives. The highlights of this report include:
-- Supporting research into wind energy in Ireland;
-- Committing c. EUR1million towards local communities; and
-- Supporting the recommendations of the TCFD, which addresses
climate-related risks and opportunities.
The Board and Governance
The AGM took place on Thursday 29 April 2021, with the minimum
necessary quorum of two shareholders present and in accordance with
government guidance on social distancing, travel and other health
measures to help minimise the spread of COVID-19.
Conclusion
In conclusion, I am very pleased with the performance of the
Company while excited about the future direction as the Company
continues to expand geographically while considering other
renewable technologies. I would finally like to take this
opportunity to thank my fellow Board members, the Investment
Manager and Shareholders for their continued contribution and
support.
Rónán Murphy
Chairman
12 September 2021.
Information about Investment Manager
Greencoat Capital LLP, the Investment Manager, is responsible
for the day-to-day management of the Company's investment portfolio
in accordance with the Group's investment objective and policy,
subject to the overall supervision of the Board.
The Investment Manager is an experienced manager of renewable
infrastructure assets with over EUR7 billion of assets under
management, and investments in the UK, Europe and the United
States. The Investment Manager is authorised and regulated by the
Financial Conduct Authority and is a full scope UK AIFM.
Portfolio Performance
Portfolio generation for the six months ended 30 June 2021 was
11% below budget, producing 745GWh in the period. This was a result
of lower wind resource, with availability, constraint, and
curtailment in line with or above expectations.
Electricity demand increased over the period as Europe continued
to recover from the pandemic. Power prices in Ireland have
recovered strongly (with average power prices for Q2, 2021, being
EUR92/MWh) and the forecast for power prices is expected to track
close to the REFIT reference price for the next 12 months. The
Group's portfolio benefits from market price upside, where the
average capture power price is above the REFIT strike price. We
have also seen a more modest uplift in the medium-term power price
forecasts.
Ongoing Performance Improvement Plan
The Investment Manager continues to upgrade and optimise the
portfolio, working closely with turbine manufactures and suppliers
and leveraging its broad experience and relationships across 686MW
of operational wind generation assets.
During the period the Performance Improvement Plan included
specific upgrades to a number of wind farms:
-- Glanaruddery - Implementation of Vestas turbine upgrades
increasing generation by c.1%; forestry management in collaboration
with specialists, local landowners, and the Irish forestry board
expected to increase generation by 0.7% and reduce turbulence on
the turbines;
-- Gortahile - Identification and implantation of a Nordex
turbine start-up upgrade, expected to increase generation by 0.4%;
and
-- Knockacummer - continued execution of the forestry management
plan, expected to increase generation by 0.9%.
Across the portfolio we continue to identify opportunities to
enhance yield returns from active management.
DS3
The portfolio has increased its share of DS3 revenues and is now
EUR1.6 million for the period. This has been achieved by a range of
technology upgrades to our existing portfolio and we continue to
work closely with the wind turbine manufacturers to incentivise
them to develop software to allow DS3 services to be provided more
frequently.
Co-located battery project
With large-scale batteries maturing, we see the technology as an
increasingly investible opportunity and are deploying a 10MW
battery at our Killala wind farm, utilising the additional grid
capacity specific to the site. The project significantly enhances
DS3 contracted revenues and allows future upside in trading
revenues, improving the overall IRR at Killala. We expect the
battery storage facility to be operational by Q2, 2022.
In addition to the enhanced returns achieved at Killala, the
project provides an opportunity for the Investment Manager to
accurately assess investment opportunities for batteries across the
portfolio.
PPA activity
We are pleased to have successfully negotiated a five-year fixed
price PPA during the period with a local energy provider in
Ireland. The attractive price achieved is a clear illustration of
the PPA market maturing and demonstrates our ability to continue to
contract the portfolio's revenues post the REFIT life of the
assets. In addition, the Group will benefit from a long-term fixed
price PPA with Finland's state utility for the Kokkoneva wind farm,
due to become operational in Q2, 2022.
Health and safety
Health and safety are of paramount importance for both the Group
and the Investment Manager. The Investment Manager, reviews on a
monthly basis, comprehensive reports provided by operational site
managers, with information then reviewed by the Director's at each
of the scheduled Board meetings. Over the portfolio, there have
been in excess of 60 audits and site inspections carried out to
ensure best practises are being maintained.
The Investment Manager is pleased to report that there were no
major incidents in the period ended 30 June 2021 with plans in
place to ensure all sites receive an annual inspection and safety
audit during 2021.
Acquisitions
During the six-month period ending 30 June 2021, the Group
completed two material acquisitions as noted below:
-- Cordal wind farm, located in County Kerry, Ireland and
comprising 28 GE 3.2MW turbines with a combined capacity of 89.6MW.
The site has been operational since May 2018 and was developed by
Cubico Sustainable Investments. The wind farm benefits from a REFIT
2 contract, providing inflation protected revenue until 2032;
and
-- Glencarbry wind farm, located in County Tipperary, Ireland
and comprising 7 Nordex N100 3.3MW turbines and 5 Nordex N90 2.5MW
turbines with a combined capacity of 35.6MW. The site has been
operational since September 2017 and was developed by John Laing
Group PLC ("John Laing"). This followed the Group's acquisition
last year of the 51MW French portfolio also acquired from John
Laing (illustrating the strength of the Group's relationship with
pan-European developers). The wind farm benefits from a REFIT 2
contract, providing inflation protected revenue until 2032.
In addition, the Group successfully completed the 6(th) turbine
at Killala wind farm increasing the capacity of the wind farm to
20.4MW.
Forward sale and construction update
Over the period, the Group has committed to acquire a third wind
farm on a forward sale basis in addition to those announced in
December 2020. On an aggregate basis, there is 106.2MW of committed
forward sale investment. The agreement to acquire the Kokkenova
wind farm, once operational, was reached in February and is the
first asset the Company has agreed to acquire in the Nordics.
All of the projects under construction are proceeding as planned
with no material issues on the construction timetable.
-- Kokkoneva wind farm, Northern Ostrobothnia, Finland - 9
Nordex N149 4.8MW turbines with a combined capacity of 43.2MW.
Construction overseen by Abo Wind and is expected to reach
commercial operations in Q2, 2022;
-- Taghart wind farm, County Cavan, Ireland - 7 Vestas V117
3.6MW turbines with a combined capacity of 25.2MW. Construction
overseen by Statkraft and is expected to reach commercial
operations in Q4, 2022; and
-- Cloghan wind farm, County Offaly, Ireland - 9 Vestas V136
4.2MW turbines with a combined capacity of 37.8MW. Construction
overseen by Statkraft and is expected to reach commercial operation
in Q1, 2023.
Financial Performance
Dividend cover for the six months ended 30 June 2021 was 1.4x
net and 1.8x gross of project level debt repayment.
