Greencoat UK Wind posts resilient H1 2025 performance

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30d ago 7:04

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Greencoat UK Wind PLC (LSE:UKW)'s Matt Ridley talked with Proactive's Stephen Gunnion about the company’s interim results and strategic direction in a challenging macro environment. Ridley highlighted that this marks the twelfth consecutive year of paying an RPI-linked progressive dividend, amounting to £1.3 billion in total distributions. "We generated about £1 billion of cash to reinvest in the business," he noted, emphasising the importance of maintaining net asset value in real terms. Despite facing some of the lowest wind speeds in the first half of the year, Greencoat UK Wind still achieved a 1.4x dividend cover. Ridley said this demonstrates the resilience of the portfolio. However, net asset value declined, impacted by lower-than-expected generation and softer power prices. To support capital allocation efforts, the company has now completed £222 million in asset disposals over eight months, including a number of new disposals announced with the interim results. These were completed at prevailing NAV, reinforcing the disconnect between the share price and private market valuations. Discussing broader sector challenges, Ridley noted rising gilt yields and oversupply of products have pressured valuation. In response, the company rebased its fees, launched a £200 million buyback program, and progressed with divestments to support de-gearing. On policy, the government’s decision to drop zonal pricing was seen as supportive, preserving investor confidence needed to meet Clean Power 2030 goals. Ridley said, “It’s important that reforms are done in a way that gives the right commitment for existing owners of assets.” Looking ahead, the company expects over £1 billion in excess cash flow beyond dividends in the next five years, with 50% of near-term cash flows indexed to inflation. It continues to see significant long-term investment opportunities in wind. For more interviews like this, visit Proactive's YouTube channel. Don’t forget to like the video, subscribe, and enable notifications to stay updated. #GreencoatUKWind #UKW #RenewableEnergy #WindPower #CleanEnergy #DividendStocks #GreenInvestment #EnergyTransition #ESGinvesting #StockMarketUK #NetZero #ClimateFinance #ProactiveInvestors

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