Greencoat Uk Wind Share Discussion Threads

[bountyhunter] 04/11/2021 18:27

It's the 4th today, but the 11th will be fine, thanks for the correction :)

1.795p/shr

[carterit] 04/11/2021 18:02

xd actually on 11th nov,not 4th.

[bountyhunter] 04/11/2021 16:08

XD tomorrow

[marktime1231] 03/11/2021 17:44

That's a shame

[alexisk] 03/11/2021 17:06

marktime:

I think you will find that there are no free shares being offered.
Any shares you buy -- including the 1 for every 13 already held that you will definitely be able to buy -- will cost 132p each.

[marktime1231] 03/11/2021 16:26

Yes had mine too now. We get a free 1-for-13 and can bid for more at 1.32, which I suspect will be over-subscribed. Worth bidding for a few then.

[woodhawk] 03/11/2021 15:37

Had my advice of offer from one of my platforms, IG Index, today.

[rogerrail] 03/11/2021 15:33

Preliminary notice of "corporate action" event relating to open offer has been issued today on A J Bell/ secure messages.

[income investor] 03/11/2021 14:55

Open offer is available to all shareholders, including retail ones. Your platform provider should contact you to ask if you want to take this up - although probably won't contact you until next week!

[marktime1231] 03/11/2021 11:18

It is a confusingly written statement but yes UKW will retain 15.7%.

Does anyone know how to participate in the open offer of shares at 132p, or is that not something for retail investors?

[rambutan2] 03/11/2021 01:53

marktime, I assume they mean that Greencoat Capital is acquiring the 25% stake, with 15.7% being taken by UKW, for £250m, and the balance going to Greencoat Renewable Inc LP for a pro rata amount.

"Greencoat UK Wind plc (the "Company" or "UKW"), the leading listed renewable infrastructure fund, invested in UK wind farms, is pleased to announce that it has agreed to acquire a 25% stake in Burbo Bank Extension offshore wind farm from AIP, in partnership with a number of pension funds investing through Greencoat Renewable Income LP, a fund also managed by Greencoat Capital. UKW will acquire a net 15.7% stake in the wind farm for a total cash consideration (including cash and working capital) of GBP250 million (the "Acquisition"). The Acquisition is scheduled to complete on 30 November 2021."

[marktime1231] 02/11/2021 18:54

Thank you gents. Despite calculating this in the way you set out I managed to get the wrong income number, I blame a duff battery in my 1990's Casio FX desk calacatibrator.

The correct income number is indeed more like £27M pa, which means this does look like a good investment, maybe a great one if post 2032 energy prices > £175.

Still not sure how you can buy a 25% stake in a wind farm for "net" 15.7% of the proceeds, does that mean our £27M pa income is net of operating and maintenance etc? Still need to deduct financing costs and ... ? Anyhow, it looks good enough to service a progressive dividend.

[marktime1231] 02/11/2021 09:17

Puzzled by today's announcement. Not that they have gone for a £200M fund raise issue at 132p which is a slight premium to NAV while the share price is riding high, good idea.

The problem I have is that they are paying their own parent Greencoat Capital a staggering £250M for a stake in a mature 248MW wind farm Burbo Bank Extension off Liverpool. The stake is either 25% or 15.7% "net" eh? And based on it being on a fixed CFD tariff of £176/MWh by my sums they can expect an annual income of around £4.7M pa until 2032.

The investment case looks dreadful.

Why are they buying mature capacity eg expensive as opposed to investing at an earlier stage in new developments, and why are they paying such a high price for the asset? And how can you be buying 25% of a wind farm but only 15.7% "net"?

[jimmywilson612] 19/10/2021 18:08

Some great insight Rustle - cheers.

I've followed UK_WindEnergy which gives me hourly updates on the wind generating activities. Seen it was terrible low for a few months but back to normal levels now, so must be making lots of excess cash because wholesale electricity is nowhere near back to normal!!

[rustle2] 19/10/2021 17:15

They also said they only needed a power price of about £10/Mwh plus the guaranteed ROCs to cover dividends so expected dividend cover to be close to 2x at year end. Any excess cash would go to paying down debt ( or of course acquisitions) so impact NAV rather than paying out.

[yump] 19/10/2021 16:27

Sawtooth a bit higher up would be ok ;-)

[marktime1231] 19/10/2021 15:45

Agreed, entirely forseeable NAV progression which may include booking gains on assets / trading but mostly from surplus cash. So what on earth caused the recent slide to 130p, or caused the previous one or the one before that? UKW should be enjoying steady slow progress subject only to gearing events or fundraising issues of new stock, enough with the mysterious saw-tooth volatility please and thank you.

[rustle2] 19/10/2021 15:44

On the conference call they said that the benefit from the current power prices (applies to around half of their portfolio) had outweighed the lack of wind in the recent quarters. NAV currently doesn't assume high power prices continue for significant period and assumes average wind for next quarter. i.e. cautious NAV.

[woodhawk] 19/10/2021 12:43

RBC RAISES GREENCOAT UK WIND PRICE TARGET TO 150 (145) PENCE - 'OUTPERFORM'

[jimmywilson612] 19/10/2021 11:29

Must be because the excess cash they are generating with higher wholesale energy costs - Can't imagine they've revalued the assets in the portfolio? Could be wrong

[whilstev] 19/10/2021 10:59

Nice increase in NAV announced at 129p which is up more than 6p in six months.