Greencoat Uk Wind Dividends - UKW

Greencoat Uk Wind Dividends - UKW

Best deals to access real time data!
Level 2 Basic
Monthly Subscription
for only
Monthly Subscription
for only
UK/US Silver
Monthly Subscription
for only
VAT not included
Stock Name Stock Symbol Market Stock Type
Greencoat Uk Wind Plc UKW London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
0.70 0.46% 153.40 12:28:52
Open Price Low Price High Price Close Price Previous Close
154.40 152.70 154.40 152.70
more quote information »
Industry Sector

Greencoat Uk Wind UKW Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount

Top Dividend Posts

marktime1231: Or stick with UKW. It is a possibility but still unlikely the UK government will extend windfall taxation to those companies actively investing directly in shovel-ready renewables. It would not be such a vote winner would it. Meanwhile the surplus income and the value being added to assets is exceptional. Even if they did consider a 25% surtax on renewable energy company profits for 1-3 years UKW would still be beating its own investment base-case by miles, while wholesale energy prices are still running at 3-4 x normal. Actually extending the 80% tax rebate on investments could make UKW an even bigger winner on net asset value, but at the expense of clobbering net income. In short there is nothing to fear here. Take a longer view. I suspect the real reason why some defensive sectors of the market are down a little is that risk-on investors have crawled back out from under the duvet, ready again to gamble money on over-priced US tech stock etc. The next time the market sneezes we will be soaring here again.
marktime1231: A bit of research has not disclosed what price TRIG agreed with GIP for a 7.8% stake in Hornsea One earlier this year, but based on TRIGs fund raising issue in March they will pay across around £250M. If TRIG are also taking on debt pro-rata that means these two deals have been struck on similar terms. More expensive than early stage investment in onshore wind developments even adjusting for lower load factors, but Hornsea has an attractive inflation-linked tariff until 2035. The terms of the acquired debt are hard to establish too. GIPs investment was financed by a complex of investment-grade "green" project bonds, and at a time of rock bottom interest rates. Long dated presumably. Based on comments from firms which participated I think the fixed coupons range 3-4%. Let's guess UKW will have to find £25M pa to service the term debt, plus the cost of servicing £200-250M drawn under the RCF at say 3% so another £7M pa. So net income should be around £78M pa. That is starting to look quite a healthy deal, net income of £78M pa for an outlay of just £150-200M from cash. Repay the RCF from surplus cash flow over 3 years, or issue 150 million shares at 15?p to get gearing back down and use the increased free cash flow to boost dividends. 8.??p next year, please and thank you.
marktime1231: Very interesting and something of a departure for UKW, investing heavily in offshore for the first time? And paying a high price for 150MW of operational capacity rather than cheaper but riskier investing in early stage developments. Not sure if this will add much to NAV per share. I bet GIP are rubbing their hands. Ignore the £400M price tag, this is costing £1.1B of which £700M is debt taken on whatever terms (which are?) and £400M paid across from surplus cash and some of the available RCF. Assuming a 35% load factor (it might be higher) UKW has bought in what corresponds to about £80M pa revenue. On the plus side it is secure income on a long term price formula, and will deliver immediate cash flow once the deal is complete. But I don't think this is enhancing dividend prospects, more like underpinning the current level. Yes UKW is looking fully geared again, c. £1600M long term debt and c. £200M drawn on the RCF, the known pipeline probably covered by cashflow and available facilities but if UKW wants to reduce gearing and expand further there will need to be a fund raising issue.
marktime1231: Some key points from the latest fact sheet / NAV report. Q1 generation (only) 1% ahead of budget, power prices an unspecified (massive) amount above budget. By my observation UK wholesale has been averaging 3-4 x normal, and is still x 3. From the clues given I calculate an income surplus over base plan of £65M in Q1. The 16p jump in NAV from cash flow (3p) price outlook (7p) and inflation (6p). That says to me there is even more good NAV news to come in 2022 from cash flow and inflation, because the upgraded outlook is still a little conservative. £250M RCF repaid, £900M debt, holding £184M in cash, gearing down to 21%, £600M facility available. An incredibly strong financial platform. Time for news of grand expansion plans. 1442MW operational, pipeline 306MW to commission 22/23 at £423M. No delays please. Adding capacity at significantly lower cost rate than historic average. (Edit - I estimate the commissioning of this pipeline would add 20p to NAV per share over the next 18 months). And at this level of cash flow those investment costs could be covered by income. And / or they will have to increase the dividend sharply next year to reward investors and keep yield in step not just with RPI but with NAV / share price progress. In conclusion UKW a buy all the way to 175p on predictable short-term prospects. As regards AGM dissent over giving themselves shares, yes so a bit uneasy, well the manager is already getting their bonus from the soaring value of assets under management. The directors are getting paid already for not actually doing much to cause the results, if they want to share in the success of UKW they can bloomin' well buy shares like the rest of us. On the other hand if the remuneration non-exec sees the need for an incentive plan to keep on winning, well £10M is worth paying for the outperformance we are enjoying. So long as the incentive is for sustained income performance not just asset growth. A £10M special dividend equivalent to shareholders would be less than a ha'penny each.