Cash balances, which include the Group and the SPV wind farms
was EUR49.2 million at 30 June 2021, being an increase of EUR7.8
million over the six months.
Group and wind farm SPV cash flows For the six months ended
30 June 2021
Net (1) Gross (1)
EUR 000 EUR 000
Net cash generation 31,923 40,239
Dividends paid (22,460) (22,460)
SPV Capex & PSO Cashflow (2) 3,531 3,531
SPV level debt repayment 0 (8,316)
Acquisitions (3) (273,959) (273,959)
Acquisition costs (2,590) (2,590)
Equity issuance 0 0
Equity issuance costs (70) (70)
Net drawdown under debt facilities 275,000 275,000
Upfront finance costs (1,160) (1,160)
Movement in cash (Group and wind farm SPVs) 10,215 10,215
Opening cash balance (Group and wind farm SPVs) 39,024 39,024
Ending cash balance (Group and wind farm SPVs) 49,239 49,239
Net cash generation (1) 31,923 40,239
Dividends (22,460) (22,460)
Dividend cover 1.4x 1.8x
(1) The dividend cover table shows two scenarios: the first
reflects cash generation net of the Group's share of project level
debt repayment (EUR8,316k) and the second is the net cash
generation gross of SPV level debt repayments. The following wind
farms contain project level debt: Cloosh Valley, Raheenleagh,
Sliabh Bawn, Saint Martin, Sommette and Pasilly.
(2) Cashflows reflect residual capital expenditure from acquired
SPVs, being (EUR1.7 million), less capital expenditure on the
Killala Battery project of (EUR2.1 million), plus REFIT PSO working
capital movements of EUR7.3 million relating to wind farm
SPV's.
(3) Acquisition consideration is net of the acquired SPV cash of
EUR20,123k.
The following two tables provide further detail in relation to
net generation figures of EUR40.2 million (gross) and EUR31.9
million (net).
For the six months ended
Net Cash Generation - Breakdown 30 June 2021
Net Gross
EUR'000 EUR'000
Revenue 72,984 72,984
Operating expenses (23,317) (23,317)
Tax / VAT (514) (514)
--------------------------------- ------------- ------------
Wind farm operating cashflow 49,153 49,153
SPV level debt interest (3,430) (3,430)
SPV level debt repayment (8,316) 0
--------------------------------- ------------- ------------
Wind farm cashflow 37,407 45,723
Management fee (3,521) (3,521)
Operating expenses (335) (335)
Ongoing finance costs (2,242) (2,242)
VAT 613 613
--------------------------------- ------------- ------------
Group cashflow (5,485) (5,485)
Net cash generation 31,923 40,239
--------------------------------- ------------- ------------
For the six months ended
Net Cash Generation - Reconciliation to Net Cash Flows from Operating Activities 30 June 2021
Net Gross
EUR'000 EUR'000
Net cash flows from operating activities (1) 5,631 5,631
Movement in cash balances of wind farm SPVs (2) 1,205 1,205
SPV capex and PSO cashflow (3) (3,168) (3,168)
Repayment of debt at SPV level (2) 0 8,316
Repayment of shareholder loan investment (1) 31,097 31,097
Finance costs (1) (1,682) (1,682)
Upfront finance costs (cash) (4) (1,160) (1,160)
---------------------------------------------------------------------------------- ------------- ------------
Net cash generation 31,923 40,239
---------------------------------------------------------------------------------- ------------- ------------
(1) Condensed Consolidated Statement of Cash Flows.
(2) Note 8 to the Financial Statements.
(3) EUR3,168k cashflows reflect residual capital expenditure
from acquired SPVs (covered by the vendor of the SPVs) of (EUR1.7
million), plus capital expenditure on the Killala Battery project
(EUR2.1 million) and plus EUR632k SPV working capital.
(4) EUR1,160k includes EUR719k facility arrangement fees plus
EUR441k professional fees (as per note 12 to the Financial
Statements).
During the period, the Group acquired two wind farms and
completed the construction of the 6th turbine as part of the
Killala wind farm for a total of EUR274.3 million. The investments
were predominately financed by an increase in the aggregate debt of
EUR265.4 million. The movement in aggregate debt included a EUR10
million repayment from the Group's excess cash reserves. This
prudent use of gearing further enhanced the portfolio returns with
an overall increase in the NAV over the period of EUR0.3 million
(or +0.1 cent on a per share basis).
The movement in the portfolio value of EUR14.6 million is in
line with the unwinding of the discount rate over the period, that
is off set by the net movement in cash held at both Group level and
within the SPV's.
The NAV increase per share remained broadly flat during the
period.
Dividends totally EUR22.5 million were paid in the period on 27
February and 3 June 2021.
The share price at 30 June 2021 was 117.0 cents, representing a
15.8 per cent. premium to NAV.
Cent per share
NAV at 31 December 2020 101.0
Less February 2021 dividend (1.5)
NAV at 31 December 2020 (ex-dividend) 99.5
NAV at 30 June 2021 101.1
Less August 2021 dividend (1.5)
NAV at 30 June 2021 (ex-dividend) 99.6
Movement in NAV (ex-dividend) 0.1
Reconciliation of Statutory Net Assets to Reported NAV
As at As at
30 June 2021 31 December 2020
EUR'000 EUR'000
DCF valuation 1,367,428 1,112,352
Other relevant assets (wind farm SPVs) 27,031 22,370
Cash (wind farm SPVs) 44,503 22,507
----------------------------------------- -------------- ------------------
Fair value of investments (1) 1,438,962 1,157,229
Cash (Group) 4,738 16,517
Other relevant (liabilities)/assets (2) (1,329) 2,944
----------------------------------------- -------------- ------------------
GAV 1,442,371 1,176,690
Aggregate Group Debt (3) (693,259) (427,877)
----------------------------------------- -------------- ------------------
NAV 749,112 748,813
Reconciling items - -
----------------------------------------- -------------- ------------------
Statutory net assets 749,112 748,813
Shares in issue 741,238,938 741,238,938
NAV per share (cent) 101.1 101.0
----------------------------------------- -------------- ------------------
(1) The fair value of investments are shown gross of EUR203.3
million debt and swap values held at wind farm SPV level that are
not included in the equivalent figure in the consolidated Statement
of Financial Position.
(2) Other relevant net assets at 30 June 2021 are gross of
EUR2.7 million of capitalised facility arrangement fees that are
netted off against loans and borrowings (consistent with Note 12)
to the financial statements).
(3) Aggregate Group debt reflects EUR215 million drawn under the
Group's revolving credit facility, (gross of EUR2.7 million of
capitalised facility arrangement fees) and consistent with Note 12
to the financial statements, plus EUR275 million of term debt and
EUR203.3 million of debt and swap fair values held at SPV wind farm
level.
