Greencoat Renewables PLC on Monday shared strong interim growth, as it set its sights on further continental acquisition opportunities.

Greencoat is a Dublin-based investor in euro-denominated renewable energy infrastructure assets. At June 30, its net asset value per share was 110.1 euro cents, a 4.8% improvement from 105.1 cents at the end of December.

The improvement was due to near-term higher power prices, as well as adjustments to short-term inflation forecasts in Ireland and continental Europe.

Profit before tax jumped to €75.0 million from €22.7 million year-on-year. Fair value of investments improved to €2.03 billion at June 30 from €1.56 billion at the end of December.

Over the first half of 2022, its portfolio generated 1,127 gigawatt hours, a 51% increase year-on-year from 745 GWh.

Wind resource was higher than forecast, and generation was less than 4% below budget during the half, mostly due to ‘constraints and curtailments’ in Ireland.

During the period, it added 281 megawatts of net capacity outside of Ireland, and 50 MW of net capacity within Ireland.

‘As the portfolio has grown into new geographies, the business has benefitted from increased diversification both in terms of weather systems and power markets. Low correlation of wind speeds between Continental Europe and Ireland ensures stability of cashflows in periods of lower regional wind resource,’ Greencoat explained.

The firm increased its annual dividend target by 2% to 6.18 cents per share, from 6.06 cents last year. The amount will be paid in quarterly instalments, with the next payment scheduled for November.

Looking ahead, the firm is eyeing up further acquisition opportunities on the continent, and is considering changing its investment policy, which currently dictates a 40% limit on non-Ireland investments. Its core focus remains contracted wind and solar assets.

Shares in Greencoat were up 1.6% to €1.25 each in London on Monday morning.

‘Whilst Ireland remains a core market, we expect future acquisitions to be weighted towards Europe as the company continues to diversify. In particular, we expect to see continued growth in our offshore portfolio where we see significant value and potential for acquisitions,’ Chair Ronan Murphy explained.

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