Greencoat Uk Wind Share Discussion Threads

[income investor] 24/2/2022 10:14

Excellent annual results out today. Even with low wind speed, dividend cover 1.9 times and targeting increase in annual dividend to 7.72p in line with increase in December RPI. NAV increased over year from 122.2p to 133.5p. Some good news on a grim day

[igoe104] 22/2/2022 16:38

Positive wrire-up.

[marktime1231] 22/2/2022 13:17

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] 18/2/2022 12:55

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] 17/2/2022 22:06

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.

[markldn] 11/1/2022 18:43

Can anyone comment on whether reinvesting dividends is a sound play with UKW? My uninformed worry is that the economics of wind are good now, but in 20 years the sector will be even more commoditised with minimal margins.

[dutch123] 05/1/2022 14:08

Schroders uk have a 5% interest in ATOME all about the green energy drive, might be a connection somewhere.

[marktime1231] 16/12/2021 13:22

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.

[santangello] 15/12/2021 13:17

Happy to make my maiden purchases here.

[marktime1231] 09/12/2021 13:57

BG revealed as a 5% shareholder, presumably because it saw the opportunity to subscribe at 132p as a bargain. Which fund I wonder. Strong demand for UKW today because of BG's conviction or because the wind has been blowing strongly?

[bountyhunter] 01/12/2021 12:46

Anyway the 85% received is not doing badly especially given recent market conditions!

[marktime1231] 01/12/2021 12:43

Quite right, the cash back for the unsuccessful 15%.

[bountyhunter] 30/11/2021 20:07

That's what I got, I suspect the cash is on it's way back to you for the 15% not received as happened for me.

[marktime1231] 30/11/2021 17:30

Not completely sure but it looks like I have received 85% of the excess shares I applied for at 132p. The other 15% might be on their way pending approval of the increased issue, shown as "provisional" in my portfolio and my broker has taken the money for them.

[woodhawk] 29/11/2021 16:37

Good to see this heading back up whence it came and glad to see offer substantially over-subscribed. Didn't bother with the offer myself, I bought more heavily in the market instead.

[eaaxs06] 29/11/2021 10:24

Why is it that on most new issues, IPO’s, offers for subscriptions, or any stock where there are new shares issued, we get a swarm of very small buys (normally single digit numbers) flooding the market from 10.00am?

It’s happened today with Greencoat and has been the same with TRIG, ORIT, ROOF, etc in recent days.

Good luck everyone, Sid.

[marktime1231] 25/11/2021 17:05

Payday tomorrow too, good news abounds.

[gbcol] 25/11/2021 16:54

Looks like I have been allocated about 85% of what I applied for. The shares are now showing in my account. That’s through AJ Bell.

[marktime1231] 25/11/2021 12:29

Huge public demand so they have decided to expand the total raise to £450M. And with the share price still up around 134p did they price the issue too low? Heading back towards 140p again shortly?

Can't work out whether I have got all the excess I applied for, no doubt we will get confirmation once the meeting tomorrow approves it.

All good though, all the funds and more required to continue expanding at an exciting rate.

[gbcol] 25/11/2021 07:39

Equity raise was very well supported & oversubscribed. I’m just getting on board here, & looks like there will be some scaling back (except for under the Open Offer), hopefully not too much.

“All valid applications under the Open Offer (excluding Excess Applications) will be met in full. A scaling back exercise has been undertaken with respect to Excess Applications, the Offer for Subscription, the Intermediaries Offer and the Placing.”

[rambutan2] 23/11/2021 13:48

Prospectus etc all on this pg:

[eithin] 23/11/2021 09:15

Many thanks. Thought would have been easily found.