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UK wind farm investor Greencoat UK Wind reported strong returns in its latest financial report, despite lower wholesale market prices due to windy conditions in the first half of 2014.
The year-end net asset value (NAV) for 2014 is 105.5 pence per share despite annual wind power output from the fund-owned projects coming in 3 per cent below budget.
The start of 2014 saw higher than average wind speeds across the UK while the second half of the year saw output wane, but remain in line with expectations to deliver NAV at 8.7 per cent total return over the year.
“Thus, despite accommodating the lower power price outlook, Greencoat has delivered returns at the top-end of its 8-9% fund target,” said analysts at RBC Capital.
The analysts added that investors should be “encouraged” by the windy conditions experienced in the UK over December and January this year that will feed into Greencoat’s 2015 NAV. The fund could also see further acquisitions this year to utilise its £200 million balance sheet headroom, RBC Capital said.
In 2014, Greencoat analysed 37 windfarms totalling 1.4GW for potential acquisition but only 24 of these were taken forward for final consideration with just 6 assets acquired to take its generating capacity from 126.5MW to 271.5MW.
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