Gearing
As at 30 June 2021, the aggregate Group debt was EUR693 million,
which equates to 48.1 per cent of GAV. This comprises EUR215
million drawn under the Group's Revolving Credit Facility (the
"RCF"), the Group's proportionate share of asset level, long-term
project finance debt of EUR203 million, and a five-year term loan
facility of EUR275 million, that included a EUR75 million increase
with the introduction of ING to the syndicate in April.
In addition, post the reporting period, the Investment Manager
arranged a new seven-year EUR150 million term facility with a long
term lender which will be used to refinance the RCF.
The group will continue to optimise the capital structure and
take advantage of favourable debt market conditions.
Environmental, Social and Governance
The Investment Manager recognises the role of ESG matters in
driving long-term value and resilience, as well as the importance
to all of the Group's stakeholders. During the period the Group
achieved the following:
-- Environmental - increased generation capacity, supporting
Ireland, France, and Finland's transition towards a net zero carbon
emissions economy; supporting for a four-year research project at
Trinity College Dublin aiming to improve the biodiversity benefits
of onshore wind farms; ongoing habitat management plans across the
portfolio;
-- Social - active engagement with, and support provided to,
local communities surrounding the areas in which the wind farms are
located, with particular concern for how they have been impacted by
the COVID-19 pandemic. In 2021, the Group expects to fund over EUR1
million of community initiatives; and
-- Governance - Supporting the recommendations of the TCFD,
which addresses climate related risks and opportunities, and
participation in other ESG initiatives such as the CDP.
Further details of the Group's ESG initiatives can be found in
the latest ESG report, available on the Company's website
www.greencoat-renewables.com.
Outlook
The outlook for the Group remains positive, with strong
operational performance from the existing portfolio coupled with a
healthy pipeline of attractive investment opportunities.
Continental Europe
We continue to see significant investment opportunities in
continental Europe and have an active pipeline across the continent
providing the Group with access to a wide range of assets. This
pipeline is largely comprised of sellers well known to the
Investment Manager, including European utilities and developers
with whom we have transacted previously.
We are currently seeing value in the renewable energy markets in
both the Iberian and Nordic regions, where subsidy-free renewable
infrastructure development continues to see strong growth, as well
as providing access to attractive Corporate PPA market. This well
complements our strategy of acquiring highly contracted
(tariff-based) assets in Ireland and Northern European markets.
In line with our strategy, growth in continental Europe gives us
access to the widest pool of assets, while allowing us to diversify
the business, in terms of weather patterns, power markets and
regulatory frameworks, and avoiding currency risk.
Ireland
2021 has continued to evidence the strong growth dynamics in the
Irish renewables market with the continued build-out of new
renewable assets under the RESS scheme, as well as the emergence of
a maturing corporate PPA market. We continue to see new
opportunities both in REFIT and RESS with over 4.0GW of onshore
wind capacity in operation or construction representing a c EUR8bn
market size.
Ireland's Department of the Environment, Climate and
Communications (DECC) published the framework for Ireland's
Offshore Electricity Transmission System in May, which included a
roadmap to facilitate significant growth in renewable energy, as
well as specific expansion of the offshore wind sector. The plan
includes 5GW of installed offshore wind generation by 2030
(increased from the original 3.5GW announced in 2020). This will be
supported by a new regulatory consenting regime for the offshore
renewable energy sector.
Greencoat is seeing a significant pipeline of late-stage
development opportunities for offshore wind on the east coast of
Ireland. These would represent a substantial power export
opportunity for the country, enabled by the announced plans for
significantly increased interconnector capacity between Ireland and
the UK, and Ireland and France. In addition, we are seeing an
early-stage pipeline of floating wind on the west coast which has
the potential to support an emerging large green hydrogen
production sector.
Condensed Consolidated Statement of Comprehensive Income
(unaudited)
For the six months ended 30 June 2021
For the six months ended For the six months ended
Note 30 June 2021 30 June 2020
EUR'000 EUR'000
Return on investments 3 32,991 21,756
Other income - 39
--------------------------------------------------------- ----- ------------------------- -------------------------
Total income and gains 32,991 21,795
Operating expenses 4 (4,605) (4,382)
Investment acquisition costs (2,309) (835)
--------------------------------------------------------- ----- ------------------------- -------------------------
Operating profit 26,077 16,578
Finance expense 12 (3,362) (3,257)
--------------------------------------------------------- ----- ------------------------- -------------------------
Profit for the period before tax 22,715 13,321
Taxation 5 - -
--------------------------------------------------------- ----- ------------------------- -------------------------
Profit for the period after tax 22,715 13,321
Profit and total comprehensive income attributable to:
Equity holders of the Company 22,715 13,321
Earnings per share
--------------------------------------------------------- ----- ------------------------- -------------------------
Basic and diluted earnings from continuing operations
during the period (cent) 6 3.06 2.11
--------------------------------------------------------- ----- ------------------------- -------------------------
The accompanying notes form an integral part of the condensed
consolidated interim financial statements.
Condensed Consolidated Statement of Financial Position
(unaudited)
As at 30 June 2021
Note 30 June 2021 31 December 2020
EUR'000 EUR'000
Non current assets
Investments at fair value through profit or loss 8 1,235,703 944,352
-------------------------------------------------- ----- ------------- -----------------
1,235,703 944,352
Current assets
Receivables 10 339 4,095
Cash and cash equivalents 4,738 16,517
-------------------------------------------------- ----- ------------- -----------------
5,077 20,612
Current liabilities
Payables 11 (5,897) (5,343)
Net current (liabilities)/assets (820) 15,269
Non current liabilities
Loans and borrowings 12 (485,771) (210,808)
-------------------------------------------------- ----- ------------- -----------------
Net assets 749,112 748,813
-------------------------------------------------- ----- ------------- -----------------
Capital and reserves
Called up share capital 14 7,412 7,412
Share premium account 14 507,520 507,476
Other distributable reserves 139,308 161,768
Retained earnings 94,872 72,157
-------------------------------------------------- ----- ------------- -----------------
Total shareholders' funds 749,112 748,813
-------------------------------------------------- ----- ------------- -----------------
Net assets per share (cent) 15 101.1 101.0
-------------------------------------------------- ----- ------------- -----------------
Authorised for issue by the Board on 12 September 2021 and
signed on its behalf by:
Rónán Murphy Kevin McNamara
Chairman Director
The accompanying notes form an integral part of the condensed
consolidated interim financial statements.
