Dublin-listed wind and solar energy group Greencoat Renewables made a loss of €68 million in the first six months of the year as it weathered one of the weakest northern European wind periods on record.
In spite of the loss, the company’s chairman Rónán Murphy said there would be dividend payments totalling €37.7 million.
The group, which floated on the market in 2017, generated a profit of €34.6 million in the corresponding period last year. Its return on investments came to a loss of €37.4 million, down from a profit of €68 million.
The group reported aggregate debt of €1.35 billion.
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“Against the backdrop of one of the weakest northern European wind resource periods on record, the portfolio generated a total of 1,830 gigawatt hours of clean energy with cash generation amounting to €68.7 million, supporting dividend payments of €37.7 million,” he said.
The group generated 1,927 gigawatt hours over the same period last year, while cash generation was €113.6 million, the group’s interim results on Monday showed.
“With wind resource continuing to be markedly below statistical averages. The first half portfolio generation was 15 per cent behind budget,” Mr Murphy said.
“With all territories underperforming versus budget on wind, it was somewhat pleasing to see solar performance end the period broadly in line with budget, emphasising the benefits of technology and geographical diversification.”
Mr Murphy said the macroeconomic backdrop “continues to be complex” but noted there have been “structural increases” in demand for clean energy.
“Power prices across mainland Europe proved volatile as a result of several economic and political factors, resulting in downward revisions to medium and long-term price curves with corresponding impacts on net asset values across the sector,” he said.
“Conversely, we have seen European governments double down on renewables targets as energy security moves to the top of the policy agenda.”
He added that the “rapid rise” in data centre demand, driven by AI, has continued to accelerate across Europe, with the company “well positioned” to capitalise on this “mega trend”.
Mr Murphy said the group took “an innovative step” to broaden its investor base and improve liquidity through a secondary listing on the Johannesburg Stock Exchange. In addition, it agreed a reduction in its management fees.
“The European renewables sector has proven to be resilient, underpinned by binding government commitments to decarbonisation, accelerating corporate demand for clean energy, and the convergence of digital and energy,” he said.
“Greencoat Renewables’ diversified portfolio and active asset management approach position us well, despite current challenges, to capitalise from significant long-term sector growth”.
The group said former Davy chief executive Bernard Byrne has been appointed as a non-executive director, bringing “extensive finance and commercial experience” to the board.
