The Renewables Infrastructure Group Limited

Latest Results (13.01.2026):

The Renewables Infrastructure Group Limited — Q4 2024 (year ended 31 December 2024) annual results show a lower NAV and earnings driven by weaker short‑term power price assumptions and higher discount rates, alongside active capital recycling to support shareholder returns. Key published figures: NAV per share 115.9p (31 Dec 2024 vs 127.7p a year earlier), portfolio value £3,116m, IFRS EPS -4.7p, pro‑forma portfolio EBITDA £493m, distributable cashflows £184m, and a 2025 dividend target of 7.55p (up 1.1%). The Company completed/sign‑ed £185m of disposals (average >10% premium), increased share buybacks to £150m, repaid c.£206m of project debt and reduced fund RCF drawings (£309m at 31 Dec 2024; expected lower after Gode sale). Underlying generation was c.5% below budget largely due to third‑party grid outages.

NAV and valuation

NAV per share 115.9p (down 11.8p from 127.7p). Portfolio value £3,116m (2023: £3,509m). Main valuation drivers: a 50bp increase in the weighted average discount rate to 8.6%, lower near‑term power price forecasts, FX headwinds (net £13m loss before hedges), partially offset by accretive disposals and value‑enhancement activity.

Profitability and cash cover

IFRS EPS -4.7p. Pro‑forma portfolio EBITDA £493m (2023: £610m). Operational cashflow £390m; distributable cashflows £184m. Gross cash cover for the dividend 2.1x; net dividend cover 1.0x (pro‑forma cover noted around c.1.1x depending on timing and disposal receipts).

Dividend and shareholder returns

2025 dividend target set at 7.55p/share (1.1% increase on 2024). Share buyback programme materially increased — buybacks of £150m in 2024 (tripled vs prior programme) and buybacks form a core return pathway alongside future disposals.

Capital allocation and disposals

Disposals signed in 2024 totalling £185m (average >10% premium to carrying value), with Gode partial sale proceeds expected early March 2025. 2024 uses of cash included dividends (£184m), buybacks (£21m actual in 2024; expanded programme), and £48m of new investments.

Debt, gearing and liquidity

Project‑level debt repaid c.£206m in 2024; total project gearing reduced from £2.1bn to £1.8bn. Fund RCF drawings were £309m at 31 Dec 2024 (RCF £500m facility maturing Mar 2028); expected to fall to c.£230m on Gode sale and the Company targets further reduction in short‑term borrowings and lower gearing (target range c.45–50%).

Portfolio and operational performance

Committed portfolio capacity c.2.7GW; generation c.6TWh in 2024. Underlying generation was ~2% below budget and c.4.9% below after counting third‑party grid curtailments. Construction projects (Ranasjö & Salsjö) added ~121MW (TRIG 50% share 121MW). Safety and operational metrics remain broadly in line with sector benchmarks.

Power prices, discount rates and valuation sensitivities

Management updated cannibalised blended price curves and assumes long‑term average prices (illustrative averages to 2060: ~£52/MWh for GB and ~€57/MWh across EU jurisdictions). Near‑term price forecasts are lower than prior year, and the portfolio WADR rose to 8.6% (+50bps), both pressuring NAV; inflation and revenue fixes partially mitigate short‑term price weakness (fixed revenues ~75% in 2024, expected ~80% in near term).

2025 outlook

Company guidance highlights focus on deleveraging RCF, completing disposals/refinancings, delivering shareholder returns (continued buybacks and target dividend), and improving cash cover as market prices recover. Expected operational improvement and higher forward power prices would support EBITDA and distributable cashflow going forward, but outcomes remain sensitive to power markets, grid constraints and timing of disposals.