Condensed Consolidated Statement of Changes in Equity
(unaudited)
For the six months ended 30 June 2021
For the six Other
months distributable Retained
ended 30 June Share capital Share premium reserves earnings Total
2021 Note EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Opening net
assets
attributable to
shareholders (1
January 2021) 7,412 507,476 161,768 72,157 748,813
Share issue costs - 44 - - 44
Interim dividends
paid in the
period 7 - - (22,460) - (22,460)
Profit and total
comprehensive
income for the
period - - - 22,715 22,715
------------------ ----- --------------- --------------- --------------- --------------- ---------
Closing net
assets
attributable to
shareholders 7,412 507,520 139,308 94,872 749,112
------------------ ----- --------------- --------------- --------------- --------------- ---------
After taking account of cumulative unrealised gains in fair
value of investments of EUR91,075,313, the total reserves
distributable by way of a dividend as at 30 June 2021 were
EUR143,104,623.
For the six months ended 30 June 2020
For the six Other
months distributable
ended 30 June Share capital Share premium deserves Retained earnings Total
2020 Note EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Opening net assets
attributable to
shareholders (1 January
2020) 6,306 385,669 199,936 58,089 650,000
Interim dividends paid in
the period - - (19,060) - (19,060)
Profit and total
comprehensive income for
the period - - - 13,321 13,321
Closing net assets
attributable to
shareholders 6,306 385,669 180,876 71,410 644,261
--------------------------- -------------- -------------- ----------------------- ---------------- ---------
After taking account of cumulative unrealised gains in fair
value of investments of EUR75,300,316 the total reserves
distributable by way of a dividend as at 30 June 2020 were
EUR176,985,497.
The accompanying notes form an integral part of the condensed
consolidated interim financial statements.
Condensed Consolidated Statement of Cash Flows (unaudited)
For the six months ended 30 June 2021
For the six months ended 30 June For the six months ended 30 June
Note 2021 2020
EUR'000 EUR'000
Net cash flows from operating
activities 16 5,631 10,108
Cash flows from investing
activities
Acquisition of investments 8 (296,672) (66,478)
Investment acquisition costs (2,590) (835)
Repayment of shareholder loan
investments 8 31,097 18,704
------------------------------------ ----- ----------------------------------- ------------------------------------
Net cash flows from investing
activities (268,165) (48,609)
Cash flows from financing
activities
Payment of issue costs (103) (142)
Dividends paid 7 (22,460) (19,060)
Amounts drawn down on loan
facilities 12 360,000 306,000
Amounts repaid on loan facilities 12 (85,000) (240,000)
Finance costs (1,682) (5,854)
------------------------------------ ----- ----------------------------------- ------------------------------------
Net cash flows from financing
activities 250,755 40,944
Net (decrease)/increase in cash and
cash equivalents during the period (11,779) 2,443
Cash and cash equivalents at the
beginning of the period 16,517 6,020
Cash and cash equivalents at the
end of the period 4,738 8,463
------------------------------------ ----- ----------------------------------- ------------------------------------
The accompanying notes form an integral part of the condensed
consolidated interim financial statements.
Notes to the Unaudited Condensed Consolidated Financial Statements
For the six months ended 30 June 2021
1. Significant accounting policies
Basis of accounting
The condensed consolidated nancial statements included in this
Interim Report have been prepared in accordance with IAS 34
"Interim Financial Reporting".
The interim financial statements have been prepared in
accordance with IFRS to the extent that they have been adopted by
the EU and with those parts of the Companies Act 2014 (including
amendments by the Companies (Accounting) Act 2017) applicable to
companies reporting under IFRS. The financial statements have been
prepared on the historical cost basis, as modified for the
measurement of certain financial instruments at fair value through
profit or loss.
These condensed consolidated nancial statements are presented in
Euro ("EUR") which is the currency of the primary economic
environment in which the Group operates and are rounded to the
nearest thousand, unless otherwise stated.
These condensed nancial statements do not include all
information and disclosures required in the annual nancial
statements and should be read in conjunction with the Group's
consolidated annual nancial statements as of 31 December 2020. The
audited annual accounts for the year ended 31 December 2020 have
been delivered to the Companies Registration Office. The audit
report thereon was unmodi ed.
Review
The Interim Report has not been audited or formally reviewed by
the Company's Auditor in accordance with the International
Standards on Auditing (ISAs) (Ireland) or International Standards
on Review Engagements (ISREs).
Going concern
As at 30 June 2021, the Group had net assets of EUR749.1 million
(31 December 2020: EUR748.8 million) and cash balances of EUR4.7
million (31 December 2020: EUR16.5 million) which are sufficient to
meet current obligations as they fall due.
In the period since early 2020 and up to the date of this
report, the outbreak of COVID-19 has had a negative impact on the
global economy. The Directors and Investment Manager continue to
actively monitoring this and the effect on the Group and its SPVs.
In particular, they have considered the following specific key
impacts:
-- Unavailability of key personnel at the Investment Manager or
Administrator;
-- Disruptions to maintenance or repair at the investee company
level; and
-- Allowance for expected counterparty credit losses.
In considering the above key impacts of COVID-19 on the Group
and SPV operations, the Directors have assessed these with
reference to the mitigation measures in place. At the Group level,
the key personnel at the Investment Manager and Administrator have
successfully implemented business continuity plans to ensure
business disruption is minimised, including remote working, and all
staff are continuing to assume their day-today
responsibilities.
SPV revenues are derived from the sale of electricity and is
received through power purchase agreements in place with reputable
providers of electricity to the market and also through government
subsidies. Therefore, the Directors and the Investment Manager do
not expect a significant impact on revenue and cash flows of the
SPVs. The SPVs also have various risk mitigation plans in place to
ensure, as far as possible, electricity generation from the sites
are maintained. The SPVs have contractual operating and maintenance
agreements in place with large and reputable providers. Wind farm
availability has not been significantly affected: wind farms may be
accessed and operated remotely in some instances; otherwise, social
distancing has been possible in large part and personal protective
equipment has been used where not possible, for instance where
major component changes have been necessary. The Investment Manager
is confident that there are appropriate continuity plans in place
at each provider to ensure that the underlying wind farms are
maintained appropriately and that any faults would continue to be
addressed in a timely manner.
Based on the assessment outlined above, including the various
risk mitigation measures in place, the Directors do not consider
that the effects of COVID-19 have created a material uncertainty
over the assessment of the Group as a going concern.
The Directors have reviewed Group forecasts and projections
which cover a period of at least 12 months from the date of
approval of this report, taking into account foreseeable changes in
investment and trading performance, which show that the Group has
sufficient financial resources to continue in operation for at
least the next 12 months from the date of approval of this
report.
On the basis of this review, and after making due enquiries, the
Directors have a reasonable expectation that the Company and the
Group has adequate resources to continue in operational existence
for at least 12 months from the date of approval of this report.
Accordingly, they continue to adopt the going concern basis in
preparing the financial statements.
Segmental reporting
Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decision-maker.
The chief operating decision-maker, who is responsible for
allocating resources and assessing performance of the operating
segments, has been identified as the Board of Directors, as a
whole.
The key measure of performance used by the Board to assess the
Group's performance and to allocate resources is the total return
on the Group's net assets, as calculated under IFRS, and therefore
no reconciliation is required between the measure of profit or loss
used by the Board and that contained in the condensed consolidated
financial statements.
