Renewables Infrastructure Group Ltd on Friday said its growing discount rate made its net asset value decline in the first half year, but that its portfolio remained resilient and ‘continues to generate strong cash flows.’

The Guernsey-based investor in renewable energy infrastructure projects said its NAV at June 30 was 132.2 pence per share, down from 134.6p at December 31. Earnings per share meanwhile plummeted during the half year ended June 30, to 1.1p from 17.9p for the same period in 2022.

TRIG said the decreased NAV was driven by an increase in its discount rate to 7.9% from 7.2% in its previous half year, reflecting higher interest rates and higher returning development stage battery storage projects.

The company’s stock was up 0.5% at 114.56p in London on Friday morning.

The company’s portfolio, which totals 2.8 gigawatts in renewable energy assets, was valued at £3.67 billion at June 30, down from £3.74 billion at December 31.

However TRIG said the portfolio showed its resilience throughout the period and its underlying performance remained strong. It said this was ‘underpinned by the positive inflation correlation of its revenues and low exposure of its cash flows to rising interest rates.’

Operational cash flow generated during the period was £264 million. Net cash flow after operating and finance costs saw a ‘very healthy’ increase to £145 million from £107 million last year.

TRIG did not declare an interim dividend but reconfirmed its full-year dividend target of 7.18p per share, up from 6.84p for 2022.

Chair Richard Morse commented: ‘TRIG’s portfolio continues to generate strong cash flows, benefiting from its positive inflation correlation, low sensitivity to interest rate costs, and active management...The combined investment and operational experience of our managers is a competitive advantage, as TRIG continues to play its part in delivering sustainable energy across several European markets.’

Copyright 2023 Alliance News Ltd. All Rights Reserved.