marktime1231: Thanks igoe. Actually that story from PI is just suggesting ( without evidence ) that buffoon Boris may now be in favour of new onshore wind, which has stalled at around 14GW. At the moment finance, industry and operators are all flat out delivering an additional 30GW of massive offshore wind farms by 2030 on top of the 10GW we started the decade with. The amount of onshore wind in the pipeline is relatively small and I think UKW are already engaged or looking at what is underway. Most local people are against large new onshore wind schemes because they are a blight on the landscape. Onshore wind turbines and farms tend to be smaller, enjoy lower average wind speed, therefore not so economically efficient over the long term. Maybe a few existing schemes will be allowed to extend. Maybe they come at a slightly lower initial investment cost and are quicker to install? Let's see what the UK govt come up with in their revised plan in the coming weeks. It could be good news if UKW is able to participate on good terms in extended developments of onshore schemes, which were hitherto refused but might now get permission. But I am not aware of any situation where UKW schemes or opportunities are blocked by a lack of approval, it usually invests in mature developments and where blades are already spinning.
marktime1231: Superb NAV performance, now up over 133p per share. 2021 Generation socked by -20% winds, which is an exceptional low. Good net cash flow easily covering dividends x1.9, and gearing just 23%. Finances in great shape. Current trading prices and high winds surely producing cash flow out-performance in Q1 22, no wonder management are confident to step up the quarterly dividend to 1.93p. Having introduced significant new capacity late in 2021 the growth outlook from here is more measured: +38MW Twentyshilling at £51M to come on line in Mar 22 which I think is delayed from original plan Q4 21. +38MW share of Kype Muir Ext at £51M to come online Q4 22. +240MW South Kyle at £320MW to come online Q1 23. There may be other near-term deals in the pipeline for 2022 which have not yet been committed, they mention having 7 live opportunities still under review. So maybe 2022 will be a year of generation catch up. To keep up its c. 5% UK market share UKW needs to add another 580MW capacity by 2030, and 395MW is already in process within 15 months, funding arrangements in place. Do we want to accelerate ... I think the board is careful to scrutinise risks and financial prospects, but could UKW be tempted in to a bold step up by taking an early stage stake in another very large development or two. In the narrative they identify benefits from participating in larger scale wind farms ... why not go for it?
marktime1231: I think we are expecting UKWs annual results this Thursday 24 Feb? Fact checking my own facts. In the results to Dec 2020 UKW reported generation of 2,952GWh (3% below budget) and net cash generation of £145M (is that the same as operating income?). Gearing was 33% around £1.1B at an average 2.26%. Fees were £19.8M for the year. Since then UKW has added operational capacity up from 1,173MW in Dec 2020, in early January 2022 UKW announced additions of 92MW taking the total capacity to 1,422MW. (Dec 2019 was 979MW). At the half-year stage UKW reported 1,476GWh and net cash generation of £104M. Capacity over 1.2GW. Gearing at 28%. Wind speeds may have been low again but operating capacity grew rapidly in H2, so about level then? Prices since October averaging 4-5 times higher so net cash (operating income) as much as £300M to look forward to. Or am I getting carried away?
marktime1231: Very interesting annual report from TRIG, where the portfolio is dominated by offshore wind. Lots of words and not easy to follow the figures though. It separates corporate debt from project level debt and so it is not easy to work out the funding or development-in-progess position, net debt etc. I think TRIG are geared up to 40-45% at what they say is mostly fixed 3.4% interest rate. Whereas UKW geared around 30% can't remember the rate. My conclusion is UKW are now significantly bigger, expanding faster, and managing the economics better. In 2021 TRIG operating income more than doubled from £100M to £210M, despite generation only increasing 5% from 3925GWh to 4125GWh. That is the effect of the sub-base model wind conditions last year, now picking up (literally, my kitchen bin has just flown across the back garden for the second time this morning). The read across for UKW is superb since they have introduced many new operating assets and are in the same frothy market for wholesale electricty prices. Strangely TRIG only reporting a 3.4% NAV improvement and a miserley 1.1% dividend increase, despite fees rising by a third to over £21Mpa. Priorities? A more conservative wholesale price outlook? So. Very much happier to be invested in UKW where the dividend is to be increased by 7.5% and presents a forward yield roughly 6% compared to TRIGs 5.2% at today's share prices. I would hope UKW NAV has advanced better than 3.4% too, to justify the premium in the share price. All very good.
marktime1231: Pleased to read in the Telegraph last weekend that UKW was tipped by Peter Spiller, the man in charge of Capital Gearing the £1B defensive wealth preservation trust. He sees energy prices continuing in an upward cycle in the years ahead, and reckons UKW is a good way to beat inflation. And some, I would say. Also pleased to see a more sustained period of windy weather the last few weeks, maybe the UK strategic bet on wind power is not so mad. Last year production was below the base model. So far this year, albeit early doors, we are above plan. Today briefly a possible record, and Storm Eunice on the way tomorrow. And while energy prices are still peaky and way above base plan. I expect UKW to be reporting impressive NAV growth and super income from energy production when it next updates, I'm guessing at the AGM in April when the next quarterly dividend should rise to 1.93p. All good.
marktime1231: A curious UKW response to the passive announcement from Schroders, the UKW board say that whatever happens it is confident there will be no changes to the management of UKW by Greencoat Capital. Sounds like the UKW board are a bit defensive, Greencoat-aligned members are perhaps feeling under scrutiny for not generating (ha ha) better returns or outlook? Of course there will be changes. Schroders are not proposing to take a 75% stake in the investment manager in order to be a passive investor, are they! Schroders must want control and direction over future management strategy. They might already have a strategic deal in mind with ... well, all sorts of energy giants who are used to being on top of the sector. Schroders see an opportunity to take part in a terrific value-creation story which they think is cheap at this price, and have chosen a way in without having to buy up UKW stock.
ADVFN Advertorial
Your Recent History
Greencoat ..
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20220627 11:58:06