For management purposes, the Group is organised into one main
operating segment, which invests in wind farm assets.
The Group is engaged in a single segment of business, being
investment in renewable infrastructure to generate investment
returns while preserving capital. The Group presents the business
as a single segment comprising a homogeneous portfolio.
All of the Group's income is generated within Ireland and
France. All of the Group's non-current assets are located in
Ireland and France.
Seasonal and cyclical variations
The Group's results do not vary signi cantly during reporting
periods as a result of seasonal activity.
2. Investment management fees
Under the terms of the Investment Management Agreement, the
Investment Manager is entitled to a management fee from the
Company, which is calculated quarterly in arrears and remains at 1
per cent of NAV per annum on that part of NAV up to and including
EUR1 billion, as disclosed in the Company's Annual Report for the
year ended 31 December 2020.
Investment management fees paid or accrued in the period were as
follows:
For the six For the six
months ended months ended
30 June 2021 30 June 2020
EUR'000 EUR'000
Investment management fees 3,691 3,247
---------------------------- -------------- --------------
3,691 3,247
---------------------------- -------------- --------------
As at 30 June 2021, EUR1,855,028 was payable in relation to
investment management fees (31 December 2020: EUR1,685,383).
3. Return on investments
For the six For the six
months ended months ended
30 June 2021 30 June 2020
EUR'000 EUR'000
Dividends received (note 17) 1,498 8,551
Unrealised movement in fair value of investments (note 8) 25,776 7,226
Interest on shareholder loan investment 5,717 5,979
32,991 21,756
----------------------------------------------------------- -------------- --------------
4. Operating expenses
For the six For the six
months ended months ended
30 June 2021 30 June 2020
EUR'000 EUR'000
Investment management fees (note 2) 3,691 3,247
Other expenses 589 561
Group and SPV administration fees 126 401
Non-executive Directors' remuneration 159 129
Fees to the Company's Auditor:
for audit of the statutory financial statements 37 41
for other services 3 3
---------------------------------------------------- -------------- --------------
4,605 4,382
---------------------------------------------------- -------------- --------------
The fees to the Company's Auditor include EUR3,000 (2020:
EUR3,000) payable in relation to a limited review of these interim
financial statements, and estimated accruals apportioned across the
year for the audit of the statutory financial statements.
5. Taxation
Taxable income during the period was offset by management
expenses and the tax charge for the period ended 30 June 2021 is
EURnil (30 June 2020: EURnil). The Group is not expected to have
tax losses carried forward to offset against current and future
profits as at 30 June 2021 (30 June 2020: EUR399,458).
6. Earnings per share
For the six For the six
months ended months ended
30 June 2021 30 June 2020
Profit attributable to equity holders of the Company - EUR'000 22,715 13,321
Weighted average number of ordinary shares in issue 741,238,938 630,619,469
---------------------------------------------------------------------------- -------------- --------------
Basic and diluted earnings from continuing operations in the period (cent) 3.06 2.11
---------------------------------------------------------------------------- -------------- --------------
7. Dividends declared with respect to the period
Interim dividends paid during the period ended 30 June 2021 Dividend per Total
Share cent Dividend
With respect to the quarter ended 31 December 2020 1.5150 11,230
With respect to the quarter ended 31 March 2021 1.5150 11,230
------------------------------------------------------------- ------------- ----------
3.0300 22,460
------------------------------------------------------------- ------------- ----------
Interim dividends declared after 30 June 2021 and not accrued in the period Dividend per Total
Share cent Dividend
With respect to the quarter ended 30 June 2021 1.5150 11,230
----------------------------------------------------------------------------- ------------- ----------
1.5150 11,230
----------------------------------------------------------------------------- ------------- ----------
As disclosed in note 18, the Board approved a dividend of 1.515
cent per share on 27 August 2021 in relation to the quarter ended
30 June 2021, bringing total dividends declared with respect to the
period to 3.03 cent per share. The record date for the dividend was
30 July 2021 and the payment date was 27 August 2021.
8. Investments at fair value through profit or loss
For the period ended 30 June 2021 Loans Equity interest Total
EUR'000 EUR'000 EUR'000
Opening balance 505,552 438,800 944,352
Additions 256,189 40,483 296,672
Repayment of shareholder loan investments (31,097) - (31,097)
Unrealised movement in fair value of investments (note 3) 1,741 24,035 25,776
----------------------------------------------------------- --------- ---------------- ----------
732,385 503,318 1,235,703
----------------------------------------------------------- --------- ---------------- ----------
For the period ended 30 June 2020 Loans Equity interest Total
EUR'000 EUR'000 EUR'000
Opening balance 435,336 414,771 850,107
Additions 57,182 9,440 66,622
Shareholder loan interest capitalised 1,339 - 1,339
Repayment of shareholder loan investments (18,704) - (18,704)
Unrealised movement in fair value of investments (note 3) 2,160 7,226 9,386
----------------------------------------------------------- --------- ---------------- ---------
477,313 431,437 908,750
----------------------------------------------------------- --------- ---------------- ---------
The unrealised movement in fair value of investments of the
Group during the period was made up as follows:
For the six For the six
months ended months ended
30 June 2021 30 June 2020
EUR'000 EUR'000
Decrease in valuation of investments (18,457) (10,842)
Movement in swap fair values at
SPV level 1,025 129
Repayment of debt at SPV level 8,316 5,266
Loan interest capitalised - (1,339)
Repayment of shareholder loan investments
(note 17) 31,097 18,704
Movement in cash balances of SPVs 1,205 (3,367)
Acquisition costs 2,590 835
------------------------------------------- -------------- --------------
25,776 9,386
------------------------------------------- -------------- --------------
Fair value measurements
As disclosed in the Company's Annual Report for the year ended
31 December 2020, IFRS 13 "Fair Value Measurement" requires
disclosure of fair value measurement by level. The level of fair
value hierarchy within the financial assets or financial
liabilities ranges from level 1 to level 3 and is determined on the
basis of the lowest level input that is significant to the fair
value measurement.
The fair value of the Group's investments is ultimately
determined by the underlying fair values of the SPV investments.
Due to their nature, they are always expected to be classified as
level 3, as the investments are not traded and contain unobservable
inputs. There have been no transfers between levels during the six
months ended 30 June 2021. All other financial instruments are
classified as level 2.
Sensitivity analysis
The fair value of the Group's investments is EUR1,235,703,017
(31 December 2020: EUR944,352,444). The following analysis is
provided to illustrate the sensitivity of the fair value of
investments to a change in an individual input, while all other
variables remain constant. The Board considers these changes in
inputs to be within reasonable expected ranges. This is not
intended to imply the likelihood of change or that possible changes
in value would be restricted to this range.
