Greencoat UK Wind reports 1.4x dividend cover despite low wind

Published 14/08/2025, 17:10
Greencoat UK Wind reports 1.4x dividend cover despite low wind

LONDON - Greencoat UK Wind PLC (LSE:UKW) reported a dividend cover of 1.4 times for the six months ended June 30, 2025, despite lower than budgeted wind generation, according to a company press release.

The renewable energy infrastructure fund declared total dividends of 5.18p per share for the period, maintaining its full-year target of 10.35p, which represents a yield of approximately 8.7% at current share prices.

The company has now paid £1.3 billion in dividends since inception and generated an additional £1 billion in excess cash flow that has been reinvested. Greencoat UK Wind reported that its assets generated 2,581GWh of renewable electricity during the period, enough to power approximately 2.2 million homes.

The fund reinvested £40 million into share buybacks during the half-year, adding 0.6p per share to its net asset value (NAV). Total buybacks have reached £131 million at an average price of 130p per share, with the second buyback program providing for at least a further £69 million.

Greencoat UK Wind also announced the partial disposal of three assets for a total of £181 million, with all assets sold at NAV. Cumulative disposals now total £222 million.

As of June 30, 2025, the company’s aggregate group debt stood at approximately £2.25 billion, equivalent to 41.5% of gross asset value, with a weighted cost of debt of 4.59%.

The fund reported that it has delivered a total shareholder return of 140.7% since listing, which it claims is the highest in its peer group.

Lucinda Riches, chairman of Greencoat UK Wind, stated that capital allocation remains a key focus for the company, with potential investment opportunities in the sector expected to provide returns that could surpass those from share buybacks and debt reduction.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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