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Investing.com -- Greencoat UK Wind PLC (LON:UKW) on Thursday reported a flat total return for the third quarter, with its net asset value (NAV) per share at 140.7p as of September 30, 2025.
The renewable energy fund faced headwinds from below-budget generation during the seasonally weak quarter, with actual generation coming in 5% below expectations due to lower wind resource.
The main positive contributors to NAV performance included net cash generation (+0.8% on opening NAV), updated inflation assumptions (+0.4%), and share buybacks (+0.3%). These gains were offset by depreciation (-1.0%), lower power price assumptions (-0.6%), and mark-to-market movements on debt (-0.1%).
Cash generation was weaker compared to other quarters, partly reflecting the below-budget generation and the lag effect from the second quarter, which also featured below-budget generation. Power price revenues are received with a one-month lag, while subsidy revenues come with a three-to-four-month lag.
Despite the generation shortfall, the company expects only a modest impact on its full-year dividend cover, which stood at 1.4x at the interim stage. This limited impact is due to the typically low proportion of annual cash flows received in the third quarter.
The valuation impact from power prices and inflation were broadly offsetting. The weakness in power prices likely affected the medium-term part of projections, while inflation strength reflected higher RPI swap prices.
As of September 30, 2025, Greencoat UK Wind’s aggregate group debt stood at £2,138 million, resulting in gross asset value gearing of 41.1%.
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