Change in fair value of
Input Base case Change in input investments Change in NAV per share
EUR'000 cent
Discount rate 6 - 7 per cent + 0.25 per cent (22,718) (3.1)
- 0.25 per cent 23,500 3.2
Energy yield P50 10 year P90 (61,208) (8.3)
10 year P10 60,895 8.2
Forecast by leading
Power price consultant - 10 per cent (61,843) (8.3)
+ 10 per cent 62,664 8.5
Inflation rate 2.0 per cent - 0.5 per cent (44,036) (5.9)
+ 0.5 per cent 48,954 6.6
Asset Life 30 years - 5 years (95,911) (12.9)
+ 5 years 65,150 8.8
-------------------------------------------------------------- -------------------------- ------------------------
The sensitivities above are assumed to be independent of each
other. Combined sensitivities are not presented.
9. Unconsolidated subsidiaries, associates and joint
ventures
The following table shows subsidiaries of the Group acquired
during the period. As the Company is regarded as an investment
entity under IFRS, these subsidiaries have not been consolidated in
the preparation of the financial statements:
Ownership Interest as at
Investment Place of Business Registered Office 30 June 2021
Riverside One, Sir John
Cordal Ireland Rogerson's Quay, Dublin 2 100%
Riverside One, Sir John
Glencarbry Ireland Rogerson's Quay, Dublin 2 100%
There are no changes to unconsolidated subsidiaries of the Group
and there is no changes to associates and joint venture of the
group as disclosed in the Company's Annual Report for the year
ended 31 December 2020.
There have been no changes to security deposits or guarantees as
disclosed in the Company's Annual Report for the year ended 31
December 2020.
10. Receivables
30 June 2021 31 December 2020
EUR'000 EUR'000
Accrued income 233 3,774
Sundry receivables 22 218
VAT receivable 13 58
Prepayments 71 45
339 4,095
------------------------------------ ------------- -----------------
11. Payables
30 June 2021 31 December 2020
EUR'000 EUR'000
Investment management fees payable 1,855 1,685
Acquisition costs payable 1,151 1,389
Other payables 2,106 1,325
Loan interest payable 724 556
Commitment fee payable 61 224
Share issue costs payable - 157
Other finance costs payable - 7
5,897 5,343
------------------------------------ ------------- -----------------
12. Loans and borrowings
30 June 2021 31 December 2020
EUR'000 EUR'000
Opening balance 210,808 206,000
Revolving Credit Facility
Drawdowns 285,000 362,074
Repayments (85,000) (553,074)
Finance costs capitalised (246) (2,897)
Amortisation 725 725
Term debt facilities
Drawdowns 75,000 200,000
Finance costs capitalised (616) (2,120)
Amortisation 100 100
Closing balance 485,771 210,808
----------------------------- --------- -----------------
Non current liabilities 485,771 210,808
----------------------------- --------- -----------------
For the six For the six
months ended months ended
30 June 2021 30 June 2020
EUR'000 EUR'000
Loan interest 1,820 1,562
Professional fees 441 1,164
Commitment fees 382 293
Facility arrangement fees 719 238
--------------------------- -------------- --------------
Finance expense 3,362 3,257
--------------------------- -------------- --------------
As at 30 June 2021, the principal balance of the RCF was
EUR215,000,000 (31 December 2020: EUR15,000,000), accrued interest
was EUR13,294 (31 December 2020: EUR5,284) and the outstanding
commitment fee was EUR61,046 (31 December 2020: EUR223,662).
In April 2021, the Group increased the 5-year term debt
arrangements adding ING into the banking syndicate. Details of the
Group's term debt facilities and associated interest rate swaps are
set out in the below table:
Provider
CBA 7 October 2025 1.55 (0.399) 75,000 206
ING 7 October 2025 1.55 (0.300) 75,000 160
NAB 7 October 2025 1.55 (0.399) 75,000 206
Natwest 7 October 2025 1.55 (0.396) 50,000 138
========== ================ ===== ======== ======== ====
275,000 710
=========================== ===== ======== ======== ====
These loans contain swaps that are contractually linked.
Accordingly, they have been treated as single fixed rate loan
agreements, which effectively set interest payable at fixed
rates.
All borrowing ranks pari passu with a debenture over the assets
of Holdco 1 and Holdco 2 and a floating charge over Holdco 1 and
Holdco 2's bank accounts.
13. Contingencies & Commitments
At the time of acquisition, wind farms which had less than 12
months' operational data may have a wind energy true-up applied,
whereby the purchase price for these wind farms may be adjusted so
that it is typically based on a 2-year operational record, once
operational data has become available.
The following wind energy true-ups remain outstanding and the
maximum adjustments are as follows: Letteragh: EUR2,500,000.
In December 2020, the Group entered into an agreement to acquire
the Cloghan and Taghart wind farms for a headline consideration of
EUR123 million. The investment is scheduled to complete in late
2022 once the wind farms are fully operational.
In February 2021, the Group entered into an agreement to acquire
the Kokkoneva wind farm for headline consideration of EUR60
million. The investment is scheduled to complete in Q2, 2022 once
the wind farm is fully operational.
14. Share capital - ordinary shares
At 30 June 2021, the Company had authorised share capital of
2,000,000,000 ordinary shares of EUR0.01 each.
Date Issued and fully paid Number of shares issued Share capital Share premium Total
EUR'000 EUR'000 EUR'000
1 January 2021 Opening balance 741,238,938 7,412 507,476 514,888
Issues costs paid
during the period - - 44 44
30 June 2021 741,238,938 7,412 507,520 514,932
----------------------------------------- ------------------------ -------------- -------------- --------
Shareholders are entitled to all dividends paid by the Company
and, on a winding up, provided the Company has satisfied all of its
liabilities, the Shareholders are entitled to all of the residual
assets of the Company.
15. Net assets per share
30 June 2021 31 December 2020
Net assets - EUR'000 749,112 748,813
Number of ordinary shares issued 741,238,938 741,238,938
---------------------------------- ------------- -----------------
Total net assets - cent 101.1 101.0
---------------------------------- ------------- -----------------
16. Reconciliation of operating profit for the period to net
cash from operating activities
For the six months ended For the six months ended
30 June 2021 30 June 2020
EUR'000 EUR'000
Operating profit for the period 26,077 16,578
Adjustments for:
Unrealised movement in fair value of investments (note 8) (25,776) (7,226)
Investment acquisition costs 2,309 835
Loan interest capitalised - (1,339)
Finance costs capitalised (862) -
Amortisation of finance costs 825 -
Decrease in receivables 3,756 812
(Decrease)/Increase in payables (698) 448
----------------------------------------------------------- ------------------------- -------------------------
Net cash flows from operating activities 5,631 10,108
----------------------------------------------------------- ------------------------- -------------------------
17. Related party transactions
During the period, Holdco made repayments of EUR17,200,000 (30
June 2020: EUR18,150,000) . During the period, the Company also
received shareholder loan repayments from Knockacummer of
EUR4,155,069 (30 June 2020: EUR1,994,445) and Killhills of
EUR1,100,000 (30 June 2020: EUR573,187).
