Greencoat Renewables announces dividend payment amidst operational challenges

Greencoat Renewables, an Ireland-based supplier of renewable energy, has made headlines by announcing a 3.41 cents per share dividend, a reflection of its commitment to shareholder value as the company navigates turbulent operational conditions.

This announcement comes just three months after the firm listed on the JSE.

In the year leading up to June 30, 2025, Greencoat generated 1 830 GWh of renewable electricity—a decline compared to the 1 927 GWh recorded in the first half of the previous financial year. The decline in output is attributed to wind resources remaining below statistical averages, a persistent challenge for the burgeoning renewable sector.

Chairman Rónán Murphy shared insights into the operational landscape, stating, “The first six months have been a busy and pro-active period for Greencoat Renewables with clear strategic progress and good operational performance, notwithstanding ongoing challenges in the wider environment.”

Greencoat’s diverse portfolio now comprises 40 renewable energy and storage facilities spread across five European countries. Despite facing a drop in gross cash generation, down to €68.7 million from €113.6m the previous year, the company remains steadfast in its financial strategy.

The net asset value (NAV) per share has adjusted to 101 cents from 110.5 cents at the previous year’s close, reflecting market conditions and strategic disposals. The share price was down 2.13% on Monday morning at 1 517 cents.

In a significant move, the company disposed of a portfolio of six Irish assets with a total capacity of 116 MW for €156m, yielding a 4% premium over last reported book value. The proceeds from this transaction have been allocated towards debt repayment, further strengthening Greencoat's balance sheet. Post-debt repayments amounting to €3.9m, net cash generation stands at €64.8m, indicating a solid cash position.

As Greencoat pursues strategic initiatives, the agreement of a new 10-year Power Purchase Agreement (PPA) with Keppel DC REIT stands out. This marked the seventh PPA in the company’s renewed contracting strategy, representing 20% of its five-year merchant volumes.

Murphy explained, “The European renewables sector has proven to be resilient, underpinned by binding government commitments towards decarbonisation, accelerating corporate demand for clean energy, and the convergence of digital and energy.”

The company’s management fees have seen a double-digit reduction to better align with shareholder interests. Furthermore, Greencoat’s ongoing efforts to strengthen its balance sheet through strategic disposals and the extension of its revolving credit facility have cemented its position as a resilient player in the renewables market.

Despite the challenges posed by fluctuating winds and an evolving energy landscape, Greencoat Renewables continues to identify potential growth opportunities.

“While we remain selective about the deployment of capital, the evolving energy landscape, driven by regulatory momentum, corporate demand for clean energy, and technical innovation, continues to present opportunities for potential growth for the company,” said Murphy.

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