Greencoat Uk Wind Share Discussion Threads

[marktime1231] 28/7/2022 12:33

Phenomenal performance, not just super NAV growth mostly because future prices will be higher for longer but also dividend cover x 3.8 meaning there has been such super surplus cash flow UKW will be able to self-fund the direct £400M acquisition cost of the Hornsea1 stake.

Of course gearing will snap up from 20% to around 30% when UKW assume the £700M non-recourse term debt attached to Hornsea1.

Well done UKW though. All down to the exceptional wholesale market prices driven by the European gas crisis of course. Generation to plan, wouldn't it be nice if we had a meaningful surplus in the second half. Amused that the marginal management fee rate above £3B assets has been cut to 0.7%, the manager making so much money I should hope so too but let's not quibble.

A little surprised the share price has not responded more positively, yet.

[sailing john] 28/7/2022 07:53

Yes NAV up 20p in just 6 months. With more to come driven by power prices and RPI. Plus a 5% divi while we wait for Mr M to catch up. Also added. About one third of my portfolio is now in UK quoted wind and solar. A safe haven in stormy seas!!
GL SJ

[cc2014] 28/7/2022 07:51

Excellent. Take a look at the long term power price profile underlying the NAV in this mornings results presentation.

Near end based on short term power prices of £200/MWh


As far as I can work out (and I'm no expert) day ahead power price are currently running around 60% higher than that, suggesting to me the forecasts are already out of date (or perhaps just cautious for reasonable reasons) is more NAV increase to come when it's next published.

Also good to see they aren't ignoring the increase in interest rates and the discount in the NAV calculation was adjusted appropriately.

[nerja] 28/7/2022 07:27

NAV per share 153.6 pence

Topped on that increase in nav

[tuftymatt] 04/7/2022 06:23

Excellent 👍🏻

[masurenguy] 04/7/2022 00:00

Schroders chief buzzing to take finance offshore wind farms

Greencoat UK Wind, a listed investment trust specialising in renewables. Weighing in at £3.6bn, UK Wind is one of the biggest members of the FTSE 250, and not far off membership of the FTSE 100. The shares, issued at 100p in 2013, have grown to 153p, yielding a decent dividend, which is intended to rise each year by RPI — 11.7% at its last reading.

[growthpotential] 10/6/2022 00:11

This is my only dogg holding up in this environment, when is this Putin gonna crawl away

[a0002577] 30/5/2022 12:42

UKW is - as far as I know a holding company for a number of enterprises which largely generate electricity from wind in the UK.

At the moment, I believe there is no intention to tax 'renewables'

Anyway - because of PPAs there has not been the upside for these 'generators' as there has been for the oil and gas majors.

[tuftymatt] 30/5/2022 12:02

That's exactly it marktime 1231.
The US market is closed today but tomorrow I suspect a continuation of what we saw last week after 7 off weeks. To push away from Bear territory will make many take more risks meaning many of the kind of companies I hold could go out of favour a little.
Stick with it though and buy the dips as like you say a sneeze is never too far away.

[marktime1231] 30/5/2022 11:52

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.

[cc2014] 30/5/2022 11:48

It will come to a head soon.



On the one hand the goverment want to tax generators profits and on the other hand are asking them to keep open facilities they were planning to close.

[igoe104] 30/5/2022 11:30

If they start taxing. Best thing then is invest into other countries that are favorable. And don't invest into UK projects..

[marktime1231] 30/5/2022 11:29

There is no doubt, the opening statement from the UK government on 26 May was ...

"Following record high oil and gas prices over the past year due to global circumstances, and to help fund more cost-of-living support for UK families, the government is introducing the Energy Profits Levy, a new 25% surcharge on the extraordinary profits the oil and gas sector is making."

The possibility of the levy being extended to other energy companies is perhaps what is weakening some share prices. It is after all a logical extension to the argument that some companies are making windfall profits while passing on much higher costs to consumers. The domestic energy bill is 25% from renewables and rising.

But right now the policy is expressly just on oil & gas.

[woodhawk] 30/5/2022 10:45

No decision has been made. Let's hope that the moron Johnson & his cabinet of cretins see sense, for once, and forget the ridiculous idea of taxing renewables.

[whilstev] 30/5/2022 10:36

Can anyone clarify for me was UKW part of the windfall tax or not ? The current share price seems to suggest yes.

[growthpotential] 26/5/2022 10:12

Agreed here too, lol and gas is very cyclical, you can't just tax them in good times and leave them to die like during covid

[yump] 26/5/2022 08:54

Populist politics.

@bothdavies

Exactly !

Nobody on the Beeb or anywhere else mentioned that the oil glut of many years kept petrol prices low and killed off exploration. Nobody commented that exploration was cut down because of oil/gas companies not having the profits to invest.

People get used to low this that and the other, spend it all and then whinge when prices rise. But the government (any government) is supposed to have magically saved a load of money from somewhere to bail them out.

That does not apply to the people teetering on the breadline of course, but most of the time its not them that get interviewed.

The poor rarely get interviewed. The whingers do and why do loads of them look like they've just eaten 100 burgers ?. The terrible tragedy of the middle classes not being able to afford stuff.

[gbcol] 26/5/2022 07:38

Thought this would bounce more with positive news/rumours that the likes of UKW won’t get hit with windfall tax. Guess people are waiting for official announcement but that allowed me to pick up more this morning at 149p. Together with those I picked up recently at 148p, I think this dip will have been a useful and profitable buying opportunity. Hopefully they don’t U-turn on the U-turn.

[tuftymatt] 26/5/2022 06:53

I agree there shouldn’t be a windfall tax at all but better the big oil and gas boys than the likes of UKW.

[bothdavis] 26/5/2022 06:41

Although, not common sense in the fact that oil and gas companies suffer from great variations in profitabilty. Are we too assume that when they run at a loss the Government of the day will pay them to 'help out'?

[tuftymatt] 26/5/2022 05:56

Looks like this should bounce today based on the news of the windfall tax being aimed now at just oil and gas companies. Common sense prevails as expected.

[growthpotential] 25/5/2022 20:46

Get sunak grubby hands off. We look after the British people but this is not the way. Taxes should be cut not raised

[tuftymatt] 25/5/2022 18:28

Obviously not happy about todays late fall having topped up recently at 150 but I kind of think this whole windfall rubbish is now factored in.
Still confident we can get back to 160 once this all blows over, no pun intended!!

[gbcol] 25/5/2022 17:02

Time to hold your nerve and top up if you can IMO. That’s what I’ve been doing and will continue to do if it stays at this level or falls further. I believe this fall is massively overdone and the windfall tax worries have been overblown in regards to UKW. Time will tell if I’m correct on that one but I’m fortunate to be circa 10% on these even after the recent falls so can afford to throw a bit more money into them.

[vworlds_cambridge] 25/5/2022 16:20

Well, I guess we'll see what happens. Now sitting on -5% with these, so haven't seen any windfall personally, and will think twice about investing in UK green energy if they do hit it. Still want to do the right thing, and plenty of opportunites in other countries. Seems a strange area to hit with extra taxes IMHO.