The below table shows the Group's dividend and management fee
income:
For the six months ending 30 June 2021 For the six months ending 30 June 2020
Management Management
Fee income Dividend Income Fee income Dividend Income
EUR000 EUR000 EUR000 EUR000
Cloosh Valley - - - 5,028
Ballybane - - 13 2,750
Beam Hill - - - 773
Knocknalour - 248 - -
Knockacummer - - 13 -
Killhills - - 13 -
Gortahile - 750 - -
Raheenleagh - 500 - -
- 1,498 39 8,551
--------------- ----------------- ---------------------- ----------------- ----------------------
The table below shows the Group's shareholder loans with the
wind farm investments
Loans Loans Loan Loan Loans Accrued Total 2021
at 1 advanced interest Repayments at 30 interest interest
January in the capitalised June 2021 at 30 on
2021(1) period in the June shareholder
period 2021 loan
investment
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Knockacummer 116,502 - - (5,024) 111,478 528 112,006 1,206
Monaincha 65,274 - - (1,800) 63,474 219 63,693 503
Glanaruddery 48,033 - - (1,700) 46,333 158 46,491 365
Ballybane 39,108 - - (3,300) 35,808 123 35,931 287
Killala 26,706 - - (450) 26,256 126 26,382 359
Letteragh 25,350 - - (150) 25,200 341 25,541 316
Killhills 25,071 - - (2,100) 22,971 45 23,016 34
An Cnoc 17,547 - - (400) 17,147 59 19,060 135
Kostroma 16,577 1,854 - - 18,431 65 16,642 142
Gortahile 16,339 - - (699) 15,640 53 15,693 122
Tullynamoyle
II 14,511 - - (150) 14,361 49 14,410 111
Garranereagh 13,733 - - (500) 13,233 42 13,275 97
Carrickallen 13,498 - - (500) 12,998 89 13,087 205
Sommette 12,607 - - - 12,607 694 13,301 287
Lisdowney 10,623 - - (1,020) 9,603 49 9,652 116
Beam Hill
Extension 9,140 - - - 9,140 112 9,252 71
Pasilly 8,870 - - (150) 8,720 264 8,984 202
Cloosh Valley 7,015 - - (2,441) 4,574 - 4,574
Sliabh Bawn 6,879 - - (713) 6,166 55 6,221 21
Knocknalour 5,795 - - - 5,795 32 5,827 73
Saint Martin 3,543 - - - 3,543 178 3,721 74
Cordal - 179,501 - (10,000) 169,501 895 170,396 687
Glencarbry - 73,264 - - 73,264 374 73,638 287
Killala
Battery - 1,570 - - 1,570 22 1,592 17
502,721 256,189 - (31,097) 727,813 4,572 732,385 5,717
-------------- --------- ---------- ------------- ------------- ----------- ---------- --------- -------------
(1) Excludes accrued interest at 31 December 2020 of EUR2,831 .
18. Subsequent events
On 27 August 2021, the Board approved a dividend of
EUR11.2million, equivalent to 1.515 cent per share in relation to
the quarter ended 30 June 2021. The record date for the dividend
was 30 July 2021 and the payment date was 27 August 2021.
The Group entered into a new seven-year term facility with a
long-term institutional lender on favourable terms, which provides
the Group with an additional EUR150 million to be utilised in the
second half of 2021.
19. Board approval
The Group's Interim Report and Financial Statements were
approved by the Board of Directors on 12 September 2021.
Company Information
Directors (all non-executive) Registered Company Number
Rónán Murphy 598470
Emer Gilvarry
Kevin McNamara
Marco Graziano Registered Office
Riverside One
Investment Manager Sir John Rogerson's Quay
Greencoat Capital LLP Dublin 2
4(th) Floor The Peak
5 Wilton Road
London SW1V 1AN Registered Auditor
BDO
Beaux Lane House
Company Secretary Mercer Street Lower
Ocorian Administration (UK) Limited Dublin 2
(formerly Estera Administration (UK) Limited)
Unit 18 Innovation Centre
Northern Ireland Science Park Legal Advisers
Queens Road McCann Fitzgerald
Belfast BT3 9DT Riverside One
Sir John Rogerson's Quay
Administrator Dublin 2
Northern Trust International Fund
Administration Services (Ireland) Limited
54-62 Townsend Street Euronext Growth Advisor, NOMAD
Dublin 2 and Broker
J&E Davy
Davy House
Depositary 49 Dawson Street
Northern Trust International Fiduciary Dublin 2
Services (Ireland) Limited
Georges Court Account Banks
54-62 Townsend Street Allied Irish Banks plc.
Dublin 2 40/41 Westmoreland Street
Dublin 2
Registrar Northern Trust International Fiduciary
Computershare Investor Services Services (Ireland) Limited
(Ireland) Limited Georges Court
3100 Lake Drive 56-62 Townsend Street
Citywest Business Campus Dublin 2
Dublin 24
Defined Terms
Admission Document means the Admission Document of the Company
published on 31 December 2019
Aggregate Group Debt means the Group's proportionate share of
outstanding third party debt.
AIB means Allied Irish Bank plc
AIC means the Association of Investment Companies
AIC Code of Corporate Governance sets out a framework of best
practice in respect of the governance of investment companies. It
has been endorsed by the Financial Reporting Council as an
alternative means for our members to meet their obligations in
relation to the UK Corporate Governance Code
AIC Guide means the AIC's Corporate Governance Guide for
Investment Companies
AIF means Alternative Investment Funds (as defined in AIFMD)
AIFM means Alternative Investment Fund Manager (as defined in
AIFMD)
AIFMD means Alternative Investment Fund Managers Directive
AGM means Annual General Meeting of the Company
An Cnoc means Cnoc Windfarms Limited
Ballybane means Ballybane Windfarms Limited
BDO means the Company's Auditor as at the reporting date
Beam Hill means Beam Wind Limited
Beam Hill Extension means Meenaward Wind Farm Limited
Brexit mean the withdrawal of the United Kingdom from the
European Union
Board means the Directors of the Company
Carrickallen means Carrickallen Wind Farm
CBA means Commonwealth Bank of Australia
Cloosh Valley means Cloosh Valley Wind Farm Holdings DAC and
Cloosh Valley Wind Farm DAC
Company means Greencoat Renewables PLC
Cordal means Cordal Windfarm Holdings Limited, Oak Energy Supply
Limited and Cordal Windfarms Limited
CBI means the Central Bank of Ireland
CDP means Carbon Disclosure Project
CFD means Contract for Difference
CIBC means Canadian Imperial Bank of Commerce
CPI means Consumer Price Index
DCF means Discounted Cash Flow
DS3 means Delivering a Secure, Sustainable Electricity
System
EGM means Extraordinary General Meeting of the Company
ESG means the Environmental, Social and Governance
EU means the European Union
Euronext means the Euronext Dublin, formerly the Irish Stock
Exchange
EURIBOR means the Euro Interbank Offered Rate
Eurozone means the area comprising 19 of the 28 Member States
which have adopted the euro as their common currency and sole legal
tender
FCA means Financial Conduct Authority
FIT means Feed-In Tariff
FRC means Financial Reporting Council
GAV means Gross Asset Value as defined in the Admission
Document
Garranereagh means Sigatoka Limited
Glanaruddery means Glanaruddery Windfarms Limited and
Glanaruddery Energy Supply Limited
Glencarbry means Glencarbry Windfarm Limited
Gortahile means Gortahile Windfarm Limited
Group means Greencoat Renewables PLC, Holdco and, Holdco 2
Holdco means GR Wind Farms 1 Limited
Holdco 1 means Greencoat Renewables 1 Holdings Limited
Holdco 2 means Greencoat Renewables 2 Holdings Limited
IAS means International Accounting Standards
IFRS means International Financial Reporting Standards
ING means ING Bank N.V.
