Greencoat UK Wind PLC (LSE:UKW) has trimmed its forecasts for long-term power generation after assessing the prospects for wind speeds in Britain.
These are critical for optimum performance from wind turbines and Greencoat said the adjustment follows consultation with an expert third party and lower than long-term average wind speeds seen in the UK in recent years.
As a result, the long-term generation forecast is expected to be 2.4% lower, with a resulting net asset value (NAV) decrease of 6.5p pence per share.
Reflecting that, unaudited NAV at the end of 2024 was £3,409 million or 151.2p per share, down 7.4p per share from 30 September 2024.
Greencoat added it is declaring a final quarter dividend for 2024 of 2.5p per share taking the annual dividend to 10p per share.
In 2025, Greencoat added it will increase its payout to 10.35p pence per share in line with the Retail Prices Index for December 2024 of 3.5%.
Since IPO, it added that the company has delivered 1.8 times dividend cover and, with its revised generating budget, remains on course to generate (on average) dividend cover of 1.9 times over the next 5 years.
“This would deliver over £1 billion in excess cashflow over the next 5 years for allocation to the advantage of its shareholders.”
Greencoat said it had also made its first disposal with the sale of its 40% interests in Dalquhandy and Douglas West onshore wind farms to Fuyo General Lease at the prevailing NAV of £41 million.
Proceeds were used to repay the company's Revolving Credit Facility and fund further share buybacks.
Drawings under the RCF on 31 December 2024 were £270 million and overall gearing was 39.7%, while the £19.7 million worth of shares were bought back during this latest quarter taking the total to £89.9 million.