(Corrects description for France, Ireland, Germany, Sweden and Spain.)

Renewables Infrastructure Group Ltd on Wednesday reported much higher profit in 2022, benefiting from inflation correlation and higher energy prices in Europe.

Renewables Infrastructure is a Guernsey-based renewable energy infrastructure investment company, with a portfolio of wind, solar and battery storage projects across six countries in Europe.

Renewables Infrastructure reported a pretax profit of £520.7 million for 2022, more than doubled from £210.5 million in 2021. Operating income grew to £598.6 million from £204.3 million. Net asset value per share at December 31 climbed 13% to 134.6 pence from 119.3p a year ago. NAV total return doubled to 19% from 9.5%.

It said that in Great Britain, it had an average forward price of £121 per megawatt hour for the years 2023 to 2027 before the UK government’s windfall tax on energy companies, up 78% from £68 in 2021’s forward prices for 2022 to 2026. The forward price for 2023 to 2027 falls to £100 after the levy.

The UK government’s energy levy is a windfall profit tax imposed in response to rising consumer energy bills amid the cost of living crisis. It came into effect in May 2022.

In comparison, the average forward price of five jurisdictions in Europe, the average forward price for 2023 to 2027 is €89, up 56% from €57 a year prior. The jurisdictions are France, Ireland including Northern Ireland, Germany, Sweden and Spain.

Renewables Infrastructure declared a dividend per share of 6.84p, up 1.2% from 6.76p in 2021. It targets a dividend of 7.18p for 2023, an increase of 5.0%.

Looking ahead, Renewables Infrastructure expects a valuation reduction of £56.2 million due to short-term pricing in Great Britain to £120 per megawatt hour in 2023 and 2024 and £100 per megawatt hour in 2025.

Renewables Infrastructure shares were 0.2% higher at 130.19 pence each on Wednesday morning in London.

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