Investment Management Agreement means the agreement between the
Company and the Investment Manager
Investment Manager means Greencoat Capital LLP
IPEV means the International Private Equity and Venture Capital
Valuation Guidelines
IPO means Initial Public Offering
Irish Corporate Governance Annex is a corporate governance annex
addressed to companies with a primary equity listing on the Main
Securities Market of Euronext
IRR means internal rate of return
I-SEM means the Integrated Single Electricity Market, which is
the wholesale electricity market arrangement for Ireland and
Northern Ireland
Killala means Killala Community Wind Farm DAC
Killhills means Killhills Windfarm Limited
Knockacummer means Knockacummer Wind Farm Limited
Knocknalour means Knocknalour Wind Farm Holdings Limited and
Knocknalour Wind Farm Limited
Kostroma Holdings means Kostroma Holdings Limited
Letteragh means Seahound Wind Developments Limited
Lisdowney means Lisdowney Wind Farm Limited
Monaincha means Monaincha Wind Farm Limited
NAB means National Australia Bank
Natwest means National Westminster Bank
NAV means Net Asset Value as defined in the Admission
Document
NAV per Share means the Net Asset Value per Ordinary Share
NOMAD means a company that has been approved as a nominated
advisor for the Alternative Investment Market (AIM), by Euronext
Dublin and London Stock Exchange
O&M means operations and maintenance
Pasilly means Société d'Exploitation du Parc Eolien du
Tonnerois
PPA means Power Purchase Agreement entered into by the Group's
wind farms
PSO means Public Support Obligation
Raheenleagh means Raheenleagh Power DAC
RBC means Royal Bank of Canada
RCF means the Group's Revolving Credit Facility
REFIT means Renewable Energy Feed-In Tariff
RESS means Renewable Energy Support Scheme
Review Section means the front end review section of this report
(including but not limited to the Chairman's Statement and the
Investment Manager's Report)
Santander means Abbey National Treasury Services Plc (trading as
Santander Global Corporate Banking)
SEM means the Single Electricity Market, which is the wholesale
electricity market operating in the Republic of Ireland and
Northern Ireland
SFDR means Sustainable Finance Disclosure Regulation
Sliabh Bawn means Sliabh Bawn Holding DAC, Sliabh Bawn Supply
DAC and Sliabh Bawn Power DAC
Solar PV means a solar photovoltaic system, which is a power
system designed to supply usable solar power by means of
photovoltaics.
Sommette means Parc Eolien Des Tournevents SAS
SPVs means the Special Purpose Vehicles, which hold the Group's
investment portfolio of underlying operating wind Farms
Saint Martin means Parc Eolien Des Courtibeaux SAS
TCFD means Task Force on Climate-Related Financial
Disclosures
TSR means Total Shareholder Return
Tullynamoyle II means Tullynamoyle Wind Farm II Limited
UK means United Kingdom of Great Britain and Northern
Ireland
UK Code means UK Corporate Governance Code issued by the FRC
Forward Looking Statements and other Important Information
This document may include statements that are, or may be deemed
to be, "forward-looking statements". These forward-looking
statements can be identified by the use of forward-looking
terminology, including the terms "believes", "estimates",
"anticipates", "expects", "intends", "may", "plans", "projects",
"will", "explore" or "should" or, in each case, their negative or
other variations or comparable terminology or by discussions of
strategy, plans, objectives, goals, future events or
intentions.
These forward-looking statements include all matters that are
not historical facts. They may appear in a number of places
throughout this document and may include, but are not limited to,
statements regarding the intentions, beliefs or current
expectations of the Company, the Directors and/or the Investment
Manager concerning, amongst other things, the investment objectives
and investment policy, financing strategies, investment
performance, results of operations, financial condition, liquidity,
prospects, and distribution policy of the Company and the markets
in which it invests.
By their nature, forward-looking statements involve risks and
uncertainties because they relate to future events and depend on
circumstances that may or may not occur in the future.
Forward-looking statements are not guarantees of future
performance. The Company's actual investment performance, results
of operations, financial condition, liquidity, distribution policy
and the development of its financing strategies may differ
materially from the impression created by, or described in or
suggested by, the forward-looking statements contained in this
document.
In addition, even if actual investment performance, results of
operations, financial condition, liquidity, distribution policy and
the development of its financing strategies, are consistent with
any forward looking statements contained in this document, those
results or developments may not be indicative of results or
developments in subsequent periods. A number of factors could cause
results and developments of the Company to differ materially from
those expressed or implied by the forward looking statements
including, without limitation, general economic and business
conditions, global renewable energy market conditions, industry
trends, competition, changes in law or regulation, changes in
taxation regimes, the availability and cost of capital, currency
fluctuations, changes in its business strategy, political and
economic uncertainty. Any forward-looking statements herein speak
only at the date of this document.
As a result, you are cautioned not to place any reliance on any
such forward-looking statements and neither the Company nor any
other person accepts responsibility for the accuracy of such
statements.
Subject to their legal and regulatory obligations, the Company,
the Directors and the Investment Manager expressly disclaim any
obligations to update or revise any forward- looking statement
contained herein to reflect any change in expectations with regard
thereto or any change in events, conditions or circumstances on
which any statement is based.
In addition, this document may include target figures for future
financial periods. Any such figures are targets only and are not
forecasts. Nothing in this document should be construed as a profit
forecast or a profit estimate.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
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of this information may apply. For further information, please
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Policy.
END
IR UUOWRAVUKAAR
(END) Dow Jones Newswires
September 13, 2021 02:00 ET (06:00 GMT)
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